The IRS is facing new challenges this tax season, including adapting to a new partnership audit system, employee retention credits, and overall changes in enforcement focus. Practitioners and taxpayers should keep several key factors in mind while the IRS adapts.
- Communication conundrum: In its annual report to Congress, published on January 10, the Taxpayer Advocate shared that only 29% of calls were answered by a live person in fiscal year 2023.
- Long waits: Taxpayers have been frustrated by significant delays encountered in corresponding with the IRS.
- Partnership audits: The Bipartisan Budget Act of 2015 made significant changes to the examination of partnership returns.
- Employee retention credits: The employee retention credit program, created to provide incentives to small businesses to retain employees, has garnered concern from the IRS because of overly aggressive ERC mills advising taxpayers to claim the credits.
Read more at Bloomberg Tax.
