IRS Confesses Tax Code Incomprehensible (ASTOUNDING Admission by feds)

U.S. Treasury Department ^ | Oct. 8, 2002 | Pam Olson

[Middle Man]

FROM THE OFFICE OF PUBLIC AFFAIRS
October 8, 2002
PO-3516

TREASURY ASSISTANT SECRETARY FOR TAX POLICY PAM OLSON REMARKS TO THE NEW MEMBERS OF THE TAXPAYER ADVOCACY PANEL

Treasury Assistant Secretary for Tax Policy Pam Olson met with the new members of the Taxpayer Advocacy Panel yesterday. The new Taxpayer Advocacy Panel members are here in Washington for three days of orientation and meetings:

Good morning. I appreciate the opportunity to be with you today.

The IRS is the largest bureau within the Treasury Department. It touches more citizens on a regular basis than any other agency in the federal government. It is often the only point of contact citizens have with the federal government. No other agency has a greater capacity to affect the way our countrymen feel about their government. The IRS serves an important, but sometimes unpopular role in our country - it collects the funds necessary for our government to operate. Americans must rely on the IRS to administer our tax system in a fair and efficient manner, with as little intrusion into peoples’ lives as possible. Our goal, in which you join us, is to ensure that is the case.

Secretary O’Neill and Commissioner Rossotti have challenged the IRS to deliver world class customer service to America’s taxpayers. Under Commissioner Rossotti’s leadership, the IRS has taken important steps in that direction. Attitudes and practices have changed in ways that will improve tax administration for years to come. The agency is being reshaped to make it more friendly and accessible to taxpayers. Commissioner Rossotti is leaving a legacy of customer service at the IRS, and this program is part of that legacy. Nevertheless, much remains to be done, and that is where you come in.

The government often loses touch with the needs and concerns of the citizenry[!]. The IRS is no exception. For example, taxpayers need to know up-front what their tax paying responsibilities are so they can comply with the law. But, the tax law is far too complex for that to be possible[!]. Individuals and businesses face significant challenges in understanding the tax laws, keeping required records, and filling out numerous complicated and detailed tax forms, which often require working through lengthy and difficult instructions, ending in cumbersome calculations. It is imperative that the government simplify the tax law and its administration to make compliance easier for taxpayers.

Although much simplification depends on congressional action, there is much the IRS and Treasury can accomplish without such action. Unfortunately, rather than simplifying things for taxpayer, the IRS often makes the problem worse by interpreting the law in a manner that is literally or theoretically correct, but that is divorced from reality and that offends common sense[!]. Problems arise when the IRS spends too much time trying to get the perfect answer for every possible situation – the rules become unnecessarily complicated, with too many specialized rules, exceptions, and exceptions to the exceptions. The IRS gets bogged down with too many rules, too many procedures, and too much rigidity. And the taxpayers suffer.

[Middle Man]

Most of the letter is standard public relations boilerplate. Still, there are startling admissions contained in it from the nation's biggest racketeer.

[CobaltBlue]

The IRS doesn't write the law, Congress does. Pray for a Republican congress after the election, and we may finally get some reform.

[justshe]

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[OldFriend]

We had an amazing enounter with the IRS about ten years ago. It was resolved only after they froze our business banking accounts and our personal checking accounts.

Since my husband did business in two states, they decided he must be two people and should have paid twice the amount of tax. It made no sense at all and the 'sorry for any inconvenience' letter that came after about two months was small consolation for not being able to pay any bills.

[Middle Man]

"Pray for a Republican congress after the election, and we may finally get some reform."

Actually, a Republican Congress did push through reform following the Roth Senate hearings in '97 with the 1998 IRS Restructuring and Reform Act. But the IRS has been thumbing its nose at that law ever since its enactment (notwithstanding the letter's grandiose claim that Commissioner Rossotti is busy building a "legacy" of excellence and strong customer service).

And the courts -- up to and including the Supreme -- have been only too willing to rule in the government's favor.

[rwfromkansas]

Quite interesting.............

[Middle Man]

What they did to you and your husband was absolutely illegal. The IRS has no enforcement powers with regard to the income tax. They've been abusing it for so long the American people have just come to accept it, and our elected officials respond to these atrocities by writing constituents to "thank you for sharing your concerns about our tax system".

[OldFriend]

We live in a very small town, everyone knows everyone, and soon everyone 'knew' that we had our bank accounts frozen.........

I wanted to print their 'sorry for the inconvenience' letter in the local paper.

[Free the USA]

http://www.freerepublic.com/perl/bump-list

[VOA]

The IRS doesn't write the law, Congress does. Pray for a Republican congress after
the election, and we may finally get some reform.

If the Republican tidal wave of 1994 didn't fundamentally change things...

OK, maybe with a Republican president...but I won't hold my breath.

[RipSawyer]

You have my sympathy, I know what a hassle it is trying to get these people to correct their own mistakes. The attitude that created the problem is apparent in the first part of the post when the reference is made to "customer service". Anyone who can refer to a taxpayer as a "customer" of the IRS has surrendered his soul already. Why is it that muggers never refer to their victims as "customers"?

[OldFriend]

I do believe there has been legislation passed that puts the burden on the IRS rather than the taxpayer. And there is the 'innocent spouse' legislation......so perhaps bit by bit we can make things better.

For now the only thing that provides any hope is their total inefficiency and incompetency.

[Middle Man]

"...there has been legislation passed that puts the burden on the IRS rather than the taxpayer."

We can thank Jim Traficant for that provision of the law. When Rep. Ron Paul was asked why he backed out of his initial support for the Truth In Taxation hearings, he rhetorically asked an interviewer, "Did you see what happened to James Traficant and George Hansen?"

When people say the IRS is a terrorist organization, it's not a figure of speech.

[OldFriend]

No doubt in my mind that the IRS is a terrorist organization. Imagine people willing to testify only if their identities were protected.

As for Paul, there are no words, but he has rendered himself irrelevant.

[lewislynn]

Pray for a Republican congress after the election, and we may finally get some reform.

LOL!...Been there, done that, (1994-2000) didn't work, won't work.

Former Ways and Means Chairman, Bill Archer, who claimed we needed to rip the tax code out by it's roots...added over 800 pages to it.

[EternalVigilance]

But of course you are just full of solutions, aren't you Lewie? /extreme sarcasm

You fall into the 'let's-all-take-the-cyanide-now-there's-no-hope" camp.

Not me...I continue to work to elect Republicans who believe in true reform. One of these days we will reach critical mass, and then the chain reaction will occur so fast it will make your head spin.

I choose optimism and hope, and not your prescription--pessimism and despair.

EV

[Skooz]

Ditto ditto ditto.

[lewislynn]

But of course you are just full of solutions, aren't you Lewie?

I think you meant Louie, but I'm as full of solutions as the frauds you're supporting...BTW, who are those Republicans "who believe in true reform"? And while you're at it have them define what they call "true reform".

Last I looked your favorite HR2525 had (count'em) -4- Republicans (and Gary Condit) signed on....The other was the Tauzin/ Trafficant bill. Not exactly falling all over themselves for your idea of reform are they?

I choose optimism and hope

I choose honesty, action and history as my guide , liberals choose rhetoric and "hope" as theirs.

With a Republican president/Congress spending like a drunken sailor (it ain't all for defense either)you might want to be careful about wishing for "tax reform".

[ancient_geezer]

You haven't answered EV's question lewislynn, I'm curious as to what reform you advocate. It would appear you are content to leave the current tax system in place without any changes.

So what changes do you want in the tax system if any?

[Taxman]

Sorry to hear that you had an unpleasant encounter with the IRS. But then, most encounters with the IRS are unpleasant. Please click here or here to educate yourself about an alternative.