The IRS Office of Associate Counsel is in the process of removing employees from the Passthroughs and Special Industries’ branch 2 office. This move comes in response to a general reduction in the number of attorneys staffing the Passthroughs division. Branch 2 will not be closed; instead, employees from branch 2 will be reassigned to branches 1 and 3. Officials have stated that if the Passthroughs division increases its staff to previous levels, it will repopulate branch 2. Melissa Liquerman, branch 2 chief, will now become chief of branch 4, which deals with estate and gift tax matters.

Some individuals have expressed concern over the reduction in attorneys staffing the Passthroughs division. Specifically, as more businesses choose to operate as pass-through entities, more taxpayers need guidance on pass-through issues. Others counter that IRS and Treasury have to sign off on any guidance that the Passthroughs division produces, and therefore until IRS and Treasury increase their staff, an increase in Passthroughs division staff would not lead to an increase in guidance.