Perseverance Within the Tax System

I have been thinking about perseverance within the tax system. There seems to be relentless waves of challenges requiring us to cope, adapt, and, ultimately, accept. Legislators have acquired a penchant for making retroactive tax law changes. Retroactive changes affecting the 2020 tax year, in December 2020 as well as in January and March 2021, created challenges (to put it mildly) for the entire tax system – taxpayers, tax professionals, the Internal Revenue Service (IRS), and the Taxpayer Advocate Service. Government shutdowns, a pandemic, changing and non-uniform filing deadlines, and state legislation added (and continue to add) to delays, uncertainty, and stress to the entire system.

Nevertheless, as enrolled agents, we persevere and serve our nation’s taxpayers as best we can. That the IRS is overwhelmed and unable to keep up is disappointing, yet unsurprising. The agency was not set up either for remote work or for sending economic impact payments and monthly advance child tax credit payments, especially to non-filers. That short-notice legislative changes overwhelm the Service and create delays in processing mail, phone calls, and tax returns, should not be surprising. I keep wondering how many employees are needed to review the 30+ million e-filed tax returns that require manual review this year.

So, are you frustrated? Concerned for your clients? Challenged by questions we are unused to answering? I would be surprised if you were not. I believe we all are. That brings me to patience, kindness, and grace. Enrolled agents are an essential part of the tax system, serving as a bridge between our clients and the IRS. We need to work together, to help each other, and to be kind to one another in the face of these challenges. We need to learn new skills, tips, and tricks from each other. No place is this more useful than when we find ourselves facing novel questions, such as, Should I respond to that collection notice when I know my client’s amended return will result in a refund? As I said in my last column, National Association of Enrolled Agents members are a community of professionals committed to helping both our clients and each other succeed. So, take advantage of our WebBoard and Facebook page and network with with other members on the free monthly roundtable discussions. Help your colleagues and ask for help, or just moral support, when you need it.

We will serve the system better if we exercise grace when working with our IRS counterparts. They, too, are overwhelmed with all the additional services they have been asked to support, with the changing procedures they are asked to follow, and with impatient calls they receive nonstop.

Of course, be patient and kind with your clients. They are confused and concerned. They are asking more “quick questions” and worried about when they will receive their long overdue refunds. We need to be the calm voice of reason as we explain how and why the current shortcomings of the entire tax system have affected them. We also need to charge for the additional services we are providing.