Office of Taxpayer Burden Reduction.

• Author: Michnay, Ruth Ann

As part of its effort to reduce taxpayer burdens, the IRS formed the Office of Taxpayer Burden Reduction (OTBR) in early 2002, under the umbrella of its Small Business/Self-Employed Division (SBSE). The OTBR is a catalyst and champion of change within the IRS. It develops burden-reduction ideas submitted by taxpayers, tax practitioners, Federal agencies, Congress, etc. The ideas selected have to significantly reduce the time and money taxpayers spend on complying with their tax obligations.

The OTBR's first National Director is Michael R. Chesman, who started his tax career with the IRS Office of Chief Counsel. On former IRS Commissioner Rossotti's request, he came back to the IRS after a very successful career in the business world. He understands the tax system and knows it needs to be simplified. The OTBR is the means to accomplish this goal.

Through the OTBR, taxpayers and tax advisers can submit suggestions that they believe will have a positive effect on reducing the tax compliance burden. Per Pub. 4109, Office of Taxpayer Reduction: A member of the Small Business/Self-Employed Division (Revised 903), the OTBR is focusing its efforts on four major areas:

1. Simplifying forms and publications;

2. Streamlining internal policies and procedures;

3. Promoting less burdensome rulings and laws; and

4. Assisting in the development of new, more accurate, burden-measurement methods.

   To submit suggestions, taxpayers have to write a letter or complete Form 13285A, Reducing Tax Burden on America's Taxpayers. The form asks:

1. Whether the taxpayer is a business owner, tax professional or other;

2. The problem causing a taxpayer burden;

3. Which types of taxpayers or businesses are most affected (e.g., sole proprietorship, limited liability company, partnership, regular corporation or S corporation); and

4. How the taxpayer proposes to solve or remedy the problem (e.g., to simplify forms/publications, streamline policies or procedures, or change regulations or rulings or the tax law).

   How the Process Works

   The IRS will evaluate and prioritize proposals, using several criteria: (1) number of taxpayers affected; (2) total taxpayer time and out-of-pocket savings; (3) adverse effect on voluntary compliance efforts; and (4) feasibility, given IRS resource limits and objectives. Any ideas about changing the tax law are submitted directly to Congressional representatives.

   The Burden Reduction Council (BRC) is the vehicle by which proposals are vetted and resources...