The IRS has recently released their 10-year strategic operating plan, which outlines their goals and objectives for the next decade. Let’s take a closer look at what the plan entails and what it means.
The plan, which was developed by the IRS in collaboration with various stakeholders, focuses on five key goals:
- improving taxpayer experience,
- quickly resolve taxpayer issues
- strengthening the IRS workforce to address the tax gap
- upgrading technology and data analytics,
- to develop a highly-skilled, diverse workforce
Let’s look at each of these objectives in a little more detail.
One of the primary objectives of the plan is to improve the taxpayer experience by making it easier for people to interact with the IRS and get the help they need. This will involve streamlining processes, enhancing communication channels, and providing more online services.
The IRS has hired more than 5,000 staff to answer phones, have increased walk-in service and added additional digital tools to more quickly assist taxpayers.
Another important goal is to strengthen the IRS workforce by recruiting and retaining top talent, providing more training and development opportunities, and creating a more diverse and inclusive workplace.
One of the goals of the IRS is to reduce the tax evasion that is occurring each year.
According to IRS estimates, the tax gap (meaning the difference between what taxpayers should pay and what they do) is $496 BILLION per year (this figure is from estimates dating back to tax years 2014-2016, the last time an analysis was performed.
By hiring additional staff, it is expected more audits will be performed to bring in additional tax revenue. It has been said the IRS doesn’t plan to increase the audit rate for small businesses or households making less than $400,000, although this statement is in question by many.
Upgrading technology and data analytics is also a priority for the IRS, as this will enable them to better identify and address noncompliance, improve efficiency, and reduce costs. It will also reduce the paper backlogs currently plaguing the tax agency.
Finally, the IRS is focused on enhancing cybersecurity to protect taxpayer information and prevent fraud. This will involve implementing new security measures, educating employees on best practices, and collaborating with other government agencies and industry partners.
Overall, the IRS’s 10-year strategic operating plan is designed to improve the agency’s effectiveness and efficiency, while also enhancing the experience for taxpayers. With these goals in mind, the IRS is well-positioned to meet the challenges of the future and continue to provide essential services to the American people.