IRS Updates FAQ Process to Address Transparency Concerns (1)

Oct. 15, 2021, 6:52 PMUpdated: Oct. 15, 2021, 9:49 PM

The IRS is changing its process for issuing guidance in the form of frequently asked questions, after tax professionals raised concerns about transparency and reliability.

The agency on Friday announced several changes to make it easier for taxpayers to know when FAQs on newly enacted legislation have been posted or changed. It also provided clarity on the penalty protections taxpayers are eligible for when they rely on FAQs.

Concerns about the IRS’s use of FAQs have grown as the agency relied on them more for substantive guidance, including on Covid-19 relief programs and emerging areas like cryptocurrency. Tax professionals ...

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