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Taxpayer Bill of Rights approved … again

April 16, 2008

Congress’ annual political show of support for taxpayers continued yesterday.

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Every April 15, lawmakers look to highlight the concerns of John and Jane Public. It’s not that I necessarily doubt their sincerity; I’m sure that some in Washington really do want to improve the system and process for us all when it comes to paying for our government’s operations.

But I just wish rather than using the tax-filing deadline as a publicity tool, legislators would work on tax issues year round and come up with some changes that actually get implemented.

Take yesterday’s latest version of a taxpayer bill of rights. By a vote of 238 to 179, the House approved the Taxpayer Assistance and Simplification Bill of 2008 (HR 5719).

Good job, guys. Now we just have to wait for the Senate to follow suit so the bill can go to the White House for the promised veto.

Despite the doomed prospects, Representatives put on a good front, as well as tried to score some political points in this election year. House Majority Leader Steny Hoyer (D-Md.), pointing to a tax code that has grown by more than 10,000 pages between 2001 to 2006,
said the bill is needed to undo tax code complexity created by the Republican-controlled Congress and the Bush administration.

Against private debt collectors: A key part of the bill, which was introduced by House Ways and Means Oversight Subcommittee Chairman John Lewis (D-Ga.), would prohibit IRS use of third-party debt collectors to bring in unpaid taxes.

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Opponents of the debt collectors (notably Lewis, as blogged about here) argue that the private agents are not as efficient as IRS employees
and actually cost more money than they collect. They point to a Government Accountability Office study that found some debt
collectors made unnecessary calls to taxpayers just to meet call volume
goals.

Dubya et al, however, still support the private collection agents, part of the Administration’s larger goal of privatizing as many government tasks as they can.

So the debt collector provision alone would prompt the prez to pull out his veto pen.

HSA language problematic, too: However, the White House also opposes a provision in the bill that would require that Health Savings Account (HSA) distributions be verified as used for medical expenses.

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Opponents say such reporting requirements for HSA trustees is "unnecessary for efficient tax administration, inconsistent with the flexibility purposely afforded HSAs at their inception and could undermine efforts by employers, individuals and insurers to reduce health care costs and improve health outcomes by empowering consumers to take greater control of health care decision-making."

More on these and other provisions in the latest Taxpayer Assistance and Simplification Bill can be found in this report from WTOP radio and this CNNMoney story.

As for the prospects of legislation to make our taxpaying lives easier, expect lots more posturing leading up to November, but little real action from either side.

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The More Tax Posts tab at the top of this page will take you to, well, more tax posts. You also can search below for a tax topic. 

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TAX-SAVVY WAYS 
TO WRAP UP 2026

It’s over! With October’s extended filing deadline behind us, it is now time to focus on year-end moves to reduce your 2026 tax bill. 

You’ll find ways to do just that on the Tax Tips page (see the More Tax Posts drop-down menu at the top of the blog), as well as the separate tax tip pages for each month, notably October through December. If you’re on the Tax Tips page, you’ll find a monthly list at the end of this column. If you’re on another blog page, you can head straight to the October tips; at the bottom of that tips page you’ll find links to all the other 11 months’ collections of tax advice.

Not to spoil what you’ll find in that tax advice, but it does cover such things as tax deductions for charitable donations, investment moves that could reduce tax due, and ways to max out your tax-favored retirement savings. 

Finally, as the year winds down, things get hectic. There are lots of other things to occupy our time, like the much more fun upcoming holidays. But don’t lose sight of taxes, since timing is key. To be of use, most tax moves must be made by the end of the tax year. That’s Thursday, Dec. 31, which also is the last business day of the year. 

So that you don’t miss that final tax year deadline, also keep an eye on the countdown clock below. It will keep you on top of just how much time is left to make important, tax-saving moves. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

Comments
  • If the Gov’t hired a collection agency to collect delinquent taxes, it would be interesting to see if they followed the federal fair debt collection practices act. If so, it wouldn’t be very easy to collect (at least fully) from those who know the law.

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