IRS Intends to Retire DA and EAR through E-services

[joelgilb]

The IRS citing "low usage" is planning to eliminate the 2848 input to E Services as well as the Electronic Account Resolution
(EAR) products. WE will now have to either call Practitioners Hotline or fax it to CAF.

http://www.accountingtoday.com/taxprotoday/news/IRS-Closes-Disclosure-Authorization-Electronic-Account-Resolution-Apps67048-1.html?ET=webcpa:e7217:92331a:&st=email&utm_source=editorial&utm_medium=email&utm_campaign=tpt_061013&taxpro

http://www.irs.gov/Tax-Professionals/e-services---Online-Tools-for-Tax-Professionals

Of course right after I purchase TaxScripts which totally automates the entering of POA's.

There are a couple of ways for us to voice our complaints:

1. Call E services 1-866-255-0654 and voice our complaint.

2. Post your comments and concerns about the IRS decision to obsolete DA and EAR from the e-services menu options here:

http://www.irs.gov/uac/Send-Us-A-Comment-About-the-Web-Site

3. Sign an Online Petition here:

http://www.beyond415.com/knowledgecenter/article/alert-online-petition-urge-irs-to-reverse-decision

4. Contact your congressman

I have written a short letter that meets the IRS website character limitation of 1044 characters below to facilitate the post of a complaint.


LETTER:

IRS intends to retire the Disclosure Authorization (DA) & EAR products August 11, primarily due to low usage.

As we become more electronic e-services become of greater importance, & I expect more professionals will use them. Currently it can take days or weeks to get a POA entered via the CAF unit. Not being able to enter POA's through eservices makes it near impossible to deal with emergency situations, & timely deal with taxpayers' problems and issues.

When it is necessary to send a POA to an agent, revenue officer or someone in the collection system, it is not only time consuming, but it is a financial burden to taxpayers. It is especially burdensome when it is necessary to speak with and fax the POA to multiple IRS employees, something that happens more often than not.

Not being able to enter POA's directly through e-services, also makes it near impossible to deal with emergency situations for taxpayers. I am therefore requesting that IRS reconsider its decision to retire the DA & EAR service.

[joelgilb]

Just wrote my congressman the following letter:

The IRS citing "low usage" is planning to eliminate the 2848 input to E Services as well as the Electronic Account Resolution (EAR) products. WE will now have to either call Practitioners Hotline or fax it to CAF.

http://www.accountingtoday.com/taxprotoday/news/IRS-Closes-Disclosure-Authorization-Electronic-Account-Resolution-Apps67048-1.html?ET=webcpa:e7217:92331a:&st=email&utm_source=editorial&utm_medium=email&utm_campaign=tpt_061013&taxpro

http://www.irs.gov/Tax-Professionals/e-services---Online-Tools-for-Tax-Professionals


As we become more electronic e-services become of greater importance, & I expect more professionals will use them. Currently it can take days or weeks to get a POA enter via the CAF unit to allow a representative to speak with IRS and resolve taxpayer issues.

Not being able to enter POA's through eservices makes it near impossible to deal with emergency situations, & timely deal with the taxpayers' problems and issues.

When it is necessary to send a POA to an agent, revenue officer or someone in the collection system, it is not only time consuming, but it is a FINANCIAL BURDEN TO TAXPAYERS. It is especially burdensome when it is necessary to speak with and fax the POA to multiple IRS employees, something that happens more often than not.

Not being able to enter POA's directly through e-services, also makes it near impossible to deal with emergency situations for taxpayers.

IRS requires electronic means when it helps them, but has consistently discontinued electronic means to timely assist taxpayers with their tax problems (for instance some years ago one could email IRS to communicate timely and quickly, but shortly after this efficient system was put into place IRS pulled it for snail mail options).

Please Help the taxpayers of Nevada and the rest of this country to be able to efficiently deal with their tax issues, by stopping IRS from retiring a service that truly helps the citizens of this country resolve one of their most important issues - Tax Problems.

Thank you for your anticipated assistance in this matter.

[kcjenkins]

I think we all should do this. Our congresscritters may be a bit more sensitive right now, to anything about the IRS.

[TaxmannEA]

One thing has me confused. How is it more cost effective (budget concerns) to have all of the 2848's processed manually as opposed to an electronic system? I guess I need to take a course in gov't economics.

[Jack from Ohio]

One thing has me confused. How is it more cost effective (budget concerns) to have all of the 2848's processed manually as opposed to an electronic system? I guess I need to take a course in gov't economics.

Geeks are more expensive than low wage paper pushers.

[joelgilb]

So let's fight this one then! IT is time we stood up for our clients and ourselves!

[joelgilb]

UPDATE

National Society of Accountants recently met with IRS regarding the IRS's decision to eliminate DA and EAR in e-services. Here is a link to the article

http://www.accountingtoday.com/news/NSA-Talks-IRS-Keeping-eServices-Open-67105-1.html?ET=webcpa:e7254:92331a:&st=email&utm_source=editorial&utm_medium=email&utm_campaign=tpt_061713&taxpro

The IRS announced plans earlier this month to retire the two online applications on Aug. 11, citing low usage and budget cuts as the reason (see IRS to Shut Down Disclosure Authorization and Electronic Account Resolution Apps). However, many tax professionals have reacted with dismay, saying they rely on the services and find them more efficient to use than calling the IRS’s customer service lines for help.

According to an NSA blog post Thursday by communications manager Julene Joy, NSA president John Ams and other NSA officials met with the IRS to discuss why the two eServices are being retired and what options are available to allow them to continue to operate. The IRS told the NSA that the computer system on which the two applications run is about a decade old and, while the IRS is migrating other applications to a newer system, it requires extra computer programming and the IRS decided it was not worth the time and expense to re-code the DA and EAR applications.

Representatives of other organizations like the National Conference of CPA Practitioners, the National Association of Tax Professionals, the National Association of Enrolled Agents and the American Institute of CPAs also reportedly attended the monthly National Public Liaison meeting with the IRS at IRS headquarters in Washington, D.C., and expressed their concerns, along with the NSA.

The NSA asked IRS officials when the decision was made to retire the two applications and why are accountants only hearing about it now?

“Predictably, there was not a good answer to this question,” wrote Joy. “As near as we can tell, none of the IRS people who made the decision actually used either the Disclosure Authorization or Electronic Account Resolution options and believed the retirement of these options was an easy way for the IRS to save money. This decision was made some time ago. It remains unclear why we are hearing about it only now rather than when there was time to properly address the issue or find alternatives.”

When asked why the IRS chose the date of August 11 to retire the two applications or why they couldn’t at least be kept open until the IRS fiscal year-end date of September 30, the IRS was unable to provide any answers. The IRS similarly was unable to explain the usage data it had cited to justify the retirement of the two applications.

The NSA also asked whether the budget savings anticipated by the retirement by the IRS technology department took into account the added burden on the IRS customer service department or the added burden on tax professionals, who prepare more than 60 percent of all returns submitted to the IRS? The IRS told the NSA officials it would get back to them on those questions. When asked how tax administration would be better served by retiring the two applications, the IRS had no adequate response.

Edited June 19, 2013 by kcjenkins
expanded for those who don't click links

[joelgilb]

Another Update

Just received an email from Beyond415 regarding the petition that I thought was worth sharing:


Hello Joel,

In the first 48 hours of posting our online petition urging the IRS to reconsider its decision to retire two major e-Services products, we received more than 2,000 practitioner signatures. I want to thank you for participating in this effort. Last week, we formally submitted the petition and initial signatures to the IRS.

As someone who is passionate about effective tax administration, efficiency and tax practice and procedure, I share your commitment to this issue. We’re all aware of the difficult budget decisions the IRS is forced to make in light of an increasingly complex tax code, undertaking administration of the Affordable Care Act, and pressure to shrink the tax gap. In addition to providing software tools and resources to make tax practice and procedure easier for everyone, one of my primary goals is to facilitate mutually beneficial communication between the IRS and the tax professional community.

We all want effective and efficient tax administration, which is best achieved through collaboration. Please encourage your fellow practitioners to sign the petition if they haven’t already done so. The signature cutoff date is July 11.

Online petition.

Read the full update article.

If you have any additional comments or feedback on this issue, please email [email protected].

My best,

Jim Buttonow, CPA, CITP

[kcjenkins]

Let's hope they listen to reason. This move was truly a step backwards.

Call the IRS Commissioner's Office in DC at (202) 622-9511 to lodge a formal complaint and protest this unilateral decision to remove access to e-services without making a provision for an alternative.

[joelgilb]

Latest update from Beyond 415:

Hello ____,

Since the IRS announced its decision last month to retire two major e-Services products, we received almost 4,000 practitioner signatures on our online petition urging the IRS to reconsider its decision. On Monday, we formally submitted the petition and final list of signatures to the IRS.

Last week, the IRS Electronic Administration Advisory Committee (ETAAC) contacted us with an update that it has also urged the IRS not to retire Disclosure Authorization and Electronic Account Resolution e-Services products without offering new options to replace their functionality. ETAAC expressed hope that the IRS will open a dialogue with e-Services users about the changes.

Various tax professional associations are also pushing for the IRS to reconsider its decision.

What you can do:

Personally urge IRS action and open communication on this issue, using our sample letter and list of contact information for stakeholder organizations and representatives.

http://www.beyond415.com/knowledgecenter/article/alert-register-your-opinion-on-decision-to-retire-e-services-products

Thank you for your support on this issue. We will keep you updated as the Aug. 11 retirement date becomes imminent.

My best,
Jim Buttonow, CPA, CITP, cofounder, Beyond415

And here is a link to article regarding the same on Accounting Today

http://www.accountingtoday.com/news/thousands-of-practitioners-protest-end-of-e-services-tools-67469-1.html?ET=webcpa:e7435:92331a:&st=email&utm_source=editorial&utm_medium=email&utm_campaign=tpt_072213&taxpro

[joelgilb]

Latest update for Beyond415, shows no hope IRS is going to change direction on its decision to eliminate or reduce e-services.

In a letter we received last week, the IRS Wage and Investment Division confirmed that the IRS will retire two major e-Services products on Aug. 11, despite overwhelming practitioner reaction.

The letter explained in more detail the IRS’ reasons for retiring the Disclosure Authorization (DA) and Electronic Account Resolution (EAR) tools, as well as the IRS’ future plans to add new online functionality.

Here is a summary of the letter’s main conclusions:
• The IRS will retire DA and EAR on Aug. 11.
• Budget cuts have forced the IRS to allocate its resources to develop new technologies, such as a Web portal that will allow taxpayers to access their information using secure authentication techniques.
• Outdated computer systems do not support the transfer of existing DA and EAR tools to new platforms being developed.
• The IRS intends to replace DA with “a better automated system that will save time, be easier to use and be more cost-effective for the Service.” The IRS did not provide a timeline for the new functionality.
• The IRS has “strengthened and fine-tuned” its manual process to accommodate authorizations while it develops an automated system.
See a copy of the IRS letter. http://www.beyond415.com/media/fe/kc/e-Services_letter.pdf

This appears to be a final decision by the IRS. In light of this decision, we have partnered with NATP to offer a free 30-minute webinar on the e-Services changes. You’ll learn how this decision will affect your practice and clients, and get five tips that you can immediately implement to mitigate the loss of these tools and improve your client service and firm profitability.

Dates & times:
Monday, August 12: 11 am ET
Monday, August 12: 1 pm ET
Monday, August 12: 3 pm ET

Sign up for the webinar.

My best,
Jim Buttonow, CPA, CITP, cofounder, Beyond415

[Jack from Ohio]

"The IRS intends to replace DA with “a better automated system that will save time, be easier to use and be more cost-effective for the Service.” The IRS did not provide a timeline for the new functionality.

The IRS has “strengthened and fine-tuned” its manual process to accommodate authorizations while it develops an automated system."

Best laugh I have had in days!!!

[TonyP]

What's the procedure after August 11th to obtain a tax transcript? Do we Call E-Services 1-866-255-0654, go thru 3 or 4 menus, be on hold waiting for a Human at IRS, FAX the 2848 to the Human and somehow get the transcript. Or do we FAX the transcript to the IRS Human who will then input the 2848 into CAF, wait two weeks or so for CAF to process the 2848, then go into E-Services to get the transcript?

Seems a bit cumbersome.

[Guest Taxed]

Call, and then fax from a separate line seems to be the most effective method.

[Jack from Ohio]

What's the procedure after August 11th to obtain a tax transcript? Do we Call E-Services 1-866-255-0654, go thru 3 or 4 menus, be on hold waiting for a Human at IRS, FAX the 2848 to the Human and somehow get the transcript. Or do we FAX the transcript to the IRS Human who will then input the 2848 into CAF, wait two weeks or so for CAF to process the 2848, then go into E-Services to get the transcript?

Seems a bit cumbersome.

Welcome to the way it was before e-services.