Businesses and tax professionals looking for the latest IRSAC report will find an important update to older IRS Advisory Council coverage: the current annual report is the IRSAC 2025 Report, published by the IRS in January 2026 as Publication 5316 (Rev. 1-2026). It contains recommendations on 29 issues covering IRS operations, taxpayer service, compliance, information reporting, digital services, and administrative processes.  

The report matters to small businesses and tax professionals because many of its recommendations deal with everyday friction points: understanding filing obligations, accessing IRS online services, submitting documents, working with representatives, correcting returns, and getting timely help from the IRS. 

One distinction is important from the start: IRSAC recommendations are advisory recommendations. They are not automatically changes to tax law or binding requirements for taxpayers. The IRSAC advises the IRS Commissioner and senior leadership; implementation requires separate action where a recommendation involves an administrative change, guidance, regulation, technology, or legislation.  

What Is the IRSAC? 

IRSAC stands for the Internal Revenue Service Advisory Council. 

It serves as an advisory body to the IRS Commissioner and provides a forum where IRS officials and representatives of the public can discuss tax administration. The council reviews administrative and tax-policy issues and makes recommendations intended to improve tax administration, taxpayer service, compliance, and professional practices.  

The 2025 IRSAC had 37 members with experience covering individual and business tax preparation, tax advice, examinations, appeals, collections, information reporting, payroll, electronic tax administration, professional standards, and other areas.  

The council is organized into five subgroups: 

• Information Reporting  
• Large Business & International  
• Small Business/Self-Employed  
• Tax Exempt/Government Entities  
• Taxpayer Services  

The report says the Fairness in Tax Administration subgroup was added in 2025 but merged into the Taxpayer Services subgroup during the year.  

How does IRSAC produce its recommendations? 

IRSAC’s work includes public meetings, working sessions, subgroup meetings, and discussions with IRS subject-matter experts. The 2025 report says the recommendations drew on information from IRS experts as well as member research and experience.  

That matters when reading the report: some statements describe IRS data, some summarize stakeholder experience, and others are the council’s recommendations. 

What Is the Latest IRSAC Report? 

The latest completed annual report currently listed by the IRS is the 2025 IRSAC Public Report, published in January 2026 as Publication 5316 (Rev. 1-2026). The IRS announced its release on January 14, 2026.  

This explains the phrase “IRSAC report January 2026.” 

The report is called the 2025 report because it documents the council’s work and recommendations developed during 2025. It was then formally published in January 2026.  

As of September 22, 2026, the IRSAC website lists public meetings held during 2026, including a September 10 meeting focused on topics that may be recommended for inclusion in a future report. The IRS’s annual-report section does not yet list a completed 2026 annual report.  

IRSAC 2025 Report at a Glance 

The report addresses 29 topics. 

Six are classified as general issues: 

• IRS funding  
• Public education about the IRS and misinformation  
• Updating IRS websites  
• Accounting method change requests  
• Simplifying online tax services  
• Processing Form 730 and excise-tax payments  

The remaining issues are distributed across the five IRSAC subgroups.  

For small businesses and tax professionals, several themes stand out: 

More proactive communication: IRSAC wants taxpayers to receive relevant compliance information earlier. 

More useful digital services: The council recommends better integration between IRS online tools. 

Better small-business education: The report identifies tax literacy as an important issue for small businesses. 

Faster amended-return processing: IRSAC recommends technology and workflow changes to reduce delays. 

Better practitioner access: Recommendations address CAF authorization, prior-return data, and support for tax professionals.  

What Does the IRSAC Report Recommend for Small Businesses? 

The Small Business/Self-Employed (SB/SE) subgroup is especially relevant to owners, self-employed taxpayers, and practitioners serving small businesses. 

Its 2025 topics included: 

• Broadening and promoting settlement programs  
• Enhancing digital tools  
• Expanding alternative dispute resolution  
• Proactive compliance prompts  
• Increasing small-business tax literacy  

Proactive reminders when a business hits a tax milestone 

One of the report’s most practical recommendations is to provide compliance prompts at key points in a business’s lifecycle. 

IRSAC suggests prompts for events such as: 

• Filing a Form 1040 with a new Schedule C  
• Electing partnership or S corporation treatment  
• Receiving Form 1099-NEC  
• Requesting an EIN  
• Filing Forms W-2 and W-3 without corresponding Forms 941  
• Filing Form 1065 or Form 1120-S without the expected Schedule K-1  

For example, the council recommends that new Schedule C filers and 1099-NEC recipients receive reminders covering estimated-tax deadlines, self-employment tax obligations, and recordkeeping responsibilities.  

For a small business, the practical implication is straightforward: tax compliance information may be more useful when it arrives when the taxpayer’s situation changes, rather than months later in a general publication. 

A proposed mismatch-alert approach 

IRSAC also recommends using mismatches between related filings as opportunities for early reminders. 

One example is a business that files W-2 and W-3 forms but does not file the corresponding Form 941. The council recommends a proactive reminder to the taxpayer and suggests expanding the approach to other situations, including certain 1099-NEC/Schedule C and 1099-K income inconsistencies.  

That is a recommendation for earlier communication, not a new penalty rule. 

IRSAC Recommendations on Digital Tools for Taxpayers 

The 2025 report places significant emphasis on digital interaction. 

The SB/SE subgroup specifically reviewed the IRS’s Document Upload Tool (DUT), Digital Mobile Adaptive Forms (DMAF), and Secure Messaging (SM). IRSAC says these tools can improve the taxpayer experience and make it easier to submit information and communicate with the IRS.  

Document Upload Tool 

The Document Upload Tool allows taxpayers to send requested documentation electronically to the IRS in situations where the feature is available. 

IRSAC recommends broader use of these tools and better promotion so taxpayers and practitioners know when they are available.  

Digital Mobile Adaptive Forms 

DMAF allows taxpayers to complete and submit certain forms electronically. 

The report identifies limitations involving representatives, permanent records, and account integration and recommends additional development to make these tools more useful.  

Secure Messaging 

Secure Messaging allows authenticated taxpayers and representatives to communicate securely with specific IRS employees in certain situations and exchange documents electronically.  

IRSAC recommends expanding use of these digital tools, providing submission confirmations and unique confirmation numbers, improving representative access, and adding technical support and feedback mechanisms. It also recommends multilingual and accessibility features for digital tools.  

What this means for a small business 

If these recommendations are adopted, the practical direction is toward more digital interaction for routine compliance work: 

Notice → secure digital response → document upload → confirmation → online record 

rather than: 

Notice → paper response → mailing → uncertain status → telephone follow-up 

The recommendation does not mean every IRS transaction has already moved to that model. It describes where IRSAC believes the agency’s digital services should develop. 

IRSAC’s Recommendation for a More Unified IRS Website 

The general report identifies the IRS website as an important part of taxpayer service. 

IRSAC says some pages can become outdated, information can be inconsistent, and users may have difficulty locating relevant material. The council recommends keeping website content current, collecting user feedback, maintaining appropriate archived information, and using modern technologies—including AI where appropriate—to help users find information relevant to their circumstances.  

The report cites roughly 690 million visits to IRS.gov in fiscal year 2024, based on the IRS Data Book.  

The recommendation is not simply “add more content.” 

It is about making the information easier to locate, keeping it current, and using digital tools to present relevant information without requiring users to know exactly what IRS terminology to search for. 

For businesses, that could be useful when dealing with unfamiliar obligations such as new entity filings, payroll taxes, information returns, or estimated taxes. 

IRSAC Wants Online Tax Services to Work More Like One System 

Another general recommendation focuses on simplifying online tax services. 

IRSAC says the IRS has made significant progress through online accounts, transcript systems, tax-assistance tools, and practitioner portals, but that some of these services remain fragmented.  

The council recommends a more unified digital environment that would emphasize: 

• Single sign-on  
• Streamlined practitioner tools  
• Interoperable backend systems  
• User-centered development  

The distinction here is important. 

The report is not saying these features already exist everywhere. 

It is recommending that the IRS connect its existing digital investments more effectively. 

What Does IRSAC Recommend for Small-Business Tax Literacy? 

The SB/SE subgroup also focused on small-business tax literacy. 

IRSAC says small businesses need understandable information about tax compliance and identifies a particular need among new business owners. The report supports recommendations to create better tax education resources and distribute them at important points in the business lifecycle.  

The council recommends resources that explain fundamentals such as: 

• Income taxes  
• Employment taxes  
• Recordkeeping  
• Estimated taxes  
• Business deductions  
• Basic IRS responsibilities  

It also supports partnerships with other federal agencies and organizations that already work with small businesses.  

For a new business owner, the value of this approach is timing. 

A guide about employment taxes is more useful when the business hires its first employee than after a missed payroll-tax deadline. 

A Proposed Domestic Voluntary Disclosure Program 

One of the more substantive SB/SE recommendations is broadening and promoting settlement programs. 

The report proposes a new domestic voluntary disclosure program for certain non-willful taxpayers without reasonable cause who have unresolved domestic tax noncompliance. The proposal would allow eligible taxpayers to file delinquent or amended returns, pay the tax and reduced penalties, and enter into a closing agreement with the IRS.  

The proposed framework in the report includes: 

• A certification that the noncompliance was non-willful  
• A domestic-only scope  
• Exclusion of taxpayers under IRS examination or criminal investigation  
• Limited lookback periods  
• Reduced penalties  
• A formal closing agreement  

Is this already an IRS program? 

No, this section of the report is a proposal from IRSAC. The report itself says additional details would be published if the program were formally announced.  

This is an important distinction for anyone searching for IRSAC information because a recommendation appearing in the annual report should not be presented as an existing tax-relief program. 

Taxpayers should continue using the IRS’s actual current collection and disclosure programs rather than assuming this proposed program is available. 

Accounts Confidant’s IRS tax debt relief article can provide useful background on currently available options such as payment plans, Offers in Compromise, penalty relief, and Currently Not Collectible status. 

IRSAC Also Recommends Expanding Alternative Dispute Resolution 

The SB/SE subgroup examined alternative dispute resolution (ADR) for small-business taxpayers. 

IRSAC says usage can be limited by eligibility rules, awareness, and concerns about access. It recommends expanding eligibility, increasing consistent presentation of ADR options during examinations, improving educational materials, and developing pathways for low- and middle-income taxpayers.  

The report also recommends that IRS communications about ADR use plain language, be translated into multiple languages, and be distributed early in the examination process.  

This is particularly relevant to practitioners because a dispute-resolution option is only useful when a taxpayer and representative know it exists and understand when it can be used. 

What Does IRSAC Say About Amended Return Delays? 

The 2025 IRSAC report devotes a full Taxpayer Services section to amended return processing. 

IRSAC describes amended-return processing as a significant operational bottleneck involving both individual Form 1040-X returns and business amendments. The report cites a pending volume of approximately 1.9 million amended individual returns as of late October 2023, compared with about 0.5 million at the end of 2019.  

The council also reports that the IRS told it that: 

• 3,201,443 amended individual returns were received in fiscal year 2024.  
• 1,185,122 were received in fiscal year 2025 through June 14, 2025.  

Because the second figure covers only part of fiscal year 2025, it should not be treated as a full-year comparison with FY2024.  

The report identifies delays as a problem for both taxpayers and tax professionals because amended-return processing can affect refunds, planning, follow-up work, and client communications.  

What does IRSAC recommend? 

The proposed solutions include: 

More e-filing: Expand electronic amended-return filing. 

Automation: Use AI and workflow automation for basic triage and checks while reserving manual review for complex cases. 

Dashboards: Improve internal visibility into backlog and processing trends. 

Cross-training: Allow employees to move between phone and case-processing work based on workload. 

Flexible staffing: Use workload data to allocate resources dynamically. 

Better self-service: Provide guided digital tools for amendments, document uploads, and common corrections. 

These are recommendations for improving IRS operations. They do not change the current process for filing an amended return. 

For taxpayers who need to correct a federal individual return, Accounts Confidant’s common tax return mistakes article can provide useful related guidance on when an amended return may be necessary. 

What Does the Report Mean for Tax Professionals? 

Several recommendations directly address the day-to-day work of tax professionals. 

Faster CAF processing 

The Centralized Authorization File, or CAF, processes authorizations such as Form 2848 and Form 8821. 

IRSAC reports that although IRS policy established a five-day processing target for these authorization forms, average processing during November 2024 through April 2025 was nearly 25 calendar days. The council links those delays to duplicate submissions, additional practitioner calls, and limited visibility into status.  

IRSAC recommends: 

• More automated validation and registration  
• Bulk online authorization requests  
• Better status reporting  
• API support  
• Improved Tax Pro Account adoption  

If your firm regularly files Forms 2848 and 8821, that is one reason the report is worth reading beyond the small-business section. 

Accounts Confidant’s existing IRS Form 2848 guide provides related background on powers of attorney and IRS representation. 

Complete prior Form 1040 data in XML 

Another Taxpayer Services recommendation concerns access to prior returns. 

IRSAC says tax professionals can spend significant time obtaining prior electronically filed returns and, in some situations, manually entering information from copies of those returns. The council recommends allowing taxpayers and professional preparers to request a complete copy of a previously electronically filed Form 1040 in XML format through IRS online systems or the Transcript Delivery System.  

For tax professionals, structured data can be more useful than a PDF when the goal is to transfer information into another tax-preparation system. 

Again, this is a recommendation rather than a current universal IRS service. 

What Does IRSAC Recommend for Tax-Professional Live Chat? 

IRSAC’s final Taxpayer Services issue is supporting live chat for tax professionals. 

The council says it surveyed more than 115 tax professionals, including tax attorneys, CPAs, enrolled agents, and unenrolled preparers. More than 60% of respondents reported waiting more than 30 minutes to reach an agent during tax season.  

IRSAC recommends adding a live-chat option to the Practitioner Priority Service (PPS). 

The report envisions a model in which one tax assister could handle several routine practitioner inquiries at the same time, while more complicated or sensitive issues would continue to receive one-to-one assistance.  

The recommendations also include: 

• AI-assisted routing  
• Workflow automation  
• Cross-trained assistors  
• Technical support  
• User feedback mechanisms  
• Performance analysis to identify bottlenecks  

The 115-person survey should be understood as IRSAC’s stakeholder feedback, not as a national survey of every tax professional. 

What Should Small Businesses Take From the IRSAC 2025 Report? 

Most business owners do not need to read all 251 pages. 

The practical themes are more important. 

Keep records current 

IRSAC’s compliance-prompt recommendations emphasize contemporaneous books and records for new small businesses.  

This reinforces the value of maintaining bookkeeping throughout the year instead of trying to reconstruct a full year’s transactions at tax time. 

Accounts Confidant’s bookkeeping and tax-preparation content can be used as a related resource for businesses that need to organize books before filing. 

Watch for filing mismatches 

The report specifically identifies situations where related information returns and business tax returns do not line up.  

That makes reconciliation particularly important for: 

• Payroll  
• 1099 reporting  
• Schedule C income  
• Partnership returns  
• S corporation filings  

Use available digital tools 

Where an IRS notice gives you access to secure digital communication or document upload, using that channel can be more efficient than relying on paper correspondence. IRSAC is specifically recommending broader use of these tools.  

Continue following current IRS rules 

Do not change a filing position simply because IRSAC recommended something. 

For example, a recommendation for more proactive reminders about Form 941 does not create a new Form 941 obligation. The underlying tax rules still come from federal law and applicable IRS guidance. 

Your existing IRS Form 941 and IRS Form 944 guides can be used for current filing requirements, while the IRSAC report should be treated as an administrative-recommendation document. 

IRSAC Recommendations vs. Actual IRS Rules 

This distinction deserves its own section because it is easy to confuse an advisory report with a legal requirement. 

IRSAC recommendation 

The council suggests that the IRS adopt a particular administrative, technology, communication, or policy improvement. 

IRS rule 

The IRS has formally published the applicable law, regulation, form instruction, revenue procedure, notice, or other binding or authoritative guidance. 

The IRSAC describes itself as an advisory body. Its role is to advise the IRS Commissioner and leadership and provide observations and recommendations.  

So a business should not change its filing schedule, tax calculation, payment method, or reporting requirements simply because an IRSAC recommendation appears in the annual report. 

How Small Businesses and Tax Professionals Should Monitor These Changes 

The IRSAC report is most useful when read alongside current IRS guidance. 

A practical monitoring process is: 

First: Check the current IRS form and instructions for the tax requirement that affects you. 

Second: Review IRS announcements for actual implementation changes. 

Third: Use IRSAC recommendations to understand where tax administration may be headed. 

Fourth: Keep your records and compliance processes flexible enough to adopt new digital procedures when officially introduced. 

For tax professionals, the IRSAC report can also highlight operational areas worth monitoring, including CAF processing, digital authorization, amended returns, practitioner support, and online services. 

For small businesses, the recurring themes are simpler: keep records organized, understand filing obligations when the business changes, use reliable bookkeeping, and respond to IRS notices on time. 

Final Takeaway 

The IRSAC 2025 report, published in January 2026, is the current completed annual report from the Internal Revenue Service Advisory Council as of September 2026. It contains 29 issues and focuses heavily on improving taxpayer service, digital interaction, small-business compliance, tax-professional support, and IRS processing.  

For small businesses, the most practical recommendations concern timely compliance prompts, better tax education, digital document submission, and clearer guidance at important business events.  

For tax professionals, the report highlights CAF authorization delays, access to prior-return data, amended-return processing, digital testing, and live-chat support.  

The most important caveat is that these remain IRSAC recommendations unless and until the IRS or another authorized government body implements them through the appropriate process. Businesses should therefore continue relying on current IRS forms, instructions, notices, and published guidance for their actual tax obligations.  

Accounts Confidant’s existing resources on IRS Form 941, IRS Form 944, IRS Form 9465, IRS Form 2848, and common tax return mistakes can provide practical follow-up information on several of the tax-administration topics discussed in the report. 

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