(Bloomberg) — Congress has handed the IRS more work and less funding, leading to a decline in taxpayer service, the tax agency's independent in-house critic said in a new report.

The agency's inability to provide clear, timely assistance to the public is the most serious issue facing the nation's taxpayers, according to the annual report released today by Nina Olson, the national taxpayer advocate.

"Many taxpayers will be frustrated, some will make potentially costly mistakes, others will incur higher compliance costs when forced to seek information and assistance from tax professionals that the IRS previously provided for free," Olson wrote in the report. "And still others will simply give up and not file returns at all."

The woes at the Internal Revenue Service will be on display starting Jan. 20, when the individual tax-filing season begins. Obamacare's mandate to purchase health insurance and the tax-credit subsidies for insurance took effect in 2014, and both issues are creating complications and questions for taxpayers.

Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.

  • Critical BenefitsPRO information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
  • Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.