For several years, AICPA® has underscored the importance of bolstering taxpayer services and prioritizing modernization, and these advocacy efforts helped shape the strategic operating plan the IRS recently released.
On April 6, 2023, the IRS released its Strategic Operating Plan for FY2023–2031, which details how it intends to spend the $80 billion the agency was allocated under the Inflation Reduction Act of 2022. The plan includes goals and timetables pertaining to specific areas — operations support, taxpayer services and IT modernization — that align with our recommendations.
“Based on what we see in the outlined plan, AICPA is encouraged that many of the spending areas line up with items AICPA has also requested, including increased customer service and the reduction of the backlog of returns,” said Peter Mills, senior manager, AICPA Tax Policy & Advocacy, in an April 12 press release.
With our advocacy team, you have representation in Congress, the IRS and Treasury and support in state-level policymaking regarding a wide range of issues, including penalty relief and disaster relief, and pass-through entity level taxes.
IRS strategic operating plan focuses on modernization
We understand the importance of bolstering taxpayer services and are pleased that the IRS will prioritize and expand digital services, modernize the agency’s IT infrastructure and boost employee training and resources. These efforts will directly benefit taxpayers and tax professionals, giving them easier access to their data, assisting them with claiming appropriate credits and deductions and simplifying payment methods. The focus on technology and modernization will also ensure IRS employees have the resources they need to effectively serve taxpayers.
“It is encouraging to see that the IRS plans to retire legacy applications, adopt modern systems, give IRS employees the technology they need to effectively serve taxpayers, and give taxpayers and practitioners the tools they need to access their data,” said Barry Melancon, CPA, CGMA, and president & CEO of AICPA, in a statement.
Modernization is a key step to bolstering customer service and reducing preexisting processing backlogs. In recent years, we have witnessed an imbalance between enforcement and service that demonstrates “the need for additional focus on customer service,” as the AICPA said in a March letter to the IRS.
Our advocacy efforts also helped influence additional inclusions within the IRS’s 10-year plan. Tax professionals will be given electronic access to track status information for their clients and will be able to access digital notices. The IRS will also take steps to prioritize recruitment and retention efforts and offer job-specific training to IRS employees — all in keeping with suggestions from the AICPA Tax Policy and Advocacy group.
AICPA’s advocacy continues
The release of the IRS plan is encouraging, and we have outlined additional recommendations the IRS can take as further improvements. These recommendations include the continued suspension of certain automated collection notices and making all forms available for electronic filing and all returns and documents available for digital signature, said Mills.
“The IRS should consider broadening the use of the $45.6 billion in funds congressionally allocated to enforcement and utilize those funds to include all training, customer service and systems modernization related to any type of enforcement,” Mills also said.
The advocacy team continually monitors legislative matters that affect accounting, tax and finance professionals. Together with assistance from CPA state societies and professional organizations, we work to bring about change at the federal, state and local levels regarding important finance and tax issues.
View the full details of our extensive advocacy work on federal and state-level issues, our tax comment letters and IRS taxpayer services issues, and see firsthand how we advocate on behalf of members.