Protecting Taxpayers

Nebraskans recently wrapped up the tax preparation process, and we all know filing is no easy task. According to the National Taxpayers Union Foundation, Americans spend more than six billion hours complying with the 10,000-page tax code, costing our economy $234 billion annually.

One of the best ways we can grow our economy is by simplifying the tax code. On the Ways and Means Committee, we are committed to continuing our work on this crucial effort. Our tax code was last updated in 1986 – a generation ago – and is increasingly burdensome in today’s global economy.

We have already taken significant steps, such as improving certainty for American families and businesses by making more than 20 tax relief provisions permanent in December, ending the cycle of continually renewing them. One of these provisions makes higher expensing levels under Section 179 of the tax code permanent to allow small businesses to invest in needed equipment while knowing those expenses will not be taxed up front by the federal government.

While we pursue more comprehensive reforms, the lack of accountability repeatedly demonstrated by the Internal Revenue Service (IRS) requires immediate action. The IRS’s offenses include targeting taxpayers and irresponsibly directing resources away from its core function of taxpayer services, resulting in an abysmal 2015 tax filing season.

In 2014, the IRS used only 44 percent of its user fee account on taxpayer services. This number dropped significantly in 2015, with the IRS using only 10 percent of its user fee account on these services. Taxpayers across the country felt the pain of this choice.

Additionally, according to a report by the Government Accountability Office, only 38 percent of callers needing to speak to an IRS representative last year were able to reach one.

Our tax system depends on voluntary compliance, but inadequate taxpayer assistance makes it more difficult to comply and can encourage cheating. This is why the Ways and Means Committee recently passed multiple bills to protect taxpayers and address the IRS’s track record of poor management. Here are a few examples:

• The IRS OWES Act enforces congressional oversight of IRS user fees by directing them to the U.S. Treasury’s general fund and subjecting them to the congressional appropriations process.

• The Ensuring Integrity in the IRS Workforce Act prohibits the IRS from rehiring any individual who was previously employed by the agency but fired for misconduct.

• The Preventing IRS Abuse and Protecting Free Speech Act prohibits the IRS from collecting the identity of donors who contribute to tax-exempt organizations in order to prevent the IRS from targeting Americans based on their political beliefs.

• The Stolen Identity Refund Fraud Prevention Act requires the IRS to notify taxpayers if their identities have been compromised, makes it easier to work with the IRS to resolve identity theft cases, and establishes actions the IRS must take to prevent identity theft.

The first two bills have already passed the House, while the second two have passed the Ways and Means Committee and will soon come to the House floor for a vote.

The IRS requires the highest standard of compliance from taxpayers, making the agency’s own actions unacceptable. It should not take an act of Congress to hold the IRS accountable to its own standards, but this legislation is necessary to put taxpayers first.

To any Third District residents experiencing difficulties with the IRS, my office is here to help. My congressional caseworkers have years of experience dealing with the agency and can be reached at my Grand Island office by calling 308-384-3900. My office also hosts Caseworker in Your Community events throughout the Third District to better serve constituents in all 75 counties. To learn about Caseworker in Your Community and other service events throughout the Third District, please subscribe to my e-newsletter at AdrianSmith.house.gov/Newsletter.