National Taxpayer Advocate’s 2023 Legislative Recommendations

The 2023 Purple Book, which is presented as part of the National Taxpayer Advocate’s annual report to Congress, is a compilation of 65 legislative recommendations to strengthen taxpayer rights and improve tax administration. Recommendations include the following:

• Amend the “lookback period” to allow tax refunds for certain taxpayers who took advantage of the postponed filing deadlines due to COVID;
• Authorize IRS to establish minimum competency standards for federal tax return preparers;
• Expand the Tax Court’s jurisdiction to hear refund cases and assessable penalties;
• Modify the requirement that written receipts acknowledging charitable contributions must pre-date the filing of a tax return;
• Require that math error notices describe the reasons for the adjustment with specificity, inform taxpayers they may request abatement within 60 days, and be mailed by certified or registered mail; and
• Restructure the Earned Income Tax Credit to make it simpler for taxpayers and reduce the improper payments rate.