In the one-year progress report of the Inflation Reduction Act’s implementation, the IRS has achieved substantial advancements in its pursuit of improved service, technological modernization, and the enforcement of tax obligations for high-income individuals. These efforts are aligned with the Act’s objectives and have led to significant positive outcomes.
Enhanced Customer Service During the 2023 Filing Season:
The IRS has made remarkable strides in enhancing its customer service during the 2023 Filing Season, owing to the resources allocated under the Inflation Reduction Act. Notable achievements include achieving an 87% Level of Service on its primary taxpayer help line. The results include addressing 3 million more calls, reducing average phone wait times from 28 minutes to 3 minutes, accommodating an additional 140,000 taxpayers in-person, and streamlining its processes by digitizing a substantially higher number of returns compared to the previous year.
Technological Upgrades and Service Modernization:
The IRS has successfully leveraged the Inflation Reduction Act’s provisions to propel its technological upgrades. Adoption of new scanning technology has led to an 80-fold increase in digitized returns, marking a significant step forward from 2022. The Act has facilitated the elimination of the backlog of unprocessed 2022 individual tax returns, and crucially, this has been accomplished with no errors. Additionally, the IRS introduced two new digital tools and enabled a direct-deposit refund option for taxpayers with amended returns.
Expansion of Customer Callback Option:
The IRS has demonstrated its commitment to enhancing customer service by expanding the customer callback option, which is now accessible to up to 95% of callers seeking live assistance. This expansion extends to 73 additional toll-free applications, bringing the total number of applications with this option to 116, aligning with the agency’s Strategic Operating Plan.
Introduction of Voice and Chatbots for Enhanced Taxpayer Experience:
In line with its commitment to provide seamless service, the IRS has introduced new voice and chatbots to cater to a range of taxpayer inquiries. These bots cover topics such as account transcript security, balance-related queries, and assistance from the Taxpayer Advocate Service. The availability of these self-service options 24/7 enhances the taxpayer experience, with the added benefit of connecting to a live assistant during business hours if required.
Expanded In-Person Services for Underserved Taxpayers:
To ensure equitable service distribution, the IRS has undertaken measures to expand its in-person assistance in rural and underserved areas. The reopening of 42 Taxpayer Assistance Centers across the nation, along with the establishment of Pop-Up Taxpayer Assistance Centers, has enabled face-to-face interactions between IRS representatives and taxpayers in regions that were previously hard to reach.
Rigorous Pursuit of Tax Obligations from High-Income Individuals:
The Inflation Reduction Act has empowered the IRS to aggressively address tax evasion by high-income individuals. Swift action has led to the closure of several cases where wealthy taxpayers were sentenced for tax evasion, money laundering, and filing false tax returns. Delinquent tax cases involving millionaires have also been resolved, resulting in $38 million in recoveries. Noteworthy schemes, such as those exploiting Puerto Rican benefits or utilizing offshore pension arrangements in Malta to evade taxes, are under investigation, demonstrating the IRS’s dedication to enforcing tax obligations at all levels.
Efforts Against Millionaire Non-Filers:
The IRS continues its dedicated efforts to combat millionaire non-filers who engage in egregious tax evasion practices. These actions, which include using owed funds for extravagant purchases rather than paying taxes, are being closely monitored and investigated. Collaborative efforts with law enforcement entities are aimed at holding such individuals accountable for their tax responsibilities.
Overall, the Inflation Reduction Act’s first-year report card showcases the IRS’s substantial achievements in customer service enhancement, technological advancement, and rigorous tax enforcement. These accomplishments signify significant progress toward the Act’s goals and underscore the agency’s commitment to ensuring fair taxation practices and improved taxpayer experiences.
Do you still owe taxes? Mraz Tax Solutions can help.
If you are unable to pay your tax bill in full by the original deadline, the IRS offers payment plans or installment agreements that allow you to pay off your balance over time in more manageable increments.
Mraz Tax Solutions can help with Negotiating payment plans and settlements. As well as filling your individual or business tax return.
You can also do it yourself: request a payment plan online using the IRS’s Online Payment Agreement tool or by completing Form 9465, “Installment Agreement Request”, and mailing it to the IRS.
Remember that tax laws and filing requirements can change, so it’s essential to consult the latest guidelines from the relevant tax agency or seek assistance from a qualified tax professional to ensure you meet all the necessary requirements and deadlines.
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