The IRS Electronic Tax Administration Advisory Committee(ETAAC) in a series of recommendations to the agency and Congress is looking for improvements in agency accountability as well as stressing the agency needs to remain impartial. The committee, in its annual report released June 28, 2023, made 26 recommendations through which it “advises Congress to provide timely tax legislation and consistent multi-year funding while it urges the IRS to prioritize IRS website modernization and search engine optimization,” ETAAC noted in a statement. The full report can be found at the IRS website.
The report notes that Congress “has made a substantial investment in the IRS, and with that investment, it is crucial to ensure ongoing accountability in the appropriate utilization of funds.”
ETAAC also states in the report that it is “crucial to emphasize that the IRS should not be used an extension of any political arm, including Congress, the White House, and Treasury. … To preserve the trust and confidence of taxpayers, it is imperative that tax administration remains independent and insulated from partisan influence, allowing it to operate in a manner that promotes the best interest of the taxpayers and the nation as a whole.”“We believe that these recommendations, if implemented, will contribute to a more streamlined, efficient, and taxpayer-centric system,” the report states.
The committee recommends that Congress and the IRS:
- improve and increase regulation and oversight of paid tax preparers;
- improve the communication, marketing, and accessibility of existing free tax filing programs before investing in an IRS Direct eFile platform; and
- ensure any Direct eFile platform adheres to security standards established in the current Free File program.
Specific recommendations to the IRS include:
- improving the online experience;
- providing Form 1099-NEC data to states on an expedited basis;
- updating Form 1099-K and educational material to enable easy compliance;
- improving education on information reporting filing obligations to increase compliance;
- developing key metrics to measure customer service and taxpayer experience; and
- enhancing transparency in the tax return processing and tax issue resolution.
By Gregory Twachtman, Washington News Editor
