Bill Overview
Title: System Transparency and Accountability for the IRS Act
Description: This bill requires the Internal Revenue Service to ensure that its employees are familiar with basic taxpayer rights, including the right to be informed, the right to quality service, and the right to privacy and confidentiality. The bill also authorizes the Department of the Treasury to regulate tax return preparers, including by sanctioning preparers for incompetence and disreputable behavior and by establishing minimum competency standards for preparers.
Sponsors: Rep. Newhouse, Dan [R-WA-4]
Target Audience
Population: Taxpayers and tax preparers dealing with the IRS
Estimated Size: 335000000
- The IRS is a U.S. agency affecting U.S. citizens and residents dealing with taxation.
- There are approximately 331 million people in the U.S., many of whom file taxes or interact with tax preparers.
- The bill impacts taxpayers by ensuring they have rights to quality service and informed dealings with IRS employees.
- Tax return preparers in the U.S., a specific group, are directly affected by the bill's competency and regulation clauses.
Reasoning
- The IRS policy affects a broad segment of the population, given the ubiquity of tax requirements in the U.S.
- Tax preparers, a more specific group, will have a varied impact based on the new competency standards.
- Individuals' understanding of their rights might improve, indirectly affecting their wellbeing scores positively.
- The policy might not significantly affect those who do not frequently interact with the IRS or rely on tax preparers.
- Budgetary constraints mean the policy might initially focus on major urban centers where tax interactions are highest.
Simulated Interviews
Certified Public Accountant (Los Angeles, CA)
Age: 45 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 5/20
Statement of Opinion:
- This policy is a step in the right direction to ensure qualified professionals handle taxes.
- It will help clients gain trust in tax preparation systems.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 7 | 6 |
| Year 20 | 7 | 6 |
Software Engineer (New York, NY)
Age: 32 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 2.0 years
Commonness: 15/20
Statement of Opinion:
- I'm glad they'll hold tax prep companies to higher standards.
- Knowing IRS employees understand my rights is comforting.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 5 |
| Year 20 | 6 | 5 |
Retired (Seattle, WA)
Age: 60 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 3.0 years
Commonness: 7/20
Statement of Opinion:
- This could prevent misunderstandings when dealing with the IRS.
- I hope it makes the process simpler.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 5 | 4 |
| Year 20 | 5 | 4 |
Freelance Artist (Austin, TX)
Age: 28 | Gender: other
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 11/20
Statement of Opinion:
- I'm wary of IRS rules, so clearer standards on tax preparers help.
- As a freelancer, knowing my rights is important.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 7 | 5 |
| Year 20 | 7 | 5 |
Factory Worker (Detroit, MI)
Age: 37 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 2.0 years
Commonness: 14/20
Statement of Opinion:
- I don't interact much with tax preparers, but it's good to know support quality will improve.
- I hope IRS services become more understandable.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 5 | 5 |
| Year 10 | 5 | 4 |
| Year 20 | 5 | 4 |
Small Business Owner (Miami, FL)
Age: 48 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 10.0 years
Commonness: 10/20
Statement of Opinion:
- I'd appreciate knowing I won't face penalties from unqualified preparers.
- The policy should make it easier to trust the process.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 9 | 8 |
| Year 10 | 9 | 7 |
| Year 20 | 8 | 7 |
Tax Return Preparer (Houston, TX)
Age: 54 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 20.0 years
Commonness: 4/20
Statement of Opinion:
- I'm supportive of the standards as it maintains industry professionalism.
- Hope inspection doesn't create excessive bureaucracy.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 9 | 7 |
| Year 5 | 9 | 7 |
| Year 10 | 9 | 7 |
| Year 20 | 8 | 7 |
Graduate Student (Chicago, IL)
Age: 26 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 12/20
Statement of Opinion:
- I think this will be helpful while I'm learning how to manage taxes.
- It feels more reassuring.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 7 | 5 |
| Year 20 | 6 | 4 |
Self-employed Contractor (Phoenix, AZ)
Age: 39 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 9/20
Statement of Opinion:
- Clarifying the quality of service is good, but I'm unsure how much it'll change my own processes.
- Hoping it leads to fewer complications with IRS dealings.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 7 | 5 |
| Year 20 | 6 | 4 |
Healthcare Professional (Denver, CO)
Age: 30 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 3.0 years
Commonness: 13/20
Statement of Opinion:
- This will hopefully make tax season less stressful.
- I'm optimistic about the impact on customer support.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 7 | 6 |
Cost Estimates
Year 1: $50000000 (Low: $30000000, High: $70000000)
Year 2: $48000000 (Low: $28000000, High: $68000000)
Year 3: $46000000 (Low: $26000000, High: $66000000)
Year 5: $43000000 (Low: $23000000, High: $63000000)
Year 10: $40000000 (Low: $20000000, High: $60000000)
Year 100: $30000000 (Low: $10000000, High: $50000000)
Key Considerations
- Ensuring adequate training and enforcement resources will be crucial for the success of the policy.
- Evaluating the implementation and feedback processes will ensure taxpayer rights education and preparer oversight are effective.
- Collaborating with professional groups for preparers could smooth the transition and acceptance of the new standards.