IRS RESPONSE TO RECOMMENDATION: The types of inquiries and forms filed within the IRS are varied, with multiple processing times creating a different timeline for completion. Aggregate timeframes provided broadly would be misleading for individual filers. Some information on individual processing is already included in the Individual Online Account application for review, showing the receipt of forms, payments and completed processing information; however, anything more than the general timeframe for the actual processing is not available due to the volume of inquiries, forms, and correspondence that must be completed by limited resources.

CORRECTIVE ACTION: N/A

TAS RESPONSE: While TAS recognizes the IRS’s concerns about varying processing times, the IRS could still provide a dashboard feature tracking the average processing times of common refund delay categories, such as Form 4136 (Fuel Tax Credit) claims. Transparency about extended timelines—like the fact that Fuel Tax Credit claims can take up to 18 months to process—could prompt more taxpayers to voluntarily withdraw or amend improper claims. This would reduce Exam’s workload and improve overall compliance.

ADOPTED, PARTIALLY ADOPTED or NOT ADOPTED: Not Adopted

OPEN or CLOSED: Closed

DUE DATE FOR ACTION (if left open): N/A

IRS RESPONSE TO RECOMMENDATION: ​The IRS stated this recommendation has already been implemented.

Taxpayer Correspondence Services (TCS) standards include developing meaningful language using plain language principles, which ensures taxpayers affected by refund freezes or delays receive written notices that clearly explain the problem as well as the next steps that must be taken to resolve tax issues. The IRS continues to evaluate written products for clarity and substance.

CORRECTIVE ACTION: Taxpayer Correspondence Services (TCS) standards include developing meaningful language using plain language principles, which ensures taxpayers affected by refund freezes or delays receive written notices that clearly explain the problem as well as the next steps that must be taken to resolve tax issues. The IRS continues to evaluate written products for clarity and substance.

TAS RESPONSE: TAS commends the IRS’s stated commitment to meaningful, plain-language correspondence. However, in practice, most taxpayers with frozen refunds do not receive timely explanations. Often, the first substantive notice the taxpayer receives is an audit letter sent more than a year after filing. The IRS should send taxpayers earlier notices explaining that the refund is being held due to a questionable credit and instructing them to have supporting documentation ready for when their case is examined. The same notice can also give the taxpayer an opportunity to amend their original return. Such transparency would allow taxpayers to self-correct their claims earlier in the process, reducing Exam’s resource burden.

ADOPTED, PARTIALLY ADOPTED or NOT ADOPTED: Not Adopted

OPEN or CLOSED: Closed

DUE DATE FOR ACTION (if left open): N/A

IRS RESPONSE TO RECOMMENDATION: The IRS stated this recommendation has already been implemented.

The IRS Office of Chief Counsel posted the following guidance memo, Allowance of Theft Losses for Victims of Scams Under I.R.C. Section 165, on March 14, 2025, to provide guidance on certain losses: https://www.irs.gov/pub/irs-wd/202511015.pdf.

CORRECTIVE ACTION: N/A

TAS RESPONSE: While TAS acknowledges the IRS Chief Counsel memorandum addressing theft loss deductions for victims with a profit motive, the memo is not readily accessible through a standard IRS.gov search. Taxpayers are unlikely to benefit from this guidance if they cannot find it. To make the guidance effective, the IRS should promote the Chief Counsel memo through various media, such as a dedicated theft loss webpage, inclusion in relevant publications (e.g., Pub. 547), and improved search engine optimization within IRS.gov.

ADOPTED, PARTIALLY ADOPTED or NOT ADOPTED: Adopted

OPEN or CLOSED: Closed

DUE DATE FOR ACTION (if left open): N/A

IRS RESPONSE TO RECOMMENDATION: A centralized landing page within IRS.gov is currently being developed. This landing page will be easy to find/access and will provide guidance for identifying and reporting scams/schemes. In addition, it will include the steps to submit referrals about suspected tax noncompliance or fraud that the IRS is authorized to administer, enforce, or investigate.

The first phase, which includes the basic build out of the centralized landing page for scams/schemes and referrals, will be placed on IRS.gov by September 2025.

The second phase will optimize the centralized scams/schemes and referrals landing page experience to provide enhanced customer service to the public while also enabling the IRS to leverage Artificial Intelligence (AI), automation, and predictive data analytics to improve efficiencies.

CORRECTIVE ACTION: A centralized landing page within IRS.gov is currently being developed. This landing page will be easy to find/access and will provide guidance for identifying and reporting scams/schemes. In addition, it will include the steps to submit referrals about suspected tax noncompliance or fraud that the IRS is authorized to administer, enforce, or investigate.

The first phase, which includes the basic build out of the centralized landing page for scams/schemes and referrals, will be placed on IRS.gov by September 2025.

The second phase will optimize the centralized scams/schemes and referrals landing page experience to provide enhanced customer service to the public while also enabling the IRS to leverage Artificial Intelligence (AI), automation, and predictive data analytics to improve efficiencies.

TAS RESPONSE: TAS appreciates the IRS’s phased approach to developing a centralized landing page for scams and schemes and will monitor progress toward the September 2025 deadline. To maximize taxpayer benefit, this tool must be highly visible, accessible from the homepage, and updated frequently (as close to real time as possible). TAS also urges the IRS to engage stakeholders, including TAS, in user testing and content design to make sure the tool meets taxpayer needs.

ADOPTED, PARTIALLY ADOPTED or NOT ADOPTED: Adopted

OPEN or CLOSED: Open

DUE DATE FOR ACTION (if left open): 9/30/2025

IRS RESPONSE TO RECOMMENDATION: The IRS stated this recommendation has already been implemented.

The IRS has addressed this recommendation based on its recent actions in this area. For instance, the IRS identified and implemented rigorous controls on its Government Furnished Equipment (GFE) devices to eliminate threat and scam concerns and, in 2023, implemented security controls to block access to TikTok, associated URLs, and prevented the installation of the TikTok application to ensure alignment with the No TikTok on Government Devices Act per the guidance outlined in the Act and the Office of Management and Budget Memorandum (M-23-13). Instagram (and all social media apps) and YouTube apps are also blocked on mobile GFE devices; however, although Instagram is blocked in the browser, YouTube.com is accessible via the GFE browsers (Edge/Safari) due to the IRS leveraging YouTube as a channel to educate and support taxpayers.

M365 applications and social media sites accessed on mobile devices under the “bring your own device” (BYOD) program are placed in a secured container preventing and disabling the ability to copy, paste, or screen-capture IRS data from the IRS container to the personal container. Finally, IT continues to identify and deploy security measures to eliminate risks that align with GFE and BYOD devices as an ongoing process.

CORRECTIVE ACTION: The IRS has addressed this recommendation based on its recent actions in this area. For instance, the IRS identified and implemented rigorous controls on its Government Furnished Equipment (GFE) devices to eliminate threat and scam concerns and, in 2023, implemented security controls to block access to TikTok, associated URLs, and prevented the installation of the TikTok application to ensure alignment with the No TikTok on Government Devices Act per the guidance outlined in the Act and the Office of Management and Budget Memorandum (M-23-13). Instagram (and all social media apps) and YouTube apps are also blocked on mobile GFE devices; however, although Instagram is blocked in the browser, YouTube.com is accessible via the GFE browsers (Edge/Safari) due to the IRS leveraging YouTube as a channel to educate and support taxpayers.

M365 applications and social media sites accessed on mobile devices under the “bring your own device” (BYOD) program are placed in a secured container preventing and disabling the ability to copy, paste, or screen-capture IRS data from the IRS container to the personal container. Finally, IT continues to identify and deploy security measures to eliminate risks that align with GFE and BYOD devices as an ongoing process.

TAS RESPONSE: While the IRS has taken commendable steps to block TikTok and similar apps on government-furnished equipment, TAS’s recommendation was for the IRS to evaluate whether certain limited access (perhaps non-networked “clean room” review stations) could be allowed for scam monitoring and enforcement purposes. TAS encourages the IRS to reassess whether current restrictions inadvertently hinder enforcement or outreach efforts in the evolving tax scam/scheme landscape.

ADOPTED, PARTIALLY ADOPTED or NOT ADOPTED: Not Adopted

OPEN or CLOSED: Closed

DUE DATE FOR ACTION (if left open): N/A

IRS RESPONSE TO RECOMMENDATION: The IRS is currently on hold for all organizational changes. Many scams and schemes are not tax related so any information for providing assistance by the IRS is limited. Identity theft and individual scam reporting and guidance is already provided by the Federal Trade Commission.

Currently, the IRS already works in collaboration with members of private industries, the states, and financial institutions, to protect taxpayers by identifying schemes and preventing fraud from occurring (i.e., the Security Summit). Tax preparers are also encouraged to know their customers and are regularly sent reminders to protect their own systems containing taxpayer data. The IRS has teams specifically assigned to IDTVA and has procedures in place to address victim assistance.

CORRECTIVE ACTION: N/A

TAS RESPONSE: While TAS understands the IRS is currently under a freeze on organizational changes, the need for a centralized Scam Prevention and Victim Assistance Office or single point of contact remains paramount. Taxpayers affected by scams are often directed to various parts of the IRS or other agencies such as the Federal Trade Commission with no clear guidance on who handles what. A single, IRS-coordinated office or point of contact would reduce confusion, improve taxpayer outcomes, and help the IRS collect more consistent data on scam trends.

ADOPTED, PARTIALLY ADOPTED or NOT ADOPTED: Not Adopted

OPEN or CLOSED: Closed

DUE DATE FOR ACTION (if left open): N/A