The 2015 annual report was presented to the IRS Commissioner yesterday.
The report consists of four sections:
1. General report, addressing the following:
Issue one: The IRS needs sufficient funding to operate efficiently and effectively, provide timely and useful guidance and assistance to taxpayers, and enforce the current law so that the integrity of and respect for the voluntary tax system is maintained.
Issue two: Looking forward in this volatile environment, the IRS must maintain the taxpayer and practitioner protections afforded by a strong, balanced and independent Office of Professional Responsibility.
2. Small Business/Self-employed and wage and investment subgroup report, addressing the following:
Issue one: Identity authentication of the Form 1040 series.
Issue two: a review of automated online self-service and teletax telephone application tools.
Issue three: third-party payer arrangements for employment taxes.
Issue four: reducing taxpayer burden by improving the taxpayer experience.
Issue five: a review of Offer in Compromise (OIC) form and booklet 656-B, and collection information forms 433-A, 433-B, and 433-F to improve taxpayer compliance and successful utilization.
3. Office of Professional Responsibility subgroup report, addressing the following:
Issue one: continuity of independence, strength and visibility of the Office of Professional Responsibility.
Issue two: the Statutory authority of the IRS to regulate tax practice.
Issue three: application of appraisal standards consistent with the uniform standards of professional appraisal practice.
4. Large business and international subgroup report, addressing the following:
Issue one: improving penalty administration – general comments and recommendations.
Issue two: penalty for an erroneous claim for refund or credit
Issue three: application of qualified amended return rules to regularly examined taxpayers in a post CIC environment.
Issue four: international information return penalties.
issue five: implementation of the tangible property regulations.
The function of IRSAC is to convey the public’s perception of professional standards and best practices for tax professionals and IRS activities, offer constructive observations regarding current or proposed IRS policies, programs and procedures, and suggest improvements to IRS operations.
Volunteers from the tax community including tax professionals, the public and the business sector are appointed on a three-year term, with seven members of the 20 member group ending their three-year term this year. The IRSAC is administered by the National Public Liaison Office.