Accounting
IRS urged to take action on diversity in upper ranks
The Internal Revenue Service is more diverse than many workplaces, but more can be done, especially in the upper echelons, according to a new report.
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But that diversity is mostly concentrated in lower ranks and jobs without senior-level advancement potential, according to the report. Those employees often face lower chances for promotions, lower salaries and greater likelihoods of separation from the agency.
Andrew Harrer/Bloomberg
The IRS is working to identify and address barriers to diversity, equity, inclusion and accessibility in its workforce but can do more. The GAO offered eight recommendations to help.
From 2013 to 2022, the IRS’s workforce diversity increased, the report acknowledged. However, disparities persisted in the representation of women, employees from historically disadvantaged racial or ethnic groups, and persons with disabilities across ranks, occupations and divisions. For example, in 2022, 72% of IRS employees in General Schedule grades 10 and below were women, compared to 45.6% of employees at the executive level.
“The same groups also frequently faced lower likelihoods of promotion, lower salaries, and — for historically disadvantaged racial or ethnic groups — greater likelihoods of separation compared to their counterparts during this period,” said the report. “For example, when controlling for other factors such as occupation, employees from historically disadvantaged racial or ethnic groups were 9% to 34% less likely than white employees to be promoted across most GS grades. This analysis, taken alone, does not prove or disprove the presence of discrimination, completely explain reasons for different career outcomes, or establish causality but can provide important insight.”
From 2013 to 2022, the IRS reported eight trends, disparities or anomalies — referred to as triggers — related to workforce diversity, equity, inclusion and accessibility. However, the IRS faced challenges identifying and addressing barriers — policies, procedures, practices or conditions — underlying the triggers. The IRS overly relied on workforce data to identify triggers, conducted limited stakeholder consultation, and did not complete some barrier analysis steps or took them out of order. In January 2024, IRS issued draft policies and procedures that, once they’re implemented, should help address the last of these issues. However, without actions to use many information sources and improve stakeholder consultation, the GAO said the IRS would be limited in its ability to fully identify and address DEIA barriers.
The IRS also established multiple diversity, equity, inclusion and accessibility goals in separate strategic plans, creating a lack of clarity about the agency’s DEIA efforts. In addition, GAO found that associated performance measures were incomplete. Without a unified strategy for DEIA goals and fully developed performance measures, IRS cannot effectively set priorities, allocate resources, assess progress and restructure efforts as needed to address DEIA barriers affecting its workforce.
The GAO made eight recommendations to the IRS, including that the IRS consult many information sources and regularly consult stakeholders to identify triggers and address barriers, and establish a unified DEIA strategic plan with associated performance measures. The IRS concurred with all eight recommendations.
“The IRS is deeply committed to investing in our workforce, including strengthening our diversity, equity, inclusion and accessibility, and that work is necessary to address barriers,” wrote IRS deputy commissioner Douglas O’Donnell in response to the report.
Aprio, a Top 25 Firm based in Atlanta, has acquired JMS Advisory Group, a firm that specializes in unclaimed property compliance and escheat process development, also based in Atlanta
Financial terms of the deal were not disclosed. Aprio ranked No. 24 on Accounting Today’s just released
JMS was founded in 2006 and helps clients mitigate risk and capitalize on opportunities through managed unclaimed property compliance. The team includes attorneys, CPAs, CFEs and others.
JMS has a wide range of clients, including enterprise companies, financial institutions, credit unions, insurance companies, hospitality and health care organizations.
“As Aprio continues its rapid growth, we are committed to expanding our services to meet the evolving needs of our clients,” said Aprio CEO Richard Kopelman in a statement Tuesday. “The addition of JMS gives us the opportunity to continue strengthening our position as a future-focused advisory firm. JMS’s focus on escheat management and asset recovery not only enhances our current capabilities but also allows us to deliver even more impactful solutions to help businesses navigate complex compliance challenges.”
JMS president and CEO James Santivanez is joining Aprio as a partner and provides guidance to clients on unclaimed property and state and local tax issues.
“We created JMS to make an impact nationally in the unclaimed property consulting industry, and I’m proud of our nearly 20-year history of helping clients mitigate risk and capitalize on opportunities resulting from accurate and properly managed unclaimed property compliance,” Santivanez said in a statement. “Joining with Aprio takes us to the next level, allowing us to build upon our success while providing even greater value to our clients. This is an exciting next step in our journey.”
JMS founder and director Sherridan Santivanez is also joining Aprio as a partner. He specializes in representing clients before state enforcement authorities and managing complex audits and voluntary disclosures for some of the world’s largest companies. She provides strategic guidance on audit preparation and navigates interactions with state and third-party auditors.
Aprio received a
The American Institute of CPAs and the National Association of State Boards of Accountancy are asking for comments on their proposal for an additional pathway to CPA licensure through
The AICPA and NASBA proposed the
The UAA changes would:
- Enable states to adopt a third licensure pathway that requires earning a baccalaureate degree with an accounting concentration, completing two years of professional experience as defined by Board rule, and passing the Uniform CPA Examination;
- Shift to an “individual-based” mobility model, which allows CPAs to practice in other states with just one license; and
- Add safe harbor language to ensure CPAs who meet existing licensure requirements preserve practice privileges.
The proposals come as several states are already moving forward with their own changes, including
The updates reflect feedback gathered during a late 2024 exposure draft period and forward-looking solutions being advanced by state CPA societies and boards of accountancy to increase flexibility for licensure candidates while maintaining the integrity of the CPA license.
The AICPA and NASBA are asking for comments on the proposed changes by May 3, 2025. They can be submitted through this
The UAA offers state legislatures and boards of accountancy a national model they can adopt in full or in part to meet the licensure needs of each jurisdiction.
The proposal would maintain the current two pathways to CPA licensure:
- Earning a post baccalaureate degree with an accounting concentration, completing one year of professional experience as defined by Board rule, and passing the CPA exam; and,
- Earning a baccalaureate degree with an accounting concentration, plus an additional 30 semester credit hours , completing one year of professional experience as defined by Board rule, and passing the CPA exam.
Small business employment held steady last month, according to payroll company Paychex, while wage growth continued below 3%
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“Our employment data continues to show moderate job growth and wage growth below three percent,” said Paychex president and CEO John Gibson in a statement Tuesday. “The consistent long-term trend we’re seeing is a small business labor market that is resilient and stable with little job movement among workers. At the same time, small business owners are optimistic about future business conditions despite uncertainty about how to adapt to a rapidly evolving legislative and regulatory landscape.”
The Midwest remained the top region in the country for the ninth consecutive month with a jobs index level of 100.54. Seven of the 20 states analyzed gained more than one percentage point in February, led by Texas (up 2.11 percentage points).
Phoenix (101.92) increased its rate of small business job growth for the fourth month in a row in February to rank first among the largest U.S. metros.
Construction (3.29%) regained its top spot among industries in terms of hourly earnings growth in February, followed closely by “other services” (3.27%) and manufacturing (3.21%).
The pace of job growth in manufacturing gained 2.39 percentage points to 99.52 in February, the industry’s biggest one-month increase since April 2021.
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