Taxpayer Assistance and Simplification Act of 2008

TAXPAYER ASSISTANCE AND SIMPLIFICATION ACT (H.R. 5719) -- (Extensions of Remarks - April 24, 2008)

SPEECH OF
HON. BETTY McCOLLUM
OF MINNESOTA
IN THE HOUSE OF REPRESENTATIVES
THURSDAY, APRIL 24, 2008

* Ms. McCOLLUM of Minnesota. Madam Speaker, I rise in strong support of the Taxpayer Assistance and Simplification Act (H.R. 5719). I want to thank Chairman RANGEL and Subcommittee Chairman LEWIS for bringing this legislation to the floor which modernizes IRS functions by responding to recommendations by the Taxpayer Advocate.

* The Taxpayer Assistance and Simplification Act helps to simplify the tax process and protect taxpayers from abuses. It strengthens protection from identity theft and tax fraud by requiring the IRS to notify taxpayers if it suspects identity theft. H.R. 5719 also makes the tax process simpler by eliminating an outdated requirement for detailed records of calls made on employer-provided cell phones. It strengthens outreach to ensure that working families entitled to the Earned Income Tax Credit receive the refund they have earned and provides protections from predators.

* H.R. 5719 helps to ensure tax fairness by closing an offshore loophole that allows government contractors, who receive millions or billions in taxpayers' dollars, to set up companies in foreign countries to avoid paying Social Security and Medicare taxes. For example, defense contractor KBR, has reportedly avoided paying over $100 million in Social Security and Medicare taxes by creating shell companies in the Cayman Islands.

* This important bill also puts an end to the use of private debt collection agencies to collect Federal income taxes and ensure that this critical government function is performed by public servants on behalf of American taxpayers. Despite aggressive tactics, contractors only brought in a little more that half of what it cost the IRS to implement the program. IRS agents can do this more efficiently and ending this program prevents the possible misuse of confidential taxpayer information. Our constituents deserve to know that the person contacting them on behalf of the Federal Government is a public-servant, who is held to the highest standards of accountability and confidentiality, not a person whose paycheck depends solely on the number of collections they make.

* I urge my colleagues to support the Taxpayer Assistance and Simplification Act.

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