Meet Erin Collins, Nationwide Taxpayer Advocate for the IRS

If you happen to’re one of many tens of millions of People grappling with IRS points, you might not understand there’s an alternative choice in your unresolved issues.

The Taxpayer Advocate Service, often known as TAS, is an unbiased group inside the company, offering one-on-one steerage and preventing for systemic modifications.

Erin Collins, the nationwide taxpayer advocate, leads about 80 nationwide places of work for struggling filers, consults inside the IRS, reviews yearly to Congress on the company’s greatest issues and presents legislative proposals.

Taking the reins in March 2020, she’s had a front-row seat for the pandemic’s devastating results, contributing to “essentially the most difficult yr taxpayers and tax professionals have ever skilled,” as described in her 2021 annual report to Congress. 

The Nationwide Taxpayer Advocate hotline fielded practically three million calls between Oct. 1, 2020 and Sept. 30, 2021, a 990% improve from the earlier 12 months, and acquired 264,343 new circumstances.

And presently, the IRS is buried by a backlog of tens of tens of millions of unprocessed returns, which Commissioner Charles Rettig expects to clear by the end of 2022.

CNBC spoke with Collins about her key function throughout an unprecedented time for the IRS. The interview has been condensed and edited for readability.

Kate Dore: I would love to listen to about your profession path to changing into the nationwide taxpayer advocate.

Erin Collins: You make me smile once you ask like I actually deliberate this. After I was in legislation faculty, one among my professors, who I believe all the time needed to work for the IRS Chief Counsel, pointed me in that path.   

I wasn’t actually positive what I used to be doing, however in hindsight, it was an excellent alternative. So I went proper from legislation faculty to the IRS Chief Counsel. I labored there for about 15 years and wore a number of hats that had been very useful for my present function.

After which I joined [accounting firm] KPMG of their IRS controversy observe, which was fascinating as a result of it is altering from one facet of the desk to the opposite. They take a look at tax utterly in another way than the IRS.

KD: You joined the Taxpayer Advocate Service in March, 2020. What made you most on this function?

EC: So I had simply introduced my retirement with KPMG, and I actually was pondering of retiring. I had no intention of going again into the tax area. And when the place got here up, it was the one job I’d have thought-about for popping out of retirement.

I believe it is a captivating place, and I am very privileged to be serving because the nationwide taxpayer advocate. We might be unbiased, step again and take a look at issues just a little bit in another way than our IRS colleagues.

KD: Your 2021 annual report back to Congress outlined quite a lot of IRS suggestions. Which of the steered modifications are we most certainly to see within the close to time period?

EC: Boy, that is a troublesome one. There are an terrible lot of suggestions, and a few they’ve already applied. 

One was for automated assortment notices. We beneficial that the IRS postpone or droop these till clearing the correspondence backlog. They lately agreed to suspend a lot of those notices, which I believe has been a giant assist for taxpayers.

One of many issues I’m a agency believer in — and I believe the pandemic actually highlighted the necessity for — is a sturdy on-line account for particular person taxpayers and companies.

I believe it is the IRS’ intention to proceed growing on-line account performance. It is simply going just a little bit slower than I would love.

KD: What are the largest obstacles to reaching all of the enhancements you’ve got steered?

EC: The largest problem for expertise is sustained funding. It is very troublesome to tackle a big IT mission if you do not know what your finances can be yr to yr. It is the largest problem the IRS faces on actually modernizing and attending to the place I consider they need to be.

I believe they need these with a smartphone or pc to have entry to IRS representatives or chatbots for solutions to fundamental questions.

Whether or not it is importing paperwork or submitting returns, if a big proportion of taxpayers can try this on-line, that’d liberate the telephones for many who actually want it.

KD: Is there a particular part of your web site that you just’d suggest as a place to begin for somebody with an IRS subject?

EC: Now we have a qualification section of the web site that I’d suggest. Now we have what I’d name two buckets: these with monetary hardship and people with systemic points. 

For instance, as an example the IRS mentioned they might course of your correspondence inside 60 days, and now it is 90 or 120 days previous that time period. You’ll qualify for TAS’ companies. 

Sadly, this previous yr or two, that may be a very giant variety of taxpayers. There are tens of millions who qualify for our service.

KD: Is there anything that is essential for readers to know in regards to the Taxpayer Advocate Service?

The final two years have been extremely troublesome for taxpayers and tax professionals due to the stock backlog challenges, and numerous taxpayers are nonetheless ready for his or her refunds.

One of many misconceptions just isn’t understanding our authority. For instance, if there’s an error in your return and the IRS is wrong, we are going to work with you. However we would not have the authority to repair the problem. We refer it over to our colleagues on the IRS and advocate in your behalf.