[November Update] With additional funding in place now, the IRS has now hired nearly 5,000 people across their operations and taxpayer assistance centers to deal with filing backlogs, delayed processing and customer service issues.
[September 2022] In a recent speech, Treasury Secretary Janet Yellen announced how part of the funding approved under the Inflation Reduction Act (IRA) will be spent by the IRS to modernize systems and hire a lot more staff to improve tax return and refund processing.
Here are some of the key initiatives being implemented (you can also see a video of this here)
The Biggest Issues With the IRS
More Staff To Get a Live IRS Agent
Getting a live IRS agent in the last 2 to 3 tax seasons has been a challenge with hold times over 1 hour in many cases.
Hiring and training more representatives, if done in time, will be a huge help along with increase staffing at Taxpayer Assistance Centers.
With many legacy tax processing systems and ongoing performance challenges, major upgrades and modernization efforts will allow the IRS to do things more efficiently in an automated and more predictable manner.
More Enforcement and Audits
But to pay for all the extra funding and overall IRA bill, the IRS will have to collect more unpaid taxes and target higher net worth individuals and business to pay their fair share.
Do you think this will improve tax processing in 2023 and clear past year backlogs more effectively?