The IRS received $80 billion in funding to improve taxpayer services and experience through the Inflation Reduction Act. The funding will be distributed over 10 years to complete a five-phase plan. We recently covered the first phase in a different blog post. Now, we’ll dive into the second phase, which aims to quickly resolve taxpayer issues when they arise. This phase spans from 2023 to 2028 and includes several key tasks designed to enhance the IRS’s responsiveness and support for taxpayers.
Phase 2: quickly resolve taxpayer issues when they arise
The primary goal of Phase 2 is to minimize the time and effort it takes for taxpayers and tax professionals to resolve issues with the IRS. This phase includes several tasks designed to streamline communications, provide additional support, and improve the overall experience for taxpayers.
2023-2024 initiatives
- Taxpayers and preparers will be notified of mismatches against simple types of income (W-2s and 1099 NECs) and processing errors.
- Outreach and campaigns will be expanded to increase awareness of tax certainty programs and their benefits to taxpayers with complex issues.
- A pilot program for new non-filer interventions will be launched.
- 5,000 additional customer service representatives will be onboarded, and callback options will be expanded.
2025-2028 initiatives
- Taxpayers and preparers will be notified of potential filing issues, including incentives related to children and other dependents and other issues to be determined.
- Capabilities will be launched for taxpayers and tax professionals to receive and respond to additional notices electronically.
- Taxpayers will gain access to a broader range of self-service debt repayment tools through online accounts.
Phase 2 of the IRS’s Strategic Operating Plan is all about addressing taxpayer issues as quickly and efficiently as possible. By implementing new notification systems, expanding outreach campaigns and providing a broader range of self-service tools, the IRS is taking significant steps toward a more responsive and supportive tax environment.
We’ll cover the third phase, which addresses enforcement to address the tax gap, in our next post. Stay tuned for the next installment of our series, where we’ll explore Phase 3 of the IRS’s $80 billion Strategic Operating Plan.
About National Association of Tax ProfessionalsThe National Association of Tax Professionals (NATP) is the largest association dedicated to equipping tax professionals with the resources, connections and education they need to provide the highest level of service to their clients. NATP is comprised of over 23,000 leading tax professionals who believe in a superior standard of ethics and exemplify professional excellence. Members rely on NATP to deliver professional connections, content expertise and advocacy that provides them with the support they need to best serve their clients. The organization welcomes all tax professionals in their quest to continually meet the needs of the public, no matter where they are in their careers.
The NATP headquarters is located in Appleton, WI. To learn more, visit www.natptax.com.
Information included in this article is accurate as of the publish date. This post is not reflective of tax law changes or IRS guidance that may have occurred after the date of publishing.