On November 15th, the IRS Internal Review Service Advisory Council (IRSAC) released their 2018 final report to the Commissioner of Internal Revenue. This annual report contains evaluations of current practices and procedures of the present tax administration, and emerging issues, including recommendations for addressing these issues.
Subjects addressed in the report included:
- The Critical Need to Provide the Internal Revenue Service with Adequate and Reliable Funds;
- Improving the Free File Program by Increasing IRS Oversight and Restructuring the MOU;
- Statutory Authority of the IRS to Establish and Enforce Minimum Standards of Competence for all Tax Practitioners, including Tax Return Preparers;
- Improving Real-Time IRS Communications During Exigent Circumstances and Streamlining Regular IRS Communications;
- And the Future of the IRSAC.
Members of IRSAC, including Vice Chair Kathy Hettick — NSA Past President 2015-2016 — also provided opinions on operational improvements for the IRS, and shared the general public’s perception of professional standards, best practices for tax professionals and IRS activities. Constructive input on effective methods of moving forward were also included in the final report.
The IRSAC 2018 Final Report can be found here.
IRSAC is the direct successor to the Commissioner’s Advisory Group which existed before the reorganization of the Bureau of Internal Revenue into the modern Internal Revenue Service. It is comprised of four sub-groups: the Digital Services Subgroup; the Small Business/Self Employed and Wage & Investment (SBSE/W&I) Subgroup; the Office of Professional Responsibility (OPR) Subgroup; and the Large Business & International (LB&I) Subgroup
The IRSAC is tasked with providing a public forum between the tax professional community, general public, and IRS officials. IRSAC is required to meet every year, and to provide a report, in order to maintain transparency for Congress and to keep citizens informed about the activities of this advisory body.