how good is better than terrible?
by 卡塔尔世界杯常规比赛时间 research
every year, america’s national taxpayer advocate – in recent years it’s been erin m. collins – presents an annual report to congress. the report identifies successes and failures of and recommendations for the internal revenue service.
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this year’s report praises the irs for its progress since the worst of the covid-19 pandemic, but it finds plenty of room for improvement.
“the year 2023 was one of extraordinary transition for the irs and therefore for taxpayers,” collins writes. “despair has turned to cautious optimism.”
plenty of problems
the most impressive success was the clearing up of a 2021 backlog of 35 million tax returns that required manual employee treatment. the phones were ringing off the hooks, but agents answered only 11 percent of them, a number that almost tripled in 2023. average telephone waiting times dropped from 29 minutes to 13 minutes.
an infusion of funding helped a lot, and the nta office said that it has been well spent.
still, plenty of problems remain.
the ten most serious problems
traditionally, the nta report lists the 10 most serious problems at the irs. here they are in 10 nutshells.
- processing delays: millions of taxpayers experienced frustration and financial burden while awaiting refunds or other irs actions necessary so the taxpayers could comply with their obligations. the interest on delayed refunds cost the irs $1.4 billion.
- hiring, recruitment, training: many problems resulted from inadequate staff levels, which have fallen to levels not seen since the 1970s. the irs hired 30,742 people (including internal hires) in 2023, but 18 percent of employees are eligible for retirement. external hires took an astonishing average of 193 days, causing the irs to lose qualified candidates.
- transparency: taxpayers and preparers still struggled to find timely, reliable guidance on pending issues. last year only 35 percent of phone calls were answered as of late april.
- telephone and in-person service: several states have just one taxpayer assistance center, and many others have limited hours or skeletal staffing. agents answered only 29 percent of calls. another 18 percent got automated answers. the irs never answered the rest.
- return preparer oversight: tax pros prepare over half of all individual returns, but almost 60 percent have no credentials and none are subject to minimum standards. the consequent incompetence results in excessive audits, adjustments and overpayments.
- identity theft: last year, the irs flagged millions of returns for possible fraud, many of which were perfectly legitimate. as a result, the processing of legitimate returns was delayed, and victims of id theft suffered even longer delays as the irs lost time weeding through non-victims.
- online access: taxpayers and preparers lack comprehensive online accounts with integrated digital communication tools. the online tax pro service was used far below its potential.
- international: special reporting requirements for persons receiving funds from abroad or engaging in cross-border reporting requirements resulted in delays and exposure to significant penalties.
- compliance challenges for taxpayers abroad: taxpayers abroad faced vast difficulties complying with u.s. tax obligations, and the irs offered limited assistance and guidance.
- appeals: the lack of independence and efficiency in the irs independent office of appeals continued to undermine taxpayer trust and prolonged dispute resolution. in states without an appeals office, average wait times in 2023 doubled from 120 to 243 days.
in our continuing effort to facilitate tax preparation by encouraging improvements at the irs, 卡塔尔世界杯常规比赛时间 will be taking a closer look at each of these problems in the coming weeks. responses from tax preparers are encouraged.