IRS advisory council releases 2025 annual report

The IRS Advisory Council, known as IRSAC, has released its 2025 annual public report with recommendations on a variety of topics, including tax administration, taxpayer services and IRS operations. IRSAC serves as a federal advisory committee to the IRS commissioner and provides insight into IRS policy, programs and procedures. The report highlights operational and administrative priorities that can affect daily practice and client service.

This year’s report includes 29 issues and incorporates findings from IRSAC’s subgroups, which represent key areas of tax administration: Information Reporting, Large Business & International, Small Business/Self-Employed, Tax.

Why the report matters for tax pros

For tax professionals, the IRSAC report offers early insight into areas where the IRS may focus improvement efforts or future guidance. Many of the issues raised align with common practitioner pain points, including challenges with online tools, identity theft resolution, practitioner systems and client communications. The report also reinforces ongoing concerns about IRS funding and service levels, which directly affect filing season efficiency. 

Improving digital services and online accounts

A significant theme in the report is the need to improve IRS online services. Tax pros repeatedly identify limitations in online accounts and the availability of transaction data. IRSAC recommends continued investment in user-friendly interfaces and expanded capabilities for both individual and business online tax accounts. Equally important, better access to account data, payment history and correspondence could reduce delays. These improvements will allow practitioners to resolve client issues more efficiently.  

The council also notes that technology improvements should enhance security while providing flexibility for taxpayers who cannot easily use digital systems. Practitioners who serve clients without reliable internet access or digital tools should be ready to assist with alternative filing and payment methods.

Identity theft prevention and resolution

Identity theft remains a top concern in the IRSAC report. Identity-related issues often lead to delayed refunds and repeated client follow-ups. IRSAC recommends strengthening identity theft identification, prevention and resolution processes to reduce disruptions. Effective safeguards benefit taxpayers and preparers alike by reducing the backlog of flagged returns and minimizing notice activity driven by suspected fraud.  

Practitioner systems and continuing education

The IRSAC report highlights issues with the preparer tax identification number (PTIN) system and the need for clearer communication and guidance for tax professionals. Delays in PTIN processing and renewal can hinder compliance, particularly for preparers who work on extensions or late-season returns. IRSAC suggests improvements that could make these systems more reliable and user-friendly.

In addition, the council recommends expanding continuing education for enrolled agents to include practice management topics in addition to technical tax content. This reflects feedback from practitioners who say successful practice management depends on skills such as client communication and efficient workflows.

Practitioner feedback

Another recommendation calls for improved communication and an opportunity for input when the IRS develops or revises forms. Tax professionals often encounter forms and instructions before clear guidance is available. IRSAC suggests structured feedback loops so practitioners can help shape form design and instructions, ultimately reducing taxpayer burden and preparation errors. 

Outcomes and other results

The IRSAC Annual Report also documents outcomes from recent IRS initiatives. For example, it highlights improvements in IRS telephone assistance lines, where customer service representatives now have greater authority to resolve taxpayer problems during the first contact. This improvement is a direct response to persistent practitioner feedback about long wait times and call transfers. 

Another area of progress is the expansion of IRS data for business online accounts. Additional account transcripts and payment history features are being added, reducing the need for practitioners to request transcripts manually. The report identifies additional technological enhancements to verification systems to streamline the process for legitimate taxpayers while maintaining protections against fraud.  

What tax pros should take away

The IRSAC annual report does not change the tax code, but it provides a roadmap for where IRS leadership is listening and where improvements may occur. For practitioners, the key takeaways include a continued focus on online services, identity theft protection and communication improvements.