A new bipartisan plan to improve IRS procedures and taxpayer services has received some support from policy experts, but many see it as just a first step toward bigger changes at the agency. Writing in Bloomberg Tax, Chuck Marr said the Taxpayer Assistance and Service Act, introduced by Senate Finance Committee Chairman Mike Crapo of Idaho and ranking member Ron Wyden of Oregon, is designed to make tax filing easier and offer more protection for taxpayers, especially those who use paid preparers. 

A key part of the bill would give the IRS more power to oversee paid tax preparers. The proposal would increase penalties for misconduct and let the agency take away preparers’ tax identification numbers if they commit fraud or break the rules. This is important because many people depend on professional help with their taxes. As Marr states, “eighty-five million taxpayers (57% of them) used one to file a return in 2024.” 

Marr explains the changes could help protect lower-income taxpayers, who are often at risk of mistakes or unfair treatment from unqualified preparers. However, he argues the bill leaves out other important steps, such as stricter standards for paid preparers and more funding to improve the IRS. A bigger challenge is the IRS’s limited resources. Years of budget cuts, fewer staff, and outdated technology have made it harder for the agency to enforce rules and help taxpayers. While this bipartisan proposal is a step forward, many observers think larger reforms will be needed to fully rebuild the IRS and modernize the tax system.