The IRS Independent Office of Appeals, led by Chief Liz Askey since last year, is currently navigating significant workforce challenges. At the start of the calendar year, Appeals had about 1,777 employees. However, the office is experiencing notable attrition:
· Approximately 77 probationary employees are on administrative leave and unable to work.
· Over 300 employees have signed deferred resignation agreements, with another 100 pending.
· A substantial portion (43%) of staff are retirement-eligible or early retirement-eligible, contributing to the high number of departures.
As a result, Askey projects that by the end of the current fiscal year, the Appeals workforce will be reduced to around 1,324 employees. Compounding these losses, the office is under a hiring freeze for both internal and external candidates. Askey anticipates that after current workforce reduction and reshaping efforts conclude, Appeals may be able to hire from the IRS compliance function to address short-staffing.
Summary Table: IRS Independent Office of Appeals-Current State
|
Aspect |
Current Status/Trend |
|
Staffing |
Down from 1,777 to projected 1,324; hiring freeze in effect |
|
Cycle Times |
Non-docketed cases at 274 days (FY25), lowest in 6 years |
|
Conference Options |
In-person, phone, video, correspondence; taxpayer preference honored |
|
Accessibility Efforts |
Circuit riding, hybrid options, public input sought |
|
Technology Initiatives |
Paperless pilot for smaller files |
Case Cycle Times: Progress Despite Constraints
Despite these staffing reductions and hiring limitations, Appeals has made measurable progress in reducing case cycle times:
· The average cycle time for non-docketed cases in fiscal year 2025 is now 274 days, the lowest level in six years.
· This is a significant improvement from the 2022 National Taxpayer Advocate report, which cited a 365-day average for non-docketed cases-a 103% increase over 2017 cycle times.
· Askey attributes this improvement to targeted efforts, including analyzing and reducing delays in getting cases to Appeals and implementing a "paperless pilot" for scanning smaller case files upon receipt, streamlining case handling.
Askey remains "cautiously optimistic" that these trends will continue, even as workforce changes persist.
Conference Options: In-Person, Virtual, and Hybrid
Appeals offers taxpayers several ways to resolve disputes, including:
· In-person conferences
· Telephone conferences
· Video conferences (using Microsoft Teams)
· Correspondence or secure messaging
The office has a longstanding policy of accommodating taxpayer preferences for conference format, especially for larger and more complex cases. While there was a temporary shift to virtual conferences due to recent travel policy changes, a new travel approval process is now in place. Appeals Officers can again travel for in-person conferences, though more lead time is required for approval.
For taxpayers not near an Appeals office, the office continues to use "circuit riding," where Appeals Officers travel to more convenient locations, and is seeking public input on improving accessibility and hybrid conference options.
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References:
1. https://www.irs.gov/appeals/what-to-expect-from-the-independent-office-of-appeals
2. https://www.irs.gov/newsroom/improving-nationwide-access-to-irs-appeals-public-input-wanted
3. https://www.irs.gov/appeals/appeals-expands-access-to-video-conferences
4. https://irstaxtrouble.com/irs-appeals-guidance-on-in-person-conferences/
Read more at: Tax Times blog
