Members Advocate to Improve Clarity on IRS Publication on Individual Retirement Accounts

Taxpayer Advocate Panel (TAP) continuously makes recommendations to improve IRS customer service. TAP members want to update taxpayers on a current project that highlights the Publication 590-B, Distributions from Individual Retirement Accounts (IRAs). Publication 590-B is used to discusses distributions from individual retirement arrangements. An IRA is a personal savings plan that gives you tax advantages for setting aside money for retirement.

TAP has identified issues with Publication 590-B regarding the clarity of the guidance it provides to taxpayers. It is crucial for beneficiaries of inherited retirement accounts to have clear guidance on their distribution schedule, especially when the decedent passed away before 2020.

TAP made recommendations to address the ambiguity in the publication, including moving important information to a more prominent location under the title “What If You Inherit an IRA”. This change will make it easier for taxpayers to understand the rules surrounding Inherited IRAs.

The volunteer members in TAP are always looking for issues around IRS products such as letters, notices, and publications, and taxpayer services. We are committed to improving the IRS and serving as the voice between the IRS and you.  Ensuring that the IRS gives clear, accurate instructions to help you get the most out of your retirement savings is one of many important issues we are looking at. Please take an opportunity to learn more about IRAs by reviewing the Pub 590-B by visiting About Publication 590-B, Distributions from Individual Retirement Arrangements (IRAs) on the IRS website . Be sure to share any additional concerns you may have about this publication or any other IRS product or service with TAP. Your opinion matters to us and together we can make a positive difference and reduce taxpayer burdens.

TAP is a Federal Advisory Committee of citizen volunteers who listen to taxpayer concerns, identify taxpayers’ issues, and make suggestions for improving IRS service and customer satisfaction. TAP is a demographically and geographically diverse group with balanced representation from each state, the District of Columbia, Puerto Rico, and at least one-member living, working, or doing business abroad. TAP works with the Taxpayer Advocate Service and the IRS to identify issues that will benefit from citizen input.

If you have suggestions for improving IRS processes and customer service, reach out and let us know. We take all comments seriously and will discuss them at a future TAP meeting.