The IRS National Public Liaison (NPL) meeting held on April 24, 2025, provided crucial updates and insights for the tax professional community, with an emphasis on security, practitioner resources, and organizational changes that may impact service levels in the near future. The session opened with updates on the IRS Nationwide Tax Forums, which are progressing well and experiencing strong turnout. However, attendees were cautioned that future sessions may be affected by internal staffing reductions.
A central focus of the meeting was on fraud prevention and cybersecurity awareness for tax preparers. Criminal Investigations reported over $2.1 billion in fraud related to false returns and identity theft in the last fiscal year. Preparers were warned to remain vigilant for signs of unauthorized access to taxpayer accounts, unexpected client notices from the IRS, or anomalies in e-filing activity. The meeting detailed various scams currently targeting practitioners, such as phishing emails, clone phishing, and whaling schemes. Practitioners were urged to educate clients proactively and to report suspicious emails to phishing@irs.gov.
Significant attention was given to data security requirements under federal law. Tax preparers, considered financial institutions under the FTC's Safeguards Rule, are required to develop a Written Information Security Plan (WISP) tailored to their business. Key components of a strong security posture include updated antivirus software, firewalls, multi-factor authentication (MFA), off-site backups, encrypted drives, and use of virtual private networks (VPNs). Practitioners were also reminded never to use default passwords and to assign a responsible party for plan implementation.
The Communications & Liaison (C&L) division is expected to experience a substantial reduction in force, possibly up to 75%, which could impact the Tax Forums and other outreach initiatives. While the tax professional community remains a priority, there may be a transition period marked by reduced support and communication delays. C&L leadership expressed commitment to minimizing disruption, though acknowledged challenges during this downsizing period.
New enhancements to the IRS online self-service tools for tax professionals were also reviewed. These tools now offer real-time processing for power of attorney (POA) submissions, with digital signatures required. Practitioners can link their CAF numbers to initiate POAs, track payments, and amend installment agreements for up to five years. While these tools are currently limited to individual taxpayer accounts, features such as live chat and guided chatbot navigation are being expanded to improve user experience.
In closing, the Open Forum addressed the sharp rise in data breach incidents, increasing from 130 to 193 cases. The IRS reinforced the importance of reporting suspected breaches and emphasized that all Stakeholder Liaison staff are trained to respond promptly, even in the event of local staff absences.
The next NPL meeting is scheduled for May 15, 2025. NCCPAP will continue to monitor and report on these developments to support the interests of our members and the broader tax professional community.