For the last few years, the IRS has been plagued by several issues which have not only resulted in return processing delays but also a decline in customer service. It started when the IRS had to shut down onsite operations, which included activities at mail processing facilities. This meant returns and other communications could not be acted on causing an increase in taxpayer communication and processing delays. In addition, the shutdown also disrupted enforcement activities because of limited access to mail, fax, and print services. Once restrictions were lifted, inaccurate or outdated notices were erroneously sent out creating even more confusion. In fact, the situation was so bad the agency stopped sending any notices until the backlog could be cleared.
Unfortunately, the end of COVID restrictions did not relieve these issues. It was reported earlier this year the IRS still has a backlog of 4M unprocessed returns while the ability to reach a customer service agent remains challenging. To address these issues, Congress allocated $80B to the agency as part of the Inflation Reduction Act. Earlier this month, the IRS released the Inflation Reduction Act Strategic Operating Plan, which outlines the vision and strategic direction for the coming years. To help clients, prospects, and others, Wilson Lewis has provided a summary of the key details below.
The operating plan aims to accomplish five main objectives that address various weaknesses and issues. This includes a dramatic improvement to taxpayer services to meet obligations and receive eligible tax incentives, opportunity to quickly resolve taxpayer issues, expanded focus on enforcement activities for taxpayers with complex filings, upgraded technology to drive more efficient operations, and the ability to attract, retain, and empower a highly skilled and diverse workforce. Each objective will be accomplished through initiatives and projects that will be deployed over multiple years.
For each objective the agency has identified a series of taxpayer outcomes which includes specific changes, including:
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It appears the IRS is going to embark upon a significant change over the coming years. It is expected these changes will make it easier for Atlanta businesses and individuals to interact with the IRS more easily. However, in the immediate future, it is expected that service issues will continue as the agency undergoes transformation. If you have questions about the information outlined above or need assistance with a tax or accounting issue, Wilson Lewis can help. For additional information call 770-476-1004 or click here to contact us. We look forward to speaking with you soon.
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