Kelly Bullis: Details of recent Taxpayer First Act

With the ongoing news about never-ending Congressional investigations, one would think that the Congress and the President aren’t able to get anything done together. Not true!

Example in point, the recent “Taxpayer First Act” signed into law by President Trump on July 1.

Basically, this was the culmination of a long process to “modernize” the IRS a bit.

Here are the top 10 key points of this act:

MODERNIZING OPERATIONS. The act requires that the IRS submit to Congress plans for redesigning its infrastructure. Goal is to improve efficiency through better use of current technology.

INDEPENDENT APPEALS OFFICE. IRS is directed to make it easier for any taxpayer with a legitimate claim to request an independent appeal. Any denial of that request, the IRS must give a written reason for the denial.

OFFER IN COMPROMISE (OIC) WAIVERS. Defines who gets automatic waiver of “user fees” associated with making an OIC. If Adjusted Gross Income (AGI) is below 250% of poverty level.

PRIVATE COLLECTION AGENCIES. Now IRS can not use them if AGI is below 200% of poverty level.

IRS SEIZURES. This is related to the failure to report over $10,000 cash transactions penalty. Now IRS is limited from seizing property for cases that were not derived from an illegal source, or not deliberately structured to conceal criminal activity.

ID THEFT. This new law establishes a single point of contact within the IRS for any taxpayer who is victimized by ID theft, as well as expands the Personal ID Number program.

THIRD PARTY CONTACTS. During an audit, the IRS can initiate contact with third parties, now they must provide written notice to the taxpayers at least 45 days before making those contacts.

DIRECT TAX PAYMENTS. Now the IRS can accept direct tax payments via credit card.

WHISTLEBLOWERS. IRS is now authorized to communicate with whistleblowers during the processing of their claims while protecting their privacy.

HOLD TIME. No more “hold music!” Instead, you will be listening to somebody at the IRS provide recorded information about current common tax scams and how to report them.

There you have it. At least hopefully now we will get to experience a friendlier, more technically savvy IRS in the near future. What excites me the most is no more “hold music!”

Did you hear? Ecc 1:9 says, “What has been is what will be, and what has been done is what will be done, and there is nothing new under the sun.”

Kelly Bullis is a Certified Public Accountant in Carson City. Contact him at 882-4459. On the web at BullisAndCo.com Also on Facebook.