The legislation aims to enhance taxpayer rights by ensuring that individuals have a clear understanding of the information the IRS is pursuing related to them. By stipulating that the IRS notify taxpayers at least 60 days in advance of requests for information from third parties, it allows individuals adequate time to respond or provide the necessary information. This increased transparency intends to facilitate a more cooperative dynamic between the IRS and taxpayers, potentially leading to improved compliance rates and taxpayer trust in the system.
Summary
SB2111, known as the Taxpayer Notification and Privacy Act of 2023, seeks to amend the Internal Revenue Code of 1986 by instituting more stringent notification requirements for the Internal Revenue Service (IRS). The bill mandates that the IRS must inform taxpayers of specific information being sought from third parties for tax administration purposes. This requires the IRS to identify precise items of information and sources before engaging with third parties, ensuring that taxpayers are well aware of any inquiries being made on their behalf.
Contention
Opponents of SB2111 may argue that while transparency is crucial, the operational burden placed on the IRS could hinder efficient tax administration. Some may view the additional requirements as excessive and potentially complicating the audit process. Furthermore, there may be concerns about how effectively the IRS can manage increased communication responsibilities while maintaining its operational efficiency, especially considering its already struggling resources in recent years.
This bill allows an individual taxpayer a deduction from gross income for insurance premiums paid for the health care coverage of the taxpayer and the taxpayer's spouse and dependents. The bill makes the deduction available whether or not the taxpayer itemizes other deductions.