Blog: AIA’s Vision for Protecting Individual Taxpayers
By Chuck Flint, AIA CEO
The Internal Revenue Service (IRS) has often been a source of frustration for American taxpayers, frequently wielding unchecked authority that results in unfair enforcement and regulatory overreach. To combat growing instances of abuse, AIA has unveiled our Presumption of Rights Agenda, which provides bold policy recommendations to protect hardworking Americans, reduce IRS abuses, and rebuild trust in an agency that should serve the people, not burden them.
The IRS’s history of overreach has left many individuals and small business owners dealing with a system that seems stacked against them. Taxpayers endure significant financial and emotional stress trying to defend their rights, often coming in the form of aggressive audits and extensive disputes. A key concern of AIA focuses on individual taxpayers, and our reforms aim to restore power to the people, making sure the IRS acts with integrity and respect for those it serves.
A key priority of our Presumption of Rights Agenda is to shift the burden of proof back to the IRS in all tax court and arbitration cases. By applying common law protections, the IRS must prove its claims, relieving taxpayers of the unfair burden to show they are compliant. This change would cut down on unnecessary enforcement actions and give individuals and small businesses the confidence to defend themselves without fearing they will be overwhelmed by the agency’s resources.
With these reforms, the IRS must cover legal and accounting fees when it loses in tax court or arbitration. This policy would not only discourage pointless audits but also ensure that taxpayers, especially those with limited resources, are not prevented from seeking justice. A key part of this is removing the agency’s audit authority for disputes involving $10,000 or less for individuals. The IRS should also be required to clearly inform taxpayers of their rights and protections at the start of any enforcement action, similar to Miranda warnings, leveling the playing field for everyday Americans who are unfamiliar with complex tax law.
The “Gorsuch Rule” is another vital reform that allows taxpayers to fully resolve disputes in tax court and obtain refunds if the IRS is proven wrong. This not only provides exoneration but also ensures compensation for unfair penalties or overpayments. In a similar sense, banning the IRS from seizing retirement account funds without taxpayer approval or a court order would safeguard Americans’ financial security.
Privacy and fairness are also at the heart of our agenda, and to that end, increasing penalties for the IRS’s illegal sharing of taxpayer information would deter breaches and strengthen accountability measures. Establishing benchmark customer service requirements—such as accessible Taxpayer Assistance Centers (TACs)—would also address longstanding IRS shortcomings in taxpayer assistance.
AIA is committed to advocating for these legislative reforms to policymakers. We want to amplify the voices of hardworking Americans who deserve a fair and predictable tax system, and we want to return the power back to the people.