The IRS released an update of its strategic operating plan, which outlined the agency’s future plans and highlighted improvements made with the help of funding from the Inflation Reduction Act, Accounting Today reported.
The update cites accomplishments such as improved taxpayer service, steps to add fairness to tax compliance and the addition of new technology tools to help both taxpayers and the tax professional community. In a press release, the IRS said that these efforts culminated in this year being one of the agency’s most successful filing seasons ever, with dramatic improvements in taxpayer service and new tools.
An accompanying update supplement focuses on changes that are both underway and planned for fiscal years 2024 and 2025 across taxpayer service, tax compliance and technology modernization.
In a statement, IRS Commissioner Danny Werfel described the modernization changes outlined in the Strategic Operating Plan as a “generational imperative” needed to serve the nation and taxpayers.
“You will see in these documents that we have made tremendous progress toward realizing the goals of the plan, and work continues to accelerate,” Werfel wrote in the report’s introduction. “We have made fundamental changes that have improved taxpayer services, brought new fairness to compliance efforts and launched important changes to our technology. We are making a difference to taxpayers and the nation, and the improvements at the IRS are just beginning.”
“The changes outlined in this report are a stark contrast to the years of under-funding that deteriorated taxpayer service and tax enforcement, frustrating taxpayers, the tax community and IRS employees alike,” he added. “The funding provided by the Inflation Reduction Act creates a unique opportunity to realize a future of tax administration that meets the evolving needs of taxpayers. This opportunity is important for the future of the IRS, the nation and especially the taxpayers we serve.”
The strategic operating plan update focuses on five key objectives, according to the update supplement:
● Dramatically improve services to help taxpayers meet their obligations and receive the tax incentives for which they are eligible;
● Quickly resolve taxpayer issues when they arise;
● Focus expanded enforcement on taxpayers with complex tax filings and high-dollar noncompliance to address the tax gap;
● Deliver cutting-edge technology, data and analytics to operate more effectively; and
● Attract retain and empower a highly skilled, diverse workforce and developing a culture that is better equipped to deliver results for taxpayers.
The strategic operating plan update also highlights key areas of focus through 2025, including enhancing live assistance; expanding online services; accelerating digitalization; simplifying notices; disrupting tax scams and schemes; modernizing foundational technology; modernizing how the IRS attracts, retains, develops and empowers employees; improving IRS employee tools; and ensuring fairness in enforcement.
The report also notes that the IRS anticipates increasing audits on the wealthiest taxpayers, large corporations and large, complex partnerships by sizable percentages for tax year 2026.
While the IRS has accomplished a lot so far with IRA funding and under the strategic operating plan, Werfel emphasized that the agency has a lot more work in front of it to continue the transformation efforts.
“While we have made significant progress, we realize we need to do a lot more to make improvements and transform the IRS for the benefit of taxpayers, tax professionals and the nation,” he said. “We have an opportunity to build a 21st century tax agency to serve the American people in the manner they expect – and the level they deserve.”