IRS advisory committee issues 18 electronic tax administration recommendations

Traders Union
All News
Financial News
IRS electronic tax recommendations

Highlights

The Electronic Tax Administration Advisory Committee's 2026 annual report issues 18 recommendations, with six specifically directed to Congress and twelve for IRS administration.
Congressional recommendations urge predictable IRS funding, tax simplification in policy, preparer regulation authority, and prioritization of technology modernization enhancements.
The report emphasizes the need for digital tax administration alignment with modernization, fraud prevention, improved taxpayer service, and highlights ongoing committee member turnover.

2026 report priorities and congressional proposals

As reported by the Internal Revenue Service, the Electronic Tax Administration Advisory Committee releases its 2026 annual report at a public meeting in Washington, D.C., outlining 18 recommendations in total. The committee says six of those recommendations are directed to Congress, while the rest address IRS administration priorities.

In its advice to the IRS, the committee focuses on six priority areas: technology and data sharing, sustained IRS funding, AI and human-centered design, digital filing and payments, tax simplification and outreach, and fraud prevention and preparer regulation. IRS Chief Executive Officer Frank J. Bisignano says committee members devote significant time and expertise to identifying and analyzing electronic tax administration issues, and he adds that the agency looks forward to reviewing the recommendations.

The recommendations to Congress include calls to consider tax simplification when implementing tax policy goals, give the IRS authority to regulate non-credentialed tax return preparers, provide predictable funding for efficient and effective taxpayer service, and prioritize continued technology modernization enhancements.

Implications for tax administration and committee turnover

The report underscores how the IRS is continuing to align digital tax administration with broader operational goals such as modernization, fraud prevention and service delivery. The emphasis on stable funding and technology upgrades points to ongoing pressure on the agency to improve filing systems, payments infrastructure and data use while maintaining taxpayer support.

The report PDF is released the same day as the Washington meeting, where Bisignano also thanks four committee members whose terms end today. They are Douglas Harding of the Connecticut Department of Revenue Services, Carol Lew of Stradling, Yocca, Carlson & Rauth, LLP, Stephanie Plaza of Wolters Kluwer, and Mark Steber of Jackson Hewitt Tax Service.

Our earlier coverage of the U.S. Department of Labor’s enforcement push on state unemployment insurance systems described how governors were ordered to act immediately against fraud, improper payments, and weak controls, with administrative funding potentially at risk. The piece highlighted major exposures in states such as California, New York, and Illinois, and noted that federal scrutiny is increasing pressure to upgrade technology, strengthen identity checks, and tighten eligibility verification to protect taxpayer dollars.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.