2016 Objectives Report to Congress

FY 2016 Objectives Report to Congress and Special Report to Congress

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Report Highlights

Preface

FY 2015 has been very challenging for the IRS and incredibly difficult for taxpayers and their representatives, particularly in the area of taxpayer service. There is no doubt that the deficiencies in taxpayer service are substantially attributable to a lack of resources. Over the long term, temporary periods of limited funding can have the salutary effect of causing an organization to rethink its mission and allocate its resources more effectively. The IRS is, in fact, evaluating ways to accomplish its mission more cheaply. But from a taxpayer perspective, I am concerned its long-term approach is headed in the wrong direction.

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Volume II

In her 2014 Annual Report to Congress the National Taxpayer Advocate identified, analyzed, and offered recommendations to assist the IRS and Congress in resolving 23 of the most serious problems (MSPs) encountered by taxpayers. She also made recommendations in conjunction with a study of IRS identity theft procedures. Volume II of this report includes the IRS formal comments on our recommendations, together with the National Taxpayer Advocate’s analysis of and responses to the comments. In this way, we retain full transparency regarding the IRS’s perspective on our recommendations to address the Most Serious Problems while still complying with the statutory protections.

Full Report

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Report Graphics

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“The 2015 filing season was akin to A Tale of Two Cities. For the majority of taxpayers who filed their returns and did not require IRS assistance, the filing season was generally successful. For the segment of taxpayers who required help from the IRS, the filing season was by far the worst in memory.”

Nina Olson, National Taxpayer Advocate

Selected Areas of Focus

As the IRS Migrates to More Self-Service Tools and Online Services, Low Income and Other Vulnerable Taxpayer Populations May Face Greater Compliance Challenges

The IRS’s Implementation of FATCA Has in Some Cases Imposed Unnecessary Burdens and Failed to Protect the Rights of Affected Taxpayers

The IRS Agrees It Should Issue Refunds to Victims of Return Preparer Fraud, But It Has Been Slow to Develop Necessary Procedures

Review of the 2015 Filing Season

The IRS’s Administration of the Affordable Care Act Has Gone Well Overall, But Some Glitches Have Arisen

The IRS Should Provide Victims of Identity Theft with a True Single Point of Contact to Help Them Resolve Their Account Problems and Obtain Their Refunds