On 18 November 2019, the Internal Revenue Service Advisory Council (“IRSAC”) issued its annual report for 2019 (Link). including recommendations to the U.S. Internal Revenue Service (“IRS”) on new and continuing issues in tax administration.
The IRSAC identified six issues:
- the continuing need for Congress to provide the IRS adequate and reliable funding so that the IRS can fulfill its core service, compliance and enforcement missions; The IRS has been mandated additional duties outside its traditional mission and responsibilities, such as the administration of the Foreign Account Tax Compliance Act (“FATCA”) which magnified the need for resources without corresponding increases in funding.
- accelerating the use of e-signatures in federal tax administration;
- the need to proceed with an efficient and educational approach to the penalty program. Users of the FATCA Registration System and Qualified Intermediary Application and Account Management System are having difficulty obtaining timely and appropriate assistance from the Help Support feature available for both systems. Also, respective communication with non-U.S. users of the IRS FATCA systems lack in quality.
- the continued dedication of the IRS to issue guidance as a result of the Tax Cuts and Jobs Act;
- maintaining the hiring of attorneys in the Office of Professional Responsibility (OPR); and
- improving the Free File program by increasing IRS oversight and restructuring the Memorandum of Understanding