The Internal Revenue Service (IRS) plays a vital role in administering the nation’s tax system, and each year, it endeavors to enhance its services and enforcement efforts. In light of the successful filing season of 2023, the IRS is determined to build on this momentum and continue its pursuit of service improvement, tackling tax evasion among high-income individuals, and modernizing its technology. In this article, Optima Tax Relief reviews the IRS’s strategic priorities and their potential impact on taxpayers and the overall tax administration landscape.
The Inflation Reduction Act of 2022 will provide massive increases in IRS funding, $80 billion over the next ten years to be exact. The filing season of 2023 saw the IRS make notable strides in improving taxpayer service, with initiatives such as enhanced customer support, streamlined online resources, and faster processing times. The 2023 filing season great improvements from the year before, including:
- An 87% level of service
- 3 million more calls answered
- Wait times cut from 28 minutes to 3 minutes
- 140,000 more taxpayers serviced in-person
- 80 more digitized returns
- Cleared 2022 backlog of unprocessed returns
The IRS is looking to build on these achievements by improving taxpayer services, ensuring high-income earners pay taxes, and modernizing technology. To improve taxpayer services, the IRS plans to set up temporary Taxpayer Assistance Centers in underserved areas to allow face-to-face contact with the IRS. In addition, the IRS has opened and reopened a total of 35 Taxpayer Assistance Centers since the Inflation Reduction Act passed. Finally, the IRS has improved the online taxpayer, business, and tax professional accounts.
To ensure high earners are paying their fair share of taxes, the IRS is making delinquent millionaires pay. In the past few months alone, $38 million was recovered from about 175 delinquent millionaire cases. They have also been pursuing tax-evading millionaires and cracking down on millionaires who do not file.
To modernize its technology, the IRS is replacing old mail sorting machines with newer and more efficient machines. A total of 205 scanners will be replaced with newer models along with the addition of hundreds more. More importantly, the IRS is working hard to improve their digitization. For example, 480,000 forms were scanned in the 2023 filing season, not including about 250,000 scanned after the season.
As we look forward to the future of tax administration, the IRS’s commitment to service improvement, tackling tax evasion, and modernizing technology stands at the forefront. By placing taxpayers’ needs first, enhancing enforcement efforts, and embracing innovative technology, the IRS aims to foster a fair and efficient tax system that benefits both individuals and the nation.
Taxpayers can expect a more user-friendly and accessible tax filing experience, while the IRS remains resolute in ensuring compliance and enforcing tax laws effectively. As the IRS continues to build on the success of the 2023 filing season, its pursuit of service excellence and technological innovation will undoubtedly shape the future of tax administration, making the process more seamless and empowering taxpayers to meet their obligations with confidence.