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Problems with the IRS: Do You Agree?

(Part two of two)


As we discussed in our previous blog, Taxpayer Advocate Nina Olson recently released her 2016 Annual Report to Congress. Here are the next nine of the report’s 19 Most Serious IRS Problems:

  1. Payment cards: Payment cards serve as a viable option for refund delivery to the unbanked and underbanked, but security concerns need to be addressed.
  2. Private debt collection (PDC): The IRS’ new PDC program likely acts inconsistently with the law and financially burdens taxpayers, especially those experiencing economic hardship and struggling with budget planning.
  3. Allowable living expense (ALE) standard: The IRS’ development and use of ALEs does not adequately ensure taxpayers can maintain a basic standard of living for the health and welfare of their households while complying with tax obligations.
  4. Appeals: The office of appeals’ approach to case resolution proves neither collaborative nor taxpayer friendly, and its Future Vision should incorporate those values.
  5. Alternative dispute resolution (ADR): The IRS routinely fails to use ADR effectively as a means of achieving mutually beneficial outcomes for taxpayers and the government.
  6. Foreign Account Tax Compliance Act (FATCA): The IRS’ approach to international tax administration unnecessarily burdens impacted parties, wastes resources, and fails to protect taxpayer rights.
  7. Installment agreements (IAs): The IRS fails to properly evaluate taxpayers’ living expenses, placing individual taxpayers in IAs they cannot afford.
  8. Individual taxpayer identification numbers (ITINs): IRS processes for ITIN applications, deactivations, and renewals prove problematic, further inconveniencing taxpayers.
  9. Form 1023-EZ: The IRS’ reliance on Form 1023-EZ erroneously grants Internal Revenue Code §501(c)(3) status to unqualified organizations.

These issues, along with the ten we covered last week, negatively impact taxpayers’ rights, though the Taxpayer Advocate’s office offers improvements for each area. For additional information included in her voluminous report, visit:

If you need assistance with your corporate or individual tax return, the professionals at the accounting firm of Patrick & Robinson CPAs hold decades of financial consulting experience. Contact us at or 904-396-5400.

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