IRS Needs Fund Redistribution for Ongoing Modernization – MeriTalk

TL/DR –

The IRS’s National Taxpayer Advocate, Erin M. Collins, has urged Congress to reallocate some funds from the IRS’s Inflation Reduction Act to help modernize the IRS. In her mid-year report to Congress, she praised the agency’s progress in modernizing its technology but stressed the need for continued commitment and funding to meet taxpayers’ demands. The IRS had initially been granted $80 billion from the Inflation Reduction Act, which was later reduced to $58 billion, with only $3.2 billion allocated to taxpayer services and $4.8 billion for business systems modernization.

National Taxpayer Advocate calls for IRS Modernization

Erin M. Collins, the IRS’s National Taxpayer Advocate, urges Congress to reallocate funds from the Inflation Reduction Act for the IRS’s modernization initiatives. This plea was detailed in the IRS’s mid-year report to Congress.

Collins emphasizes that ‘transformational’ changes critically rely on innovative technology and thinking. These changes are a part of the IRS’s Strategic Operating Plan aiming to enhance the IRS’s digital capabilities and the quality of taxpayer services.

Although the agency has made significant progress in upgrading its technology, Collins emphasized that additional funding is crucial.

“The IRS’s Strategic Operating Plan – focusing on taxpayer services and technology modernization – should be adequately funded. Regular congressional oversight is needed to ensure funds are well-utilized,” Collins said.

Initially, the IRS was granted $80 billion from the Inflation Reduction Act (IRA), reduced later to $58 billion. A meager $3.2 billion was allocated to taxpayer services and $4.8 billion towards business systems modernization.

Moving forward, the agency should focus on enhancing transparency by further modernizing technological processes. With the IRS’s tech modernization involving artificial intelligence like voicebots and chatbots, Collins stressed the importance of transparency, especially concerning taxpayer rights and data privacy.

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