http://www.irs.gov/pub/irs-utl/recommendations_tad2011-1.pdf
Response Due:
January 26, 2012
October 26, 2011
MEMORANDUM FOR DOUGLAS SHULMAN, COMMISSIONER OF
INTERNAL REVENUE SERVICE
FROM: Nina E. Olson
National Taxpayer Advocate
SUBJECT: Recommendations Regarding Taxpayer Advocate
Directive 2011-1
Pursuant to Internal Revenue Code section 7803(c)(3), I am submitting
recommendations regarding Taxpayer Advocate Directive (TAD) 2011-1. Section
7803(c)(3) provides as follows:
The Commissioner shall establish procedures requiring a formal
response to all recommendations submitted to the Commissioner
by the National Taxpayer Advocate within 3 months after
submission to the Commissioner.
Accordingly, a formal response to the recommendations set forth below is due
within three months….
RECOMMENDATIONS
In summary, I recommend the IRS take the following actions:
1. Revoke the March 1 memo and disclose such revocation as required by
the Freedom of Information Act (FOIA).
2. Immediately direct all examiners to follow FAQ #35 by not requiring a
taxpayer to pay a penalty greater than what he or she would otherwise be
liable for under “existing statutes.” This direction should clarify that
examiners should apply “existing statutes” in the same manner that the
IRS applies them outside of the OVDP (e.g., IRM 4.26.16 implements
existing statutes by instructing employees to: issue warning letters in lieu
of penalties, consider reasonable cause, assert the penalty for willful
violations only if the IRS has proven willfulness, impose less than the
maximum penalty for failure to report small accounts under “mitigation
guidelines,” and apply multiple FBAR penalties only in the most egregious
16
If necessary, the IRS could create an expedited review procedure for processing voluntary
disclosures from taxpayers whose violations were unlikely to have been willful.
17
This recommendation is consistent with recent comments from external stakeholders. See,
e.g., Letter from New York State Bar Association Tax Section to Commissioner, IRS, Chief
Counsel, IRS, and Acting Assistant Secretary (Tax Policy) Department of the Treasury, 2011
Offshore Voluntary Disclosure Initiative Frequently Asked Questions and Answers, reprinted as,
NYSBA Tax Section Comments on FAQ for 2011 Offshore Voluntary Disclosure Initiative, 2011
TNT 153-13 (Aug. 9, 2011) (recommending public guidance). 8
cases).
18
Post any such guidance in the electronic reading room on
IRS.gov, as required by FOIA.
3. Issue a notice or similar public pronouncement that:
a. Describes and reaffirms the taxpayer-favorable procedures
provided by IRM 4.26.16;
b. Tells people what to do if they discover they have inadvertently
failed to file FBARs, reassuring them that they are most likely to
receive a warning letter in accordance the IRM if they follow the
instructions provided by the notice;
c. Reaffirms that people accepted into the OVDP will not be required
to pay more than the amount for which they would otherwise be
liable under existing statutes, as currently provided by OVDP FAQ
#35 (cross referencing the guidance issued pursuant to
recommendation #2); and
d. Commits to replacing all OVD-related frequently asked questions
(FAQs) and memos on IRS.gov with guidance published in the
Internal Revenue Bulletin that describes the OVDP, OVDI, and how
the IRS will handle voluntary disclosures outside of those programs
in the future. This guidance should incorporate comments from all
internal and external stakeholders.
19
4. Allow taxpayers who agreed to pay more under the OVDP than the
amount for which they believe they would be liable under existing statutes
(as implemented by the IRS outside of the OVDP, and described above)
the option to elect to have the IRS certify this claim, and offer to amend
the closing agreement(s) to reduce the offshore penalty.
20
5. Reinstate the International Planning and Operations Council (IPOC) or a
similar service-wide forum for addressing international taxpayer issues
and vetting international tax compliance initiatives.
Where’s the suggestion about leaving USC’s that live outside of the US outside of the overreaching policies?
These will address TAS full concerns in the Report to Congress:
http://www.irs.gov/pub/irs-utl/2011_arc_internationalmsps.pdf
http://www.taxpayeradvocate.irs.gov/Media-Resources/Annual-Report-To-Congress-Full-Report
The Time for Tax Reform is Now & Taxpayer Rights Issues & Taxpayer Administration Issues
Wish it did include the absolute suggestion of leaving alone the USCs that live outside of IRS overreaching citizenship-based taxation policies!!
Well, so it is January 26th on your side of the date line. January 27th here, so I can see the future, but I am not going to tell you! LOL
Shulman is supposed to act. What are the bets? Do you think anyone in the MSM will report on it? Not a chance. We will probably only hear the result via some obscure blog or technical tax notice, and I wait with baited breath.
Might keep an eye on the TAS web site or blog.
http://www.taxpayeradvocate.irs.gov/Blog/#Welcome-to-the-National-Taxpayer-Advocate's-Blog
LOL — guess you’ll also experience such things as one of those ends of the world dates before “us all” too.
I will report back what it is like “on the other side”! 🙂
@ Just Me: It’s been two days. Haven’t you heard something over there in NZ with your time machine?
Haven’t heard a thing, but doesn’t surprise me… I am still watching here for an announcement… Not sure where else you would see it…
http://www.taxpayeradvocate.irs.gov/Blog/Welcome-to-the-National-Taxpayer-Advocate's-Blog
We should also watch:
http://www.irs.gov/newsroom/index.html (as the December 13, 2011 Fact Sheet was listed there — and guess what, it says for DUEL citizens.
” Information for U.S. Citizens or Dual Citizens Residing Outside the U.S.
FS-2011-13, December 2011 – This fact sheet summarizes information about federal income tax return and FBAR filing requirements for duel citizens in Canada, the United Kingdon and other countries. “
(Above same as renounce’s latest post.)
I think the IRS just made it`s reply.
http://www.irs.gov/pub/irs-pdf/p2104.pdf
start reading at page 206
I`m not sure, but there is something new over att irs.gov
http://www.irs.gov/pub/irs-pdf/p2104.pdf
start at page 206
Not sure if this is really new or not, but it’s just been made available over at irs.gov
http://www.irs.gov/pub/irs-pdf/p2104.pdf
I think reading from page 206 forwards might be interesting.
SORRY for the multiple posts 🙁
For some reason my browser wasn’t updating the page as fast as thought it should, sorry!
I have just put this request in:
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When will we get information http://www.irs.gov/pub/irs-utl/recommendations_tad2011-1.pdf
Response Due:
January 26, 2012
October 26, 2011
MEMORANDUM FOR DOUGLAS SHULMAN, COMMISSIONER OF
INTERNAL REVENUE SERVICE
FROM: Nina E. Olson
National Taxpayer Advocate
SUBJECT: Recommendations Regarding Taxpayer Advocate
Directive 2011-1
This is urgent for international taxpayers.
Where can we find this information?
I just saw this re: Shulman’s intention NOT to respond to the TAS Nina Olson; See: http://www.rothcpa.com/taxupdates.php
at Roth & Company, P.C. Tax Update Blog
“IRS Commissioner Shulman: you obey the law. Me, that’s different.” February 20, 2012
……’Tax Analysts reports that IRS Commissioner Doug Shulman will simply ignore his statutory duty to respond to a Taxpayer Advocate Directive on abuses of offshore taxpayers in the Offshore Voluntary Disclosure program..’……’From the (Tax Analysts) story ($link)’: “IRS Commissioner Douglas Shulman has no plans to respond in writing to National Taxpayer Advocate Nina Olson’s taxpayer advocate directive (TAD) on the IRS offshore voluntary disclosure program (OVDP) despite a statutory requirement that taxpayer advocate recommendations be responded to within 90 days, Olson said February 17….”
Great find, Brock. I hope Steven Mopsick who has been stressing the importance of THE LAW on another thread reads this. In fact, I’m going to take the liberty of posting it there and asking him to comment.
This is outrageous. Just unbelievable. Perhaps Ms. Olson will just send it to the Congressional Oversight Committee. ?
Haven’t I been saying that he will just ignore her! What Hubris. I am totally disgusted. But then that is what I have come to expect!!
I will withhold the swear words, but boy is it tempting to let a few fly…
Selective compliance I guess…There is one set of rules and laws for the likes of Shulman, Geithner and Rangel, then there are the laws that are enforced brutally on us common folks. It stinks to high heaven. America is corrupted by these flunkies. What a disgrace. No wonder the country is quickly spiraling down the poop shoot.