Accounting
Taxpayer Advocate acknowledges shortcomings, plans improvements in TAS
National Taxpayer Advocate Erin Collins issued a mea culpa admitting to the findings of a recent report faulting the Taxpayer Advocate Service that she runs for slow responsiveness to taxpayers.
In a
Collins wrote that the problem with the local phone lines was limited in scope because most calls are placed to TAS’s national toll-free number, and TAS immediately took corrective actions to address TIGTA’s findings.
But she acknowledged a larger issue in the findings. “Although TAS ultimately serves most taxpayers well, we are not starting to work cases and we are not returning telephone calls as quickly as we would like<‘ Collins wrote. “Part of my job is to highlight areas where the IRS is not meeting expectations, so it’s only fair that I be transparent in acknowledging where TAS is falling short.”
She added that TAS is taking actions to improve its level of service to taxpayers, including new technology, as well as hiring and training more personnel. TAS’s workload has grown in recent years and Collins said she hears about the problems when she speaks to practitioners. However, she insisted that TAS resolves the majority of taxpayer problems satisfactorily and she pointed to surveys of thousands of customers, 81% of whom reported they were satisfied overall, compared to 15% who aren’t satisfied.
But she has been receiving negative feedback, at least from tax professionals.
“Having said that, I regularly speak to groups of practitioners and hear more complaints than I would like of unreturned phone calls, delays in providing updates, and delays in resolving cases,” Collins wrote. “In a nutshell, TAS faces three core challenges in case advocacy:
- We are receiving more cases;
- We have recently hired a considerable number of new case advocates who require training before they can effectively assist taxpayers; and
- We are using a functionally limited case management system that is more than two decades old and causes inefficiencies and delays.”
In terms of caseload, she pointed out that TAS has received about 18 percent more cases in fiscal year 2024 than the previous two fiscal years, when it received around 220,000 cases, and TAS case advocates are carrying active inventories of over 100 cases at a time.
In response, TAS has been hiring more new case advocates and improving its case management system, leveraging additional funding from Congress. However, Collins pointed out that it takes months, even years, to train these new hires as they will work on cases involving a wide array of procedural and technical issues, including tax return processing, identity theft, audits, collection matters and appeals.
Approximately 30% of TAS’s case advocates have less than a year of experience, and around 50% have less than two years of experience.
“That means nearly one-third of our case advocate workforce is still receiving training and working limited caseloads or have no caseloads yet, and half are likely to require extra support for complex cases,” Collins wrote. “TAS has never had a year when so many case advocates were new. To compound the challenges, we have to temporarily reassign experienced case advocates to provide training and supervision for the new hires, further straining our resources to work current cases.”
In response, TAS is looking at improving its training processes, for example, by training new hires on the highest volume issues first, so they can start working on those cases faster, while continuing to receive comprehensive training so they can become effective all-around advocates over time.
Like much of the IRS, TAS is also relying on outdated technology, which is finally being upgraded thanks to recent funding boosts. The current case management system, known as the Taxpayer Advocate Management Information System, or TAMIS, is over 20 years old and lacks the kinds of features common in more modern case management systems. That means TAS case advocates need to spend extra time doing work that could be partially or fully automated.
In response, TAS is developing a new customer relationship management system, called “Phoenix,” that it plans to deploy next year. In designing and building the system, TAS is getting feedback from case advocates who use TAMIS to help identify areas where the technology can automate tasks and otherwise improve efficiencies. “The improvements in efficiency will be significant because we will be better able to understand, see and prioritize work across our workforce from both an employee and a management perspective,” said Collins.
The new system will have the flexibility for continuous improvement. Like the IRS’s
“We know our taxpayers want more secure digital communication options and faster service,” Collins wrote. “We envision providing more real-time information and updates using system capabilities, while also allowing our case advocates to spend more of their time on case resolution. The data security concerns of allowing direct access to a portal are significant, so this functionality is probably several years away. But we are actively planning toward that goal to improve the taxpayer experience while we advocate on their behalf.”
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%
The
“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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