National Taxpayer Advocate Decries IRS Strain, Calls for Legislative Reforms to Protect Taxpayers

WASHINGTON — National Taxpayer Advocate Erin Collins, speaking at a tax conference on June 6, 2026, detailed the ongoing strain within the Internal Revenue Service and the corresponding challenges faced by U.S. taxpayers, urging Congress to pass legislation aimed at improving service and protecting taxpayer rights.

Collins, who has served as the head of the Taxpayer Advocate Service (TAS) since March 2020, acts as the official “Voice of the Taxpayer” within the IRS and before lawmakers. Her role involves overseeing an independent organization within the IRS designed to be a safety net for individuals and businesses struggling to resolve issues with the agency. TAS advocates for both individual case resolutions and systemic changes to tax administration.

With over 35 years of experience in tax law, including 15 years in the IRS Office of Chief Counsel and two decades as a tax managing director at KPMG, Collins brings a deep understanding of the friction points between the agency and the public. She emphasized that TAS is distinct from the Treasury Inspector General for Tax Administration (TIGTA), which focuses on fraud, waste, and abuse. In contrast, TAS is solely dedicated to taxpayer problems and rights, a distinction Collins noted is often misunderstood by taxpayers and practitioners.

During her address, Collins acknowledged that TAS itself is under significant pressure, with high case inventories and staffing shortages leading to heavy workloads for case advocates. These internal challenges mirror the broader issues plaguing the IRS, resulting in frustrating delays for businesses and individuals seeking assistance.

Collins's remarks echoed key findings from her most recent Annual Report to Congress. In that report, she criticized the IRS's pursuit of an overly high Level of Service (LOS) goal for its phone lines. She argued that this focus can lead to customer service representatives having significant idle time while waiting for calls, rather than working to resolve the underlying account issues that prompt taxpayers to call in the first place. This creates a self-perpetuating cycle of unresolved problems, repeat calls, and further strain on agency resources.

The report also called for more strategic workforce planning. “To fulfill its mission, the IRS must align hiring decisions with operational needs and emerging challenges, rather than target a predetermined staffing level,” Collins wrote, stressing that planning should be guided by the actual work required to provide timely and accurate service.

To address these systemic problems, Collins championed several legislative reforms. She highlighted the IRS Math and Taxpayer Help Act, a law designed to make math-error notices clearer and more specific. It requires the IRS to detail the type of error, the relevant tax code provision, the affected line item, and the taxpayer’s right to challenge the adjustment. Collins framed this as a fundamental taxpayer-rights issue, stating that taxpayers cannot exercise rights they do not fully understand.

Furthermore, she pointed to the broader Taxpayer Assistance and Service Act (TAS Act) as a critical piece of legislation moving through Congress. The bill, which draws heavily from TAS recommendations, includes dozens of provisions favorable to taxpayers. It aims to make substantive changes to IRS procedures in areas like dispute resolution, penalty administration, digital tools, and taxpayer communications.

Data security was another major concern Collins raised, referencing the case of an IRS contractor who stole and leaked the return information of thousands of taxpayers. In her report, she recommended that Congress strengthen the penalties for contractors who fail to adequately protect sensitive taxpayer information, holding them to a higher standard of accountability.

In our experience, the issues Erin Collins highlights are not abstract policy debates; they are daily realities for the small and mid-sized businesses we serve. Confusing notices, unreturned calls, and processing delays create significant operational burdens and financial uncertainty. Navigating the IRS has become a specialized skill, and business owners simply cannot afford the time or risk of misinterpreting a notice or missing a deadline because of agency backlogs. Proactive engagement and professional representation are no longer optional for companies seeking to maintain good standing and manage their cash flow effectively. This is precisely why our tax preparation and compliance services are so critical. We handle the complexities of IRS communication and procedure so our clients can focus on running their businesses. For guidance on these matters, business owners can contact C&S Finance Group LLC at csfinancegroup.com.

Looking ahead, the focus will shift to Capitol Hill to see if lawmakers will act on the legislative proposals championed by Collins, particularly the comprehensive TAS Act. The effectiveness of the IRS and the protection of taxpayer rights in the coming years may depend heavily on whether Congress provides the statutory tools and clear mandates the National Taxpayer Advocate has requested.