The IRS warned that AI’s risks — including fabricated outputs and data privacy concerns — require practitioners to verify results and follow existing Circular 230 rules on diligence, competence, and confidentiality.
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TOPICS / TAX
IRS practice & procedure
Advocate: IRS had strong filing season for online taxpayers, weaker one for others
The national taxpayer advocate’s Fiscal Year 2027 Objectives Report to Congress says the IRS processed about 139 million returns and handled most refunds smoothly but says the story was different for taxpayers who needed help from a human being.
Supreme Court lets stand IRS power to assess tax anytime for preparer fraud
The Supreme Court declined to hear an appeal of the Third Circuit’s decision in Murrin, in which the court held that taxpayer intent is not required for the unlimited period for assessing tax under Sec. 6501(c)(1) to apply.
Advisory panel urges sustained IRS funding, expanded AI, tax simplification
The Electronic Tax Administration Advisory Committee calls for predictable, multiyear funding; expanded use of artificial intelligence with safeguards; and steps to reduce complexity and improve communication with taxpayers and practitioners.
About a quarter of callers to two IRS lines got poor service, TIGTA says
The Treasury Inspector General for Tax Administration estimated that about 1 million callers to two IRS customer service lines did not receive quality service.
TIGTA: IRS reassigned staff after layoffs for filing season
More than 11,000 workers left Taxpayer Services, prompting the IRS to assign 1,173 higher-paid employees to lower-grade positions, the report from the Treasury Inspector General for Tax Administration said.
IRS holds hiring events in 6 cities after staff cuts
During the 10th ENGAGE, AICPA Chair Jan Lewis pointed to new hiring as a step toward improving IRS responsiveness.
AICPA recommends improvements to CP53E notice process
A letter to the IRS cites erroneous notices, late guidance, and practitioner confusion. It also calls for clearer rules and system changes.
IRS to merge tax practitioner offices despite AICPA opposition
The new Tax Professional Management Office will combine the Return Preparer Office and Office of Professional Responsibility functions under one structure, with the IRS saying their missions and oversight roles would remain unchanged.
Tax Court allows cattle ranch deductions
The Tax Court held that a Texas rancher operated with a profit motive, despite “troublingly large” losses more than 77 times his gross receipts from farming and ranching.
Tax Court upholds passport notice certification
The IRS issued a passport notice certification of a “seriously delinquent tax debt” of more than $1.6 million in trust fund recovery penalties.
IRS proposes increase in cost of estate tax closing letter
Proposed regulations issued Monday would raise the cost of the letter to $76, from the $56 set in 2025.
HSA inflation-adjusted maximum contribution amounts for 2027 announced
Rev. Proc. 2026-24 also includes the revised maximum amount that may be made newly available for excepted-benefit health reimbursement arrangements and the aggregate monthly fees allowable for direct primary care service arrangements.
IRS appeals Kwong as advocate says refunds may be at stake
The IRS filed an appeal of the Court of Federal Claims’ Kwong decision, in which the court held that the filing deadline for refund claims for penalties and interest was automatically extended by Sec. 7508A(d) due to the COVID-19 disaster declaration.
IRS to develop system to track missing payments, TIGTA says
The report from the Treasury Inspector General for Tax Administration finds that manual tracking and uneven workloads slow resolution of cases of unidentified payments.
IRS overtime rose 12% in 2025 while workforce dropped, TIGTA says
Taxpayer Services staff handling calls, correspondence, and other tasks logged most of the overtime, the report from the Treasury Inspector General for Tax Administration said.
IRS stops billions in identity theft refunds but needs data earlier, report says
A report from the Treasury Inspector General for Tax Administration found that delayed 1099-R and W-2G filings limit the IRS’s ability to spot refund fraud early.
Worried about that CP53E QR code? IRS updates FAQs
The IRS expanded its CP53E guidance with fresh information on QR code security, online account access problems, and how taxpayers can confirm successful bank account updates.
Final regs. modify reporting obligations for Form 8308, Part IV
The final regulations published Tuesday by the IRS stick with the proposed regulations that modify information-reporting obligations for Part IV of Form 8308, Report of a Sale or Exchange of Certain Partnership Interests.
AICPA submits nearly 200 recommendations for IRS guidance plan
The organization highlighted top technical issues across 10 areas and urged the IRS to prioritize tax simplification.
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FROM THIS MONTH'S ISSUE
Tax Court allows cattle ranch deductions
The Tax Court held that a Texas rancher operated with a profit motive, despite “troublingly large” losses more than 77 times his gross receipts from farming and ranching. Learn more in this Tax Matters article.
From The Tax Adviser
April 30, 2026
Current developments in taxation of individuals: Part 2
April 30, 2026
