IRS Reports Improved Phone Performance to Protect Funding – Reuters

On Feb 27, 2024

TL/DR –

The U.S. Internal Revenue Service (IRS) has improved its tax filing service significantly, with a 92% service level on its toll-free phone line and hold times of less than two minutes. This follows a funding boost from the 2022 Inflation Reduction Act, which has allowed the IRS to hire over 5,000 staff, modernise its technologies, and improve taxpayer services. The IRS has also introduced a “callback” feature if wait times exceed 15 minutes, a practice common in private-sector call centers.

Improved IRS Phone Service Metrics Thanks to Additional Funding

The Internal Revenue Service (IRS) is flaunting improved tax filing services, including a 92% level of service from its main toll-free line and reduced hold time to under two minutes. These improvements are due to the $80 billion funding from the 2022 Inflation Reduction Act, which Republicans in Congress are currently attempting to reclaim.

In 2022 alone, the IRS hired over 5,000 workers and has grown this number to 5,700 as of Feb. 23, speeding up return processing and telephone assistance. Additionally, a new “callback” feature is available to taxpayers when wait times exceed 15 minutes.

The Inflation Reduction Act aimed to compensate for a decade of resource cuts, modernize outdated technology, strengthen audit capabilities, and upgrade taxpayer services. However, a proposed bipartisan deal for the 2024 fiscal year could redirect $20 billion of these funds.

U.S. Treasury Deputy Secretary, Wally Adeyemo, praised the improved service, stating that taxpayers are reaping benefits from in-person, online, and over-the-phone services due to the Inflation Reduction Act. He also noted the newfound callback feature, which allows taxpayers to spend less time on hold.

IRS data shows that in 2022, only 15% of callers to its main line were served due to staffing shortages from budget cuts. This improved to 87% last year, surpassing the goal of handling 85% of calls, and the current year’s 92% level continues that upward trend. Moreover, the IRS utilized the additional funding to open or reopen 50 taxpayer assistance centers, increasing operating hours by 4,000, ahead of the 8,500-hour goal for this tax season.

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