IRS Strategic operating plan update

May 2024 - IRS releases Strategic Operating Plan update outlining future priorities; transformation momentum accelerating following long list of successes for taxpayers | Internal Revenue Service. This update reflects the agency’s ongoing transformation efforts aimed at improving taxpayer services, enhancing compliance, and modernizing technology.

Key Objectives and Achievements

The updated plan focuses on five main objectives:

  1. Improving Taxpayer Services: The IRS aims to dramatically enhance services to help taxpayers meet their obligations and receive eligible tax incentives. This includes expanding online services, reducing the backlog of paper returns, and increasing staffing at Taxpayer Assistance Centers.

  2. Resolving Taxpayer Issues Quickly: Efforts are underway to resolve taxpayer issues more efficiently. This includes initiatives like the Simple Notice Initiative, which aims to simplify and redesign up to 200 notices to reduce taxpayer burden.

  3. Enhanced Enforcement: The IRS is focusing on taxpayers with complex filings and high-dollar noncompliance to address the tax gap. This includes increasing audit rates for large corporations, complex partnerships, and high-income individuals.

  4. Technology Modernization: Delivering cutting-edge technology, data, and analytics is a priority. The IRS plans to modernize foundational technology, improve employee tools, and enhance data security to protect the integrity of the tax system.

  5. Workforce Development: Attracting, retaining, and empowering a highly skilled, diverse workforce is essential. The IRS is focusing on providing employees with the necessary tools, training, and culture to perform at their best.

Recent Successes

The IRS has already made significant progress in several areas:

  • Improved Call Center Efficiency: During the 2024 filing season, the IRS answered over a million more calls than the previous year, with an average wait time of just over three minutes.

  • Enhanced Online Tools: New and improved online tools, such as the Business Tax Account and Direct File pilot program, have been launched to streamline taxpayer interactions.

  • Increased Enforcement: The IRS recovered $520 million through enforcement activities targeting high-income individuals who failed to file or pay taxes.

Future Plans

Looking ahead to 2024 and 2025, the IRS plans to:

  • Expand Digital Services: Provide up to 150 non-tax forms in digital, mobile-friendly formats and scan virtually all paper-filed returns at the point of entry.

  • Disrupt Tax Scams: Coordinate with partners to identify and combat tax scams, improving victim assistance.

  • Modernize Technology: Continue efforts to modernize technology and improve IRS employee tools to enhance taxpayer service.

Conclusion

The IRS’s Strategic Operating Plan update demonstrates a commitment to transforming the agency to better serve taxpayers. With a focus on improving services, enhancing compliance, and modernizing technology, the IRS aims to build a 21st-century tax agency that meets the evolving needs of taxpayers and the nation.

Let us know if you have any questions or require any assistance with the IRS. You can call us at 305-762-9587 or email us at chad.hagger@hagger-tax.com

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