Inflation Reduction Act Turbocharges Key Areas for Remarkable Upgrades
Boosted IRS Funding – A Positive Impact on Taxpayers?
Many taxpayers have faced difficulties with their taxes for years, partly due to the IRS being underfunded. However, with the Inflation Reduction Act granting the IRS $80 billion in funding over a 10-year period, the taxpayer experience may soon improve. While part of these funds will be allocated for enforcement, much of it will be used to enhance the taxpayer experience. The IRS has recently released its Strategic Operating Plan for 2023 through 2031, pledging to “dramatically improve services to help taxpayers meet their obligations and receive the tax incentives for which they are eligible.” Here are three areas where taxpayers could see improvements:
1. Wait Times
Long wait times have been a common issue when calling the IRS for assistance. In 2021, the IRS received a record 282 million calls, but only 32 million of those calls were answered by a customer service agent. With the additional funding, the IRS can increase hiring to reduce wait times, especially during tax season when taxpayers may face filing deadlines.
2. Agent Education
Even when taxpayers manage to speak with an IRS agent, there is no guarantee that the agent will be able to accurately answer their questions or resolve their issues. By investing a portion of the newly acquired funding into agent training, IRS representatives will be better equipped to assist callers effectively.
3. Free Tax Help
Although the IRS does offer programs like the Volunteer Income Tax Assistance program to help low-income filers and those with language barriers, many taxpayers still struggle to afford professional tax preparation services. With the new funding, the IRS could expand its free tax help offerings for a wider range of individuals.
While some may be concerned about the increased IRS funding leading to higher audit rates, a well-funded agency could actually streamline the tax filing process and make it easier for the IRS to issue refunds. Faster refunds mean taxpayers can enjoy seeing their money in their bank accounts sooner, making the additional IRS funding a welcome change.
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Original Story at www.fool.com – 2023-05-24 09:00:29
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