Protecting the American Taxpayer from IRS Mishandling Act of 2024
Impact
If enacted, this bill would extend the deadlines for filing claims related to overpayments for those taxpayers whose ability to meet these deadlines was hindered by errors or negligence from the IRS. This legislative change could potentially result in a significant improvement in taxpayer recourse in situations where they have been wronged by the IRS. It reinforces the principle that taxpayers should not be penalized due to administrative failures of the tax authority, thereby enhancing taxpayer rights and protections. As such, it could lead to an increase in the number of successful refund claims for affected taxpayers.
Summary
House Bill 7995, titled the 'Protecting the American Taxpayer from IRS Mishandling Act of 2024', seeks to amend the Internal Revenue Code of 1986. The primary objective of this bill is to include provisions for equitable tolling that would allow taxpayers additional time to file for credits or refunds of overpayments when they have been affected by negligence or malfeasance on the part of the Internal Revenue Service (IRS). This introduces a notable shift in how the IRS's responsibilities are viewed in relation to taxpayer rights, aiming to provide more leeway during situations where the IRS has failed to meet its obligations in the management of taxpayer filings.
Contention
While there are strong arguments in favor of the bill concerning protection and fairness for taxpayers, concerns may arise regarding the potential administrative burden it places on the IRS. Proponents argue that this measure is necessary to ensure accountability from the agency. However, opponents could raise issues about the feasibility of implementing such measures without overextending IRS resources, especially in an already complicated tax landscape. The balance between taxpayer protection and efficient IRS operation may become a focal point of ongoing discussion surrounding the bill's implications.