The American Institute of CPAs (AICPA) CEO and president Mark Koziel has said that the institute is actively engaging with the Internal Revenue Service (IRS) to clarify the implications of the recent reported workforce reductions.
Recently, reports surfaced indicating that the IRS is planning to lay off approximately 6,000 employees as part of a broader effort to reduce the federal workforce.
The layoffs are said to primarily impact recent hires, which formed part of the previous US government’s plans to strengthen the IRS through increased funding and staffing.
Koziel expressed concern over the mixed reports surrounding the IRS’s current state.
He emphasised the importance of distinguishing fact from fiction to ensure that taxpayers and their advisors are correctly informed.
In a statement, Koziel said: “With the volatility of the present environment and rapidly changing events, it is important to reconcile fact from fiction for taxpayers and their advisors. Despite inconsistent reports, we know that the IRS is making every effort to maintain this tax season’s service levels comparable with that of recent years.
“The ability of the IRS to maintain service levels for taxpayers and their preparers is critically important to the AICPA. IRS services in combination with modernisation efforts, which include technology advancements, have been the bedrock of AICPA’s recommendations for many years. A modern, functioning IRS is essential for Americans to meet their tax obligations and to our country’s financial health.”
The AICPA has also proposed recommendations to the IRS aimed at providing relief and minimising public confusion regarding IRS operations.
The IRS, a bureau of the Department of the Treasury, operates under the guidance of the secretary of the Treasury, as outlined in section 7801 of the Internal Revenue Code.
