Every year the Taxpayer Advocate Service (TAS) helps thousands of people with tax problems. This success story is only one of many examples of how TAS helps resolve taxpayer issues.

A taxpayer contacted TAS for assistance when their tax return was selected for audit and they were unable to resolve the audit through regular channels. TAS advocated for the taxpayer by providing a signed statement from their landlord that included the names of the taxpayer and their dependents, the start date of the lease, and the landlord’s contact information.

Every year the Taxpayer Advocate Service (TAS) helps thousands of people with tax problems. This success story is only one of many examples of how TAS helps resolve taxpayer issues.

Since 1998, Congress has authorized funding for Low Income Taxpayer Clinics (LITCs) to provide free or low-cost legal representation and tax assistance to low-income taxpayers. TAS partners with LITCs throughout the country. We are happy to share one recent example of the effective partnerships between TAS and LITCs. 

Every year the Taxpayer Advocate Service (TAS) helps thousands of people with tax problems. This success story is only one of many examples of how TAS helps resolve taxpayer issues.

A taxpayer and their representative came to TAS for help with several years of amended returns. The taxpayer had included non-taxable income on several tax returns and owed substantial balances on those returns. They filed amended returns asking that the non-taxable income and related tax be removed. 

Every year the Taxpayer Advocate Service (TAS) helps thousands of people with tax problems. This success story is only one of many examples of how TAS helps resolve taxpayer issues.

A power of attorney (POA) called TAS for help resolving a client’s balance due. The POA had submitted documents to the IRS showing that the taxpayer did not owe taxes for the sale of a house. The documents were not accepted, and the IRS adjusted the taxpayer’s account, creating a large balance due.

One persistent challenge the IRS continually deals with is preventing fraudulent refunds from being issued. Sadly, this phenomenon has become more and more common, as the number of refundable credits and their values continue to increase, such as the Earned Income Tax Credit (EITC), the Additional Child Tax Credit (ACTC), and the Recovery Rebate Credit (RRC). One way the IRS has addressed this issue is to screen tax returns to determine if income and wages are correct and if the legitimate taxpayer truly filed the tax return. This blog addresses issues where the IRS, through its screening process, flags the tax return as potential IDT; processing of the tax return is suspended; and a letter is sent to the filer asking them to authenticate their identity and certain tax return items before processing can resume.

A taxpayer sought TAS assistance in getting an amended return considered. The IRS initially denied the claim, stating it was not timely. The taxpayer appealed the claim denial, and the Appeals Officer confirmed the claim was timely and eligible for consideration. However, the IRS still did not process the claim. TAS issued a formal request for claim consideration, but the IRS failed to take the requested action. TAS then issued a Taxpayer Assistance Order (TAO) requiring the IRS to consider the claim. After receiving the TAO, the IRS processed the amended return and issued a refund to the taxpayer. TAS’s actions protected this taxpayer’s rights to finality and to pay no more than the correct amount of tax.  

A TAO is one of the ways that TAS protects these and other taxpayer rights. A TAO is a powerful statutory tool to resolve taxpayer problems. If TAS determines that a taxpayer faces significant hardship and the facts and the law support relief, it may issue a TAO when the IRS refuses or otherwise fails to provide the relief that TAS requests to resolve a case. TAS can issue a TAO to order the IRS to take an action, cease a certain action, or refrain from taking a certain action. TAS, however, cannot use a TAO to make a substantive determination of any tax liability. TAS may also use a TAO to order the IRS to expedite consideration of a taxpayer’s case, reconsider its determination in a case, or elevate review of the case.  

https://www.taxpayeradvocate.irs.gov/?page_id=32174&preview=trueA single mother in her 30s was denied her claims for the Earned Income Tax Credit (EITC) and related credits for a recent tax year and missed the deadline to appeal the decision to the U.S. Tax Court. She sought help from an LITC, which connected her with a pro bono volunteer attorney who filed an audit reconsideration request on her behalf. The attorney presented new evidence to prove the taxpayer’s son resided with her and that she provided his financial support. The IRS reversed its decision and awarded her the refund. The pro bono attorney went further, helping to amend the taxpayer’s other tax returns to claim her son as a dependent and for the EITC, which provided much needed additional refunds.

On January 30, 2025, Senators Mike Crapo, Chairman of the Senate Finance Committee, and Ron Wyden, the Committee’s ranking member, jointly introduced a discussion draft of the Taxpayer Assistance and Service (“TAS”) Act. This proposed legislation represents a comprehensive effort to enhance U.S. tax administration. Of its 68 provisions, about 40 align with recommendations I’ve advocated for in my recent Annual Reports to Congress and Purple Book of Legislative Recommendations.

Disasters can happen at any time, so it’s important to be prepared. Good recordkeeping can help you get back on your feet quickly when disaster strikes.  

One of the best things you can do to keep your records safe is to take advantage of paperless recordkeeping options in addition to your paper records. This way, you’ll always have access to things like bank statements and tax records, even if your paper copies are destroyed. Creating your online account with the IRS ensures you have access to online transcripts, notices, and other tax information.  

Every year the Taxpayer Advocate Service (TAS) helps thousands of people with tax problems. This success story is only one of many examples of how TAS helps resolve taxpayer issues.

A taxpayer contacted the IRS to resolve a balance due that exceeded $150,000, which required the taxpayer establish a short-term payment plan. However, the IRS assistor didn’t finalize the agreement on the taxpayer’s account, resulting in the taxpayer’s bank account being levied with over $20,000 being attached.

On May 5, 2023, the U.S. Tax Court released Administrative Order 2023-02, announcing changes to the Tax Court’s electronic filing and case management system that will protect taxpayers’ right to be informed. Beginning August 1, 2023, the Tax Court’s electronic filing and case management system will make all newly filed post trial briefs filed by government and non-government practitioners admitted to practice before the Tax Court and all newly filed amicus briefs filed pursuant to Rule 151.1 of the Tax Court Rules of Practice and Procedure in non-sealed cases available to the public remotely. This is a welcome step forward. With limited exceptions, all non-sealed documents are “public records open to the inspection of the public,” pursuant to IRC § 7461, and maintaining easy access to those public records is important for tax practitioners as well as non-practitioners. The Administrative Order limited the posting of briefs to those filed by “practitioners admitted to practice before the Court.”  In fiscal year 2022, taxpayers petitioned the Tax Court without a practitioner representing them in about 90 percent of cases so that will limit the number of petitioner briefs available for electronic viewing. But this should not limit the number of briefs filed by the government as its attorneys are admitted to practice before the Tax Court.

Your tax return may show you’re due a refund from the IRS. However, if you owe a federal tax debt from a prior tax year, the IRS may keep (offset) some or all your tax refund to pay your debt. The CP49 notice is mailed to taxpayers to notify them that the IRS used all or part of their refund to pay a federal tax debt owed.  

The IRS agreed to return of levy. A taxpayer contacted TAS because the IRS had been levying their Social Security benefits for payment of an outstanding tax liability. The taxpayer was facing an economic hardship and needed the Social Security income for their necessary living expenses. 

The assigned case advocate determined that because of the taxpayer’s financial hardship, the IRS should release the levy. The case advocate developed a persuasive recommendation to not only release the levy but to suspend collection on the account and issue a refund for the last two years’ levy payments, the maximum allowed by law. 

The IRS agreed to release the levy, report the account as currently not collectible, and refund the last two years’ levy payments to alleviate the taxpayer’s financial hardship. 

In this case, TAS advocated to protect the taxpayer’s rights to challenge the IRS’s position and be heard and to a fair and just tax system. Read more about Taxpayer Rights. 

Every year the Taxpayer Advocate Service (TAS) helps thousands of people with tax problems. This success story is only one of many examples of how TAS helps resolve taxpayer issues.

A certified public accountant (CPA) filed an amended Form 1041, U.S. Income Tax Return for Estates and Trusts, on behalf of their client. The executor of the estate was unable to distribute the estate’s assets to the beneficiaries and close the estate until the amended return was accepted by the IRS and processed. After waiting more than 20 weeks, the CPA requested a transcript to determine the status of the claim. Since the CPA’s Form 2848, Power of Attorney and Declaration of Representative, hadn’t been processed, the IRS rejected his request. That’s when the CPA contacted TAS for assistance.

Reducing your tax liability may be tempting; however, many social media schemes are illegal and can lead to serious consequences.