IRS Reins In Its Outsourcing of Audits Under New Rules (1)

The IRS says a new proposal curtailing the its ability to hire and share information with outside contractors during tax audits goes beyond requirements imposed under a 2019 reform law.

The Taxpayer First Act (Pub. L. 116-25), signed into law last summer, bars the IRS from sharing any books, papers, records, or other data obtained by summons with contractors, except when the contractor needs that information for the sole purpose of providing “expert evaluation and assistance” to the agency. The law also says only IRS or Office of Chief Counsel employees can question a summoned ...