America's tax system runs on trust. It's a voluntary compliance system, and that only works when taxpayers believe the rules are fair, consistent, and applied equally. But that trust is fracturing. When tax policy is carelessly misinterpreted or grows needlessly complex, honest, hardworking Americans are left struggling to navigate a system that feels rigged against them. The frustration is real, and it's widespread. New polling commissioned by the Alliance for IRS Accountability (AIA) confirms what many already suspect: taxpayers across the country are losing confidence, and they want answers.
The agency responsible for administering that system, the Internal Revenue Service (IRS), should provide the clarity and consistency taxpayers need to comply with the law, yet the current system has failed to provide either. Too often, taxpayers feel powerless when disputes arise, facing enforcement actions shaped by shifting interpretations and unpredictable administrative decisions. When rules appear to change midstream, individuals and small businesses are left navigating a process that can feel opaque and one-sided. Beyond the stress and frustration this creates, the financial costs of defending against uncertain enforcement—from legal fees to prolonged disputes—can quickly become overwhelming, especially for the millions of families and businesses already operating on tight margins.
Our polling confirms that these concerns are not isolated experiences. A majority of Americans agree that the IRS is failing taxpayers, which helps explain why voters reject expanding the IRS’s authority and instead demand stronger accountability. More than half of respondents, 53%, rated IRS customer service negatively, despite the agency’s role as a taxpayer service organization. Even more striking, 78% of respondents say that the IRS needs to be held to a higher standard. When an agency responsible for administering the nation’s tax system cannot meet basic service expectations, it validates concerns that the system itself is not working as intended.
Even as the agency fails to meet taxpayer needs, proposals continue to surface that would further expand the agency’s reach into Americans’ financial lives. One such proposal is to tax unrealized gains, which would require subjective government determinations about the value of assets, introducing an even broader level of uncertainty in tax enforcement. Unsurprisingly, Americans are skeptical: 59% of respondents say taxing unrealized gains is unjustified, with much of that concern stemming from what such a policy would require in practice. 66% of respondents say they are alarmed by the idea of IRS agents appraising the value of everything they own each year—a necessary component of any unrealized gains tax.
There is a clear need to restore balance between taxpayers and the agency tasked with enforcing the law. It is for these reasons that AIA has been advocating for shifting the burden of proof back onto the IRS in tax disputes; 66% of voters agree. When taxpayers are forced to prove their innocence against an agency with virtually unlimited resources, the system tilts heavily in the agency’s favor. Correcting this imbalance would ensure the IRS must substantiate claims before imposing penalties or demanding payment. Empowering taxpayers in this way would allow them to defend themselves rather than feeling pressured to settle simply to avoid the cost and uncertainty of prolonged disputes.
To that end, AIA is calling for a “loser pays” policy that would require the IRS to cover taxpayers’ legal costs when the agency loses in court. Not only would such a reform create a powerful incentive for the agency to pursue only well-founded disputes, but it would give taxpayers greater confidence to defend themselves when enforcement seems targeted. Public support for this change is undeniable: 75% of respondents agree that when the IRS is wrong, it should pay. Together, these common-sense reforms represent important steps toward restoring integrity in tax administration.
Taxpayers deserve a system that is fair, consistent, and accountable. A voluntary compliance system depends on these principles, but for too long, the IRS has been allowed to operate in ways that erode trust through overreach, uncertainty, and a lack of transparency. Restoring certainty in tax administration is essential to preserving the credibility of the system itself, because without it, voluntary compliance cannot endure.
Chuck Flint is the executive director of the Alliance for IRS Accountability.
