As part of the IRS’s five-year strategic operating plan, Phase 4 focuses on delivering cutting-edge technology, data and analytics to enhance the agency’s effectiveness. In our previous blog posts, we discussed Phase 1, Phase 2 and Phase 3 initiatives aimed at addressing the tax gap through expanded enforcement. In this post, we will delve into the initiatives planned for 2023-2024 and 2025-2028 under this fourth phase.
2023-2024 initiatives
- Modernize information returns intake platform
- The IRS will deploy a modernized information returns intake platform, providing a free online portal for businesses to file Form 1099-series information returns. This initiative will simplify the filing process and improve data accuracy.
- Streamline access to individual taxpayer data
- IRS systems will be improved to streamline access to individual taxpayer data for service and compliance purposes via secure, standardized application programming interfaces (APIs). This enhancement will facilitate more efficient data sharing and collaboration within the agency.
- Implement integrated business and IT product-and-platform operating model
- To accelerate technology delivery, the IRS will implement an integrated business and IT product-and-platform operating model. This approach will foster better alignment between business needs and technology solutions, ensuring more effective use of resources.
- Develop new methodologies to estimate tax gaps
- The IRS will formulate new methodologies to enhance and expand the estimation of tax gaps. These advanced techniques will enable the agency to better understand and address compliance issues.
2025-2028 initiatives
- Retire business and individual master files
- The IRS will retire outdated business and individual master files, migrating systems and data to modern solutions. This initiative will improve data management and enable more efficient access to information.
- Provide near-real-time taxpayer service data
- IRS data scientists and analysts will have access to near-real-time taxpayer service data via modern analytical tools. This initiative will facilitate more timely and accurate data analysis, driving better decision-making and improved services.
- Develop a “Taxpayer 360°” holistic view
- The IRS will deliver data to support a “Taxpayer 360°” holistic view based on business needs and prioritization established during the development of taxpayer service tools. This comprehensive perspective will enable the agency to better understand taxpayer behavior and tailor services accordingly.
Phase 4 of the IRS’s strategic plan demonstrates the agency’s commitment to leveraging technology, data and analytics to improve its operations and services. By modernizing platforms, streamlining data access, and developing advanced methodologies, the IRS is taking significant steps towards becoming a more efficient and effective organization.
Our next blog post will discuss the remaining objectives and initiatives in the IRS’s five-year strategic operating plan, which includes attracting and retaining a highly skilled, diverse workforce.
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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. All taxpayer circumstances are different, and NATP recommends contacting research services if you have specific questions about your clients’ tax situations.