Clinton Unveils Irs Reforms Plan Would Expand Services, Create Boards Of Citizens To Review Taxpayer Complaints

Chastened by congressional hearings on Internal Revenue Service abuses, President Clinton unveiled a broad plan Friday to protect taxpayers from an “all-powerful, unaccountable and often downright tone-deaf” tax collector.

The plan drew instant Republican criticism for falling short of demands that the tax agency be placed under independent control.

The proposal would dramatically expand customer services by the IRS, recommend creation of 33 local “citizen advocacy boards” for greater citizen involvement in fielding complaints and give greater powers to the agency’s taxpayer advocate’s office.

The office last year helped 300,000 Americans resolve tax problems in an average of 38 days.

Such citizen panels would “provide the private sector input we need,” Clinton said. “It is the right way to reform the agency.”

His package did not incorporate GOP proposals to allow taxpayers to recover certain costs, fees and damages when they prevail in disputes where the IRS position was unjustified.

Criticism was heavy from congressional Republicans who wanted the agency wrested from Treasury’s control and placed under independent management.

“It’s a reaction, not reform,” Sen. Phil Gramm, R-Texas, said of Clinton’s plan.

The package unveiled Friday also would:

Reduce waiting time and busy signals at IRS information hot lines by expanding telephone service next year to six hours a day, six days a week. By Jan. 1, 1999, the service would be available 24 hours a day, seven days a week.

Open all IRS district offices on Saturdays during the peak March-April season next spring.

Rewrite and simplify all tax forms, instructional materials and most frequently used notices, such as for late payments and the correction of mathematical errors.

Introduce new payment options. Starting in 1999, people paying their taxes electronically would be able to request direct withdrawals from their bank accounts. The IRS also will test a program for credit-card payments.

Create a new scorecard for evaluating IRS employees on the basis of their customer service.

Require the IRS to track and review all taxpayer complaints, and then develop new guidelines for disciplining IRS employees based on those complaints.

Empower the new, local citizen advocacy panels to hear taxpayer complaints and refer problems to the IRS’ taxpayer advocate’s office.

Make it easier for innocent spouses and third parties to get relief from IRS collections.