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National Taxpayer Advocate Erin M. Collins publishes a report each year on the performance of the Internal Revenue Service (IRS). In her most recent report, the IRS was rated "better than expected in most respects."
There were approximately six months between passage of the One Big Beautiful Bill Act (OBBBA) and the start of the tax-filing season. Collins noted that the IRS moved forward with improved information technology and this was "the most important factor" for a successful season.
Collins continued, "The IRS is often held up as the poster child for antiquated government technology infrastructure, and there is certainly some truth to that characterization. But the IRS has been improving its technology year by year, and as long as it gets the IT right, most taxpayers file their returns and receive their refunds without delay."
The OBBBA required major reprogramming of IRS software and computers. There were also massive revisions for many IRS publications and a need to educate the public.
Former Acting IRS Commissioner Douglas O’Donnell was positive about the IRS result. O’Donnell stated, "It is important to note that this is not only a challenge for systems and programming, but the challenges extend to forms, publications, employee training, and desk guides to aid employees while on the phones, in addition to public outreach to ensure the public's awareness of changes.”
The IRS has steadily attempted to modernize and accommodate digital filing, direct deposit and other strategies. Collins explained that this is helpful, but it is also important to have good human support. She continued, "As the IRS continues to transform its operations, it must preserve meaningful access to telephone assistance, in-person service, clear notices, timely correspondence and effective case resolution functions.” In addition, taxpayers must understand how to obtain help and be confident that they will be treated fairly if a problem arises.
The efforts to improve the IRS are a challenge given the reduction in staffing. In one year, the IRS has reduced its staff by approximately one-fourth. As a result, the IRS has been forced to reduce the number of taxpayer assistance centers and the number of staff answering taxpayer questions.
Collins noted that IRS staffers answered 20% fewer calls compared with last year. As a result, many taxpayers had to rely on computer "voicebots" to answer their questions. In addition, aproximately four out of every five taxpayers talking to an IRS voicebot ended up hanging up or seeking assistance from a human. Collins noted, "Taxpayers who required assistance from the IRS often struggled to get it."
As the IRS moves forward, Collins emphasized that there needs to be a balance between the number of staff answering phone calls and the ability of technology to provide good taxpayer support.
Editor's Note: IRS CEO Frank Bisignano has recognized it is important to increase the number of taxpayer support representatives. Bisignano wrote, "We remain committed to continuously improving service delivery and working to provide taxpayers with timely and effective assistance." In response to this need, Bisignano recently lifted an IRS hiring freeze to permit the Service to hire more support staff.
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