Page 43 - IRS Plan
P. 43
Initiative 1.9 Help taxpayers understand and claim appropriate credits
and deductions
Taxpayers, including individuals and small businesses, will receive education and assistance
in claiming available incentives
Where we are heading What success would look like
Over the course of the last several decades Success for this initiative would include an
Congress has given the IRS responsibility for increase in the share of taxpayers successfully
delivering certain incentives through tax credits claiming incentives for which they are eligible.
and deductions, including to small businesses Taxpayers would also face fewer barriers to
and individuals. We recognize that in order to claiming credits and deductions they are eligible
deliver on this mandate from Congress, we must to receive as we redesign policies, processes
incorporate the appropriate delivery of these and procedures to facilitate access. We would
incentives into every aspect of the IRS. Several also see fewer inadvertent errors, as well as less
IRS education and outreach programs facilitate fraud and abuse.
taxpayer access, but many taxpayers remain
unaware of tax credits and deductions for which Key projects
they are eligible or face other barriers that deter
them from claiming appropriate credits and 1. Coordinate incentive delivery across
deductions. For example, the IRS estimates initiatives. Ensure that all the related initiatives
that 21% of all eligible taxpayers did not claim under the Strategic Operating Plan include
the Earned Income Tax Credit in TY 2019. 2 design choices and use data to help taxpayers
understand and claim appropriate incentives.
We will remove barriers to claiming tax credits Facilitate collaboration across programs
for eligible individuals and small businesses, affecting credit and deduction delivery to
including those who are not required to file tax improve the experience of those making claims.
returns, while maintaining robust measures to
prevent inadvertent errors, fraud, and abuse. We 2. Review and revise policies and processes
will expand outreach, education, and partnerships to make the process for taxpayers to claim
to help taxpayers access appropriate tax credits credits and deductions more efficient.
and deductions and to coordinate credit and Examine pathways and programs for
deduction delivery across the IRS. We will also understanding and claiming incentives
review internal policies, processes and procedures to improve accessibility for eligible taxpayers.
to reduce barriers and burdens for taxpayers to 3. Improve understanding of the credits
claim appropriate credits and deductions. We will and deductions gap. Use analytics to assess
develop tools to measure uptake by eligible taxpayer uptake of credits, particularly those
individuals and small businesses and estimate the intended to benefit small businesses and
share of eligible individuals and small businesses underserved communities. Publish analyses
who do not claim their credits and deductions. on uptake of incentives, including overclaims
Based on this analysis, we will improve efforts to and underclaims, and incorporate our findings
help taxpayers receive the incentives for which into tax gap reporting.
they are eligible.
4. Incorporate a “credits and deductions”
search function in Online Accounts
and improve relevant content on IRS.gov.
Improve self-service pathways for taxpayers
to learn about credits and deductions for which
they might be eligible.
36 IRS IRA Strategic Operating Plan
Part II: Objectives and Initiatives
