As part of the report, the Advocate has released a new publication, “The Purple Book.” Among the new recommendations, Ms. Olson is recommending that Congress codify both the Taxpayer Bill of Rights and the IRS mission statement as Section 1 of the Internal Revenue Code.
Under current law, the Commissioner is required to ensure that IRS employees “act in accord with” the Taxpayer Bill of Rights, but it is not clear whether taxpayers may rely on those rights. Ms. Olson urges Congress to clarify that U.S. taxpayers possess these rights because “taxpayer rights should serve as the foundation for the U.S. tax system.”
Federal law requires the Annual Report to Congress to identify at least 20 of the “most serious problems” encountered by taxpayers and to make administrative and legislative recommendations to mitigate those problems. Overall, this year’s report identifies 21 problems, makes dozens of recommendations for administrative change, makes 11 recommendations for legislative change, analyzes the 10 tax issues most frequently litigated in the federal courts, and presents 7 research studies and 2 literature reviews.