[Congressional Record Volume 158, Number 99 (Thursday, June 28, 2012)]
[Extensions of Remarks]
[Page E1172]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




        INTRODUCTION OF THE TAXPAYER BILL OF RIGHTS ACT OF 2012

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                          HON. XAVIER BECERRA

                             of california

                    in the house of representatives

                        Thursday, June 28, 2012

  Mr. BECERRA. Mr. Speaker, I have introduced the Taxpayer Bill of 
Rights every Congress since 2008, and today I am proud to introduce the 
Taxpayer Bill of Rights Act of 2012, legislation that contains 
important provisions to improve services for and protect the rights of 
American taxpayers, particularly those with modest incomes. Senator 
Bingaman of New Mexico, a dedicated advocate for taxpayer rights, is 
introducing companion legislation in the Senate. Many of these 
provisions are based on proposals from the National Taxpayer Advocate, 
Nina Olson, who has long been a champion of improving taxpayer services 
and tax administration at the Internal Revenue Service (IRS).
  As former Nixon Treasury Secretary William Simon said, ``The nation 
should have a tax system that looks like someone designed it on 
purpose.'' As we look for ways to restructure the tax code to make it 
fairer and more transparent for all taxpayers, it is critical that 
ideas to help improve IRS service and accessibility are included in 
this conversation. Every year, millions of taxpayers file their returns 
with the IRS and inevitably issues of tax administration come to the 
forefront. These issues range from taxpayers not knowing their legal 
rights when interacting with the IRS, to taxpayers enlisting 
unscrupulous or poorly-trained preparers to help them complete one of 
their most important financial transactions of the year. This 
legislation aims to help prevent taxpayers from finding themselves in 
these avoidable situations, and to build on and improve taxpayer 
services provided through the IRS.
  The centerpiece of this Act is the requirement that Treasury publish 
a Taxpayer Bill of Rights. The Taxpayer Bill of Rights will be be a 
simple and straightforward statement that enumerates all taxpayers' 
rights and obligations, as well as reference their location in the tax 
code. As the National Taxpayer Advocate explained in her 2011 Report to 
Congress: ``In a time when the IRS will feel pressure to bring in 
additional tax revenue, it is crucial to provide taxpayers with strong 
protection for their rights.'' Currently, these rights and obligations 
are scattered throughout the tax code and Internal Revenue Manual, 
making them neither accessible nor written in plain language that most 
taxpayers can understand.
  This Act also helps improve the quality and accessibility of tax 
preparation services and advice available to taxpayers in several 
different ways. First, it builds on the IRS's initiative to regulate 
unenrolled tax preparers through examination and continuing education 
requirements, for which I have been a long time advocate. 
Implementation of the IRS tax return preparer framework is well 
underway, and this legislation will simply codify the existing 
authority of the IRS to regulate tax return preparers. The Act also 
helps ensure moderate income taxpayers have access to qualified tax 
assistance by supporting a grant program for free income tax assistance 
services, and by allowing IRS referrals to Low-Income Taxpayer Clinics, 
which provide representation to modest income taxpayers in their 
disputes with the IRS. The Act also provides for oversight over 
facilitators of high cost tax refund anticipation loans and other tax 
refund delivery products, and significantly increases penalties on 
preparers of fraudulent tax returns.
  Finally, this bill includes several provisions that would improve IRS 
taxpayer services. One important provision provides greater protections 
for taxpayers when they are faced with a Notice of a Federal Tax Lien 
filing (NFTL). Filing of an NFTL can result in significant, long-term 
hardship to a taxpayer, and may adversely affect the taxpayer's credit, 
thus impairing his or her ability to conduct financial transactions or 
secure employment. The Taxpayer Bill of Rights Act requires the IRS to 
make individualized determinations before the filing of an NFTL, and 
also requires consideration of hardship factors and a taxpayer's 
history of compliance before these determinations are made.
  Many of the problems identified in this bill have gone unaddressed 
for too long, causing confusion and undue hardship for taxpayers across 
the country. I encourage all of my colleagues to support these common 
sense provisions to promote taxpayer rights and services for all 
Americans.

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