RD675 - Workgroup to Study the Department of Taxation's Current Policies and Procedures in Order to Determine Options for Tax Practitioners to Provide Feedback to the Department on an Ongoing Basis Pursuant to 2023 House Bill 1368 Report – December 1, 2023

Executive Summary:

House Bill 1368 (2023 Acts of Assembly, Chapter 164) required the Department of Taxation ("Virginia Tax") to convene a work group to study its current policies and procedures in order to determine options for tax practitioners to provide feedback on an ongoing basis. Among such options, the work group was to consider the scope, feasibility and function of an ongoing commission or similar structure to provide regular feedback.

As required by House Bill 1368, the work group was comprised of the following members:

• Two representatives from the Taxation Section of the Virginia Bar Association

• Two representatives from the Virginia Society of Certified Public Accountants

• Two representatives from the Virginia Society of Enrolled Agents

• Two representatives from the Commissioners of the Revenue Association of Virginia; and

• Two representatives from the Low Income Taxpayer Clinics Program

Virginia Tax contacted these stakeholder groups to notify them of the formation of the work group and requested that each stakeholder group appoint two representatives to participate in the work group.

The initial meeting of the work group was held on July 12, 2023. A survey was sent to participants following the first meeting. A second meeting was held on September 28, 2023.

The work group identified the following areas of consensus:

• Virginia Tax will convene additional meetings with tax practitioners to receive feedback, with the initial meetings being held as frequently as a quarterly basis.

• Customer Service representatives will be trained to redirect inquiries by practitioners to the Tax Practitioner Hotline to allow for faster issue resolution.

• Virginia Tax will review whether the Office of the Taxpayer Advocate should include designated individuals as touch points for practitioners.

• Virginia Tax will explore whether a "posted date" may be added to guidance documents posted on the Laws, Rules and Decisions Library.

Following the second meeting, Virginia Tax circulated a draft report for written comment. All responses to the survey and all comments received from the work group are attached as Appendix C and D, respectively. This is the final report of the work group.