The report also states the tax code imposes an “unconscionable burden” on taxpayers, pointing out that Congress over roughly the past 11 years has made about 5,000 changes to the tax code, which now totals about 4 million words.
The country’s top taxpayer advocate urged Congress on Wednesday to simplify the tax code, saying it is the most serious problem facing taxpayers and that individuals and businesses spend about 6.1 billion hours annually complying with tax-filing requirements.
The analysis and recommendation are included in the 2012 report to Congress by the national taxpayer advocate, the IRS’ internal watchdog.
“The existing tax code makes compliance difficult, requiring taxpayers to devote excessive time to preparing and filing their returns,” tax advocate Nina Olson wrote in the 756-page report to Congress. “And it undermines trust in the system by creating an impression that many taxpayers are not compliant, thereby reducing the incentives that honest taxpayers feel to comply.”
The report follows Washington Democrats and Republicans agreeing last week to a deal that permanently extended lower tax rates for families making less than $400,000 annually but failed to address comprehensive tax reform.
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