Tax Expert: Despite Tax Cuts, IRS Is Still 'Broken Beyond Fixing'
Dan Pilla is a tax expert who's been helping clients navigate tough problems with the IRS for many years.
When Dan was just 18 years old, his parents got into trouble with the IRS. They were facing a huge collection action, and it seemed there was no hope. But Dan went to the public library and studied the IRS tax code. He found that the IRS was proceeding illegally, and even though he was only 18, he managed to sue the IRS, and won.
Since that day Dan has fought for taxpayers' rights across the country, helping hundreds of thousands of people overcome IRS problems they thought might never be solved.
Even though most American taxpayers will pay less in taxes in 2018, thanks to the Tax Cuts and Jobs Act of 2017, the tax cut bill was not the sweeping tax reform that some touted it to be. Dan says that means that thousands of taxpayers may still face problems with the IRS going forward.
Pat Robertson talks to Dan Pilla about the new Tax Cuts and Jobs Act, the IRS, and what can be done about a broken system on Monday's 700 Club.
Dan says the IRS is broken beyond fixing.
"I sent a letter on October 17, 2017 regarding a client," Dan says. "The IRS received it three days later. I got a call from the agent on January 11, 2018. What took so long? She said their mail room is backed up. Backed up three months? How is that possible? She said 'we're busy.' What they are is broken and the scope and complexity of the law is why. The system needs to be trashed. When we're to the point where they can't even get the mail out of the mail room, it's time for a new system."
Dan says the problem is IRS tax law is so broad and complex, the IRS can't cope with the number of people with problems. For example, the IRS reports wait times on its toll-free lines average about 33 minutes.
"That's a joke," Dan says. "People wait over an hour on hold. At that, only about 37% actually get through for help. The IRS gets millions of letters every year. Their policy is to respond within 45 days. That too is a joke. Millions are in the response queue that are much older."