Internal Revenue Service Advisory Council

Internal Revenue Service Advisory Council
Name	Internal Revenue Service Advisory Council
Formation	1969
Type	Advisory body
Headquarters	Washington, D.C.
Parent organization	Internal Revenue Service
Leader title	Chair

Internal Revenue Service Advisory Council The Internal Revenue Service Advisory Council provides external advice to the Internal Revenue Service on administration of the Internal Revenue Code, taxpayer service, compliance initiatives, and information technology modernization. The council brings together representatives from business, nonprofit organization, tax profession, and state government sectors to inform senior officials including the Commissioner of Internal Revenue and the Treasury Department. It issues annual reports and recommendations that intersect with legislation such as the Tax Reform Act of 1969 and regulatory actions influenced by rulings of the United States Tax Court and decisions of the United States Supreme Court.

History

The council was established during a period of modernization of federal administrative law and was shaped by reforms following the enactment of the Tax Reform Act of 1969 and studies by the Treasury Department and the Congressional Budget Office. Early membership reflected stakeholders from the American Institute of Certified Public Accountants, the National Association of Tax Professionals, and representatives from large employers such as General Electric and IBM. Over decades the council's work paralleled major tax milestones including the Economic Recovery Tax Act of 1981, the Taxpayer Relief Act of 1997, and the Hiring Incentives to Restore Employment Act. Its evolution tracked technological shifts tied to the Information Technology strategies adopted across federal agencies and responses to rulings by the United States Court of Appeals for the Federal Circuit.

Role and Responsibilities

The council advises on implementation of the Internal Revenue Code and on the IRS's strategic priorities such as taxpayer service, enforcement balance, and modernization of information systems like the Modernization Program and legacy platforms. It reviews proposed initiatives impacting constituents including representatives from the Small Business Administration, the National Federation of Independent Business, and national advocacy groups such as the AARP and National Association of State Departments of Health. The council evaluates interactions between IRS operations and statutory requirements under laws like the Privacy Act of 1974, and assesses impacts from judicial interpretations by the United States Court of Appeals and policy shifts from the United States Department of the Treasury.

Membership and Appointment

Members are appointed from diverse sectors, including partners from firms such as Deloitte, PricewaterhouseCoopers, Ernst & Young, and KPMG, leaders from nonprofits like United Way, executives from corporations including Walmart and Microsoft, and representatives from state tax agencies such as the New York State Department of Taxation and Finance and the California Franchise Tax Board. Appointments are made by IRS leadership, often after consultation with the Secretary of the Treasury and members of Congress on tax committees such as the United States House Committee on Ways and Means and the United States Senate Committee on Finance. The council's chair has included senior figures with backgrounds at institutions like the American Bar Association, the Brookings Institution, and the Heritage Foundation.

Meetings and Procedures

The council convenes several times annually in meetings held at facilities in Washington, D.C. and through virtual sessions leveraging platforms used across federal agencies. Agendas are set in coordination with leadership from the Commissioner of Internal Revenue and staff from the IRS Office of Strategy and Finance and the Department of the Treasury Office of Tax Policy. Procedures follow federal advisory committee norms similar to those codified under the Federal Advisory Committee Act, and the council interfaces with program offices including the Wage and Investment Division and the Large Business and International Division. Subcommittees examine specialized topics such as tax-exempt organizations, international tax, and taxpayer assistance, often producing white papers that reference rulings from the United States Tax Court and legislative developments from Congress.

Recommendations and Impact

The council issues annual reports and topic-specific recommendations that have influenced IRS policies on electronic filing, identity protection, and customer service improvements. Its recommendations have informed agency responses to statutory changes such as provisions in the Affordable Care Act that affected information reporting, and to implementation challenges related to recent tax legislation adopted by the United States Congress. The council's input has intersected with modernization efforts involving contractors and integrators with ties to firms active in federal acquisitions, and with research from policy organizations like the Urban Institute and the Tax Policy Center. While not binding, its recommendations have been cited in IRS guidance, agency strategic plans, and in congressional oversight hearings before the House Oversight Committee and the Senate Homeland Security and Governmental Affairs Committee.

Oversight and Accountability

The council operates under oversight consistent with requirements applicable to federal advisory committees, including transparency expectations and reporting to the Secretary of the Treasury and to congressional committees such as the House Committee on Oversight and Accountability. Membership disclosures and meeting minutes are subject to review by inspectors such as the Treasury Inspector General for Tax Administration and by investigative bodies including the Government Accountability Office. Accountability mechanisms aim to ensure that the council's advice aligns with statutory mandates from the Internal Revenue Code and judicial interpretations from courts including the Supreme Court of the United States.

Category:United States federal advisory bodies Category:Internal Revenue Service