NATP, as a part of the Tax Professionals United for Tax Preparers Coalition, hosted a live town hall event Feb. 8, 2022, that addressed current challenges taxpayers and preparers are facing during the 2022 tax season. The coalition’s activity contributed to the suspension of sending CP-80 notices. Its efforts continue with appeals to the IRS for an improved quality of service overall to the taxpaying public and those who serve them.
Other topics discussed during the live event were:
- The current IRS backlog and other erroneous notices
- Recommendations that can be immediately implemented to provide relief
- Steps the coalition is taking, including conversations on Capitol Hill, to ensure the recommendations are adopted
- Suggestions for practitioners to navigate a challenged tax administration system
Recommendations from the coalition include turning off or pausing automated notices until the IRS catches up, aligning account holds with the time it takes to process penalty abatement requests, offering a reasonable cause penalty waiver, similar to the procedures of first-time abate (FTA) administrative waiver, without affecting the taxpayer’s eligibility for FTA in future tax years, and providing relief from underpayment and late payment penalties for 2020 and 2021.
The IRS has an unprecedented number of unprocessed returns and correspondence compared to years before the pandemic, resulting in the issuance of numerous incorrect and mistargeted notices, liens and levies. Additionally, the IRS is answering a record-low percentage of calls from all hotlines, including the Practitioner Priority Service (PPS) line, which prevents the resolution of straightforward issues.
The coalition believes if its recommendations are implemented, the number of calls to the IRS will decrease, freeing up more staff to address the erroneous notices and unprecedented backlog of unprocessed returns.
The coalition also addressed the issue of extending the 2022 filing due date but stated at this time there is no support for this action. Coalition members added the announcement needs to come earlier rather than later if it is extended. Members of the coalition also stated they believe the IRS needs to change its mindset to a client-centric view, helping the taxpayers and preparers.
The town hall ended with advice for preparers during tax season such as using e-file whenever possible, taking time for self-care when possible, having everything you need before calling the IRS, giving clients practical information (not providing timelines), staying calm and sharing stories with organizations in the coalition.
Town hall panelists included:
- Larry Gray, NATP government relations liaison
- Melanie Lauridsen, AICPA
- Thad Inge, NAEA
- Ben Deneka, H&R Block
- Carlos Lopez, Latino Tax Professional Association
- Nina Tross, NSTP
- Jessica Jeane, NSA
- Jina Etienne, NSBCPA
- Stephen Mankowski, NCCPAP
- Salome Tinker, Diverse Organization of Firms Advocacy Committee
- Guylaine Saint Juste, NABA
- Rebecca Thompson, Prosperity Now
The discussion, which was open to all tax professionals, IRS staff, media, Congress members and their staff, was recorded and is now available to watch for those who missed it or need more information.
About National Association of Tax ProfessionalsThe National Association of Tax Professionals (NATP) is the largest association dedicated to equipping tax professionals with the resources, connections and education they need to provide the highest level of service to their clients. NATP is comprised of over 23,000 leading tax professionals who believe in a superior standard of ethics and exemplify professional excellence. Members rely on NATP to deliver professional connections, content expertise and advocacy that provides them with the support they need to best serve their clients. The organization welcomes all tax professionals in their quest to continually meet the needs of the public, no matter where they are in their careers.
The NATP headquarters is located in Appleton, WI. To learn more, visit www.natptax.com.
Information included in this article is accurate as of the publish date. This post is not reflective of tax law changes or IRS guidance that may have occurred after the date of publishing. All taxpayer circumstances are different, and NATP recommends contacting research services if you have specific questions about your clients’ tax situations.