Since January, more than 9,000 workers have left the IRS’s taxpayer services division—nearly 22% of its staff. This dramatic decrease will affect taxpayers and tax practitioners in many different ways.
Tax professionals should be aware of these challenges and seek to make changes in their business processes to improve taxpayers’ experience in their client base.
The taxpayer services division is responsible for processing returns and addressing taxpayer account issues. The IRS has made electronic filing a priority in recent years, and the reduced staffing levels make this priority more important than ever.
Taxpayer clients with electronically filed returns are less likely to encounter problems and delays created by manual processes performed by the IRS to post taxpayer returns. Practitioners who convince their clients to file electronically—and who ensure that such returns are filed properly to avoid e-file rejections—stand to improve the taxpayer experience relative to other practitioners.
Practitioners also should familiarize themselves with additional electronic tools provided by the IRS to help clients who encounter issues. Staffing cuts will inevitably lead to longer wait times when calling the IRS; even when calls are answered, there is still the possibility of receiving an incorrect answer.
Practitioners who use the IRS Tax Pro Account and learn to decipher IRS transcripts will provide a higher level of service to their clients than those who rely solely on calling the IRS to obtain information. They also will be in a better position to more accurately and quickly resolve client concerns.
In recent years, the IRS has used “math errors” during tax return processing. With a math error, the IRS is permitted to make changes to the return before posting it to reflect incorrect entries appearing on the face of the return (as determined in the view of the IRS). Practitioners who can readily identify and timely respond to a math error notice will provide a tremendous benefit to their clients, many of whom are unaware of the existence or significance of this notification.
Many practitioners only provide income tax preparation services to clients. Unfortunately, clients often encounter difficulties with the IRS concerning other tax-related matters as well, including employment tax and information return filing issues.
While practitioners don’t wish to expand services into preparation of these types of returns, their clients still need a reliable service provider when things go wrong. Practitioners who understand the return filing process—and the IRS’s processes for handling the filed (and unfiled) returns—stand to benefit greatly.
Only when practitioners understand how things should normally progress can they diagnose a breakdown in the process and provide good suggestions for resolution. A practitioner who understands the process involved with various types of returns is more likely to satisfy clients compared with one who only understands an income tax return.
Although changes in technology will highly affect the taxpayer experience in the future, practitioners and clients alike should remain aware that the IRS is an organization run by people—those who have discretion as to whether, and when, to solve a taxpayer issue.
It’s understandable to be frustrated by the lack of feedback coming from the IRS when trying to resolve the issue—or, in some cases, negative or irrelevant feedback—but it’s important for anyone dealing with the IRS to remain kind, patient, and empathetic.
Frustrations experienced by practitioners and taxpayer clients also will be experienced by the remaining IRS personnel. Kindness, patience, and understanding go a long way toward building goodwill, leading to more positive outcomes.
The IRS of old is gone, and it’s not coming back. Practitioners who understand the nature of the changes at the agency and who educate their clients about such changes are going to be more successful going forward. Those practitioners who don’t change with the IRS are going to be left behind.
This article does not necessarily reflect the opinion of Bloomberg Industry Group, Inc., the publisher of Bloomberg Law, Bloomberg Tax, and Bloomberg Government, or its owners.
Author Information
Brett Bissonnette leads Plante Moran’s tax controversy services practice and frequently represents clients before the IRS.
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