Micah Andrews opened his first notice from the Internal Revenue Service a week before Christmas in 2010. He was standing in the kitchen of the house in the Atlanta suburbs that he and his wife had bought to make space for their new baby.
The U.S. Internal Revenue Service suspended its regulation of tax-return preparers after a federal court ruling said the agency lacked authority, removing a tax- compliance tool that was years in the making and raising concerns from the national taxpayer advocate.
The U.S. tax system’s most serious problem is the 4-million-word code’s excessive complexity that makes it tough for taxpayers to comply with and difficult for the government to administer, National Taxpayer Advocate Nina Olson wrote in an annual report to Congress.
Criminal tax evaders have an easier time coming clean with the Internal Revenue Service than those who didn’t intend to hide money from U.S. authorities, according to Nina Olson, the National Taxpayer Advocate.
Potential late action this year by Congress on expired tax provisions might mean significant delays and complications for taxpayers filing returns in early 2013, National Taxpayer Advocate Nina Olson wrote in a report released today.
Congress should rewrite the U.S. tax code to remove special-interest breaks and make them easier to obey, and detail how the government spends taxpayers’ money, the annual report by the IRS’s Taxpayer Advocate says.
Benny Watters, 5, died of a brain tumor in September 2010. Ten months later, when his parents sought to file their taxes and claim him as a dependent, they found that an identity thief already had done so, using government data about Benny’s death on a fraudulent return.