Gaithersburg, MD - Persistent advocates of U.S. taxpayer rights, the National Association of Enrolled Agents (NAEA) applauded the 104th Congress' proposed new Taxpayer Bill of Rights legislation in testimony before the Ways and Means Subcommittee on Oversight. NAEA representative Joseph F. Lane, EA stated the Association supported even greater measures to strengthen the Bill and identified three specific issues for consideration. A Taxpayer Bill of Rights should respond to recent Service procedures and policies "which have heightened concern among taxpayers about their vulnerability in dealing with Service employees", said Lane. He also expressed concern among the practitioner community that one of the primary motivations of the Service in auditing "the lifestyles of taxpayers is that it provides a way to bypass the practitioner and get directly to the taxpayer thereby defeating one of the primary provisions of the Taxpayer Bill of Rights -- the right of the taxpayer to secure representation and the right of the representative to 'stand in the shoes' of the taxpayer." Lane supported "a requirement that the taxpayer be informed at the onset that the audit will delve into lifestyle issues."

Lane also cited the Collection Division's recently implemented "user fee" charge on taxpayers who require installment agreements to pay off their delinquent taxes stating, "We think user fees ought to be prohibited for installment agreements. Taxpayers who need to pay on installments already pay interest and late payment penalty charges which would be considered usury under most state laws. To heap on them yet another charge for the cost of servicing their account is an outrage."

Next, Lane noted NAEA did not "see a clear benefit from replacing the current Taxpayer Ombudsman position with a new Taxpayer Advocate." He recommended maintenance of the current structure "which has the benefit of widespread support within the Service." Lane suggested subcommittee members could work to improve the reporting mechanisms back to Congress, if that were of concern.

Lane also recommended that "the Privacy Act be amended to permit reports back to taxpayers and their representatives regarding specific allegations of employee misconduct brought to the Service by taxpayers or their representatives once the Service has reached a final determination and personnel actions have been taken."

Lane further recommended the definition of third party record-keepers be expanded to include Enrolled Agents since, like attorneys and certified public accountants, they have demonstrated competency and continuing education in tax matters. This revision would provide protection to all taxpayers and their representatives.

Lane's strongest remarks addressed the burden of proof provisions in H.R. 390 sponsored by Rep. Jim Trafficant (D-OH). He stated, " We have reviewed the provisions and find that shifting the burden of proof in civil cases from the taxpayer to the IRS is much too radical. If Congress is seriously giving this proposal consideration we believe all taxpayers have serious cause for concern about the stability of our taxation system. If this change is adopted, the Congress shifts the burden for proving any one taxpayer's income or deductions not only from the individual taxpayer to the Service but also to every other taxpayer and business entity the individual being audited transacted business with in any given tax year." Compliance with the implied record keeping requirements would be far too costly.

Concluding his remarks, Lane noted the Taxpayer Bill of Rights will only be effective if it addresses concerns that IRS enforcement "divisions carry out their responsibilities while at the same time inflicting the least possible harm on the taxpayers involved".

NAEA is an 9,000 member national association of Enrolled Agents (EAs) with a nationwide network of affiliated state organizations. EAs are professionals specializing in taxes who are regulated and licensed by the U.S. Treasury Department to provide taxpayer representation services in the United States.

EAs are an excellent resource for taxpayer education, business editors and anyone seeking up-to-the-minute information on tax-related issues. To contact an EA in your area, call NAEA's 24-hour toll-free EA Referral Service hotline at 1-800-424-4339. All inquiries are confidential.