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Demanding Tax Season Likely Ahead, IRS Commissioner Tells AICPA

by Paul Bonner | Nov 04, 2015   ()

The 2016 tax filing season promises to be challenging for the IRS, Commissioner John Koskinen told attendees at the AICPA National Tax Conference in Washington on Tuesday.

Koskinen made a similar prediction a year ago in his first address to CPAs in the same forum. That prediction was borne out, and for some of the same reasons he cited again this time: Congress’s tardiness in acting on a raft of currently expired temporary Code provisions and last year’s cuts in the IRS’s budget, coming on top of several previous years of cuts. Despite those problems, filing of returns went relatively smoothly for most taxpayers last year, he said, although the IRS’s level of service to taxpayers and practitioners sank to “totally unacceptable” levels.

In addition, this year significant provisions of the Patient Protection and Affordable Care Act, P.L. 111-148, and reporting requirements under the Foreign Account Tax Compliance Act (FATCA), P.L. 111-147, take full effect, as well. Add to that certification requirements under the new Achieving a Better Life Experience (ABLE) accounts and Congress’s recent reauthorization of the Sec. 35 health coverage tax credit for displaced workers, and the IRS has more than its share of largely unfunded new legislative mandates to carry out—with the specter of further budget cuts, he said.  

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Source: The Tax Adviser
Source: The Tax Adviser

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