“Family and Small Business Taxpayer Protection Act” is an NFIB Key Vote
Taxes remain the top concern for small business owners as reported in NFIB’s Small Business Problems and Priorities study. Not only are taxes a problem, but the Internal Revenue Services (IRS’) lack of customer service and significant delays add to the already heavy tax-related administrative burdens for small business owners.
The IRS’s significant processing delays prevented small businesses from receiving key pandemic relief benefits in a timely manner. Small business owners counted on these benefits and continue to deal with challenges that began in the pandemic such as inflation and workforce shortages. It is difficult for small businesses to plan for their future when they don’t know when to expect their business tax credits. “The IRS reports the agency still has 1.91 million unprocessed individual returns and 395,000 unprocessed 941X Forms, the forms related to COVID business tax credits,” said NFIB Vice President of Federal Government Relations Kevin Kuhlman.
In a recent NFIB Research Center survey, members were asked about their interactions with the IRS. Of the members who attempted to contact the IRS for information related to their businesses in the last 12 months, 64% reported that the experience was not helpful at all.
Unfortunately, the Inflation Reduction Act of 2022 focused on additional enforcement instead of services that would help taxpayers. “Before considering how to penalize taxpayers, the IRS should address resolving the immense return backlog and better assisting taxpayers with compliance,” explained Kuhlman.
The U.S. House of Representatives passed the Family and Small Business Taxpayer Protection Act, H.R. 23, which removes billions in expanded IRS enforcement funding and directs the IRS to prioritize serving taxpayers rather than focusing on expanding enforcement efforts. NFIB wrote a letter of support for H.R. 23 and made the legislation a Key Vote for the 118th Congress.
“The Family and Small Business Taxpayer Protection Act redirects Congress’ focus for the IRS from heavy enforcement to better service for taxpayers,” said NFIB President Brad Close. “Instead of concentrating on enforcement and penalties, this legislation charges the IRS to focus on customer service and modernizing operations to assist taxpayers. As NFIB members have voiced their frustrations with the IRS’ significant delays and lack of customer service, this legislation is a step in the right direction.”
This issue was determined a Key Vote in the U.S. Congress based on results from the NFIB Research Center’s surveys. NFIB asks legislators to support these consensus views of small business owners and reminds lawmakers that their votes are being monitored and reported to NFIB members. This element makes it easy for NFIB members to stay informed on which lawmakers support pro-small business policies and who they should consider supporting in future elections.
The Family and Small Business Taxpayer Protection Act would be beneficial for small businesses by providing them with improved taxpayer services and lifting strict enforcement. NFIB strongly supports this legislation and considered final passage as the first NFIB Key Vote for the 118th Congress.
