The Texas Society of CPAs (TXCPA) is urging the IRS to stop its agents from requiring represented taxpayers to personally attend examination interviews. In an August 19 letter to agency leaders, the group said the practice violates taxpayer rights established under the federal Tax Code.
The TXCPA’s Federal Tax Policy Committee Chair James A. Smith detailed what TXCPA members report as a “steady increase” in revenue agents demanding that taxpayers be physically present for interviews in civil examinations, even when the taxpayer has a valid Form 2848, Power of Attorney, on file.
“A represented taxpayer’s right to be absent from an IRS interview is not a matter of IRS grace,” Smith writes. The TXCPA contends this practice conflicts with taxpayer rights protections under IRC § 7521(c). That statute provides that an IRS officer “may not require a taxpayer to accompany the representative in the absence of an administrative summons.”
The protection was enacted by Congress as part of the Omnibus Taxpayer Bill of Rights in 1988 to prevent IRS agents from bypassing authorized representatives to pressure taxpayers directly, Smith explains. The TXCPA says the conduct its members are now reporting “is exactly what the statute was meant to prevent.”
‘First-hand knowledge’ rationale has no basis in law
The TXCPA says revenue agents often justify the interview demands by claiming that only the taxpayer has the “first-hand knowledge” to answer questions. The group argues this rationale has no legal basis — the phrase “first-hand knowledge” does not appear in IRC § 7521 or its legislative history.
The group also contends that agents’ reliance on Treasury regulations like Reg. § 601.506 and Reg. § 1.601 is misplaced. Those rules address situations where a representative unreasonably delays an examination or needs to substantiate facts; they do not create a “first-hand knowledge” exception to the rights granted by § 7521(c), Smith explains.
TIGTA audit confirms systemic issue
The TXCPA notes its concerns align with recent findings by the Treasury Inspector General for Tax Administration (TIGTA). In a September 16, 2025, report, TIGTA found that IRS employees did not consistently follow legal requirements for contacting represented taxpayers.
TIGTA’s audit revealed a 28% error rate in its sample of cases, leading the watchdog to project that more than 13,000 cases may have involved a similar violation.
Smith notes that IRS management disagreed with several of the audit’s findings. “This management response suggests the field-level pattern our members have observed may reflect broader agency practice rather than isolated agent error,” writes the TXCPA.
Corrective actions requested from IRS
To address the issue, the TXCPA urged the IRS to take six actions. The group calls for the agency to “issue clear written guidance reaffirming that IRC Section 7521(c) prohibits IRS employees from requiring a represented taxpayer to attend an interview absent a formal administrative summons.” The group also requests Chief Counsel issue a published legal memorandum clarifying § 7521 and Regs. §§ 601.506 and 601.507 — and confirming the absence of any “first-hand knowledge” exception.
The TXCPA also requests confirmation that a representative’s lawful refusal to produce a taxpayer is not, in itself, a basis for a bypass or summons. Other requested actions include providing targeted training to agents, revising the Field Examination quality review system, and amending the Taxpayer Bill of Rights to expressly inform taxpayers of their right not to attend an interview if they have a representative.
The overarching goal, the TXCPA said, is to ensure examinations are conducted consistently with taxpayer rights established by Congress.
Take your tax and accounting research to the next level with Checkpoint Edge and CoCounsel. Get instant access to AI-assisted research, expert-approved answers, and cutting-edge tools like Advisory Maps and State Charts. Try it today and transform the way you work! Subscribe now and discover a smarter way to find answers.
