Curbing the taxman

Press, 13 April 1988, Page 16

Curbing the taxman

From an “Economist” correspondent in Washington

NOBODY likes the taxman, and not only 'because he requires regular feeding. The Internal Revenue Service is [ thought by many Americans (and quite a few members of Congress) to be a law unto itself, a bully who views taxpayers as , guilty until they prove themselves innocent and who can seize property with a swiftness that I belies his otherwise bureaucratic nature. ;

A year: ago, when a Senate' sub-committee looked into alle-j gations of abuse by IiR.S. agents,: it was treated to a ' barrage of, horror stories from* taxpayers. Most damning was the testimony of a former official,! Mr Joseph Smith, who told the [senators that collecting money and seizing assets are the way I.R.S. agents prove themselves worthy of promotion.

Mr Smith . quoted from a memorandum on how to deal with a taxpayer in arrears: "the object should be to put as little space between his back and the i wall as possible.” Members of Congress have been arguing for some time for a “taxpayers’ bill of rights” to protect Americans from unduly fierce taxmen. On March 21 the Senate Finance Committee approved a; version of such:a bill aS part of a larger tax bill dealing with taxes on diesel fuel. Under the proposal, the. agency would no longer be allowed to judge the efficiency of its staff according to the amount of property seized [ or money collected, and over-- , zealous agents would face more I severe punishments than at present. : ' ; .j i I

Taxpayers would also have their rights read to them when

called in for questioning or for an audit, and they would! be given more notice that their property was about to be seized (30 days instead of the present ten). The proposal .-would also make it easier for “innocent’’ taxpayers to claim legal fees from the I.R.S. if they are taken to court, and it would require the agency Jo get comments from the Small Business -Administration before issuing new regulations.

Not surprisingly jI.R.S. officials oppose the legislation. They may get a more; friendly ear in the Ways and Means [Committee of the House of Representatives, whose members are said to. be wary of weakening the I.R.S. at a time when efficient tax-collecting is needed to help reduce the Budget deficit. ! Copyright—“The Economist” [