The national taxpayer advocates office is an independent orginization within the I R S to help taxpayers who are experiencing ecoonomic difficulties.
The mid year repot identifies challenges and issues for the upconing year.
note: those tax provisions that expired at the end of 2011 are the following
The so called AMT patch which will resul in at least 27millions more tapayers being subject to the Alternative Minimum Tax
The Itemized deductions for state and local taxes paid (11 Million taxpayers), and the deduction for mortgage insurance premiums( about 4 million taxpayers)
The provision allowing persons age 70 1/2 to make tax free withdrawals from their I R A "s to make charitable contributions
Those proivisions expireing 12/31/2012 inclded
The Bush era cuts in marginal taxes, reduced tax rates on dividend and long term capital gains, various marriage penalty provisions, certain components of the child tax credit, the earned income tax credit, the adpotion credit and the moratoria on the phase outs of itemized deductioins and personal exemptions.
While most of these expirig provisions will increase the bottom line tax an millions of middle class citizens, the removal of them the effect of the phase out for itemized deductions and personl exemptions will mean the more affluent citizens will be subject to phase out formulas and reinstate those formulas fror those taxpayers.
The case load of the taxpayer advocates has trippled each year of the past 3 years resulting in an inability to provide the service leaving many taxpayers with problems regadring tax frauds and tax related related identtity theft, high and dry.
The demands placed on I R S persdonell has adversly affectred the IRS"s ability to respond to the taxpayer
assistance orders and the taxpayer advocate directives issued by the taxpayer advocate office and the IRS has ignored and sought to limit th Advocates authority to issue those directives.
The IRS has yet to compy with proposed and inal directives designd to assist victims of preperar fraud.
In June 2011, the advocates office issued a proposed directive to the head of the IRS operating division to implement a procedure for adjusting acounts of taxpayers who have been victim ized. The IRS has refused to acton directive.
In January 2012 the advocate issued a direcive to address problems taxpayers were facing in connenction the correspondance examintion process, including probems with bsolete regulations.
It goes on and on about how the taxpayers are getting ripped off by he executive and legislative branches of government.
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