IRS Compliance and Interaction Challenges
Definition
Challenges when working with the IRS are consistently ranked as the most significant operational issue faced by CPA firms regardless of size. These challenges include complexity in IRS processes, communication delays, procedural changes, and the administrative burden of managing IRS interactions on behalf of clients. The AICPA PCPS survey identifies this as the #2 most significant issue across all firm categories. This problem intensified during COVID-19 and persists through 2024-2025. The cost manifests in: (1) significant staff time spent navigating IRS requirements, forms, and procedures; (2) delays in resolving client matters; (3) risk of penalties and errors if IRS requirements are mishandled; (4) need for continuing education to stay current with IRS rule changes.
Key Findings
- Financial Impact: For a 10-person firm: estimated $20,000-$50,000 in staff time annually managing IRS-related issues
- Frequency: daily
Why This Matters
IRS-specific workflow software, compliance automation tools, specialized IRS consulting services, continuing education platforms, IRS forms/rules databases
Affected Stakeholders
Owner/CPA/Bookkeeping Practitioner
Deep Analysis (Premium)
Financial Impact
Data available with full access.
Current Workarounds
Data available with full access.
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Methodology & Sources
Data collected via OSINT from regulatory filings, industry audits, and verified case studies.
Related Business Risks
Severe Skilled Worker Shortage and Hiring Crisis
Staff Retention and Burnout from Workload Overload
Service Quality Degradation and Error Risk
Succession Planning and Aging Owner/Partner Transition
Declining Pipeline and Accounting Program Enrollment
Regulatory Complexity and Compliance Updates
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