The National Taxpayer Advocate is required to issue an annual report to Congress listing problems and concerns, and how to create a better experience for taxpayers. The 2022 Annual Report to Congress released on January 11, 2023, identifies “the elephant in the room” to be continuing customer service challenges taxpayers are experiencing. It directs to the IRS to “focus its resources on its core taxpayer service mission – processing tax returns, paying refunds, answering and addressing telephone calls, and providing in-person assistance to taxpayers who seek it.”
Most serious problems encountered by taxpayers. The report lists 10 areas in which there are considerable issues:
Legislative recommendations. There is the 2023 Purple Book prepared by the National Taxpayer Advocate that contains 65 legislative recommendations to strengthen taxpayer rights and improve tax administration. These would be changes handled by Congress; the IRS is not authorized to do this. Some of these recommendations are:
Tax paid by self-employed persons to finance Social Security coverage. In 2007, there are two rates. A 12.4% rate applies to a taxable earnings base of $95,700 or less and a 2.9% rate applies to all net earnings.