Despite a provision enacted by Congress prohibiting the Internal Revenue Service from labeling taxpayers as "illegal tax protesters" or similar designations, the IRS is still using the term, according to a new report.

The Treasury Inspector General for Tax Administration said the IRS has eliminated most uses of this and similar designations, but in some instances IRS employees continued to refer to taxpayers by these labels in the case narratives it compiles on accused tax evaders. TIGTA said the label could stigmatize taxpayers and cause bias among IRS employees in future contacts with the taxpayers.

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