Getting Ahead this Tax Season
Set yourself up for success this tax season with the latest episode of FEDtalk. Host Natalia Castro sits down with an Internal Revenue Service (IRS) management representative and industry professionals to discuss the current obstacles facing the IRS and impeding effective tax administration and customer service objectives. With insight into the issues facing the IRS, the panel addresses the filing season, changes in tax law, and tips and consideration while filing.
FEDtalk guests include Chad Hooper, Executive Director of the Professional Managers Association (PMA); Executive Director Scott Artman and Government Liaison Larry Gray of the National Association of Tax Professionals (NATP); and Nina Tross, Liaison for Tax and Advocacy at the National Society of Tax Professionals (NSTP).
The guests are clear in their mutual interest in an effective IRS, able to serve all taxpayers and aid industry professionals. Hooper commends the National Taxpayer Advocate Erin M. Collins for her work in supporting unrepresented taxpayers, including low-income individuals who may not have access to tax filing assistance.
The panel address the elephant in the room: the operational capacity of the IRS. Hooper explains the Service has the oldest continuously used operating system–that turns 60 this year–while combating an obsolete paper system, entry-level pay disparity, a talent drought, and a restrictive budget.
Likewise, the industry professionals feel the pressure upon IRS employees creates a domino effect negatively impacting every aspect of the taxpayer experience.
“We do recognize the hard work of the staff at the IRS, and we understand the agency wants to serve the American taxpayer,” stated Artman, “We’ve worked with a coalition over the years to support to support these efforts including the modernization of the IRS infrastructure so the IRS can serve in an efficient and effective manner, as opposed to keeping your head above water.”
In response, Tross evokes the word “frustration” to convey the sentiments between the taxpayers, the tax professionals, and IRS employees. From the tax professional’s perspective, according to Tross, the efforts of the IRS are not adequate.
Tross proposes eliminating automated notices as an immediate solution for taxpayers. Artman agreed, suggesting the notices is a self-perpetuating delay given the IRS’ backlog of correspondence. For example, the IRS may issue an automatic notice to a taxpayer that an item is due, not realizing the item requested is sitting in unopened mail. This causes confusion on the taxpayer’s part, and they often reach out to the IRS for clarity, only to experience further delay.
Gray alluded to communication issues between the IRS and the taxpayer causing undue burden. Hooper concurred, acknowledging the paper-system of the IRS and subsequent failings of communication cause anxiety on behalf of taxpayers, and ultimately contributes to the backlog and amounts of calls the agency receives.
“[The system] just creates confusion and decreases the level of service, and that’s in the best of times,” Hooper commented, “Now when the agency can barely function, we don’t need that.”
In the wake of COVID-19 legislative efforts directly effecting how taxpayers file, the panel addresses the layers of modifications. Likewise, they address Congress’ positioning of the IRS has the administrator of economic credits, further adding to the burden the agency has. The disconnect at every point in the filing process simply furthers the animosity between the public and the agency.
Tune in to the full episode for a discussion on how Congress, tax preparers, and tax professionals can make this filing season smoother.
You can stream the show online anytime via the Federal News Network app and listen to the FEDtalk podcast on PodcastOne and Apple Podcasts.
FEDtalk is a live talk show produced by Shaw Bransford & Roth P.C., a federal employment law firm. Bringing you the insider’s perspective from leaders in the federal community since 1993.
FEDtalk is sponsored by the Federal Long Term Care Insurance Program (FLTCIP). The FLTCIP is sponsored by the U.S. Office of Personnel Management, insured by John Hancock Life & Health Insurance Company, under a group long term care insurance policy, and administered by Long Term Care Partners, LLC (doing business as FedPoint).