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National Taxpayer Advocate’s 2012 Annual Report to Congress

January 11, 2013

National Taxpayer Advocate’s 2012 Annual Report to Congress
Source: Internl Revenue Service
From press release:

National Taxpayer Advocate Nina E. Olson today released her 2012 Annual Report to Congress, identifying the need for tax reform as the overriding priority in tax administration. The Advocate also expressed concern that the IRS is not adequately funded to serve taxpayers and collect tax, and identified ways in which this chronic underfunding harms taxpayers and the public fisc. She also found that the IRS is not doing enough to assist victims of tax-related identity theft and return preparer fraud.

The National Taxpayer Advocate’s annual report designates the complexity of the tax code as the #1 most serious problem facing taxpayers and recommends that Congress take significant steps to simplify it. “The existing tax code makes compliance difficult, requiring taxpayers to devote excessive time to preparing and filing their returns,” Olson wrote. “It obscures comprehension, leaving many taxpayers unaware how their taxes are computed and what rate of tax they pay; it facilitates tax avoidance by enabling sophisticated taxpayers to reduce their tax liabilities and provides criminals with opportunities to commit tax fraud; and it undermines trust in the system by creating an impression that many taxpayers are not compliant, thereby reducing the incentives that honest taxpayers feel to comply.”

See also: National Taxpayer Advocate’s FY 2013 Objectives Report to Congress (PDF)

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