IRS employee training on taxpayer representation and how taxpayers’ rights to representation must be observed in enforcement procedures needs to improve after some workers didn’t understand certain requirements, the Treasury Inspector General for Tax Administration said in a recent report.
TIGTA noted that determining whether the IRS is complying with the right to taxpayer representation and direct contact provisions is difficult. The watchdog found that the tax agency doesn’t have a system to identify cases in which taxpayers have either requested consultation with a representative, such as a CPA, enrolled agent, or an attorney, or in which an IRS employee bypassed a representative and directly contacted the taxpayer.
The IRS Restructuring and Reform Act of 1998 requires TIGTA to annually report on the IRS’s compliance with the direct contact provisions of Internal Revenue Code Section 7521 and the Fair Tax Collection Practices of Section 6304(a)(2) during interactions with taxpayers or their representatives. These provisions of the law restrict the IRS from directly contacting taxpayers who are represented.
The Taxpayer Bill of Rights also guarantees taxpayers the right to retain an authorized representative of their choice to represent them in their dealings with the IRS. In most situations, the IRS must suspend an interview if taxpayers request to consult with a representative.
To perform this review, TIGTA queried IRS data systems to identify cases in which taxpayers were represented and evaluated those cases.
Based on a sample, TIGTA found that IRS Field Collection employees largely complied with taxpayers’ rights under Section 7521(c). The watchdog also interviewed four managers and 18 employees from the Small Business/Self-Employed Division’s Field Collection function to evaluate their understanding of direct contact provisions. While most employees seemed to know these practices, interview responses revealed an inconsistent understanding of certain procedural requirements involving taxpayer-initiated contact, taxpayers’ right to audio record in-person interviews related to the determination or collection of tax, and authorization coverage for additional tax periods, the report says.
For example, eight employees didn’t correctly explain procedures for responding to taxpayer voicemails, 10 employees misstated procedures involving taxpayer-initiated follow-ups, and five employees weren’t aware that taxpayers have 10 business days to consult a representative. Lastly, 10 employees incorrectly stated that audio recording of an in-person interview isn’t permitted.
“Revenue officers are not consistent in their understanding of IRM [Internal Revenue Manual] requirements related to direct contact, representation, and taxpayer rights,” the report says. “These inconsistencies may result in improper application of procedures and increase the risk of taxpayer rights not being properly upheld.”
The IRS made one recommendation: the collection policy director for the IRS SB/SE Division should refine the training pertaining to taxpayer representation and clarify how taxpayers’ rights to representation must be observed in enforcement procedures, with an emphasis on circumstances where direct communication with represented taxpayers is permitted.
IRS management agreed with this recommendation, saying training on taxpayer representation will reinforce taxpayers’ rights and clarify when direct contact with represented taxpayers is permitted as part of their current continuing professional education.
“We are committed to continually strengthening employee training and guidance to promote consistent understanding and application of taxpayer representation and direct contact procedures,” Lia Colbert, commissioner of the IRS SB/SE Division, said in response to TIGTA’s findings. “During Fiscal Year 2025, Field Collection incorporated additional direct contact scenarios into both new hire and on-the-job training. In Fiscal Year 2026, we supplemented those efforts through workshops, executive communications, and continuing guidance to reinforce proper application of direct contact procedures.
“We agree that continued emphasis on these requirements will further strengthen employees’ understanding and promote consistent application of procedures across Field Collection,” she continued. “We will refine our training materials to provide additional clarification regarding taxpayer representation and the limited circumstances in which direct communication with represented taxpayers is permitted.”
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Tags: IRS, irs representation, Taxes, TIGTA
