National Taxpayers Union Foundation (NTUF) on Thursday praised President-elect Donald Trump’s nomination of former Missouri Congressman Billy Long to lead the IRS and offered ten agency reforms he can start immediately after confirmation.
The reforms, detailed in a recent report, are practical and actionable ideas to lead the IRS into a new era that prioritizes customer service, technology modernization, and taxpayer rights.
“American taxpayers deserve to have an IRS that finally emphasizes the ‘Service’ part of its name. It’s time for fundamental changes in how the agency approaches tax administration, technology modernization, and customer service,” NTUF President Pete Sepp said.
The IRS has seen a dramatic increase in its budget under the Biden Administration, largely because of an infusion of $80 billion from the Inflation Reduction Act (IRA). The agency has made some improvements, as detailed in Grading the IRS. However, far too much of the agency remains “business as usual,” leaving Long with an unprecedented opportunity to transform operations, protect taxpayer rights, and rebuild public trust.
Recommendations include:
Simplification of the Tax Code
The IRS should produce an annual report to Congress identifying where the tax code is overly complex. Currently, taxpayers spend an estimated 7.9 billion hours annually preparing and filing taxes, representing $341 billion in opportunity costs of their labor.
New Focus on Technology Modernization
Despite spending a third of its modernization funding, the IRS has yet to complete a comprehensive technology modernization plan. NTUF urges the creation of a detailed implementation strategy with clear milestones and return on investment metrics.
Protection of Taxpayer Rights
As IRS Commissioner, Long should make the Independent Office of Appeals truly independent, by preventing IRS Chief Counsel attorneys from potentially biasing hearing outcomes and allowing the National Taxpayer Advocate to hire independent legal counsel.
Let Congress Decide the Future of Direct File
The IRS created the Direct File tax preparation pilot program without congressional authorization. Long should end the program immediately to allow Congress to make definitive decisions about its future, especially after information came to light about troubling cost estimates.
Litigation and Regulatory Reform
The IRS uses aggressive litigation strategies, particularly in areas like conservation easements and micro-captive insurance. NTUF urges a more balanced approach that respects taxpayer rights and congressional intent.
Additional recommendations:
Create a transparent dashboard of operational metrics
Rescind problematic proposed regulations
Develop more nuanced approaches to emerging financial technologies like cryptocurrencies
- Provide Congress direct access to IRS technical staff during legislative processes
“Long is taking the reins at a time when American taxpayers are desperate for reforms,” Sepp said. “We have to maintain the integrity of the United States’ voluntary tax system and rebuild public confidence in the tax collection process.”
Read more details in the report.