National Taxpayer Advocate Nina E. Olson's annual report to Congress identified the consequences of changes to the tax code enacted late in the year as the most serious problem facing taxpayers.

 The report also focused particular attention to the need for a coordinated approach by the IRS to combat the "cash economy," which represents the largest portion of the tax gap. The report also recommended that Congress enact a Taxpayer Bill of Rights and authorize symbolic "apology payments" in flagrant situations where taxpayers suffer serious harm as the result of IRS errors.

 A second volume was included in the report that describes the findings of six research studies, including one that shows that low-income taxpayers do better in IRS earned income tax credit audits when they are represented by practitioners.