Comments on operation of Taxpayer Advocate's office: March 27, 2002.

On March 27, 2002, TEI President Robert L. Ashby sent the following letter to Steve H. Nickles, Chair of the Committee on Personnel and Organization of the IRS Oversight Board, on the organization and operation of the IRS Office of Taxpayer Advocate.

Tax Executives institute is pleased to respond to your February 28, 2002, request; for our views on the organization and operation of the IRS Office of the Taxpayer Advocate.

TEI's 5,200 members are accountants, attorneys, and other business professionals who work for the largest 2,800 companies in the United States, Canada, and Europe; they are responsible for conducting the tax affairs of their companies and ensuring their compliance with the tax laws. The companies that employ TEI's members have almost without exception been assigned to the IRS's Large and Mid-Size Business (LMSB) Division. The largest 1,600 taxpayers within LMSB are subject to continual audits as part of the IRS's Coordinated Industry Cases (CIC) program. Companies that are under continual audit do not routinely seek assistance from the Office of Taxpayer Advocate to resolve particular problems. Instead, they work through the LMSB Team Manager assigned to their case or a designated Service Center representative. In addition, the Taxpayer Advocate has not previously focused on or provided resources to business taxpayers, particularly larger ones. That is not to say, however, that large corporations could not make effective use of the Taxpayer Advocate's assistance. Further, TEI members and other representatives of the large business community could provide the Taxpayer Advocate with assistance in identifying areas of the law requiring attention.

Each year, the National Taxpayer Advocate submits a report to Congress on the most significant problems faced by taxpayers. In 2000, the Advocate recommended the repeal of the alternative minimum tax for corporate and individual taxpayers. In 2001, however, the recommendation was limited to the repeal of the individual AMT. National Taxpayer Advocate Nina Olson explained that the change was made because corporate interests "have better spokespersons" for their interests and her office was created to focus on individuals and smaller businesses. Taxpayer Advocate Olson Hopes Congress Passes Recommended Tax Code Reforms, BNA Daily Tax Report (No. 3) at...