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Initiative 2.7 Use improved data and analytics to tailor timely collections
contacts
The IRS will provide early, tailored contacts to all taxpayers with past-due balances,
and will only escalate to more intensive treatments when appropriate
Where we are heading Increase staff in the Independent Office
of Appeals to facilitate the resolution of
When taxpayers do not file or fully pay their taxes collection matters, as well as in the Office
on time, resolving their tax obligations becomes of Chief Counsel to support collection and
increasingly difficult as time progresses. Early appeals and to litigate cases when necessary.
contact gives the IRS an opportunity to assist 2. Develop improved analytics models to better
these taxpayers in resolving their underlying inform taxpayer contacts. Predict which
problems so that they can avoid additional accounts are unlikely to self-correct so that
liabilities. we may prioritize contacts to these accounts
using real-time data. Build models to predict the
We will use more data and better analytics to ultimate resolution of each balance-due case
reach out to taxpayers earlier, with more options to ensure that the case is treated appropriately.
to address their unpaid balances quickly and
simply. We will shift to a collection approach that 3. Refine collection communications to make
treats all accounts individually, with a customized them more efficient and effective. Redesign
approach that reflects the cause of the current tax current notices and other communications
debt, considers appropriate collection alternatives to make them clearer and to help the taxpayer
and enables the taxpayer to comply. We will understand directions and a seamless way
accelerate attempted resolution by basing the to resolve the issue.
first compliance contact on the most likely 4. Develop and pilot new collection treatments
ultimate resolution of that case. based on data and analytics. Develop new
collection treatments by leveraging new
data and IT capabilities, such as digital
What success would look like communications channels.
Success for this initiative would include a higher
percentage of new balance-due cases closed Milestones
within one year of assessment, and a higher
number of communication methods used to FY 2024
contact taxpayers based on their preferred 1 Analytics models used earlier in the
channels, including text, telephone and email. collection process, so taxpayers receive
Taxpayers would also resolve past-due tax tailored communications immediately
balances more quickly. after the first notice that balance is due
Key projects FY 2025
2 Analytics models refined to better predict
1. Hire, onboard and train the workforce which taxpayers will self-correct and the
needed to assist taxpayers and address likely resolution of each balance-due
balance-due accounts more quickly. case to better inform taxpayer contacts
Replenish the collection workforce by hiring
specialists and developing the current FY 2025
workforce’s skills to reach the desired collection 3 New collection treatments piloted and
coverage, to address high-priority segments, developed based on data and analytics
and to assist taxpayers in compliance options.
60 IRS IRA Strategic Operating Plan
Part II: Objectives and Initiatives
