Frisco TX – Do the Changes Enacted in the Taxpayer’s First Act of 2019 Help You?

Have you heard of the Taxpayer’s First Act, that was passed by Congress on July 1st, 2019? Most of my clients in our Richardson, TX tax office haven’t, but there were some changes made in the Act that benefit taxpayers, and might be worth learning about.


What Is The Taxpayers First Act?

The Taxpayer’s First Act made some major changes that impacts the IRS. Below are only some of the areas impacted by the Act:

  • Established a new Independent Office of Appeals for Taxpayers.
  • Codifies the low income exception to the user fee and down payment that is temporarily in effect today for Offer-In-Compromise applications.
  • Clarified “Equitable Relief” for Innocent Spouse Relief Claims.
  • For Private Debt Collection Agencies used by the IRS, it made the following changes:
    • Will no longer include collections of Taxpayer’s whose primary income is SSI or Disability Income nor Taxpayer’s with AGI of 200 percent of poverty level or below.
    • Taxpayers referred to Private Agencies must have accounts inactive for at least two years.
    • Installment Agreements are limited to seven years.
  • Requires Faster Response Time by the National Taxpayer Advocates Office.
  • IRS must handle misdirected funds. These would be cases where refunds may have been sent to the wrong person. In the past, the IRS did not get involved.
  • IRS Modernization Plan.  The IRS Must Provide a Written Plan to Congress September 30th, 2020 that will:
    • Streamline IRS Structure
    • Implement Best Practices for combating cyber crimes and other threats
    • Eliminate operating units unique to taxpayers with similar needs
  • For VITA (Volunteer Income Tax Assistance)
    • Program has been codified
    • Permanently authorizes grant program
    • IRS permitted to promote VITA

As you can see, the impact on the IRS was wide and varied and will impact the future of the IRS.


Do You Need Help?

If you need help with any IRS Tax, Collection, or Audit issue, I’d be happy to talk with you. Please give me a call at (972) 821-1991 or email me at