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Taxpayer Advocate acknowledges shortcomings, plans improvements in TAS

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2 years ago

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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 blog post Thursday, Collins initially seemed to blame the local offices for problems with answering the phones, but then acknowledged wider problems with TAS at the national level. The local phone lines were the subject of a report by the Treasury Inspector General for Tax Administration that found local TAS phone lines were not consistent in giving taxpayers the ability to speak with a TAS representative. TIGTA called all 76 local TAS telephone lines in the United States, including offices in the District of Columbia and Puerto Rico, using the telephone numbers listed on the TAS and IRS websites. The calls found some telephone lines were not in service, voicemail boxes were full, and inconsistent recorded scripted messaging and callback time frames. Only two telephone lines were answered by a TAS representative.  Voicemail prompts indicated that callbacks would be received within time frames ranging from one business day to four weeks.  

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.

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National Taxpayer Advocate Erin Collins speaking at the AICPA & CIMA National Tax and Sophisticated Tax Conference in Washington, D.C.

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:

  1. We are receiving more cases;
  2. We have recently hired a considerable number of new case advocates who require training before they can effectively assist taxpayers; and
  3. 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 Where’s My Refund? app or online account, one long-term goal is to allow taxpayers, tax pros and congressional staff to communicate with TAS and receive case updates through a What’s the Status of my TAS Case? portal or online account. 

“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.”

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AI-Driven Automation and Continuous Accounting Frameworks

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6 days ago

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August 15, 2026

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The accounting profession is undergoing a fundamental structural transition as enterprise finance departments shift from periodic month-end closes toward automated continuous accounting models. By integrating specialized machine learning algorithms directly into enterprise resource planning (ERP) platforms, chief accounting officers are transforming financial reporting from a retrospective exercise into a real-time operational asset.

The Shift from Periodic Close to Continuous Financial Reporting
Traditional accounting workflows heavily relied on manual data reconciliation, spreadsheet calculations, and multi-week closing cycles at the end of each fiscal period. In contrast, continuous accounting frameworks utilize automated software agents to process, validate, and post transactional data in real time as business activities occur.

Automated bank reconciliation tools cross-reference incoming bank feeds, invoice records, and purchase orders automatically. By resolving transactional variances instantly throughout the month, corporate accounting teams eliminate the traditional workload spikes associated with quarterly and annual closes.

Machine Learning in Audit Trails and Anomaly Detection
Advanced natural language processing (NLP) and machine learning tools are redefining internal audit and financial control environments. Automated systems analyze 100% of general ledger entries, identifying anomalous transactions, duplicate payments, and unauthorized journal entries in real time.

Rather than relying on random statistical sampling, corporate internal auditors can focus their attention on high-risk flags automatically surfaced by algorithmic monitoring platforms. This continuous risk assessment strengthens internal controls over financial reporting (ICFR) and significantly reduces fraud risk.

Evolving Roles for Accounting Professionals
As routine data entry and manual reconciliation tasks become fully automated, the skill set required for accounting professionals is shifting toward data analysis, system design, and strategic business advisory.
– Systems Governance: Accountants are increasingly responsible for monitoring algorithmic accuracy and managing data integration pipelines.
– Business Partnership: Finance professionals leverage real-time financial dashboards to advise operational leaders on margin management and working capital allocation.
– Regulatory Compliance Management: Accounting teams utilize automated platforms to ensure compliance with dynamic tax codes and international accounting standards.

Core Implementation Recommendations
1. Deploy Automated Reconciliation Tools: Integrate continuous transaction processing modules into existing enterprise ERP architectures.
2. Establish Algorithmic Governance Controls: Implement strict internal testing protocols to ensure automated accounting rules comply with GAAP/IFRS standards.
3. Reskill Accounting Teams: Invest in training finance staff on data analytics, workflow automation, and predictive financial modeling.

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Accounting

Global ESG Reporting Standards and Double Materiality Compliance

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2 weeks ago

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August 9, 2026

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Corporate accounting departments face expanding reporting expectations as international sustainability disclosure standards achieve regulatory enforcement across major global jurisdictions. Chief Accounting Officers (CAOs) and corporate controllers are establishing rigorous internal accounting controls to treat Environmental, Social, and Governance (ESG) metrics with the same data precision, auditability, and governance as traditional financial statements.

Regulatory Harmonization Under Global Sustainability Frameworks
The implementation of standardized sustainability reporting frameworks—notably rules established by international sustainability accounting boards—has created unified expectations for public and large private enterprises. Corporations must report standardized metrics covering greenhouse gas emissions (Scope 1, 2, and material Scope 3), energy utilization, workforce demographics, and supply chain governance.

In Europe and other participating international jurisdictions, double materiality principles are mandatory. Under double materiality, organizations must report both how external sustainability risks impact corporate financial performance, and how internal corporate operations affect surrounding environmental and social structures.

Integrating Sustainability Metrics into Core ERP Systems
To provide auditable non-financial data, enterprise organizations are integrating specialized carbon accounting and ESG management platforms directly into core ERP systems. Automated data collectors capture energy utility invoices, logistics fuel consumption metrics, and vendor compliance records in real time.

Establishing automated, traceable data pipelines ensures that non-financial reporting is supported by clear audit trails. This structured approach allows external financial auditors to provide reasonable assurance on sustainability disclosures during annual corporate reporting cycles.

Financial Impacts and Capital Market Disclosure
Accurate ESG reporting directly influences corporate cost of capital and institutional credit ratings. Commercial lenders and institutional asset managers systematically incorporate sustainability metrics into risk pricing models. Companies that demonstrate transparent, verifiable progress in operational energy efficiency and climate risk mitigation benefit from expanded access to green bond markets and lower debt pricing.

Action Steps for Accounting Leadership
1. Implement Double Materiality Frameworks: Conduct comprehensive assessments to identify material financial and operational sustainability metrics.
2. Build Auditable Non-Financial Data Pipelines: Automate ESG data collection within core accounting software to ensure data integrity.
3. Align Sustainability with Annual Financial Filings: Prepare non-financial disclosures concurrently with financial statements to satisfy regulatory audit expectations.

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Accounting

Modernizing Internal Controls: Machine Learning and Continuous Monitoring in Auditing

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2 weeks ago

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August 5, 2026

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Internal audit departments and corporate risk managers are modernizing internal control frameworks by shifting from periodic sampling techniques to continuous monitoring and machine learning analytics. As operational data volumes increase across enterprise organizations, automated control testing ensures financial integrity, prevents corporate fraud, and streamlines annual audit engagements.

The Limitation of Periodic Audit Sampling
Historically, internal and external auditors evaluated internal controls by reviewing random samples of financial transactions—often analyzing less than five percent of total ledger entries. In complex enterprise environments, periodic sampling methods carry inherent risks of overlooking localized financial misstatements, unauthorized disbursements, or operational control breakdowns.

In 2026, progressive internal audit functions are utilizing automated continuous monitoring platforms that evaluate one hundred percent of financial transactions in real time. Continuous control auditing systems continuously monitor general ledger entries, procurement approvals, and expense reimbursements across all operating subsidiaries.

AI-Powered Fraud Detection and Anomaly Identification
Machine learning models trained on historical corporate financial data excel at identifying subtle transactional anomalies that indicate potential fraud or operational error. Automated systems instantly flag duplicate invoice payments, unapproved vendor creation, unusual journal entry timing, and unauthorized override of authority thresholds.

When an anomaly is detected, the automated auditing platform generates an instant risk alert, allowing internal audit teams to investigate root causes immediately. Early detection prevents minor operational errors from escalating into material weaknesses in financial reporting.

Streamlining External Audit Preparation
Continuous internal control monitoring delivers significant benefits during annual external financial audits. External audit firms can review continuous audit logs and automated control testing documentation, reducing the time required for manual field testing.

This integrated approach lowers overall audit compliance fees, reduces administrative burdens on corporate accounting staff, and provides senior management and audit committees with real-time visibility into the organization’s overall risk profile.

Core Implementation Guidelines
1. Transition to 100% Data Testing: Replace legacy sampling methods with automated continuous audit monitoring systems.
2. Deploy Anomaly Detection Algorithms: Implement machine learning models to identify unauthorized transactions and operational control overrides.
3. Align Internal and External Audit Workflows: Coordinate continuous control testing protocols with external auditors to optimize annual compliance cycles.

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