Taxpayer advocate urges IRS to ease up

WASHINGTON, Jan. 5 (UPI) -- The Internal Revenue Service may actually be losing revenue by actions against tax delinquents that put their jobs at risk, the IRS ombudswoman said Wednesday.

National Taxpayer Advocate Nina Olson submitted her annual report to Congress, The Washington Post reported. She said the use of "hard-core" collection attempts like imposing liens "is inflicting unnecessary harm on financially struggling taxpayers."

Her argument is that tactics that reduce taxpayers' credit scores can affect every aspect of their lives since the scores are used by potential employers, landlords and insurers as well as lenders. Olson said a surge in liens in the past decade has not been followed by a surge in revenue with collections remaining flat.

Olson also argued for a simpler tax code, reducing the time businesses and individuals spend preparing tax returns.

This year, taxpayers will have an additional three days to file their returns. April 15 is Emancipation Day, a holiday in the District of Columbia, which the IRS must observe, so returns must be in the mail by April 18, the following Monday.