2023: The Sleeping Giant Is Awake!

We have been good soldiers. We have been compliant. And for too long we have accepted the status quo for the appalling customer service at the
Internal Revenue Service (IRS).

2023 will be a critical year on many levels for tax policy and tax administration for the IRS and for the National Association of Enrolled Agents (NAEA) – new leadership at the IRS, new leadership in the United States (U.S.) Congress, new leaders and new members serving on the House Ways and Means Committee, and new opportunities for NAEA advocacy.

The IRS is under scrutiny from Congress. The new Republican majority in the House of Representatives has threatened to revoke the nearly $80 billion in IRS funding provided through the Inflation Reduction Act (IRA). The NAEA long fought for increased funding to modernize archaic IRS systems and technology. National Association of Enrolled Agents members have a personal stake in ensuring that the new funding is not revoked.

2023 also will be an important year for NAEA advocacy and raising awareness about the enrolled agent (EA) profession. The NAEA’s core focus for advocacy is to be the leading voice with governing bodies to address member challenges and effect change. To be that leading voice, we need to educate and build widespread support for NAEA advocacy through steady engagement with policymakers, regulators, coalition partners, social media, and news media.

Most people know something about taxes because they pay them, but not much else. Enrolled agents are the “boots on the ground” for tax preparation and tax representation in communities across the nation and abroad. We have a responsibility to educate members of Congress about the essential role EAs play in the U.S. tax system.

We have a responsibility to build strong partnerships with the IRS working in close association with the new IRS Commissioner, the Office of National Public Liaison, leadership in the Return Preparer Office and the Office of Professional Responsibility, the National Taxpayer Advocate, and the IRS Advocacy Council.

Above all, we have a responsibility to raise awareness of NAEA advocacy and the work of EAs through widespread communication on social media platforms and with the news media, particularly the tax industry trade press.

National Association of Enrolled Agents policy priorities for 2023 remain:

• Protecting an enrolled agent’s right to practice
• Regulation of tax return preparers
• Recommendations for prioritizing and implementing the new IRS funding
• Fixing the broken IRS, resolving customer service issues, and providing online solutions for practitioners.

Tax season is upon us and Treasury Secretary Janet Yellen had made promises that IRS service will improve. The IRS needs to demonstrate the progress they are making to reassure tax professionals and taxpayers. We know the agency is working on a strategic plan, but they must show they can provide better customer service, make fewer errors, and avoid doing anything that will make the current situation worse. Enrolled agents serve on the frontlines of taxpayer service. Timely and efficient service from the agency they support should be paramount.

NAEA Capitol Fly-In
Coming May 23–24, 2023, the NAEA will host our first Capitol Hill Fly-In since the pandemic. Over the course of this two-day event, you will hear from policymakers, IRS staff, and Washington, DC, thought leaders on the latest with Congress and its impact on EAs. In addition to a variety of panels and engaging speakers, NAEA members will take to Capitol Hill and directly engage with congressional offices on issues important to our industry and profession.

The fly-in presents a unique opportunity for members to engage in grassroots awareness on tax policy and advocacy issues while also interacting with fellow EAs, getting to know their representatives—particularly those who are newly elected to Congress—and taking part in the political process.

It is essential to remember that awareness-raising through the fly-in is a means to an end, not an end in itself. Advocacy is about achieving change; it is not enough to stop raising awareness at a single fly-in. We will be creating and sharing more opportunities for grassroots engagement with Congress
and the IRS on behalf of these important issues. Enrolled agents are an essential part of the tax administration system. We encourage engagement by all NAEA members.

2023 is the year of the Water Rabbit. The sign of the Rabbit is a symbol of longevity, peace, and prosperity in Chinese culture. 2023 is predicted to be a year of hope – and the sleeping giant is wide awake.

Happy New Year!

NAEA’s 2022 Advocacy Achievements

The NAEA in 2022 was at the forefront of articulating the needs and advocating for a more workable IRS:

• Formation of stakeholder coalition, Tax Professionals for Taxpayer Relief Coalition, coalition letter to Treasury and the IRS outlining four actions the IRS can take to meaningfully reduce unnecessary burdens for taxpayers and practitioners during the upcoming 2022 tax filing season.
• Coalition letter to House Ways and Means Oversight Subcommittee leadership regarding Oversight Subcommittee hearing with the National Taxpayer Advocate on Challenges Facing Taxpayers.
• Stakeholder coalition virtual town hall, media briefing, and forum to discuss frustrations with 2022 tax season and possible mitigating solutions.
• Letter to Senate Finance Committee and House Ways and Means Committee Leadership on tax filing requirements and retroactive tax changes for 2021.
• NAEA White Paper Recommendations on IRS Reform: “Putting Service Back into the Internal Revenue Service.”
• IRS hearing on proposed increase in EA user fees. Executive Vice President Megan Killian testified at the May 11 IRS hearing. The NAEA also submitted a comment letter on the proposed regulations and met with officials from the Department of the Treasury, the IRS, and the Small Business Administration.
• Directly influencing the tax filing process by mobilizing letters from members of Congress to the IRS demanding the IRS temporarily discontinue automated compliance actions.
• Advancing legislation which would allow Treasury to regulate the practice of tax return preparers.
• In the absence of a fly-in the past two years, the NAEA PAC in 2022 hosted a virtual event with Rep. Jimmy Panetta (DCA), sponsor of legislation to regulate tax return preparers, and organized small group meetings with House Ways and Means Committee members Reps. Dwight Evans, (D-PA), Mike Thompson (D-CA), and Oversight Subcommittee Chair Bill Pascrell. The NAEA also engaged in in-person, one-on-one discussions with eight members of the Senate Finance Committee and 11 members of the House Ways and Means Committee at 19 PAC fundraising events.
• Letter to IRS Commissioner Charles Rettig to improve Form 2848 processing.
• Letter to Treasury Secretary Janet Yellin and IRS Commissioner Charles Rettig with recommendations to prioritize IRS operational areas for IRA funding.
• Letter to IRS Commissioner Charles Rettig to extend the penalty relief filing deadline for filing a variety of non-filed tax year 2019 and 2020 (tax year 2019 and tax year 2020) tax returns.
• Letter to House Ways and Means Committee and Senate Finance Committee Leadership with priorities enrolled agents believe are essential to a well-functioning, efficient, service-focused tax administration system.
• Roundtable with IRS Acting Commissioner O’Donnell to discuss priorities for $80 billion in new IRS funding.
• Letter to IRS Acting Commissioner O’Donnell and all members of Congress about the worsening situation with IRS customer service, in general, and the Practitioner Priority Service phone system, in particular.

Additional Engagement with the IRS

• Monthly meetings with the Office of National Public Liaison, along with other tax preparation stakeholders
• Engagement with the Return Preparer Office
• Regular feedback to the IRS on key issues and regulations

Additional Engagement with Congress

• Meetings with key stakeholders on Capitol Hill related to IRS funding priorities.
• Outreach to key congressional allies for help to spearhead a congressional letter to the IRS seeking an extension to the penalty relief filing deadline for filing a variety of non-filed tax year 2019 and 2020 (tax year 2019 and tax year 2020) tax returns.
• Outreach to key members regarding the ENABLERS Act and the expansion of anti-money laundering obligations. Protecting an Enrolled Agent’s Right to Practice.
• In May 2022, following a nearly two-year effort, NAEA legislation to exempt enrolled agents from Minnesota’s restrictive debt settlement service provider regulations (Statute 332B) was unanimously approved by the Minnesota Legislature and signed into law.