The IRS should be held to the same standards used by private appraisers in tax matters, and should preserve access to taxpayer assistance, according to testimony delivered during an IRS public hearing Thursday.
The testimony was made concerning proposed new IRS regulations. The comments were written and delivered by National Taxpayers Union Foundation attorney Lindsey Carpenter.
The IRS Should Not Use Different Appraisal Standards than the Private Sector
Carpenter said the Proposed IRS Rule’s Uniform Standards of Professional Appraisal Practice (USPAP) requirement creates a “skewed situation where private appraisers are held to a somewhat higher standard than that of IRS appraisers.”
Carpenter recommended the IRS should actively ensure its appraisers follow USPAP standards if it requires private appraisers to do so.
Preserve access to tax preparers for low-income individuals by staying within the law
Carpenter also pointed out in her testimony that the proposed regulation would prohibit all contingency fees in IRS challenges or litigation, and is “overly broad, outside of scope of the IRS’s statutory authority, and will decrease taxpayers’ access to tax preparers.”
She recommended the IRS should not place such an expansive prohibition against contingency fees and should not broadly stretch existing law to regulate an issue about which Congress would need to pass new law.
Carpenter praised the Proposed Rule’s establishment of an advisory committee as “an excellent mechanism to ensure the protection of taxpayers’ rights and foster a more collaborative, inclusive approach to oversight.”
Read the full testimony.