The AICPA is actively engaging with IRS officials to assess the impact of recent layoffs and ensure continued service for taxpayers and tax professionals.
In a statement on March 7, AICPA President and CEO Mark Koziel said that the association has been speaking to the tax agency to help the AICPA distinguish fact from fiction in terms of the current state of the IRS. “In recent weeks, there has been a flood of information regarding the current state of the IRS, some of which has resulted in conflicting reports, creating confusion," he said. "The AICPA is having active discussions with IRS officials to clarify this information and we are actively monitoring developments as the IRS continues to assess the immediate and long-term implications."
He added that with the volatility of the present environment and quickly evolving events, it is key to reconcile fact from fiction for taxpayers and their advisors. In spite of these inconsistent reports, Koziel said they know that the IRS "is making every effort to maintain this tax season’s service levels comparable with that of recent years."
He also highlighted the need for a modern, well-functioning IRS. "The ability of the IRS to maintain service levels for taxpayers and their preparers is critically important to the AICPA,” Koziel stated. He reaffirmed the organization’s longstanding support for modernization efforts, including technology enhancements, to improve tax administration and ensure financial stability.
In a Feb. 10 talk at the Accountants Club of America, Koziel discussed major shifts at the IRS, particularly the retraction of the agency's workforce under the Trump administration during tax season and its potential impact on tax practitioners.
As reported in the January-February 2025 issue of The Trusted Professional, despite these workforce constraints, at the event, Koziel reassured CPAs that the IRS is attempting to maintain operations. “All the hiring that needed to take place to ramp up for the busy season of 2025 happened before the hiring freeze took place,” he explained. Nevertheless, IRS service quality remains a concern, particularly the issue of “courtesy hang-ups,” where callers on hold for extended periods are automatically disconnected.
The AICPA has suggested that CPAs might assist the IRS by handling taxpayer inquiries, reflecting a collaborative approach to mitigating service disruptions. Koziel was set to meet with IRS Commissioner nominee Billy Long in March to discuss the profession’s role in ensuring a functional tax system.
Concerns over the IRS’s ability to meet taxpayer needs have grown following reports that the IRS may be facing one of the largest workforce reductions in its history, with reports indicating that the Trump administration is planning to cut staff by as much as 50% by the end of the year. This would be achieved through a mix of layoffs, attrition and buyouts.
The agency has already seen a significant drop in personnel, with 6,700 probationary employees laid off in February and thousands more accepting buyouts. However, those deemed essential for tax season have been required to stay through the April 15 filing deadline.