Skip to Main Content
 

Chris Rizek Comments on IRS Transparency

September 23, 2015, Bloomberg's Daily Tax Report

At a recent panel discussion, Caplin & Drysdale's Christopher S. Rizek commented on the IRS' commitment to transparency and providing meaningful information to taxpayers—while at the same time protecting taxpayer confidentiality.  For the full story, please visit Bloomberg's website (subscription required).

Excerpt taken from the article.

Panelist Christopher Rizek, a member of Caplin & Drysdale, said the tension between transparency and confidentiality is an extraordinarily difficult problem to solve. "Unless we go all the way one way or the other way, we're always going to have fights over these two principles," he said.

. . .

Committed to FOIA Compliance

In response to Rizek's comment that the FOIA process is "seriously broken," Tonuzi said the IRS is "committed to full compliance with FOIA," while at the same time it is struggling to cope with the sheer number of requests it gets, and the fact that some are overbroad or vague.

Last year, she said, the IRS got more than 10,000 requests for data under the act, and ended up litigating only about 25 of those cases. Some taxpayers are using FOIA requests as a way to try to get records in advance of litigation—not the way FOIA should be used, Tonuzi said.

Although she said the IRS goes to great lengths to protect taxpayer information, Rizek said he was "flabbergasted" at the amount of authorized disclosures the agency has made.

Taxpayer Advocate Cites Concerns

. . .

Both she and Rizek separately criticized the IRS's recent practice of issuing guidance in the form of frequently asked questions and answers, with both citing difficulties in determining what changes have been made and when they have been made.

. . .

Rizek said there has been a drop in formal guidance from the IRS and an increase in informal guidance. He said it is worth examining whether IRS is making these choices in part outside of the issue of resource constraints.

________________________________________________

About Caplin & Drysdale
Having celebrated our 50th Anniversary in 2014, Caplin & Drysdale continues to be a leading provider of tax, tax controversy, and litigation legal services to corporations, individuals, and nonprofits throughout the United States and around the world. We are also privileged to serve as legal advisors to accounting firms, financial institutions, law firms, and other professional services organizations.

The firm's reputation over the years has earned us the trust and respect of clients, industry peers, and government agencies. Moreover, clients rely on our broad knowledge of the law and our keen insights into their business concerns and personal interests. Our lawyers' strong tactical and problem-solving skills - combined with substantial experience handling a variety of complex, high stakes, matters in a boutique environment - make us one the nation's most distinctive law firms.

With offices in New York City and Washington, D.C., Caplin & Drysdale's core practice areas include:

-Bankruptcy
-Business, Investment & Transactional Tax
-Complex Litigation
-Corporate Law
-Employee Benefits
-Exempt Organizations
-International Tax
-Political Law
-Private Client
-Tax Controversies
-Tax Litigation
-White Collar Defense

For more information, please visit us at www.caplindrysdale.com.

Washington, DC Office:
One Thomas Circle, NW
Suite 1100
Washington, DC 20005
202.862.5000
        New York, NY Office:
600 Lexington Avenue
21st Floor 
New York, NY 10022
212.379.6000

___________________________

Disclaimer
This communication does not provide legal advice, nor does it create an attorney-client relationship with you or any other reader. If you require legal guidance in any specific situation, you should engage a qualified lawyer for that purpose. Prior results do not guarantee a similar outcome.

Attorney Advertising
It is possible that under the laws, rules, or regulations of certain jurisdictions, this may be construed as an advertisement or solicitation.

© 2017 Caplin & Drysdale, Chartered
All Rights Reserved.

Related Professionals

Related Practices