Federal Tax Updates

Bob Kerr returns to break down his Tax Notes article on the IRS's Centralized Authorization File, the decades-old system that processes Forms 2848 and 8821 almost entirely by hand, now buried under 7 million forms a year at roughly 500 staff years and $50 million to run. He, Roger, and Annie get into why the backlog keeps growing, how practitioners can get ahead of it by putting 8821s on file early, and why transcripts belong in your current-year filing, not just your representation work.

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Roger and Annie catch up on everything that shifted while practitioners were buried in returns: a leaner, digital-first IRS under new CEO Frank Bisignano, a bumpy phase-out of paper checks, and stricter e-file matching that tripped up routine returns. The Kwong decision has handed taxpayers a hard July 10 deadline to claim refunds on COVID-era penalties and interest, with new ERC extension options and a possible conservation easement settlement adding to the summer to-do list.

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Roger and Annie take Federal Tax Updates on the road to the NAEA National Fly-In in Washington, D.C., joined by Tax Notes Federal reporter Ben Valdez and a room full of practitioners ready to talk. The conversation covers the messy rollout of the One Big Beautiful Bill, the paper check-to-direct-deposit transition that left many taxpayers stranded, IRS phone lines that connect but don't solve, and the growing gap between what clients are hearing on TikTok and what their tax pros are actually filing. It's a filing season debrief unlike any other.

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Roger and Annie kick off post-tax season with a checklist of what to do now — from chasing down e-file rejections to evaluating your firm's clients, staff, and workflow while it's all still fresh. They also cover the latest OBBA updates on No Tax on Tips, key IRS filing season stats from the April 15th Congressional hearing, and an urgent reminder about the Kwong v. United States penalty relief deadline that's closer than you think.

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IRS Stakeholder Liaison Glenn Gizzi returns with a sobering mid-tax-season update: data breaches affecting tax practitioners are already outpacing 2024, with over 206,000 taxpayers potentially compromised — and that's only what's been reported. Roger and Annie dig into why so many breaches go unreported, what a paper return filing means for a client's refund timeline (hint: think late 2027), and why getting every client an IP PIN before the next deadline isn't optional anymore.

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Roger sits down with tax controversy attorneys Jessica Marine and Peter Haukebo of Frost Law to unpack a court ruling most tax pros haven't heard of — but probably should act on before July. The Kwong case could mean significant interest and penalty refunds for clients who filed late during the COVID pandemic, and the window to file a claim is closing fast. They also dig into where ERC cases stand now, including why blanket IRS denials are clogging the appeals pipeline and what practitioners should be watching.

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Roger and Annie check in at the 40% mark of filing season, covering a flurry of legislative activity — from a bipartisan Senate bill that would finally create minimum standards for tax preparers, to new crypto regulatory frameworks and the surprisingly complex mess around car loan interest deductions. They also break down what the IRS CEO told Congress this week, including some filing season stats that are better than expected, and some quality concerns that aren't.

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Roger and Annie check in mid-tax-season with a candid look at what's actually landing on desks — from W-2s showing overtime pay coded a half-dozen different ways to clients convinced their entire salary qualifies for the new deduction. They also break down the meal and entertainment changes taking effect in 2026, including why your office coffee pot is now a tax problem.

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NAEA President Jennifer MacMillan joins Roger and Annie to talk about what she's hearing from enrolled agents on the front lines this tax season — including an IRS that's putting undertrained staff on the phones, backlogs that aren't getting resolved, and one practitioner who made 25 calls on a single issue without ever getting an answer. They also dig into the bipartisan push for minimum preparer standards, NAEA's win on Oregon licensing, and why Jennifer thinks managing client expectations around social security, tips, and overtime is going to be one of the biggest challenges of the season.

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Roger and Annie welcome back Thad Inge to decode what's happening in Washington DC as filing season kicks off. With potential government shutdowns, billion-dollar IRS budget cuts, and 25% of IRS staff gone through early retirements, uncertainty looms over tax professionals trying to implement retroactive provisions for overtime and tips. The conversation shifts to the renewed push for minimum tax preparer standards and why getting bipartisan legislation passed might be harder than ever in an election year.

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Roger and Annie open 2026 by reviewing the major provisions from the Big Beautiful Bill that will affect this tax season, including no tax on tips, overtime exemptions, senior deductions, and car loan interest. They shift focus to practice management essentials that often get overlooked, discussing how to set boundaries with clients, right-size your firm, avoid becoming a bottleneck, and build a sustainable business model that doesn't require working 90-hour weeks. The conversation covers everything from engagement letters and payment policies to contingency planning and post-season evaluation.

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This is a bonus episode from a recent webinar Annie and Roger did.

Prepare for Tax Season 2026 and the changes brought by the One Big Beautiful Bill Act. Join Federal Tax Updates co-hosts Roger Harris and Annie Schwab for a focused look at the most impactful provisions and what they mean for your clients. They break down the latest IRS updates, highlight the questions firms are already hearing, and share practical advice to help your firm prepare for the year ahead.

Roger Harris, EA - https://www.linkedin.com/in/rogerharrispbs/
Annie Schwab, CPA...

Andres Costa and Emily Goodman have acquired four accounting practices since 2021, expanding from a single location to five offices with a team of ten. They break down their acquisition strategy, from finding deals and structuring payment terms to handling employee transitions and raising client fees. Roger and Annie dig into the hard realities of practice valuations, including why a $350,000 firm might only be worth $200,000 and what sellers need to fix before they can command top dollar

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Former IRS Commissioner Danny Werfel and longtime agency communications chief Terry Lemons join Roger and Annie for a candid Thanksgiving conversation about the mounting challenges facing the agency heading into the 2026 filing season. The discussion covers budget cuts, staffing reductions, the lingering ERC backlog, and why a hollowed-out compliance function puts both taxpayers and tax professionals at greater risk.

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John Barucci joins the show to break down his real-life data breach. John thought he had all the right safeguards in place: cyber insurance, firewalls, security training, and a written information security plan. But a single click on what appeared to be a Social Security Administration email led to bad actors accessing nine client files, altering returns, and changing bank account information in just 38 minutes.

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Roger and Annie welcome Alan Pinck, EA and moderator of Tax Talk Today, for a wide-ranging conversation about his transition from hospitality management to tax representation work. Alan shares war stories from the days of preparing returns by hand, explains why treating IRS auditors with respect yields better outcomes than adversarial tactics, and discusses the critical differences between examination and collections work. The conversation covers everything from ghost preparers and ERC problems to building a year-round practice, teaching strategies, and why the most important day of tax season is April 16th.

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Roger and Annie sit down with Blake Oliver, founder of Earmark, to cut through the AI confusion. Blake explains why AI is more like a brilliant Harvard-trained intern with amnesia than a tax professional replacement, sharing practical applications from document organization to quality control that can work in firms today. The conversation explores which AI tools are worth trying, why voice mode changes everything, and why tax professionals who start experimenting now are still early adopters, not late to the party.

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Drawing from insights gathered at five IRS tax forums this year, Roger and Annie are joined by Jeff, Amanda, and Katarina to tackle the three most pressing challenges facing small accounting firms. From remote hiring strategies to why 90% of clients accept fee increases to essential marketing basics, this episode shows how hiring, pricing, and marketing work together to create a thriving, sellable practice. Whether you're drowning in capacity issues or preparing for eventual retirement, these proven strategies offer a roadmap out of the daily grind.

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Roger and Annie break down the preliminary list of occupations qualifying for tax-free tips, including some unexpected entries like plumbers and digital creators. They discuss the compliance headaches ahead with retroactive implementation but no updated forms until 2026. The conversation shifts to serious concerns about proposed IRS budget cuts and workforce reductions that could undermine tax enforcement when it's needed most.

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Roger and Annie break down the aftermath of Commissioner Billy Long's abrupt departure to become Ambassador to Iceland, leaving Treasury Secretary Scott Bessent as acting commissioner amid widespread IRS staff cuts and uncertainty. They also explore the massive 900+ page "Big Beautiful Bill" (2025 Act), covering everything from permanent individual tax rate changes and Trump savings accounts for children to the new tip and overtime tax exclusions that expire in 2028. The discussion also covers significant business provisions like permanent QBI deductions, higher 1099 thresholds, and the systematic elimination of energy credits through 2028.

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Recorded live from the New Orleans Tax Forum, Roger and Annie sit down with Maggie Romaniello from IRS Stakeholder Liaison to discuss this often overlooked but crucial IRS department. Maggie explains how Stakeholder Liaison serves as an advocate for tax professionals and their clients, handling everything from systemic issues like erroneous extension letters to data breach incidents and disaster response. The conversation reveals how practitioners can access this free resource directly through the IRS website and highlights the department's role in pushing for technological improvements like online accounts and streamlined processes.

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Washington DC tax expert Thad Inge joins the show again for a deep dive into the Big Beautiful Bill.  He breaks down the tax legislation that extends TCJA provisions and introduces new benefits like tax-free tips and overtime. Together with Annie and Roger, they explore the surprising speed of the political process, the complex implementation challenges ahead, and what small business owners and individuals need to know right now. From ERC changes to new car loan deductions, this comprehensive breakdown separates the reality from the hype surrounding one of the most significant tax bills in recent years.

Tax professional data breaches have exploded in 2025, with 327 reported incidents affecting over 342,000 taxpayers in just half a year. Glenn Gizzy, a 36-year IRS veteran now specializing in data breach prevention, reveals the sophisticated tactics criminals use to infiltrate tax practices. From phishing emails disguised as client referrals, to hackers who wait until returns are filed before changing bank account information. This conversation covers essential protection measures including Written Information Security Plans (WISP), IP PINs, proper cyber insurance coverage, and the critical steps to take immediately after discovering a breach.

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Annie and Roger break down the political maneuvering around the "big beautiful bill" extending the Tax Cuts and Jobs Act, explaining why seemingly simple provisions like no tax on tips and overtime could create major headaches for the 2026 filing season. They examine proposed IRS budget cuts of 37% and workforce reductions of 20% at the same time new tax complexities are being added. The hosts also celebrate the success of the 2025 filing season while questioning whether similar results are possible given the challenges ahead, including new Commissioner Billy Long's appointment and the ongoing uncertainty about when and what form the final...

Giles Pearson, co-founder of Accountests and former PwC partner, shares how one disastrous hire led him to revolutionize recruiting in the accounting profession. The conversation explores why traditional hiring methods fail, how skills and personality testing can predict job success, and reveals the shocking statistics about resume dishonesty. Roger and Annie also dive into New Zealand's streamlined tax system where 90% of taxpayers never file returns, sparking a fascinating debate about whether such simplicity could ever work in the United States.

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Former IRS Commissioner Danny Werfel joins Roger and Annie for a wide-ranging conversation about his tenure leading the nation's tax agency during a period of unprecedented funding and modernization efforts. Werfel discusses the challenges of rebuilding IRS operations, his decision to resign during the transition to Trump, and his concerns about maintaining tax system stability while pursuing automation and reform. Using memorable analogies—from unpowered refrigerators to football stadiums under construction—he offers frank insights into what it takes to run a healthy tax system and why strong tax administration is essential for economic stability.

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Roger and Annie discuss important tax updates that occurred during the busy tax season, including new IRS guidance on Employee Retention Credits and the current status of Beneficial Ownership Information reporting requirements. They explore the significant staffing challenges and leadership turnover at the IRS, with insights from Roger's recent visit to Washington DC. The hosts then shift focus to post-tax season priorities for practitioners, offering advice on evaluating software, optimizing client relationships, and implementing strategies to improve profitability and efficiency for the next filing season.

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For our milestone 50th episode, Roger Harris and Annie Schwab welcome Terry Lemons, who spent 26 years at the IRS including 11 years as Chief of Communications and Liaison. Terry shares insights from working with six different IRS commissioners, preparing officials for congressional testimony, and navigating public perceptions of the agency. The conversation explores the critical role of the tax professional community, challenges facing the IRS today, and lessons from past filing season successes and failures.

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In this episode, Roger sits down with Catharine Madeley, a tax practitioner who recently experienced a data breach at her firm. Catherine shares her firsthand account of how the breach unfolded, the steps she took to respond, and the lessons she learned along the way. She offers valuable insights into the importance of having a robust cybersecurity plan, the critical role of communication with clients, and the need to be proactive in protecting sensitive client information.

*This is a replay of an episode that originally aired in March, 2024.

Roger and Annie welcome guest Bob Kerr to discuss proposed changes to Circular 230, the regulations governing practice before the IRS. They explore contentious issues including contingent fees being classified as "disreputable conduct," expanded rights for non-credentialed preparers, and new requirements for reporting client errors. Bob shares insights from the recent hearing and explains why practitioners shouldn't expect final regulations until at least 2026.

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Roger and Annie provide critical updates on the Treasury Department's decision to halt Corporate Transparency Act penalties and enforcement requirements, bringing relief to tax practitioners and their clients. They break down the six-step reconciliation process for tax reform, offering clarity on where current legislation stands and what might be coming. The hosts also discuss concerns about potential IRS workforce reductions, upcoming technology improvements, and preview changes to Circular 230 regulations that will impact tax practice management.

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Roger and Annie explore major changes affecting tax professionals in early 2024, including significant staffing changes at the IRS and ongoing uncertainty around Beneficial Ownership Information (BOI) reporting requirements. They break down the new 1099-K reporting thresholds and explain how to handle various transaction types, from business payments to personal item sales. The hosts also discuss current legislative proposals and share practical insights for handling common client questions about taxable income and deductions during tax season.

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Former IRSAC Chair Annette Nellen joins Roger and Annie to discuss critical challenges facing the IRS and tax administration. The conversation explores the growing tax gap, the importance of consistent IRS funding, and efforts to modernize taxpayer services through online accounts and digital solutions. The discussion also delves into proposals for tax preparer regulation, continuing education requirements for enrolled agents, and the complexities of implementing cryptocurrency reporting requirements.

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Roger and Annie dive into the complex political dynamics shaping potential tax reform in 2025, breaking down the strategic implications of pursuing one comprehensive bill versus two separate pieces of legislation. They provide critical updates on the ever-changing BOI regulations, including recent court injunctions and what practitioners should do while awaiting final resolution. The episode concludes with practical advice for tax professionals preparing for the upcoming tax season, covering everything from research tools and client management to pricing strategies and work-life balance.

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Crypto tax expert Amir Marmar of JFDI Accountants breaks down the complexities of cryptocurrency taxation and shares guidance on when tax professionals should handle crypto cases themselves versus partnering with specialists. He explains key concepts like wallet-level reporting requirements coming in 2025, the challenges of DeFi and staking transactions, and why traditional tax software may not be enough for complex crypto cases. This episode provides practical insights for tax professionals on evaluating crypto clients and understanding the latest IRS guidance, including Revenue Procedure 2024-28's move away from universal accounting methods.

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Three successful accounting firm owners share their journeys from small practices to achieving 10X revenue growth. Through candid conversations about hiring strategies, systemization, and community support, these Padgett franchise owners reveal practical insights for scaling an accounting practice. Their experiences highlight how strategic hiring, building scalable systems, and embracing a growth mindset transformed their firms from six-figure to multi-million dollar enterprises.

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Janet Kaup  - https://www.linkedin.com/in/janet-kaup-2238643

Jeff Darley - https://www.linkedin.com/in/jeff-darley-77839b2

Annie and Roger discuss crucial tax updates as 2024 draws to a close, including the recent injunction against beneficial ownership reporting requirements, the evolving landscape of ERC claims processing, and changes to the clean vehicle credit program. They examine how the recent election results might impact tax policy, particularly regarding the Tax Cuts and Jobs Act provisions set to expire. They also provide practical guidance for tax practitioners preparing for the 2025 filing season, addressing important changes to 1099-K reporting thresholds and IP PIN requirements.

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Capitol Hill insider Thad Inge joins Roger Harris to unpack how the election results could reshape major tax policy decisions in 2024 and beyond. The discussion explores the potential fate of expiring Trump-era tax cuts, the future of IRS funding, and the complex political dynamics that will influence tax reform under Republican control. Thad provides unique insights into the budget reconciliation process, key congressional players, and offers tax practitioners valuable context on potential legislative changes and political realities that could affect their practice and clients.

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Special guest Wendy Walker, VP of Regulatory Affairs at Sovos and Chair of IRSAC's Information Reporting Committee, breaks down the latest developments in 1099-K reporting thresholds and the upcoming 1099-DA form for digital assets. The discussion explores the practical challenges facing tax professionals as payment platforms struggle with reporting requirements, while also examining how the IRS is modernizing its systems to handle electronic filing.

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In Part 2 of their BOI series, Roger and Annie tackle the most challenging aspects of beneficial ownership reporting requirements, focusing on determining who qualifies as a beneficial owner and the significant penalties for non-compliance. They dissect FinCEN's FAQs about substantial control while highlighting concerning gray areas that could put both business owners and tax professionals at risk. The discussion provides critical guidance for practitioners considering whether to offer BOI services, emphasizing protection strategies like engagement letters and insurance coverage given the potential $591 daily penalties and criminal consequences.

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