WASHINGTON – The U.S. Department of the Treasury and Internal Revenue Service (IRS) have detailed the accomplishments made in the initial year of implementing the Strategic Operating Plan aimed at transforming the IRS with resources from the Inflation Reduction Act.
Secretary of the Treasury Janet L. Yellen commended the progress made, stating, “Thanks to resources from President Biden’s Inflation Reduction Act, the IRS has made major progress in the first year of implementation of its plan to ensure the agency is delivering for American taxpayers.”
The IRS significantly improved customer service during the 2024 Filing Season, answering over 1 million more calls than the previous season while keeping the average wait time just over three minutes. The introduction of a callback option saved taxpayers an estimated 1.5 million hours of waiting on hold. Additionally, the IRS served more than 780,000 taxpayers in person at Taxpayer Assistance Centers, marking an increase of over 37% compared to 2023.
In terms of technology, the IRS modernized various online tools like Where’s My Refund and launched new tools such as the Business Tax Account for specific entities. The Paperless Processing Initiative, initiated in August 2023, allowed taxpayers to go paperless by the 2024 Filing Season, enabling e-Filing for additional forms. Moreover, the Direct File Pilot Program saw over 140,000 taxpayers in 12 states with simple returns submitting accepted returns for free directly with the IRS.
The IRS also focused on enforcement efforts against complex partnerships, large corporations, and wealthy individuals. Notably, the agency collected $520 million in back taxes from around 1,000 delinquent millionaires and billionaires who had not paid their tax debts. Leveraging artificial intelligence and advanced analytics, the IRS initiated audits on significant partnerships and large corporate taxpayers to ensure compliance.
These initiatives underscore the IRS’s commitment to enhancing taxpayer service, modernizing technology, and increasing enforcement to uphold tax obligations and reduce the deficit.
