Page 15 - IRS Plan
P. 15

Overview of the Plan




          This Strategic Operating Plan (also referred          the additional resources provided under the IRA to
          to as the “Plan”) outlines how we will deploy the     address high-dollar compliance issues, such as
          investments in the IRA to better serve taxpayers,     those related to complex partnership structures,
          tax professionals, and the broader tax ecosystem.     large corporations, and high-income individuals.
          We will improve the taxpayer experience through
          better customer service, clearer guidance on how      The Congressional Budget Office estimates that
          to correctly file taxes, increased options for filing   the additional $80 billion provided to the IRS by
          electronically, and robust online accounts to take    the IRA will increase federal revenue by more than
          care of business quickly and independently. We        $180 billion in the decade ahead, considering only
          will utilize tailored solutions to meet the diverse   direct enforcement revenue based on additional
                                                                        1
          needs and preferences of all taxpayer groups.         staffing. We believe the actual increase will be
                                                                greater, since all our efforts as outlined in this
          Congress has given us responsibility to administer,   plan—including in the areas of service, issue
          as effectively and efficiently as possible, more than   resolution and effective enforcement—will increase
          150 credits, deductions and other tax preferences     overall tax compliance. We will also use data and
          in the tax law (generally referred to as “incentives”   technology to ensure our resources are focused on
          throughout this Plan). We know that many factors      noncompliant taxpayers. Through both service and
          drive unintentional noncompliance and prevent         enforcement efforts, ensuring taxpayers get their
          taxpayers from claiming the incentives for which      taxes right will help address the tax gap over time.
          they are eligible. We will significantly improve the   For a more detailed allocation of funds of the Plan,
          services we provide and tailor our compliance work    please see Part III.
          in new ways. Taxpayers will have the tools,
          information and assistance needed to get their tax    To enable improved taxpayer services and
          filings right – both in paying what they owe and      compliance, we must deliver technology
          claiming the incentives for which they are eligible.   capabilities at a faster pace and bigger scale than
          Our employees will likewise have the data,            we have achieved before. We will invest in new
          analytics, and tools to ensure compliance and         technology, building on contemporary foundational
          fairness in the tax system.                           platforms, with modern architectures designed to
                                                                meet our future needs. This will require careful
          Our work to improve service must also be coupled      coordination between delivering new capabilities
          with efforts to improve compliance by those who       and modernizing or retiring legacy platforms. It will
          choose not to meet their obligations. The IRA         also require shifting to an IT delivery model that
          acknowledges that an adequately funded federal        better integrates business unit perspectives to
          tax administration will generate significant revenue   deliver faster and better results to improve services
          for the country. The federal government loses         to taxpayers. While ensuring the continued privacy
          nearly half a trillion dollars each year due to       and security of taxpayer data, we will enhance our
          taxpayer noncompliance. This investment will          use of data and analytics to drive operations and
          significantly improve the IRS’s ability to address    decision-making. Improved data analytics will
          the tax gap.                                          better position us to optimize operations for
                                                                taxpayers and employees alike.
          We will devote resources to enforcing the tax laws
          against taxpayers who attempt to avoid paying         We will work to attract and retain the best talent as
          their tax obligations. All compliance efforts will be   we transition to being a modern, digitally capable,
          consistent with the Secretary of the Treasury’s       customer-centric agency. We will develop and
          August 10, 2022, directive that IRA resources are     support a workforce that has modern tools to do its
          not used to increase the share of small businesses    job effectively, broad knowledge of complex tax
          or households earning $400,000 or less that are       issues, analytical capabilities to work efficiently
          audited relative to historical levels. We will use    and effectively, and the organizational culture



       8  IRS IRA Strategic Operating Plan
          Part I: Executive Summary
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