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2012 Annual Report to Congress

The National Taxpayer Advocate’s (NTA) Annual Report to Congress creates a dialogue within the IRS and the highest levels of government to address taxpayers’ problems, protect taxpayers’ rights, and ease taxpayers’ burden.

The report identifies at least 20 of the most serious problems facing taxpayers and offers recommendations to fix them. Some of the issues, like tax reform and the IRS’s need to expand its various taxpayer services, affect virtually every American taxpayer. Others, like the Alternative Minimum Tax, refund delays, and tax-related identity theft, impact large groups of taxpayers.

The Taxpayer Advocate Service (TAS), led by the NTA, is your voice at the IRS. Some of the problems discussed in this report were first identified when taxpayers came to TAS for help in resolving problems with the IRS.

TAS is an independent organization within the IRS. The NTA delivers this report directly to the tax-writing committees in Congress (the House Committee on Ways and Means and the Senate Committee on Finance), with no prior review by the IRS Commissioner, the Secretary of the Treasury, or the Office of Management and Budget.

The three primary sections of the report include:

Most Serious Problems Encountered by Taxpayers

The NTA’s Annual Report to Congress identifies the most serious problems facing taxpayers and recommends solutions to those problems.

Read more about the most serious problems facing taxpayers today.

Legislative Recommendations

The Annual Report to Congress includes recommendations for new federal tax laws or changes to current ones to resolve problems.

Read more about the Legislative Recommendations to Congress.

Most Litigated Issues

The NTA’s report includes an analysis of the top 10 most litigated issues in federal courts. These include:

  1. Summons Enforcement Under IRC §§ 7602, 7604, and 7609
  2. Accuracy-Related Penalty Under IRC §§ 6662(B)(1) and (2)
  3. Appeals From Collection Due Process Hearings Under IRC §§ 6320 and 6330
  4. Trade or Business Expenses Under IRC § 162 and Related Sections
  5. Gross Income Under IRC § 61 and Related Sections
  6. Failure to File Penalty Under IRC § 6651(a)(1), Failure to Pay an Amount Shown As Tax on Return Under IRC § 6651(a)(2), and Failure to Pay Estimated Tax Penalty Under IRC § 6654
  7. Civil Actions to Enforce Federal Tax Liens or to Subject Property to Payment of Tax Under IRC § 7403
  8. Frivolous Issues Penalty Under IRC § 76673 and Related Appellate-Level Sanctions
  9. Relief From Joint and Several Liability Under IRC § 6015
  10. Limitations On Assessment Under IRC § 6501