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The National Taxpayer Advocate (NTA) has issued the 2021 Report to Congress: https://www.taxpayeradvocate.irs.gov/wp-content/uploads/2022/01/ARC21_Full-Report.pdf

Most of the issues cited in the report relate to deficiencies in the IRS administration and servicing of taxpayers; delays in processing returns, lack of customer service support, lack of online account access, inability to communicate with taxpayers digitally, lack of telephone and in-person support and lack of transparency and clarity (can’t get updates on returns or amended returns).

These “most serious problems” cited in the National Taxpayer’s Annual Report to Congress are also reflective of the problems ACA reported to and discussed with the National Taxpayer Advocate last year. Given the slow down and lockdown of government offices during 2020 and 2021 due to COVID, it is not surprising to see that the National Taxpayer’s Annual Report focused primarily on shortcomings in the IRS servicing. The National Taxpayer Advocate has made recommendations on how the IRS can better train and provide servicing to the taxpayer community, including overseas filers. The report presents a chart that outlines how the IRS can streamline the taxpayer experience.

 
 

The National Taxpayer Advocate continues to recommend legislative suggestions that directly affect the overseas community, such as the harmonization of the FATCA and FBAR regimes and recommends registered mail notifications for taxpayers who receive “math error” notifications from the IRS. The National Taxpayer Advocate also highlights problems with taxpayers needing guidance with Estate & Gift Tax Treaties and the Erroneous Late Filing Penalties for Foreign Corporations.

ACA will continue to work with the National Taxpayer Advocate highlight the issues affecting the overseas community and will work to keep focus on corrective measures that can be implemented to address them. Having the National Taxpayer Advocate’s support for tax and compliance policies and practices helps with ACA’s advocacy, notably on adoption of Residence-Based Taxation (RBT).

For more perspectives on the National Taxpayer Advocate Report please see: https://taxprof.typepad.com/taxprof_blog/2022/01/national-taxpayer-advocate-delivers-2021-annual-report-to-congress.html and https://procedurallytaxing.com/nta-report-released-essential-reading/.