What Does the IRS Need to Improve?

Audio version available here (1 min. 55 sec.)

It’s not an exaggeration to say that many are unsatisfied with the IRS. With subpar tax services and collectors increasing the pressure on taxpayers, it’s also not hard to imagine why. But what would really improve the IRS? Directly from the NATP Taxposium, IRS Commissioner Daniel Werfel stated that in order for the Internal Revenue Service to be successful, it needs to work together with all tax professionals in the country.

There are several ways the IRS and tax professionals already work together. For many individuals, a CPA is how their tax return is prepared and filed. Without these vital partnerships, the tax gap would be even wider than it already is. However, the IRS doesn’t always extend the same courtesy, especially with its Practitioner Priority Service phone line reserved for tax professionals. Barely a third of those seeking direct communication end up speaking with an IRS employee. Clearly, more work needs to be put into streamlining the IRS and tax professionals’ communication in order for collaboration between them to be fruitful.

While not explicit in this most recent statement, Werfel also seeks more funding for the IRS. Back in 2022, President Biden signed the Inflation Reduction Act, which allocated $80 billion to the IRS. In the second half of 2023 and all throughout 2024, Werfel has touted this funding as the catalyst for more investigations and collections. In fact, in four months, the IRS collected $1 billion from just 1,600 individuals who owed outstanding taxes previously inaccessible due to a lack of resources. So yes, he’s right that with more funding, the IRS has a better chance at closing the tax gap.

However, this all doesn’t change the fact that the IRS is not meeting the needs of taxpayers across the nation. Satisfactory service has been hard to come by, so it may be in your best interest to seek a tax pro to handle the burden of IRS coordination. If you currently do not have someone you can trust, reach to the XQ CPA team to see if we’re the right fit for you. Give us a call or book a consultation online today.

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Source:

https://www.journalofaccountancy.com/news/2024/jan/taxpayer-advocate-irs-again-fails-tax-pros-with-pps-call-answer-rate.html