In recent years, with the continuous improvement of China’s economic level and the accelerating social transformation, the social demand for grass-roots public services has begun to diversify and refine. As an important part of grass-roots public services, tax service is also facing the transformation of service demand. However, the traditional grass roots working mechanism of tax departments has limited effect under the new situation, it is difficult to meet the increasingly refined service needs of taxpayers, and there is a gap between the fragmented working mechanism at the grass- roots level and diversified service demands. It is urgent to respond to social needs and deliver services accurately through institutional reform and innovation. Firstly, this paper analyzes the problems existing in the grass-roots working mechanism of tax departments in China. Then, by introducing a series of measures for the reform and innovation of grass-roots working mechanism based on precise supply service in Shunde District Taxation Bureau of Foshan City, State Taxation Administration of The People’s Republic of China (hereinafter referred to as “Shunde Taxation Bureau”), and based on analyzing the achievements of its reform and innovation, this paper summarizes the reference and enlightenment of its reform experience to the innovation of grass roots working mechanism of tax departments in China.