Federal Tax Updates

Tax professional data breaches have exploded in 2025, with 327 reported incidents affecting over 342,000 taxpayers in just half a year. Glenn Gizzy, a 36-year IRS veteran now specializing in data breach prevention, reveals the sophisticated tactics criminals use to infiltrate tax practices. From phishing emails disguised as client referrals, to hackers who wait until returns are filed before changing bank account information. This conversation covers essential protection measures including Written Information Security Plans (WISP), IP PINs, proper cyber insurance coverage, and the critical steps to take immediately after discovering a breach.SponsorsPadgett -  Contact Padgett or Email Jeff Phillips(00:00) - Introduction and Greetings (02:21) - Today's Guest and Topic: Scams and Data Breaches (02:56) - IRS Statistics on Data Breaches (05:33) - Common Scams and How They Work (09:48) - Phishing Emails and Ransomware (14:51) - Fake Charities and Donation Scams (17:30) - Refund Thefts and Data Breaches (21:28) - IRS Communication and Taxpayer Awareness (30:10) - Signs of a Data Breach for Practitioners (32:42) - Immediate Steps After a Data Breach (34:32) - Multi-Step Process and Insurance Involvement (37:42) - Filing Returns After a Breach (40:54) - Identity Protection PIN (IP PIN) (48:10) - Written Information Security Plan (WISP) (53:06) - Protecting EFIN, PTIN, and CAF Numbers (55:25) - Final Thoughts and Conclusion Connect with Glennhttps://www.linkedin.com/in/glenn-gizzi-4b6ab5205Get NASBA Approved CPE or IRS Approved CELaunch the course on EarmarkCPE to get free CPE/CE for listening to this episode.Connect with the Roger and Annie on LinkedInhttps://www.linkedin.com/in/rogerharrispbs/https://www.linkedin.com/in/annie-schwab-852418261/ReviewLeave a review on Apple Podcasts or PodchaserSubscribeSubscribe to the Federal Tax Updates podcast in your favorite podcast app!This podcast is a production of the Earmark Media

Annie and Roger dissect the political drama surrounding a significant tax bill, highlighting both Republican and Democrat perspectives. They delve into the potential chaos from new provisions like tax regulations on tips and overtime wages. The conversation turns to proposed IRS budget cuts and their likely impact on the upcoming filing season. They reflect on the successes of the last tax season while questioning if similar outcomes are viable under new leadership and a complex regulatory environment.

Giles Pearson, co-founder of Accountests and former PwC partner, shares how one disastrous hire led him to revolutionize recruiting in the accounting profession. The conversation explores why traditional hiring methods fail, how skills and personality testing can predict job success, and reveals the shocking statistics about resume dishonesty. Roger and Annie also dive into New Zealand's streamlined tax system where 90% of taxpayers never file returns, sparking a fascinating debate about whether such simplicity could ever work in the United States.SponsorsPadgett -  Contact Padgett or Email Jeff Phillips(00:00) - Welcome to Federal Tax Updates (01:40) - Introducing the Guest: Gilles Pearson (03:06) - Challenges in Hiring and the Birth of Accountests (05:10) - The Importance of Testing in Hiring (08:13) - The Role of Personality and Skills Tests (13:57) - Developing Effective Tests for Accountants (24:29) - Personality Profiles and Team Dynamics (31:33) - Using Tests for Employee Development (34:35) - Succession Planning in Smaller Firms (36:50) - Accountant Stereotypes and Communication Challenges (40:42) - The Role of Personal Interaction in Accounting (44:56) - Streamlined Hiring Process with Account Tests (48:56) - Comparing Tax Systems: US vs New Zealand (56:56) - Final Thoughts and Farewell Connect with Giles Pearson https://nz.linkedin.com/in/giles-pearson-fca-8a175843https://www.accountests.com/Get NASBA Approved CPE or IRS Approved CELaunch the course on EarmarkCPE to get free CPE/CE for listening to this episode.Connect with the Roger and Annie on LinkedInhttps://www.linkedin.com/in/rogerharrispbs/https://www.linkedin.com/in/annie-schwab-852418261/ReviewLeave a review on Apple Podcasts or PodchaserSubscribeSubscribe to the Federal Tax Updates podcast in your favorite podcast app!This podcast is a production of the Earmark Media

Former IRS Commissioner Danny Werfel joins Roger and Annie for a wide-ranging conversation about his tenure leading the nation's tax agency during a period of unprecedented funding and modernization efforts. Werfel discusses the challenges of rebuilding IRS operations, his decision to resign during the transition to Trump, and his concerns about maintaining tax system stability while pursuing automation and reform. Using memorable analogies—from unpowered refrigerators to football stadiums under construction—he offers frank insights into what it takes to run a healthy tax system and why strong tax administration is essential for economic stability.SponsorsPadgett -  Contact Padgett or Email Jeff Phillips(00:00) - Welcome Former IRS Commissioner Danny Werfel to Federal Tax Updates (03:21) - Commissioner's Background and Expertise (07:01) - Challenges and Opportunities at the IRS (11:27) - IRS Modernization and Future Vision (23:27) - The Importance of a Tax System (28:59) - Why Commissioner Werfel Left the IRS (30:56) - Navigating the Transition Period (31:30) - Seeking Guidance from the Incoming Treasury Secretary (34:30) - The Importance of Listening and Feedback (42:41) - Challenges with the Employee Retention Credit (49:58) - What Changes Would You Implement if You Had Total Control (53:47) - Future Plans and Reflections (56:09) - Georgia Football and Final Thoughts Danny Werfel https://www.linkedin.com/in/danny-werfel-89441594Get NASBA Approved CPE or IRS Approved CELaunch the course on EarmarkCPE to get free CPE/CE for listening to this episode.Connect with the Roger and Annie on LinkedInhttps://www.linkedin.com/in/rogerharrispbs/https://www.linkedin.com/in/annie-schwab-852418261/ReviewLeave a review on Apple Podcasts or PodchaserSubscribeSubscribe to the Federal Tax Updates podcast in your favorite podcast app!This podcast is a production of the Earmark Media

Roger and Annie discuss important tax updates that occurred during the busy tax season, including new IRS guidance on Employee Retention Credits and the current status of Beneficial Ownership Information reporting requirements. They explore the significant staffing challenges and leadership turnover at the IRS, with insights from Roger's recent visit to Washington DC. The hosts then shift focus to post-tax season priorities for practitioners, offering advice on evaluating software, optimizing client relationships, and implementing strategies to improve profitability and efficiency for the next filing season.SponsorsPadgett -  Contact Padgett or Email Jeff Phillips(00:00) - Welcome Back to Federal Tax Updates (01:46) - Post-Tax Season Reflections (03:02) - Employee Retention Credit Updates (12:04) - Beneficial Ownership Information Reporting (18:43) - Current Legislative Landscape in DC (25:22) - IRS Staffing and Morale Issues (31:25) - Challenges Facing the IRS (37:15) - Post-Tax Season Business Strategies (41:56) - Client Management and Pricing Strategies (46:59) - Maximizing Client Relationships and Billing Opportunities (50:55) - Preparing for the Next Tax Season (52:34) - Summer Plans and Final Thoughts Get NASBA Approved CPE or IRS Approved CELaunch the course on EarmarkCPE to get free CPE/CE for listening to this episode.Connect with the Roger and Annie on LinkedInhttps://www.linkedin.com/in/rogerharrispbs/https://www.linkedin.com/in/annie-schwab-852418261/ReviewLeave a review on Apple Podcasts or PodchaserSubscribeSubscribe to the Federal Tax Updates podcast in your favorite podcast app!This podcast is a production of the Earmark Media

For our milestone 50th episode, Roger Harris and Annie Schwab welcome Terry Lemons, who spent 26 years at the IRS including 11 years as Chief of Communications and Liaison. Terry shares insights from working with six different IRS commissioners, preparing officials for congressional testimony, and navigating public perceptions of the agency. The conversation explores the critical role of the tax professional community, challenges facing the IRS today, and lessons from past filing season successes and failures.SponsorsPadgett -  Contact Padgett or Email Jeff Phillips(00:00) - Welcome to Federal Tax Updates (01:28) - Celebrating the 50th Podcast with Special Guest Terry Lemons (03:07) - Terry Lemons' Journey to the IRS (06:31) - The Role and Influence of IRS Commissioners (11:17) - Preparing a Commissioner to Testify Before Congress (22:12) - Challenges and Perceptions of Working at the IRS (28:27) - Debunking IRS Agent Myths (30:45) - IRS Efficiency and Transformation (32:12) - Challenges and Improvements at the IRS (33:34) - Reflecting on Filing Seasons (35:52) - Historical IRS Challenges (40:12) - Future Tax Law Changes and Implications (44:19) - Terry's Retirement Plans (45:55) - The Importance of Tax Professionals Community (52:03) - Final Thoughts and Farewell Get NASBA Approved CPE or IRS Approved CELaunch the course on EarmarkCPE to get free CPE/CE for listening to this episode.Connect with Terry Lemonshttps://www.linkedin.com/in/terry-lemons-77b3641a9Connect with the Roger and Annie on LinkedInhttps://www.linkedin.com/in/rogerharrispbs/https://www.linkedin.com/in/annie-schwab-852418261/ReviewLeave a review on Apple Podcasts or PodchaserSubscribeSubscribe to the Federal Tax Updates podcast in your favorite podcast app!

In this episode, Roger sits down with Catharine Madeley, a tax practitioner who recently experienced a data breach at her firm. Catherine shares her firsthand account of how the breach unfolded, the steps she took to respond, and the lessons she learned along the way. She offers valuable insights into the importance of having a robust cybersecurity plan, the critical role of communication with clients, and the need to be proactive in protecting sensitive client information.*This is a replay of an episode that originally aired in March, 2024. (00:00) - Welcome to the Federal Tax Updates Podcast (01:30) - Introducing Our Guest: Catharine Madeley (03:26) - The Harrowing Tale of a Data Breach (04:29) - The Initial Discovery and Immediate Response (14:36) - Navigating the Aftermath: Investigation and Recovery (23:42) - Reflections and Lessons Learned from the Cybersecurity Incident (25:58) - The Aftermath of a Data Breach: A Personal Account (26:45) - Law Enforcement's Response to Small Scale Breaches (28:36) - Navigating IRS Procedures After a Breach (29:51) - The IRS Practitioner Relief Opt-In Program: A Lifeline (32:42) - Client Communication and Response to the Breach (42:55) - Lessons Learned and Moving Forward (49:28) - Final Thoughts and Advice Connect with Catharine MadeleyLinkedIn: https://www.linkedin.com/in/catharine-drake-madeleyWebsite: https://www.sallingcpa.comGet NASBA Approved CPE or IRS Approved CELaunch the course on EarmarkCPE to get free CPE/CE for listening to this episode.Connect with the Hosts on LinkedInRoger HarrisAnnie SchwabReviewLeave a review on Apple Podcasts or PodchaserSubscribeSubscribe to the Federal Tax Updates podcast in your favorite podcast app!This podcast is a production of the Earmark MediaThe full transcript for this episode is available by clicking on the Transcript tab at the top of this pageAll content from this podcast by SmallBizPros, Inc. DBA PADGETT BUSINESS SERVICES is intended for informational purposes only.

Roger and Annie welcome guest Bob Kerr to discuss proposed changes to Circular 230, the regulations governing practice before the IRS. They explore contentious issues including contingent fees being classified as "disreputable conduct," expanded rights for non-credentialed preparers, and new requirements for reporting client errors. Bob shares insights from the recent hearing and explains why practitioners shouldn't expect final regulations until at least 2026.SponsorsPadgett -  Contact Padgett or Email Jeff Phillips(00:00) - Welcome to Federal Tax Updates (02:04) - Introducing Special Guest Bob Kerr (03:16) - Overview of Circular 230 (04:43) - Proposed Changes to Circular 230 (15:01) - Contingent Fees Debate (30:18) - Limited Practice Discussion (36:10) - Voluntary IRS Programs and Their Impact (37:58) - Competency and Practitioner Requirements (39:21) - Knowledge of Errors and Omissions (42:19) - Proposed IRS Regulations and Practitioner Responsibilities (49:29) - Best Practices and Circular 230 (57:18) - Conclusion and Future Expectations Get NASBA Approved CPE or IRS Approved CELaunch the course on EarmarkCPE to get free CPE/CE for listening to this episode.Connect with Bob Kerrhttps://kerr.tax/about-us/https://www.linkedin.com/in/kerr-robertConnect with the Roger and Annie on LinkedInhttps://www.linkedin.com/in/rogerharrispbs/https://www.linkedin.com/in/annie-schwab-852418261/ReviewLeave a review on Apple Podcasts or PodchaserSubscribeSubscribe to the Federal Tax Updates podcast in your favorite podcast app!This podcast is a production of the Earmark Media

Roger and Annie provide critical updates on the Treasury Department's decision to halt Corporate Transparency Act penalties and enforcement requirements, bringing relief to tax practitioners and their clients. They break down the six-step reconciliation process for tax reform, offering clarity on where current legislation stands and what might be coming. The hosts also discuss concerns about potential IRS workforce reductions, upcoming technology improvements, and preview changes to Circular 230 regulations that will impact tax practice management.SponsorsPadgett -  Contact Padgett or Email Jeff Phillips(00:00) - Introduction and Welcome (01:48) - BOI Reporting Updates (02:34) - Corporate Transparency Act Penalties (05:30) - Guidance for Clients on BOI Compliance (10:47) - Government Shutdown Concerns (15:15) - Reconciliation and Tax Reform Process (26:03) - Debating the Impact of Tariffs (26:45) - Abolishing the IRS: Feasible or Fantasy? (28:56) - IRS Workforce Cuts: Immediate Implications (29:42) - Challenges of Tax Season Amid Workforce Reductions (32:27) - Potential Tax Reforms and Technological Advancements (45:19) - Common Tax Filing Mistakes to Avoid (47:46) - Upcoming Changes to Circular 230 (51:07) - Wrapping Up and Final Thoughts Get NASBA Approved CPE or IRS Approved CELaunch the course on EarmarkCPE to get free CPE/CE for listening to this episode.Connect with the Roger and Annie on LinkedInhttps://www.linkedin.com/in/rogerharrispbs/https://www.linkedin.com/in/annie-schwab-852418261/ReviewLeave a review on Apple Podcasts or PodchaserSubscribeSubscribe to the Federal Tax Updates podcast in your favorite podcast app!This podcast is a production of the Earmark Media

The hosts dive into the upheaval at the IRS with staffing changes and the impact of upcoming Beneficial Ownership Information reporting requirements. They break down new 1099-K reporting thresholds, clarifying how to navigate various transactions. Current legislative proposals are analyzed, alongside insights into common misconceptions taxpayers have about income and deductions. They also tackle practical challenges faced during tax season and share tips for addressing client inquiries effectively.