some of the fixes will require software updates, but some are simpler.
by 卡塔尔世界杯常规比赛时间 research
national taxpayer advocate erin m. collins has determined that delays in the processing of tax returns is one of the most serious problems at the internal revenue service.
millions of americans couldn’t agree more.
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collins’s 2023 report to congress is more than a detailed kvetch. it’s also a buffet of solutions – some that the irs could effect, some that congress needs to legislate.
she offers several solutions to the problems with processing. here are the main processing problems and their solutions:
1. problem: delays involving employee retention credits and other covid-19 relief provisions
congress provided incentives for employers to retain employees during the covid-19 pandemic. the incentives were approved during the tax preparation season, so they inevitably increased the number of amended returns and a consequent backlog. employers and the irs struggled to deal with the complexity of the law. that complexity led to a host of scams. some involved illicit returns. others involved businesses victimized by bad actors offering illicit advice. the expected $85 billion in claims swelled to $230 billion. the irs had to slow down (way down) the approval process to deal with potential scams. consequently, legitimate claims are still suffering delays in refunds.
solution: “to provide the relief congress intended, it is critical that the irs develop an improved screening process to better identify legitimate claims and significantly increase the volume of erc claims it processes (allows or disallows in full or part) or assigns to an auditor to begin an examination.”
2. problem: delays as customer service representatives were moved from processing to answering phones
after treasury secretary janet yellen promised that 85 percent of phone calls would be answered, the irs moved thousands of csrs from processing returns to answering phones. returns were therefore delayed, resulting in … you guessed it … more phone calls.
solution: “by providing remote csrs with the training needed to perform processing activities, the irs could improve its flexibility between telephone and processing duties (reducing available time between phone calls when telephone demand is low), expand csr authority to perform more account resolution actions while assisting taxpayers over the phone, and reduce the volume of unprocessed cases, correspondence and amended returns carried into each new filing season.”
3. problem: too many requests for first-time penalty abatements are in writing
taxpayers who haven’t had to pay certain penalties in the previous three years may qualify for a first-time penalty abatement (fta). but they have to ask for it. the request can be done by phone, but many apply in writing, which takes more time. also, too many eligible taxpayers don’t know about ftas.
solution: “the national taxpayer advocate strongly recommends that for fs 2024 the irs systemically apply fta to all eligible taxpayers. the systemic application of fta would have the twofold benefit of increasing taxpayer fairness while reducing the volume of calls and correspondence received regarding these penalty abatement requests.”
4. problem: paper returns awaiting processing
paper (as opposed to digital) tax returns account for 15 percent of the backlog in refunds, primarily because they require manual processing.
solution: two solutions figure prominently in discussions for combating paper return backlogs: more document scanning and the expansion of electronic filing.
5. problem: too little scanning of paper forms
the irs has begun improving the use of scanning to digitize certain returns, starting with forms 1040, 940 and 941. by mid-2023, the irs scanned about 738,000 forms out of 55 million it received. but the original plan was to scan millions, not thousands, in 2023.
solution: “it is imperative that the irs get this right …” the irs is getting it right. it knows what to do. it just has to get it right faster.
6. problem: too many forms required on paper
only 8 percent of individuals returns are coming in on paper, but that is often because of irs system requirements. many forms cannot be filed digitally. and in many cases, taxpayers have no option but to file paper returns.
solution: expand the digital filing system to accept more forms. accommodate taxpayers who cannot file digitally so they do not cause delays.
7. problem: inadequacies of direct file
the irs is exploring a pilot system, direct file, to provide an additional agency-run, free, direct e-file tool. problem is, direct file may be unable to file state tax returns and may negatively affect state tax authorities. also, the software will need to be readily updated to accommodate tax law changes.
solution: keep working on the software and “devote substantial customer service and support for its e-file tool for this program to be a success.”
8. problem: too many electronic filing rejections
too often digital returns are automatically and inappropriately rejected or flagged under suspicion of fraud, and often taxpayers are subsequently required to file forms on paper. often the filer could easily correct problems and resubmit digitally with no csr intervention. insignificant flaws can result in unnecessary delays.
solution: “… the irs (should) accept (certain flagged) electronic returns and direct them to an appropriate treatment stream for resolving discrepancies … the irs can accept the e-filed return, assign it for issue resolution, determine if it can process the return, or determine if the return is potentially fraudulent.”