Even more change is coming for the Internal Revenue Service (IRS). On July 1, 2019, President Donald Trump signed into law the Taxpayer First Act of 2019.
What is the Taxpayer First Act of 2019?
This new law aims at increasing the agency’s customer service capacity while also updating the agency’s technology and cyber security.
Additional changes will impact the following processes:
- Audits. The law will also result in a separate Office of Appeals within the IRS. This could help to streamline the appeals process for those who disagree with the finding of an IRS audit.
- Collections. The Taxpayer First Act reduces the cost of the offer in compromise (OIC) program. This program allows taxpayers to negotiate a tax payment with the IRS that is less than the actual tax bill. It provides an opportunity for those who are struggling to meet their tax obligation to resolve the issue with the agency. The change to this program may make it an even more appealing option.
- Whistleblowers. The law also eases the ability of employees and others to bring attention to the potential commission of tax crimes by others. The change could lead to an increase in cases, with some potentially fueled by false allegations of wrongdoing.
Although the law is presented as an opportunity for the agency to take on a pro-taxpayer role, some of the changes could lead to problems. We will watch the implementation of this law and provide updates on any cases or issues that emerge as the law goes into effect.