Biden’s Administration Providing Much-Needed Funds to IRS After Years of Neglect

IRS Improvements: A Closer Look at the Impact of the <a href="">Inflation Reduction Act</a>

IRS Improvements: A Closer Look at the Impact of the Inflation Reduction Act

IRS Commissioner Danny Werfel’s Optimism

IRS Commissioner Danny Werfel acknowledges that dealing with the IRS may never be enjoyable for taxpayers, but he believes that recent changes have made the process simpler and more user-friendly.

Enhanced Taxpayer Experience

Taxpayers now have more options to file, receive real-time refund information, and get their refunds faster. Hold times when contacting the IRS have also decreased significantly.

Financial Boost from the Inflation Reduction Act

The Inflation Reduction Act allocated nearly $80 billion for the IRS to enhance enforcement, operations, customer service, and upgrade its technology. Despite some funds being withheld by congressional Republicans, the IRA has been a significant financial boost for the agency.

Positive Outcomes for Taxpayers

Werfel emphasized that the IRA’s focus on improving outcomes for all taxpayers is now evident in the enhanced services provided by the IRS.

2024 Filing Season Stats

The recent filing season showcased notable improvements in IRS customer service:

Call Center Performance

88% of calls were answered, exceeding the 85% target and a vast improvement from the 15% rate in 2022.

Reduced Wait Times

The average call wait time was only three minutes, below the target of five minutes, despite a 17% increase in call volume compared to the previous year.

In-Person Tax Prep

Volunteer tax preparation for returns has seen a significant increase, surpassing the initial target.

Direct File Initiative

One of the IRA-funded initiatives, Direct File, allows taxpayers in select states to file their taxes directly with the IRS electronically, free of charge.

Usage Growth

Usage of Direct File increased to over 5,000 returns per day in the final week of the filing season, with a majority of returns coming from specific states.

Impact on Tax Enforcement

The IRA funding has enabled the IRS to enhance tax enforcement efforts, particularly in closing the tax gap and targeting large corporations and partnerships.

Focus on Tax Compliance

The IRS is now using advanced technology and analytics to track tax compliance in complex organizations, a task previously hindered by limited resources.

Targeting Wealthy Individuals

The increased enforcement efforts are primarily focused on higher-net-worth individuals to ensure fair tax payments.

Support for IRS Initiatives

Despite some opposition, supporters believe that the IRS’s dedication to improving tax compliance and service for all taxpayers is a step in the right direction.

Read More of this Story at – 2024-04-15 09:45:02

Read More US Economic News

Leave A Reply

Your email address will not be published.