Treasury Close To Choosing New IRS Chief?

The Treasury Department is "very close" to reaching a decision on who will replace John Koskinen as head of the IRS, according to Treasury Secretary Steven Mnuchin. "We're looking forward to having a seamless transition. This is one of the most important positions we will be appointing. We're close to making a final decision on it, and the president and I have discussed it,"

 

Koskinen's term ends in November, and he has said on numerous occasions that Treasury and the White House should focus on picking a replacement sooner rather than later to ensure there's enough time to transition. Mnuchin did not address any timeline for the selection of a nominee for the IRS post or an announcement, so stay tuned. o resign before his term ends, or when a replacement would be announced.

 

 

IRS Technology Improvements And the IRS Budget

The House Ways and Means Oversight Subcommittee held an April 26 hearing to discuss the 2016 filing season, but the discussion at the hearing quickly turned to the technology gap at the IRS and what to do about it.

 

Deputy Commissioner for Services and Enforcement Kirsten Wielobob represented the agency at the hearing and confirmed that IRS's aging computer systems, some of which date back to former President John F. Kennedy's administration, often lag and don't interact with one another.

 

"If this happened in the private sector, heads would roll. You couldn't continue on this way," Rep. George Holding (R-N.C.), a subcommittee member, said during the hearing. It is too bade that no one informed Rep. Holding that the private sector does not require Congress to provide funding or that the Congress of which he is a member has significantly reduced IRS funding for the last five years.

 

 

IRS Rebuts AICPA Challenge To Annual Filing Season Program

Yes, the IRS and the AICPA are still in court, arguing about the agency's statutory authority to implement its Annual Filing Season Program.

 

The AICPA challenged the Internal Revenue Service program, several years ago. The IRS won at the District Court level and the matter is currently on appeal at the U.S. Court of Appeals for the District of Columbia. The IRS, in an April 26 brief, said the program helps return preparers obtain additional training and that the lower court correctly ruled that the AICPA has no cause of action.

 

As readers are aware, preparers in the voluntary Program must complete 15 hours of continuing education training annually and pass a written examination. The IRS lists those who pass the exam and receive a "Record of Completion" in its online "Directory of Federal Tax Law Return Preparers."

 

The AICPA position is that the Administrative Procedure Act prohibits the IRS from acting without statutory authority, and that the program would allow competitors to peddle misleading credentials to win business.

 

The IRS said in its brief that 31 U.S.C. Section 330 is a taxpayer-protection statute giving the Treasury secretary explicit authority to regulate the conditions under which persons may represent taxpayers before the IRS. "The competitive interest of the Institute's members are directly contrary to the purpose of the statute; their interest in reducing the qualified competition harms taxpayers," the IRS said. AICPA obviously disagrees.

 

Oral arguments have yet to be scheduled in the case.

 

 

IRS Funding At 2016 Levels In Continuing Budget Resolution

The congressional continuing budget resolution expected to be signed into law sometime today funds the IRS at its fiscal year 2016 level of $11.2 billion through September.

 

Agreement on the continuing resolution means lawmakers have avoided a government shutdown for the time being, but it sets up a fall budget battle when lawmakers will grapple with President Donald Trump's fiscal year 2018 budget proposal, which includes cuts to agencies and calls for funding to build a border wall. Under Trump's proposal, the Internal Revenue Service's budget would be cut by about 2 percent.

 

The bill maintains $2.1 billion in funding for taxpayer service, including the $290 million lawmakers allocated in 2016 for cybersecurity and fraud prevention. The bill includes several restrictions on the agency that have become common in recent years, including bans on issuing regulations related to tax code Section 501(c)(4) organizations and on giving bonuses to employees who are behind on tax payments, according to a bill summary.