[Congressional Record (Bound Edition), Volume 154 (2008), Part 5]
[Extensions of Remarks]
[Page 6993]
[From the U.S. Government Publishing Office, www.gpo.gov]




         TAXPAYER ASSISTANCE AND SIMPLIFICATION ACT (H.R. 5719)

                                 ______
                                 

                          HON. BETTY McCOLLUM

                              of minnesota

                    in the house of representatives

                        Thursday, April 24, 2008

  Ms. McCOLLUM of Minnesota. Madam Speaker, I rise in strong support of 
the Taxpayer Assistance and Simplification Act (H.R. 5719). I want to 
thank Chairman Rangel and Subcommittee Chairman Lewis for bringing this 
legislation to the floor which modernizes IRS functions by responding 
to recommendations by the Taxpayer Advocate.
  The Taxpayer Assistance and Simplification Act helps to simplify the 
tax process and protect taxpayers from abuses. It strengthens 
protection from identity theft and tax fraud by requiring the IRS to 
notify taxpayers if it suspects identity theft. H.R. 5719 also makes 
the tax process simpler by eliminating an outdated requirement for 
detailed records of calls made on employer-provided cell phones. It 
strengthens outreach to ensure that working families entitled to the 
Earned Income Tax Credit receive the refund they have earned and 
provides protections from predators.
  H.R. 5719 helps to ensure tax fairness by closing an offshore 
loophole that allows government contractors, who receive millions or 
billions in taxpayers' dollars, to set up companies in foreign 
countries to avoid paying Social Security and Medicare taxes. For 
example, defense contractor KBR, has reportedly avoided paying over 
$100 million in Social Security and Medicare taxes by creating shell 
companies in the Cayman Islands.
  This important bill also puts an end to the use of private debt 
collection agencies to collect Federal income taxes and ensure that 
this critical government function is performed by public servants on 
behalf of American taxpayers. Despite aggressive tactics, contractors 
only brought in a little more that half of what it cost the IRS to 
implement the program. IRS agents can do this more efficiently and 
ending this program prevents the possible misuse of confidential 
taxpayer information. Our constituents deserve to know that the person 
contacting them on behalf of the Federal Government is a public-
servant, who is held to the highest standards of accountability and 
confidentiality, not a person whose paycheck depends solely on the 
number of collections they make.
  I urge my colleagues to support the Taxpayer Assistance and 
Simplification Act.

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