Taxation & Estate Planning

National Taxpayer Advocate, Nina Olsen pushing Congress for IRS Apology Payments??

By Darrin Mish

The National Taxpayer Advocate, Nina Olsen, urged Congress to grant her discretion to make tax free IRS apology payments to citizens wronged by the actions of the Internal Revenue Service. The National Taxpayer Advocate is independently appointed by Congress to help oversee the actions of the Internal Revenue Service and to report annually to Congress with observations and recommendations.

In her annual Report to Congress issued on January 9, 2008, Ms. Olsen indicates that our tax system is based upon a "social contract" between the government and its taxpayers. As part of this social contract, taxpayers agree to voluntarily report their earnings and pay their taxes and the government agrees to provide the oversight and "service" necessary to insure that taxpayers can and will do so.

According to Ms. Olsen, such a fair tax system should ensure that not only taxpayer's mistakes are penalized. Obviously the IRS makes mistakes and therefore should not be held harmless when they do so. In cases, where "such situations cause excessive expense or undue burden on the taxpayer, she proposes that an IRS apology payment is in order. These payments will range from $100 to $1000 and would be reserved primarily for special cases. Her office would retain total discretion to issue such payments and they would be tax free!!

I personally think that this is a great step in the right direction! As a Tax Attorney focusing on IRS Problem Resolution, I see IRS abuse and incompetence on a daily basis. Most IRS employees are diligently attempting to perform their difficult job with limited resources, however I routinely come across IRS employees who act as if the IRS is above the law and that private citizens have no recourse against injustice. IRS Apology Payments will make a small incentive for the IRS to follow the law and properly observe the rights of every taxpaying American citizen. Hopefully taxpayers with IRS Problems will now be better able to resolve them without enduring abuse or mistakes at the hands of the IRS.

Tampa Tax Attorney, Darrin T. Mish is a Nationally Recognized Attorney practicing in the area of IRS Probem Resolution. He lectures to other attorneys, CPAs and Enrolled Agents all across the country regularly about representing clients before the Internal Revenue Service and how to resolve their most challenging cases. He represents clients throughout the United States and can be reached tollfree at (888) 438-6474.

Full post as published by IRS Problem Solver Blog on January 10, 2008 (boomark / email).