“The IRS wants your input.” If that statement surprises you, it’s time for a paradigm shift. As revealed in a recent episode of the Federal Tax Updates podcast featuring IRS officials and tax professional leaders, a new era of collaboration is emerging in tax administration.
Gone are the days of an insular IRS. As Terry Lemons, the IRS’s Chief Communications and Liaison Officer, states today, “We can’t run the tax system by ourselves at the IRS. We need help. Tax professionals play a vital role.” This focus on partnering with tax pros offers practitioners new opportunities for input, education, and problem-solving.
In a live podcast from the bustling halls of the IRS Nationwide Tax Forum, hosts Roger Harris, EA, and Annie Schwab, CPA, interview several tax professionals and accounting industry leaders to discuss the future of tax practice, collaborating to tackle industry-wide challenges, and uniting state agencies and software providers in a common cause.
The IRS Nationwide Tax Forum: A Hub for Learning and Networking
The IRS Nationwide Tax Forum embodies the new collaboration between the IRS and tax professionals. With approximately 4,000 attendees from across the nation, these forums have become a cornerstone of professional development and dialogue in the tax industry.
Annie Schwab captures the forum’s essence: “We’re meeting people, attending classes, and networking.” This vibrant environment fosters direct engagement between tax professionals, IRS officials, and industry leaders.
Professional organizations play a crucial role in shaping the forum’s content. Kelli Comegys, Director of Membership & Business Development at the National Association of Enrolled Agents (NAEA), explains, “We partner with the IRS to provide speakers for the education at all of the forums. It’s a really great place to spread awareness of the credential and promote our education foundation arm of NAEA, which has a lot of scholarships for aspiring enrolled agents.”
The forums offer more than lectures. They include practical elements like the Case Resolution Program, where practitioners can solve complex cases on-site with IRS officials. As Roger Harris notes, “Bring your toughest case in there. Make an appointment and sit down and solve it.” This direct problem-solving opportunity can be a game-changer for practitioners dealing with complicated client issues.
The forums also serve as a feedback loop for the IRS. Mel Hardy, Director of National Public Liaison (NPL) at the IRS, emphasizes, “It gives partners an opportunity to hear from subject matter experts, sometimes even from the commissioner himself.” This access to high-level IRS officials allows tax professionals to influence policy and procedures directly.
By actively participating in these forums, tax professionals earn continuing education credits and become key players in shaping tax administration. They gain insider knowledge, build valuable relationships, and ensure their clients’ needs are represented at the highest levels of the IRS.
Influencing Policy Through Advisory Councils and Liaison Roles
The IRS has established ongoing channels for collaboration through advisory councils and liaison roles, providing practitioners with access to decision-makers and the opportunity to influence tax policy directly.
The IRS Advisory Council (IRSAC) is at the forefront of this effort. Christine Freeland, an IRSAC member, describes it as “an opportunity for me as a practitioner to give back.” IRSAC brings together tax professionals, information reporting specialists, and state government representatives for three-year terms, creating a diverse group of advisors for the IRS Commissioner.
The NPL office complements IRSAC. Mel explains, “NPL is really a forward-facing outreach organization.” This office organizes monthly meetings where external partners discuss issues directly with IRS leadership and subject matter experts.
These meetings have become crucial platforms for open dialogue. Roger notes, “We have open dialogue on a month-to-month basis, where Mel always starts the meeting by asking, ‘What are you hearing? What are the issues out there?'” This approach helps the IRS remain connected to real-world challenges that tax professionals and their clients face.
The impact of these collaborative efforts is tangible. During the implementation of the Employee Retention Credit, input from tax professionals helped the IRS refine guidance and address practical challenges faced by practitioners and their clients.
Terry highlights the current IRS Commissioner’s approach: “Commissioner Danny Werfel is very unique in the sense that he’s an information sponge. He’s very serious about getting outside of the Beltway. It’s easy if you’re inside federal government to get insulated and lose touch with what’s going on in the real world. He wants to talk directly to frontline IRS employees and affected tax professionals.”
By participating in these advisory roles and engaging with liaison offices, tax professionals can directly shape IRS policies and procedures to improve the tax system and better serve their clients.
Joint Efforts in Combating Scams and Modernizing the IRS
The partnership between the IRS and tax professionals addresses pressing challenges facing the tax community. This collaboration is making a huge difference in combating tax scams and schemes and helping transform the IRS.
Terry highlights a new coalition formed to combat tax scams: “We have joined together with the states, state tax agencies, the software industry, and the tax professional community to combat tax scams and schemes together, because we realize this is a growing threat for well-meaning taxpayers.”
The coalition focuses on countering social media scams, which Terry describes as becoming “a bit of a pandemic.” By sharing information and setting up early warning systems, the group identifies and stops scams before they flood the IRS and states with fraudulent returns.
This initiative draws inspiration from the successful “Security Summit” that tackled identity theft in previous years. For tax practitioners, this collaborative effort protects their clients and encourages taxpayers to seek advice from legitimate tax professionals.
Simultaneously, the IRS is undergoing a significant transformation, backed by $60 billion in funding from the Inflation Reduction Act. Terry explains, “We’re using this $60 billion to make improvements in taxpayer service. We’re trying to bring more fairness back into enforcement.”
These improvements promise more efficient interactions with the IRS for tax professionals, streamlining processes like resolving client issues or using self-service features to obtain necessary information. The focus on fairness in enforcement also helps create a more level playing field, benefiting practitioners who prioritize compliance.
Conclusion: Embracing a Collaborative Future
Tax administration is transforming, driven by collaboration between the IRS and tax professionals. From interacting at the Nationwide Tax Forum to taking part in advisory councils and joint efforts against tax scams, this partnership is reshaping tax compliance.
For tax practitioners, this new era offers exciting opportunities to have their voices heard at the highest levels of the IRS, shape policies that affect their practice, and stay ahead of industry challenges. More importantly, it helps them enhance the value they deliver to clients through improved services, more efficient problem resolution, and proactive guidance based on insider knowledge of upcoming changes.
Ready to explore these transformative collaborations further? Listen to the entire Federal Tax Updates episode to hear directly from educators and attendees at the IRS National Tax Forum and gain insight into the new collaborative model for tax compliance.