When tax practitioners face systemic issues with the IRS, there’s an organization that advocates for them, but many professionals have never heard of it. IRS Stakeholder Liaison has been quietly working behind the scenes for over two decades, and recent budget cuts are forcing them to evolve in ways that could actually make them more effective advocates for the tax professional community.
In this Federal Tax Updates podcast episode, recorded live from the IRS Tax Forum in New Orleans, hosts Roger Harris, EA, and Annie Schwab, CPA, sit down with Maggie Romaniello, Program Manager at IRS Stakeholder Liaison. They discussed how the organization is adapting to a 50% staffing cut by becoming more strategic and technology-focused in how they advocate for practitioners.
From Taxpayer Education to Strategic Advocacy
Stakeholder Liaison is a relatively new name for an organization that’s been around for almost 30 years. “Back in 1998, the Revenue and Reconciliation Act was signed into law, we call it RRA 98,” Romaniello explains. “The organization that came out of that for tax professional education was called Taxpayer Education and Communication.”
About ten years ago, they changed the name to Stakeholder Liaison; however, the real transformation occurred about five years ago when they transitioned from the Small Business/Self-Employed division to Communications and Liaison, when they evolved from primarily an education provider to what Romaniello describes as “much more of an advocate.”
That advocacy role requires serious skill. “I have to tell a story. I have to put on my salesperson hat and come up with statistics. I really have to have friends,” Romaniello says. “It’s not just a matter of picking up the phone and being done. You have to really demonstrate the value.”
Doing More with Less
The recent budget cuts have been severe. Stakeholder Liaison dropped from approximately 72 employees to just 36 stakeholder liaison staff members, roughly a 50% reduction.
This reduction in headcount forced them to abandon their traditional geographic coverage model. “It used to be a geographic-based organization where an individual Stakeholder Liaison (SL) might be assigned one state, and they did all their work within that state for the most part,” she explains. “Well, we don’t have enough SLs now.”
The solution is what they call a “leveraged model.” Instead of attending smaller chapter meetings of professional organizations, they focus on larger, statewide organizations and ask them to be more proactive in sharing information with their members.
This change puts more responsibility on professional associations and individual practitioners to serve as information conduits, but it also means Stakeholder Liaison can concentrate its efforts where it has the most impact.
Real Problem-Solving in Action
Recent events show how the Stakeholder Liaison’s advocacy role works in practice. Tax professionals reported clients with valid extensions were receiving letters from the IRS asking for their tax returns—letters that seemed to imply the tax returns were late.
“We reached out to the business unit, and basically they came back to us and said, ‘We are aware of those letters and you don’t need to worry about it, provided that you have a valid extension,’” Romaniello explains.
But getting that informal acknowledgement was just the first step. The real advocacy work involves pushing for better communication. “It’s very nuanced. You have to have some political savvy. You can’t go in and attack someone,” she notes. “So what I’m going to say to the [business unit] is thank you. But next time, could we put out a press release?”
The goal is getting official written guidance that practitioners and taxpayers can rely on, rather than just informal verbal assurances that may not satisfy worried clients.
Leveraging Technology to Improve Efficiency
One clear theme throughout the conversation is the IRS’s push toward online systems. “Paper is IRS’s Kryptonite. We don’t want paper,” Romaniello states bluntly. “Online is the way to go. It’s the quickest, most efficient way to do business with us.”
Individual taxpayers can set up online accounts using ID.me to access transcripts, make payments, and even set up installment agreements with instant approval for qualifying situations. The IRS expanded capabilities for business online accounts, with plans to eventually allow taxpayers to file S corporation elections online.
For tax professionals, the Tax Pro account system offers several advantages, including power of attorney submissions. Instead of mailing or faxing forms, practitioners can initiate the process online and have clients approve it through their own accounts. “It’s almost in real time,” Romaniello notes, “and once it’s in the CAF, they can look you up and find you.”
The organization actively collects suggestions for system improvements. During the podcast recording, Romaniello mentions a practitioner’s suggestion that those with power of attorney should be able to opt clients into the IP PIN program and retrieve those PINs. Romaniello responded by channeling that feedback into the queue for potential enhancements.
Critical Services Continue Despite Cuts
Even with reduced staffing, Stakeholder Liaison maintains its essential services, paying special attention to data breach response and disaster relief.
When a tax preparation firm experiences compromised client information, Stakeholder Liaison is the initial contact point. “We have an intake process and a software program where we input all of the information for their tax preparation firm, and we input all of the affected PTIN numbers,” Romaniello explains.
But they also guide practitioners through the complex notification requirements. “They have to notify in writing the state attorney general and the state revenue department for any state that they prepare a tax return,” she says.
The requirements vary by state and can be extensive. “In the state of Connecticut, if you are a victim of a data breach, you have to provide your client credit monitoring for at least a year,” Romaniello notes. For practitioners who prepare returns in multiple states, this means understanding and complying with each state’s unique requirements.
Disaster response continues as well. During recent California disasters, Stakeholder Liaison staff worked at FEMA sites “seven days a week, including nights for two or three months,” helping disaster victims set up online accounts to get tax return copies needed for SBA loan applications.
Educational services persist through national webinars that regularly draw thousands of attendees for free continuing education, and they continue offering free speaking engagements for professional organizations.
How to Access These Services
Despite the changes, getting help from Stakeholder Liaison is straightforward. “The easiest way is to go to irs.gov, and in the search box, search the term stakeholder liaison,” Romaniello instructs.
Click on “stakeholder liaison local contacts” and use the phone number or email address for your state. Romaniello notes you should receive a response within a few days—much faster than typical IRS phone hold times.
However, practitioners should be aware of one important limitation: Stakeholder liaisons don’t have access to individual taxpayer accounts. “We deal with bigger problems,” Romaniello explains, “systemic issues affecting multiple practitioners rather than individual account problems.”
A Partnership Model for the Future
The organization is adapting to constraints by deepening its focus and requiring more collaboration from the professional community. While Romaniello notes they’re hoping they won’t see any more cuts, they are prepared to “do business differently” regardless.
For tax practitioners, this means understanding that the most effective advocacy happens through professional organizations and direct communication channels. Individual practitioners still have access to Stakeholder Liaison services, but the most impactful changes come through coordinated efforts.
The changes also highlight the importance of embracing technology. Online accounts, electronic communications, and digital processes are becoming essential tools for effective IRS interaction.
This Federal Tax Updates episode provides valuable insight into an IRS organization that many practitioners don’t fully understand but should definitely know about. Stakeholder Liaison is a direct line to systematic problem-solving and advocacy within the IRS, and understanding how to access and work with them could make a huge difference in your practice. Don’t miss the complete Federal Tax Updates episode where Maggie Romaniello shares specific examples, detailed procedures, and practical advice for making the most of Stakeholder Liaison services.
And, for help with advocacy, practice management, and the many other challenges of running a firm, learn more about having your firm join the Padgett network.