The National Taxpayer Advocate is appropriately objecting to the "20% depoisit" rules for Offers in Compromise. Low income taxpayers are having difficlulty coming up with the 20% deposit, and that deposit is not refundable if the OIC is rejected.
IRS News Release IR-2007-131 , July 18, 2007.[
* * * * * * *The National Taxpayer Advocate is required by statute to submit two annual reports to the House Committee on Ways and Means and the Senate Committee on Finance. The statute requires these reports to be submitted directly to the Committees without any prior review or comment from the Commissioner of Internal Revenue, the Secretary of the Treasury, the IRS Oversight Board, any other officer or employee of the Department of the Treasury, or the Office of Management and Budget. The first report is submitted mid-year and must identify the objectives of the Office of the Taxpayer Advocate for the fiscal year beginning in that calendar year. The second report, due on December 31 of each year, must identify at least 20 of the most serious problems encountered by taxpayers, discuss the 10 tax issues most frequently litigated in the courts during the prior year, and make administrative and legislative recommendations to resolve taxpayer problems.About the Taxpayer Advocate ServiceThe Taxpayer Advocate Service is an independent organization within the IRS that assists taxpayers who are experiencing economic harm, who are seeking help in resolving tax problems that have not been resolved through normal channels, or who believe that an IRS system or procedure is not working as it should. Taxpayers may be eligible for assistance if:
Ÿ They are experiencing economic harm or significant cost (including fees for professional representation); Ÿ They have experienced a delay of more than 30 days to resolve a tax issue; or
Ÿ They have not received a response or resolution to their problem by the date promised by the IRS.The service is free, confidential, tailored to meet taxpayers' needs, and available for businesses as well as individuals. There is at least one local taxpayer advocate in each state, the District of Columbia and Puerto Rico.Taxpayers can contact the Taxpayer Advocate Service by calling its toll-free case intake line at 1-877-777-4778 or TTY/TTD 1-800-829-4059 to determine whether they are eligible for assistance. They can also call or write to their local taxpayer advocate, whose phone number and address are listed in the local telephone directory and in Publication 1546, The Taxpayer Advocate Service of the IRS - How to Get Help With Unresolved Tax Problems, which is available on the IRS website at IRS.gov.Links:
Ÿ National Taxpayer Advocate's 2008 Objectives Report to Congress --http://www.irs-tas.com.
Ÿ Taxpayer Advocate Service --http://www.irs.gov/advocate/index.html
Alvin S. Brown