Practice Management

The Internal Revenue Service has been shifting its priorities from taxpayer service to enforcement and its management of the Business Systems Modernization program - an ongoing umbrella program of upgrades - from contractors to IRS staff.

As part of cost-cutting measures and a move toward online services, the Internal Revenue Service will no longer mail out its compilation of federal tax forms and instructions for tax professionals, known as Package X.

The National Society of Accountants has called on the Internal Revenue Service to grant Circular 230 practice privileges to public accountants in states that have practice rights similar to public accountants in New Jersey and Pennsylvania.

Due to a decline in use and increasing costs, the Internal Revenue Service is discontinuing its TeleFile program.

The passage of H.R. 3, the Safe, Accountable, Flexible and Efficient Transportation Act of 2005, will effectively destroy the Internal Revenue Service's offer-in-compromise program, according to the American Association of Attorney-CPAs.

As part of cost-cutting measures, the Internal Revenue Service is forging ahead with plans to close some of its Taxpayer Assistance Centers, which provide walk-in service for taxpayers on tax law, tax return preparation and account inquiry resolution via face-to-face meetings with IRS employees.

The Internal Revenue Service is accepting applications for an annual grant program for matching funds to develop, expand or continue low income taxpayer clinics.

The Internal Revenue Service's Advisory Committee on Tax Exempt and Government Entities will hold a public meeting next month during which it will present its recommendations to the IRS Commissioner and senior leadership of the agency's tax exempt and government entities division.

While the Internal Revenue Service has made progress in improving taxpayer service, tax law enforcement and Business Systems Modernization areas, serious ongoing issues have kept the latter two areas on the Government Accountability Office's high-risk list, the watchdog agency said.

The Treasury Department and the IRS issued new rules related to Flexible Spending Arrangements -- which allow employees to pays for uncovered or unreimbursed medical costs with pre-tax funds -- in an effort to ease the year-end spending rush prompted by the current FSA deadline.