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Highlights Impact of Late Tax Law Changes, Urges Adoption of Taxpayer Bill of Rights National Taxpayer Advocate Nina E. Olson has released her annual report to Congress, focusing particular attention on the consequences of changes to the tax code enacted late in the year and the need for a coordinated IRS approach to combat the cash economy portion of the tax gap. Olson also urged Congress to enact a Taxpayer Bill of Rights and to authorize symbolic "apology payments" in egregious cases where taxpayers suffer significant harm as a result of IRS errors. Impact of Late-Year Tax Code Changes on Taxpayers The report designated the frequency and magnitude of late-year changes to the tax code as the most serious problem facing taxpayers. In both 2006 and 2007, Congress acted in December to provide tax benefits with retroactive effect for the full year.

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