IRS directly contacted some represented taxpayers

Most Internal Revenue Service employees avoided directly contacting taxpayers who were represented by tax professionals, but there were some misunderstandings, according to a new report.

The report, released last week by the Treasury Inspector General for Tax Administration, found that determining whether or not the IRS complies with the requirements for taxpayer representation and direct contact is difficult because the IRS lacks a system to identify potential violations. For the report, which is required every year under the IRS Restructuring and Reform Act of 1998, TIGTA queried IRS data systems to identify and review cases involving represented taxpayers. The Taxpayer Bill of Rights gives taxpayers the right to representation when dealing with the IRS. In most cases, the IRS is supposed to suspend an interview when a taxpayer requests to consult with a representative, such as an attorney, CPA or enrolled agent.

TIGTA did a sample and found that IRS Field Collection employees largely complied with the requirement. However, interviews with four managers and 18 employees from the IRS Small Business/Self-Employed Division's Field Collection function found inconsistent understanding of certain procedures involving taxpayer-initiated contact, taxpayers' right to audio record in-person interviews related to the determination or collection of tax, and authorization coverage for additional tax periods.

While most of the employees seemed to be familiar with the direct contact provisions and Fair Tax Collection Practices, interview responses revealed an inconsistent understanding of certain procedural requirements. For example, eight employees did not correctly explain the procedures for responding to taxpayer voicemails, 10 employees misstated procedures involving taxpayer-initiated follow-ups, and five employees did not demonstrate awareness that taxpayers have 10 business days to consult a representative. Lastly, 10 employees incorrectly stated that audio recording of an in-person interview is not permitted. 

TIGTA recommended the IRS should refine the training pertaining to taxpayer representation and clarify how taxpayers' rights to representation must be observed in enforcement procedures. The IRS agreed to its recommendation and plans to implement corrective actions.

"We are committed to continually strengthening employee training and guidance to promote consistent understanding and application of taxpayer representation and direct contact procedures," wrote Lia Colbert, commissioner of the IRS's Small Business/Self-Employed Division, in response to the report. "During Fiscal Year 2025, Field Collection incorporated additional direct contact scenarios into both new hire and on-the-job training. In Fiscal Year 2026, we supplemented those efforts through workshops, executive communications, and continuing guidance to reinforce proper application of direct contact procedures."

She plans to refine the training materials to provide additional clarification about taxpayer representation and the limited circumstances in which direct communication with represented taxpayers is permitted.