Letter 3219-C is mailed to taxpayers informing them that the IRS is proposing a deficiency or disallowing a claim for refund or a credit for a subsequent period’s estimated tax.

On March 11, 2024, the Treasury Department released its fiscal year (FY) 2025 Green Book of revenue proposals, which includes a proposal to essentially eliminate almost all remaining requirements to obtain written supervisory approval for penalties. Rather than focus on training IRS employees and enforcing the law enacted by Congress to protect taxpayer rights, Treasury is proposing Congress basically gut the penalty approval provisions to prevent future errors by the IRS irrespective of the impact to taxpayers. Most notably, the proposal eliminates the written approval requirement for penalties imposed under IRC § 6662 for underpayments of tax, IRC § 6662A for understatements with respect to reportable transactions, and IRC § 6663 for fraud penalties. While those penalty provisions might appear to be a small portion of the penalties the IRS imposes, it is important to note that about 98 percent of penalties are already exempt from such supervisory approval requirement pursuant to IRC § 6751(b). This proposal would eliminate the requirement for almost all the remaining two percent of penalties. I would rather see the law properly applied to protect taxpayer rights rather than eliminated just because the IRS has needed to concede penalties when its employees did not follow the law. The IRS should follow and consistently apply the Internal Revenue Code to all taxpayers and the IRS.

If you disagree with an IRS employee decision regarding the lien filing, intent to levy, or levy then you can appeal to their manager also called Collection Appeals Program (CAP).

In a previous blog post, I discussed how IRS Online Accounts must provide additional functionality and integration with existing tools to meet the needs of taxpayers and tax professionals. Today, I would like to zoom out and look at the larger picture – the usability of IRS.gov. In this two-part series, I will discuss three aspects of IRS.gov: the search engine, visual layout, and website content and how it can be improved to benefit taxpayers and tax administration, and to reduce frustration and confusion for taxpayers and tax professionals.

As March Madness basketball brackets dominate our screens, it’s hard not to think about the 68 teams involved in the tournament. This number also mirrors the 68 provisions in the Taxpayer Assistance and Service (or “TAS”) Act, a significant discussion draft aimed at improving tax administration. Among these provisions, one in particular stands out as familiar for its potential to help vulnerable taxpayers. Section 110 of the draft TAS Act would unlock the funding restrictions for the Low Income Taxpayer Clinic (LITC) Program. This reform would be a slam dunk for taxpayer rights and ensure that low-income taxpayers get the professional representation and assistance they deserve in tax disputes.

The IRS may send a number of different collection notices such as the Letter 11 or Letter 1058 in its attempt to collect a tax liability. Once you start the Innocent Spouse process, you may one of many additional letters/notices.

Last month, Congress passed the Inflation Reduction Act (IRA22), which provides the IRS with supplemental funding of nearly $80 billion over the next ten years. More than half the funding has been earmarked for tax law enforcement, and that has attracted a good deal of public attention.

Preparing your taxes doesn’t have to be scary, but this spooky season I would like to share an example of how things can go frightfully wrong. Imagine this terrifying scenario: Someone offers to prepare your tax return, promising a big refund. All you have to do is take their word for it and look the other way, or sign a blank tax return, and they do the rest to work their magic.

The IRS announced it is ending the practice of unannounced visits from its revenue officers. The policy change is due to the rise in tax scams and taxpayer confusion over verifying an IRS employee’s identity, leading to safety concerns for both taxpayers and IRS employees. This is good news for taxpayers since they will no longer be caught off guard and unprepared to discuss their unpaid taxes. Additionally, there is the benefit of an improved taxpayer experience when taxpayers receive advance notice and other information in the mail.

The IRS corrected one or more mistakes on your tax return.

Letters 525, General 30-Day Letter, and 915, Examination Report Transmittal, are 30-day letters you receive when the audit of your tax return results in proposed adjustments.

I’ve discussed the good and bad IRS responses to the administrative recommendations in my 2023 Annual Report to Congress. Now, it’s time to address the concerning responses that need improvement. Two Most Serious Problems – international information return (IIR) penalties and compliance challenges faced by taxpayers abroad – had disappointing responses from the IRS. Of the 15 recommendations I made regarding these two problems, the IRS fully adopted only two and completely rejected six for this underserved community of international taxpayers. I highlight a few of the IRS responses in this blog.