Global Daily Tax News, US IRS Receives Digital Tax Administration Recommendations, (Jun 22, 2026)

The Internal Revenue Service Electronic Tax Administration Advisory Committee (ETAAC) released its 2026 annual report on June 17, 2026, with a total of 18 recommendations.

Recommendations directed at the Internal Revenue Service focus on:

Technology a ...

The Internal Revenue Service Electronic Tax Administration Advisory Committee (ETAAC) released its 2026 annual report on June 17, 2026, with a total of 18 recommendations.

Recommendations directed at the Internal Revenue Service focus on:

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.

The recommendations to Congress included a request to consider tax simplification when implementing tax policy goals, authority for IRS to regulate non-credentialed tax return preparers, predictable funding of the IRS for efficient and effective taxpayer service, and prioritization of continued technology modernization enhancements.

"ETAAC members have devoted significant time and expertise in identifying and analyzing electronic tax administration issues," said IRS Chief Executive Officer Frank Bisignano. "We appreciate the significant work the Committee put into this report and look forward to reviewing its recommendations."

ETAAC's 18 recommendations are as follows:

Recommendation 1: Congress and the IRS should provide Forms 1099-NEC, 1099-DA, 1099-R, and other relevant information return data to states on an expedited basis and accelerate the filing deadline for certain informational returns.
Recommendation 2: The IRS should implement real-time EFIN and PTIN validation capabilities and evaluate additional policy changes and taxpayer protection tools to strengthen system integrity.
Recommendation 3: The IRS should modernize its technology stack and approve the use of artificial intelligence with clear, documented transparency to preserve public trust.
Recommendation 4: The IRS should provide properly authenticated third parties the ability to "pull" information return data on demand.
Recommendation 5: Congress and the IRS should strengthen refund integrity to combat tax refund fraud.
Recommendation 6: The IRS should promote greater information sharing with states and industry partners by providing homogenized tax data metrics, year-over-year metrics, and seasonal information in a timely manner.
Recommendation 7: Congress should provide the IRS with flexible, sustainable, predictable, multiyear funding.
Recommendation 8: The IRS should enable tax professionals with proper authorization (e.g., Forms 8821, 8655, 2848) to access taxpayer information online.
Recommendation 9: The IRS should expand functionalities, ensure consistency, improve the user experience and enhance communication for IRS Online Accounts.
Recommendation 10: The IRS should review and update the current list of MeF reject codes and explanations to provide greater clarity regarding the cause of rejected returns and how to resolve them.
Recommendation 11: The IRS should eliminate unnecessary filings for extensions that are already automatic.
Recommendation 12: The IRS should improve communication, outreach, and education around new tax law changes
Recommendation 13: Congress and the IRS should strengthen the regulation of paid tax return preparers and implement measures to address incompetent and unscrupulous conduct.
Recommendation 14: Congress and the IRS should enhance e-services for reporting agents.
Recommendation 15: IRS should utilize artificial intelligence to develop robust identity theft fraud filters and allow tax professionals to verify the identity of taxpayers to expedite the release of refunds held by the IRS due to identity theft.
Recommendation 16: The IRS should enhance transparency in tax return processing and tax issue resolution.
Recommendation 17: The IRS should prioritize e-filing of 94X returns and enhancing duplicate 94X processing.
Recommendation 18: Congress and the IRS should allow electronic delivery of Forms W-2 to employees unless an employee specifically requests a paper version.

Global Daily Tax News, US IRS Receives Digital Tax Administration Recommendations, (Jun 22, 2026)

The Internal Revenue Service Electronic Tax Administration Advisory Committee (ETAAC) released its 2026 annual report on June 17, 2026, with a total of 18 recommendations.

Recommendations directed at the Internal Revenue Service focus on:

Technology a ...

The Internal Revenue Service Electronic Tax Administration Advisory Committee (ETAAC) released its 2026 annual report on June 17, 2026, with a total of 18 recommendations.

Recommendations directed at the Internal Revenue Service focus on:

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.

ETAAC's 18 recommendations are as follows:

Recommendation 1: Congress and the IRS should provide Forms 1099-NEC, 1099-DA, 1099-R, and other relevant information return data to states on an expedited basis and accelerate the filing deadline for certain informational returns.
Recommendation 2: The IRS should implement real-time EFIN and PTIN validation capabilities and evaluate additional policy changes and taxpayer protection tools to strengthen system integrity.
Recommendation 3: The IRS should modernize its technology stack and approve the use of artificial intelligence with clear, documented transparency to preserve public trust.
Recommendation 4: The IRS should provide properly authenticated third parties the ability to "pull" information return data on demand.
Recommendation 5: Congress and the IRS should strengthen refund integrity to combat tax refund fraud.
Recommendation 6: The IRS should promote greater information sharing with states and industry partners by providing homogenized tax data metrics, year-over-year metrics, and seasonal information in a timely manner.
Recommendation 7: Congress should provide the IRS with flexible, sustainable, predictable, multiyear funding.
Recommendation 8: The IRS should enable tax professionals with proper authorization (e.g., Forms 8821, 8655, 2848) to access taxpayer information online.
Recommendation 9: The IRS should expand functionalities, ensure consistency, improve the user experience and enhance communication for IRS Online Accounts.
Recommendation 10: The IRS should review and update the current list of MeF reject codes and explanations to provide greater clarity regarding the cause of rejected returns and how to resolve them.
Recommendation 11: The IRS should eliminate unnecessary filings for extensions that are already automatic.
Recommendation 12: The IRS should improve communication, outreach, and education around new tax law changes
Recommendation 13: Congress and the IRS should strengthen the regulation of paid tax return preparers and implement measures to address incompetent and unscrupulous conduct.
Recommendation 14: Congress and the IRS should enhance e-services for reporting agents.
Recommendation 15: IRS should utilize artificial intelligence to develop robust identity theft fraud filters and allow tax professionals to verify the identity of taxpayers to expedite the release of refunds held by the IRS due to identity theft.
Recommendation 16: The IRS should enhance transparency in tax return processing and tax issue resolution.
Recommendation 17: The IRS should prioritize e-filing of 94X returns and enhancing duplicate 94X processing.
Recommendation 18: Congress and the IRS should allow electronic delivery of Forms W-2 to employees unless an employee specifically requests a paper version.