In providing an update on how the IRS is progressing towards ‘transformation efforts’ using Inflation Reduction Act (PL 117-169) funds, the agency highlighted several milestones reached on improvements to online tools, on-site tax assistance, and systems modernization.
Despite ongoing legislative attempts to claw back what was once a 10-year, $80 billion appropriation (now less than $60 billion), the IRS continues to spend on projects outlined in its Strategic Operating Plan first released last April. An agency-wide, multi-phase undertaking, the plan was the first glimpse into where the money would go. Projects include sweeping upgrades to online capabilities, customer service, return and correspondence processing, digital systems, and enforcement of the Tax Code.
Speaking with reporters July 24, IRS Commissioner Danny Werfel said the funding “is spurring innovation and driving improvements across the IRS.” These “long-overdue” changes “are reversing situations that have long-hampered the IRS and frustrated taxpayers and the tax community.”
Wednesday’s press call reflected a report unavailable to the public at the time of writing.
Online tools.
The Document Upload Tool that allows taxpayers and tax professionals to respond to IRS notices online reached 1 million uploads. The tool was launched in a limited capacity in 2021.
Several new features were added to Individual Online Account. Taxpayers can now:
- Access various types of tax-related information “from one source,” including return transcripts and record of account
- Use a smartphone or tablet to request an Identity Protection PIN update
- See audit status information
- Calculate lien payoff amounts and generate a downloadable or printable document
- Finish the Pending Installment Agreement process on the same platform
- Review “comprehensive” account information, such as tax refund status
As for Business Tax Account, the feature is now available in Spanish and business taxpayers can view their balance due and make payments “in one place,” the IRS announced. Additionally, sole proprietors can now use Business Tax Account to download business entity transcripts.
Several business forms can now be e-filed and the IRS can accept certain payments. These forms are:
- Employer’s Annual Federal Unemployment (FUTA) Tax Return
- Employer’s Quarterly Federal Tax Return
- Employer’s Annual Federal Tax Return for Agricultural Employees
- Annual Return of Withheld Federal Income Tax
Spanish versions for Forms 941 and 943 are also available.
A total of 30 forms are currently available in a mobile-friendly format. Since September last year, taxpayers submitted 72,000 forms via a cellphone or tablet. Taxpayers may access five forms requiring signatures online:
- VITA/TCE Partner Sponsor Agreement
- FSA Remote Sponsor Agreement
- Business Identity Theft Affidavit
- Questionnaire for Non-Requesting Spouse
- Tax Return Preparer Fraud or Misconduct Affidavit
To date, the IRS’ Simple Notice Initiative has seen redesigns to 100 “of the most common notices” that account for “about 90% of the total notice volume sent to individual taxpayers, representing 150 million notices sent to individuals in 2022,” the agency announced.
New in-person assistance.
The IRS will conduct “Community Assistance Visits” through pop-up Taxpayer Assistance Centers to provide in-person outreach. Upcoming visits this year include:
- August 5-9, Thomasville, Alabama
- August 19-23, Great Bend, Kansas
- September 9-13, West Plains, Missouri
- September 23-27, Clarkston, Washington
- October 7-11, Fairbanks, Alaska
- October 21-25, Potsdam, New York
Modernization.
As of the end of June, the IRS scanned over 2 million paper documents. Pieces of equipment older than five years were replaced in favor of automated mail-sorter machines at six of the highest-volume IRS processing centers.
The IRS has seen incremental improvements to other areas like overhauling its Human Resource IT infrastructure and workstreams. “These HR technology improvements in talent acquisition, workforce planning, labor and employee relations and other key HR processes will enhance the employee experience, improve productivity and help retain a strong and high-quality workforce needed to deliver customer service improvements for taxpayers,” the IRS said.
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