NAEA continues to monitor the layoff reports coming out of the Treasury Department and the Internal Revenue Service (IRS).   

We support actions that will create and support a smarter, more effective, and more modern IRS. A service that focuses on taxpayer and tax practitioner tools, fair and consistent enforcement, modernized technology, and meaningful service improvements. Recent actions could have the exact opposite effect.  

Layoffs could create chaos, and poor morale, and will result in a decline in taxpayer service. We also are concerned about the IRS having adequate resources in place to modernize its outdated systems. Delays in the much-needed technology improvements negatively impact taxpayers and the tax professionals that support them. Rollbacks in staffing and funding could set the service back years, even decades. 

Trust in the tax administration system is critical for timely filing and compliance. We are also concerned about potential data security risks to taxpayer information, especially when millions of Americans are in the process of filing their 2024 tax returns. The IRS is one of the few government agencies that touches every single American taxpayer. 

A strong tax administration system requires collaboration between the administration, Congress, the IRS, taxpayers, and the tax professional community. NAEA remains committed to strengthening that collaboration and working on building a tax administration system that works well for all.