With this year’s federal income tax deadline looming, the Internal Revenue Service has detailed its modernization plan that Congress has enabled with a 10-year, $80 billion commitment.
IRS staffing is 20% lower than in 2010, which results in spotty customer service and an incentive for people to cheat on their taxes.
According to the agency, it is unable to collect about $600 billion in a year in owed taxes, an amount equivalent to about 3% of gross domestic product.
Under the modernization plan, the agency will become much more service-oriented while increasing its emphasis on tax compliance by the wealthiest Americans. Lower-income Americans have a 99% compliance rate because their taxes automatically are deducted from wages.
So far this year, according to IRS Commissioner Danny Werfel, the agency has hired 5,000 service representatives who have answered 1 million more calls than during the 2022 filing season, reducing average wait times by four minutes. It plans to hire 2,000 more service reps this year and 1,500 auditors.
Treasury Secretary Janet Yellen already has issued an order directing the agency not to increase audit rates on taxpayers who earn less than $400,000.
In 2024, the agency will hire 6,400 more service representatives, 7,200 auditors, 3,800 operations staff and 200 technology specialists. Within five years, long overdue technology upgrades will enable filers to download their account data directly from the IRS, respond to notices and file documents.
The modernization plan is necessary and well-crafted in the cause of efficiency and fair taxation.
— The Citizens’ Voice, Wilkes-Barre/ TNS