IRS Overhaul Would Confuse Public, Treasury Aide Says

Arguing that there is “no perfect system of sanctions,” a top Treasury official told Congress Thursday that completely overhauling the Internal Revenue Service’s system of penalties and interest would confuse the public.

Joseph Mikrut, tax legislative counsel for the Treasury Department, told the House Ways and Means subcommittee on oversight that while some changes may be needed, they should not be drastic.

Mikrut’s comments came as Congress looks at ways to reform the penalty and interest system.

In 1998 Congress passed a series of bills to make the IRS less heavy-handed.

Rep. Amo Houghton (R-N.Y.), subcommittee chairman, said, however, that efforts must be made “to ensure that innocent taxpayers’ lives are not ruined by a cascading imposition of penalties and interest due to honest mistakes.”