Heard enough griping about taxes?

Not Lee Battershell, a Carmichael CPA who's been happily listening to taxpayer complaints about the IRS for the past two years. As a member of the national Taxpayer Advocacy Panel, she's one of 100 volunteers whose mission is to look into taxpayer concerns, then push the IRS to make consumer-friendly changes.

She's one of 14 TAP members representing California, Nevada, Hawaii and Alaska.

On the eve of Monday's IRS tax-filing deadline, here's an excerpt of our recent Q&A with Battershell:

You're heading into the final stretch of your three-year term. How's it been listening to taxpayer complaints all these months?

My experience with TAP these past two years has been exhilarating. There is nothing a volunteer likes more than to be heard and feel they are doing something that benefits the population at large. Since the IRS touches each and every one of us, it's a big deal.

What's been the biggest area of consumer complaints?

The No. 1 complaint we've had this past year: people who've been involved in IRS (audits) who feel the IRS has either not responded or ignored them. There were so many complaints, it was clearly a systemic problem.

Why is it happening?

It's because the (audit) system is so highly automated. When the computer flags certain items on a taxpayer's return, it automatically sends out a tax deficiency notice. If there's no acknowledgment or response from the taxpayer within 90 days, there's a tax assessed and possible penalties.

The problem is that whenever they receive a taxpayer's documentation or proof of payment by letter, it's manually processed. It doesn't get matched up to the computer system as fast as it should, so it doesn't appear the taxpayer has responded.

… Sometimes there are real horror stories where taxpayers have sent in the required information and it's been totally ignored. The IRS sends out a (penalty notice) as though the documentation was never received, even though the taxpayer has post office verification. The IRS has admitted it's happened.

There also has been a problem when taxpayers call the IRS about their audit. There have been too many calls for IRS employees to keep up with and they don't always call back.

What's been changed as a result of TAP's input?

The IRS acknowledged its mistakes and has set up two committees to focus on being more responsive to taxpayer needs. They're doing more training on IRS phone procedures. They're looking at more postal tracking systems to be sure letters reach a taxpayer. And they're working on improving the matching process between the computer files and taxpayers' letters. One solution is to scan the letters into the computer or use barcodes to match them to the computer file.

We in TAP have been really pleased with the IRS response on this problem. We felt really good to be a driving force.

What about problems with taxpayer identity theft?

It wasn't as big a problem before but it's definitely become more so. To reduce the risk of identity theft, on certain IRS letters to taxpayers they're now blocking out the first part of a Social Security number, just using the last four digits. That was a TAP recommendation.

Another change, based on a TAP recommendation, is to freeze IRS tax accounts of those who don't have to file a tax return. So if somebody tried using that Social Security number to file a (fraudulent) return to get a refund, there'd be a red flag.

Putting a lock on tax accounts started this January, but only for accounts of deceased taxpayers. They'll expand it to the public later.

Most people don't think too fondly of the IRS. Is that perception changing at all?

There's always room for improvement but I'm impressed by what I've seen (the IRS) do. They're becoming a lot more courteous over the phone. That's something I wouldn't have seen four to five years ago. … Even if they don't have all the answers, it calms you down.

I think TAP has a lot to do with that. The fact that (IRS) is willing to find ways to improve really impresses me. I don't think you'll find many corporate companies that go to this extent to improve service.

TAP is now seeking new members in California. Why would someone want to voluntarily hear consumer complaints about taxes?

All of us want to make a difference. The payback (with TAP) is the satisfaction that it's doing good for a lot of people.

When people like the (IRS) deputy commissioner listen and respond to you, it feels great. I encourage anyone who wants to serve their country to become a TAP volunteer.

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Have a personal finance question? Call The Bee's Claudia Buck at (916) 321-1968.

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