irs to speed up issue resolution

woman looking at tablet at outdoor tablea triad of good intentions.

by 卡塔尔世界杯常规比赛时间 research

a lot of the backlog at the internal revenue service is because of simple errors that compound their own complications. arithmetic boo-boos too easily snowball into backlogs, bankruptcies and court cases.

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it might start off with a simple math error or misplaced deduction.

  • the irs sends a written notice.
  • the taxpayer might have a question about it or might even have a resolution for the error.
  • the taxpayer writes back.
  • the correspondence languishes in a mountain of unopened mail.
  • a deadline passes.
  • though the problem has been technically resolved, an automated notice goes out.
  • the taxpayer calls the irs to complain and explain.
  • nobody answers the phone.
  • the taxpayer consults a tax attorney …
  • and whatever the government was supposed to harvest in taxes gets lost in the cost of bureaucracy.

problems, problems, problems …

the problem is, problems create problems that create problems, and resolving the problems can create even more problems, not to mention all the lost time in reaching the resolution.

how much easier and more efficient it would be to resolve initial issues before they become problems.

and that is precisely what the irs is planning to do.

a new plan

the irs’s new strategic operating plan 2023-2031, made possible by the $80 billion infusion of funds appropriated by the inflation reduction act, lays out five main objectives.

one is to “quickly resolve taxpayer issues when they arise.”

“millions of taxpayers make simple mistakes when completing their returns, and millions fail to properly claim tax incentives for which they are eligible,” the sop states. “resolving these and other simple mistakes can be a prolonged process. through investments in our data management and taxpayer communication tools, we will work to resolve these issues more quickly and prevent their recurrence.”

good intentions

the objective stands on a triad of intentions.

  1. when a taxpayer makes a filing error, the irs will reach out quickly with clear and accessible ways to resolve the issue.
  2. when the taxpayer reaches out for help, the irs will quickly address the concerns and fix the problems.
  3. the irs will use improved technology to help taxpayers figure out what they owe or what credits or deductions they may have missed.

all of these broad intentions are based on something sorely lacking at the irs: quick response. here are some of the areas where the irs plans to move quickly to prevent problems.

  • the irs will try to identify issues early in the filing process, with notices sent out in time to correct errors.
  • the irs will deliver timely and tailored treatments to resolve issues.
  • notices will be customer-centric – delivered by a preferred medium, easy to understand, with clear explanations and steps to take.
  • the irs will expand pre-filing and tax certainty programs so taxpayers can avoid compliance issues.
  • the irs will proactively offer appropriate options for past-due payments.
  • the irs will reach out to taxpayers who do not file on time.
  • improved data and analytics will provide early, tailored contacts to those with past-due balances, avoiding unnecessary escalation.

the irs makes these intentions feasible as it provides funding for

a) more personnel,

b) better tools for personnel to work with and

c) upgraded technology to predict and react to issues.

the benefits of early intervention

with these earlier interventions, the irs expects to see several benefits.

  • increased notice response rates
  • decreased repeat noncompliance
  • increased share of credits and deductions by those eligible
  • decreased time between filing of returns and contacts regarding issues
  • faster resolution of post-filing compliance issues
  • increased percentage of balance-due cases closed within a year

the irs sop rests on the fundamental belief that better treatment of taxpayers will result in better compliance. better service is a good way – a humane way – to increase tax collection.