Internal Revenue Service employees faced threats of assault during Saturday tax assistance events last year, according to a recent report.

The report, issued earlier this month by the Treasury Inspector General for Tax Administration, found that some of the special tax help events organized by the IRS last year drew large crowds who became disorderly during the long waits for assistance at IRS Taxpayer Assistance Centers. 

During 33 unannounced visits to the TACs that held the Saturday Help events in March, April and May 2024, TIGTA inspectors found that some taxpayers faced canceled events, long wait times, or were turned away and never served, leading to frustrations boiling over among the hordes of taxpayers. 

“As a result of the large crowds at some TAC locations, taxpayers and IRS employees faced increased safety and security risks when the crowd became unruly,” said the report. “Preparation for the 2024 Saturday Help events included advanced planning by the Taxpayer Experience Day team, use of a triage form to screen taxpayers before providing services, increased staff above normal operating levels to better serve taxpayers, and enhanced security at most locations consisting of more armed security officers and providing special agents from the IRS’s Criminal Investigation. However, during the April and May Saturday Help events, some locations did not have adequate staffing and security personnel to handle the number of taxpayers seeking assistance. At some TACs, the IRS had to terminate service early because the crowd of taxpayers were unruly and posed a threat to other taxpayers waiting for assistance and IRS employees.”  

The report acknowledged that taxpayers who are experiencing financial difficulties can feel increased pressure and act aggressively toward IRS employees. The agency’s employees are often targeted due to the nature of their work, which requires close interaction with the public. 

One of the main reasons for the large number of taxpayers at some sites was due to taxpayers who filed tax returns with erroneous tax credits falsely claiming large refunds in response to misleading social media tax scam promotions, such as scams involving the Fuel Tax Credit, household employment taxes and the Sick and Family Leave Credit. The IRS identified these types of filings as potentially fraudulent and sent notifications to taxpayers requiring them to visit a TAC site for an in-person identity verification. 

The large crowds at some of the TAC locations created safety and security challenges for both taxpayers and IRS employees alike. The IRS didn’t use the available data to identify TAC locations ahead of time that might encounter large numbers of taxpayers, especially taxpayers who were required to visit a TAC for an in-person identity verification. That meant the IRS didn’t always have enough staffing and security personnel on hand, which in some locations led to the IRS needing to end the service early because the taxpayers were so unruly. TIGTA found the abrupt closure of previously announced and scheduled Saturday Help events may have increased the burden and frustration for taxpayers seeking assistance at some locations. 

“This resulted from the IRS canceling previously scheduled events with short notice only in the form of removing the sites from its website,” said the report. “For example, after initially announcing the Saturday Help events to the media for dissemination, we determined that the IRS canceled the events at 14 TACs. The IRS did not always take steps to inform taxpayers via the media of the abrupt closure, but instead included the statement, ‘Please check frequently for new information as availability may change without notice’ on its website as notice of site closures.”

During TIGTA’s unannounced visits to two different TAC sites last April, inspectors were told by taxpayers at the Saturday Help events of the lack of available TAC appointments at these locations. Generally, taxpayers explained that because of the lack of appointments they sought assistance at Saturday Help events, which don’t require an appointment. For the most part, TACs are open from 8:30 a.m. until 4:30 p.m. Monday through Friday and generally operate by appointment only, but exceptions can be made for walk-in visitors based on availability. Last year, the IRS offered taxpayers face-to-face service without an appointment for one Saturday in February, March, April and May at some select offices.

TIGTA found that most taxpayers looking for assistance at Saturday Help events needed to verify their identity in person, as a result of the IRS’s response to tax schemes circulating through social media promising large refunds, where the IRS sent notifications to taxpayers requiring them to visit a TAC site for an in-person identity verification. Taxpayers had the option to verify their identity during normal business hours. However, TIGTA’s testing found that many locations were almost booked to the maximum 60 days for appointments. That meant taxpayers may have relied upon Saturday Help events to get quicker service. 

TIGTA made five recommendations in the report to improve the IRS’s ability to assist taxpayers during the TAC Saturday Help events. Specifically, TIGTA recommended the IRS implement a service-wide policy to follow a consistent triage process of taxpayers at Saturday Help events; issue guidance to IRS TAC employees advising them to not triage taxpayers outside the facility or engage with taxpayers outside unless there are appropriate physical security measures in place; ensure the Taxpayer Services Division get relevant information to anticipate the potential demand for these events; and offer Saturday hours specifically for taxpayers seeking to verify their identification. Finally, TIGTA suggested the IRS should provide explicit notification of closed sites on its website. IRS officials agreed with all of TIGTA’s recommendations and have either taken or plan to take the appropriate corrective actions. 

“The demand for services in response to TXD events is difficult to predict,” wrote Kenneth Corbin, chief of the IRS’s Taxpayer Services Division, in response to the report. “Consequently, we will assess the needs of people seeking service to identify the type of assistance required and provide it as expeditiously as possible.”

As part of the Trump administration’s efforts to reduce the size of the federal government, the IRS reportedly plans to close over 110 of the Taxpayer Assistance Centers across the country after tax season.

North Carolina is the latest state making legislative moves in hopes of expanding the pipeline of licensed accountants. 

A new Accounting Workforce Development Act (SB321) was filed in the North Carolina General Assembly, offering an additional pathway to CPA licensure. The bill, backed by the North Carolina Association of CPAs, would allow CPA candidates to become licensed with a bachelor’s degree in accounting, two years of relevant work experience and successful completion of the Uniform CPA Exam. 

“North Carolina businesses, government agencies, and nonprofit organizations depend on a strong pipeline of CPAs to support financial operations, ensure compliance, and uphold fiscal accountability,” said NCACPA CEO Mark Soticheck in a statement Wednesday. “With the increasing demand for CPAs and the declining number of new entrants to the profession, this legislation provides an innovative workforce solution that meets industry needs while maintaining the rigor and integrity of the CPA profession.”

The American Institute of CPAs estimates 75% of CPAs currently in public accounting firms will retire within the next 15 years, spurring moves to develop policies that encourage new talent to enter the profession. The Accounting Workforce Development Act seeks to modernize CPA licensure by providing an additional experience-based pathway, so North Carolina can stay competitive in attracting and retaining accounting talent. 

 “This bill provides an alternative, not a replacement,” said Robert Broome, NCACPA’s vice president of advocacy and outreach, in a statement. “It creates a licensure option that values both education and real-world experience, making the profession more accessible while upholding the rigorous standards that define CPAs.”

Other states have also been making moves to streamline the licensure process. Both Ohio and Virginia have recently approved changes, and other parts of the country are looking to provide alternatives to the traditional 150-credit-hour rule for CPA licensure, including Minnesota and Florida. Last week, leaders of six state CPA societies in California, Florida, Illinois, New York, Pennsylvania and Texas co-authored an article in an effort to clear up misconceptions about the 150-hour rule and the proposed alternatives.

To preserve mobility of CPA licensing across state lines, the AICPA and the National Association of State Boards of Accountancy are asking for comments on their proposal for an additional pathway to CPA licensure through changes in the Uniform Accountancy Act model legislation used in states. They proposed an alternative pathway to CPA licensure last month and UAA changes last September. 

MH CPA and Kenilworth Holdings have formed a joint venture called MH Kenilworth, an accounting firm focused on increasing client profitability.

MH CPA is based in Champaign, Illinois, and offers audit, tax, advisory and transaction services to 28 clients across the U.S. Kenilworth Holdings is headquartered in Chicago and operates an offshoring entity in India. Together, the joint venture will service firms with less than $10 million in revenue, offering offshoring, technology solutions, valuations, transfer pricing, M&A support, CFO services and business consulting, as well as audit, accounting and tax services.

“Companies become successful because they grow their revenue or lower their cost,” MH Kenilworth CEO Todd Shapiro, a former president and CEO of the Illinois CPA Society, told Accounting Today. “How are we [the profession] on a regular basis doing that? We don’t.”

“Show me a firm that became wildly successful because they had a clean audit, and I’ll show you a company that’s out of business,” he continued. “Now show me a company that’s become wildly successful because of your tax strategy, and again, I will show you a company that’s out of business.”

But what is the difference between this model and the firm being bought up by private equity?

“We don’t own them. They don’t own us,” Shapiro answered. “Typically, that’s not done — typically, there’s a connection between the two.”

The joint venture is mutually beneficial: Kenilworth gains a platform and an arsenal of contractable services, while MH CPA maintains its independence and grows deeper into or beyond its geographic footprint without spending its own funds. For example, if Kenilworth adds another firm, MH CPA would be the one to acquire it, Shapiro explained.

“Our firm has thrived by embracing innovation and forward-thinking strategies in the industry, and we look forward to bringing that same expertise and perspective to MH Kenilworth,” MH CPA CEO and managing partner Jeff Livesay said in a statement. “The joint venture offers an opportunity to enhance our capabilities through Kenilworth’s global talent resources and expanded services while strengthening and complementing MH CPA’s core competencies. We’re excited to build and expand the MH platform.”

“Staffing remains one of the most pressing issues facing accounting firms in the U.S. and globally,” John Wesley, a principal at Kenilworth Global Financial Advisors, said in a statement last week. “At Kenilworth Global Financial Advisors, we have built a successful model for providing high-quality, cost-effective staffing solutions and specialized services such as valuations, transfer pricing and technology solutions. Partnering with MH allows us to expand our U.S. presence while delivering greater value to firms across the country.”