IRS Advisory Council 2024 Report Offers Key Recommendations for Tax Administration Overhaul

Internal Revenue Service (IRS)

WASHINGTON, D.C. — The Internal Revenue Service Advisory Council (IRSAC), a key panel of experts tasked with advising the IRS on critical tax administration matters, has released its 2024 Public Report. The report provides 37 recommendations addressing a wide array of challenges and opportunities aimed at improving the efficiency, transparency, and future readiness of the IRS.

IRS Commissioner Danny Werfel expressed gratitude for the council’s contributions, stating, “IRSAC members have spent numerous hours analyzing issues in tax administration and the transformation work underway across the IRS. The IRS is grateful for their hard work and valuable insights they spent on this year’s report, and we look forward to reviewing their recommendations.”

Key Recommendations and Strategic Priorities

The 2024 IRSAC Public Report highlights 13 major issues, underscoring the panel’s focus on comprehensive and transformative change in tax administration. These include:

  1. IRS Funding – Addressing long-term, sustainable funding to support the agency’s operations and modernization efforts.
  2. Assessment of the Strategic Operating Plan – Evaluating the progress and impact of the plan on agency-wide goals.
  3. Reporting Levels of Service Data – Enhancing transparency by providing meaningful metrics on service delivery.
  4. Staffing and Hiring Practices – Streamlining processes to attract and retain top talent across the agency.
  5. Promotion of Online Accounts – Encouraging taxpayers to adopt online services while ensuring usability and accessibility.
  6. Technical Support for Online Accounts – Improving the technical infrastructure to enhance user experiences.
  7. Capabilities for Business Online Tax Accounts – Expanding features and functionality tailored to business taxpayers.
  8. Enhanced Authorization Techniques – Facilitating secure access for businesses to online accounts.
  9. Identity Theft Prevention and Resolution – Bolstering defenses against fraud while improving responsiveness to identity theft victims.
  10. PTIN Database and Renewal System – Overhauling the preparer tax identification number process to ensure efficiency.
  11. Oversight of Tax Preparers – Strengthening oversight mechanisms to maintain industry standards and protect taxpayers.
  12. Continuing Education for Enrolled Agents – Including practice management topics in training to broaden competencies.
  13. Form Development and Feedback – Streamlining the process for issuing updated tax forms and integrating stakeholder input.
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Each recommendation reflects the council’s commitment to optimizing tax administration for individuals, businesses, and tax professionals while addressing evolving challenges in an interconnected financial landscape.

Role and Function of IRSAC

Established as a federal advisory body, IRSAC operates under the Federal Advisory Committee Act and provides a structured forum for stakeholders to offer advice to the IRS commissioner and leadership. The council represents a cross-section of the tax-paying public and professional organizations, including small and large businesses, government entities, tax-exempt organizations, and academia.

IRSAC’s recommendations are informed by thorough analysis and engagement, offering guidance on current and proposed IRS policies, programs, and procedures. The 2024 report reflects the culmination of these efforts, with IRSAC dedicating significant resources to understanding pressing issues and potential improvements.

Acknowledging IRSAC Members’ Contributions

The report release also coincided with the acknowledgment of 12 outgoing IRSAC members whose terms conclude this year. These individuals have made significant contributions to tax administration through their roles on the council’s five subgroups:

  • Information Reporting Subgroup: Jon Schausten (Member), Wendy Walker (Chair), Sean Wang (Member)
  • Large Business & International Subgroup: Dawn Rhea (Member), Katrina Welch (Chair)
  • Small Business/Self-Employed Subgroup: Amanda Aguillard (Member), Jeffrey Porter (Chair)
  • Tax Exempt/Government Entities Subgroup: Samuel Cohen (Member), Jodi Kessler (Member), Tara Sciscoe (Member)
  • Taxpayer Services Subgroup: Alison Flores (Chair), Mason Klinck (Member)

Their diverse expertise has been instrumental in driving meaningful discussions and shaping actionable recommendations. Commissioner Werfel praised their engagement and dedication to addressing complex tax issues that impact a broad spectrum of stakeholders.

A Step Forward for Tax Administration

IRSAC’s work embodies the ongoing effort to modernize a tax system that serves millions of Americans. Recommendations outlined in the 2024 report align with the broader organizational transformation underway at the IRS, signaling a continued emphasis on transparency, accessibility, and taxpayer-centric service.

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From addressing operational challenges, like hiring and digital services, to tackling broader systemic issues, such as funding and fraud prevention, the IRSAC 2024 Public Report lays the groundwork for reforms that aim to benefit taxpayers and professionals alike. By fostering collaboration and leveraging the insights of council members, the IRS continues to build a foundation for a more efficient and equitable tax system.

The report is publicly accessible, offering taxpayers and stakeholders an opportunity to review the proposed changes and stay informed about the agency’s ongoing transformation.

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