with fresh funding, irs shows service improvements

man talking on phone and smiling

welcome to the 21st century.

by 卡塔尔世界杯常规比赛时间 research

it turns out that all it took was money. funded better, the irs performs better. it’s as simple as that.

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look at the accomplishments as of the end of the filing season:

  • three million more phone calls answered.
  • phone wait times cut from 28 minutes to just three.
  • 140,000 more taxpayers served in person.
  • 80 times more returns digitized than in 2022.
  • entire backlog of 2022 returns cleared without error.
  • new online filing and notification options offered.
  • tax preparers can file 1099s in bulk.
  • new direct deposit refund enabled for amended returns.
  • 35 taxpayer assistance centers opened or reopened.

the improvements are possible thanks to funding provided under the inflation reduction act, and the irs deserves credit for accomplishing so much in so little time. the ira was passed on august 16, 2022.

more to come

and that’s not all. the irs is already in the process of setting up temporary taxpayer assistance centers in underserved communities. the first opened in june in paris, texas, in partnership with the united way. soon more will open in such far-flung towns as

  • alpena, mich.
  • twin falls, idaho
  • juneau, alaska
  • lihue, hawaii
  • baker city, ore.
  • gallup, n.m.

professional help

enhanced capabilities for tax professional online accounts are already being deployed. by september, account authorization management will be possible and client payments will be viewable. in fy 2024, live chats and secure two-way messaging will be possible.

by the end of september, the long-awaited business online accounts will be launched, enabling businesses – initially just sole proprietors – to view outstanding balances, make payments online and conduct a business tax check.

let the wealthy beware

the new funding is also enabling the irs to go after the country’s biggest tax dodgers – the upper crust who use complex tools to hide income and evade paying what they owe. according to the national bureau of economic research, the wealthiest 1 percent of taxpayers account for 20 percent of the nation’s unpaid taxes. (the bottom 50 percent account for just 7 percent.)

according to the irs, 175 delinquent tax cases for millionaires have been closed this year, generating $38 million in recoveries. more recoveries are promised as enforcement capabilities get ramped up.

among the upcoming cases:

  • 100 high-income individuals have been claiming benefits in puerto rico without meeting residence requirements.
  • improper uses of malta-u.s. treaty rules are being identified and new rules have been proposed.
  • efforts with law enforcement partners are identifying millionaires who don’t even bother to file returns at all.

to the trash with old tech

ira funding is also allowing the irs to scrap 20th-century technology and replace it with the latest hardware and software.

mail-sorting machines, some decades old, are being replaced with machines that will allow the irs to quickly open and prepare mail for processing.

the ira is funding 698 modern scanners ranging from those of high capacity to handheld devices agents can use in various situations.

better, faster, more accurate digitalization is already helping the irs process hundreds of thousands of paper returns.

the irs is testing a mobile application, called inform me, that a taxpayer can use to scan a paper irs form, notice or other document to instantly access related information and guidance. though the timeframe is still open, the app is already being tested.