The IRS on Thursday released a plan for the nearly $80 billion in agency funding enacted through the Inflation Reduction Act in August — including expected boosts for customer service, technology and enforcement.
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Aligned with priorities outlined by Treasury Secretary Janet Yellen in August, the plan aims to improve several areas of taxpayer service, including a five-year timeline to digitize the filing process and the ability to respond to all IRS notices online.
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The IRS has already started to deploy part of the funds earmarked for customer service by hiring 5,000 phone assistors before the 2023 filing season, and taxpayers have been able to respond to certain IRS notices online since February.
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The agency's plan also aims to reduce the budget deficit by closing the tax gap, with an initial focus on tax returns for wealthy families, large corporations and complex partnerships, Werfel said.
Boosting the experienced staff needed for more complicated audits will take time, Everson said.
"The IRS has no plans to increase the most current audit rate we have for households making less than $400,000," he said, noting the audit rate for filers below these thresholds "won't come close" to reaching or exceeding historic averages."
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