The IRS Appeals Division shared important updates on staffing and operational changes. As of September 21, 2024, the division has grown to 1,746 employees, with plans to hire up to 2,227 by the end of fiscal year 2025. The increase in hiring has temporarily affected cycle times, as new hires undergo training. However, the division is working to maintain low inventory levels during this period.
The Appeals Division has five primary areas of focus: Operations Support, Case Support, Collections Appeals, Exam Appeals, and Specialized Exam Programs & Referrals. The Alternative Dispute Resolution (ADR) program is fully operational, with a 25% increase in cases, and efforts to comply with Fast Track Settlement are ongoing.
A new pilot program for secure messaging, set to run from September 30, 2024, through March 31, 2025, is designed to improve communication within the division, particularly in corporate cases. The Appeals Coordinated Issue (ACI) process, which addresses emerging issues with broad impact, is also being reassessed to ensure efficient resolution of cases.
The IRS provided an update on its efforts to provide tax relief for victims of natural disasters, in coordination with FEMA and other federal agencies. The program, governed by the Robert T. Stafford Disaster Relief and Emergency Assistance Act, is designed to prevent overlap in federal relief efforts. Last year, the IRS provided relief in response to 22 emergency declarations and 89 major disaster declarations.
Under the authority of IRC § 7508A, the IRS grants disaster relief for a minimum of 60 days and up to one year, with additional time allowed for extreme circumstances. Relief is typically granted retroactively, with taxpayers receiving 120 to 180 days from the end of the disaster to comply with tax obligations. The IRS emphasized that relief often includes interest abatement, which distinguishes it from other types of extensions.
Innocent Spouse Program Enhancements
The meeting also included updates on the Innocent Spouse Program, which falls under IRC § 6015. The program offers three types of relief for taxpayers who meet specific criteria. The IRS highlighted recent improvements, including enhancements to Form 8857, which can now be submitted electronically using mobile apps and secure document upload tools.
These changes aim to streamline the process and improve efficiency. Secure messaging and digital recordkeeping features are being added, which will help move away from paper-based processes. The program continues to focus on improving automation to further enhance operational efficiency.
In response to growing needs in local communities, the IRS Stakeholder Liaison team has hired over 20 new employees in recent weeks, including in challenging geographic areas. The team is also working on creating a directory that will help taxpayers and local members find their specific points of contact more easily.
The Stakeholder Liaison team provides support both at the national and local levels, dealing with systemic tax issues and assisting in disaster recovery efforts. They play a key role in helping taxpayers with issues related to tax returns, refunds, and casualty losses after major disasters.
The updates provided at the meeting reflect the IRS's continued efforts to enhance taxpayer services, improve communication, and streamline operations in response to both individual and business needs.