Washington, D.C. — As tax filing season begins, the IRS continues to build on the improvements made possible by funds from the Inflation Reduction Act. A new column from the Center for American Progress reviews the progress made by the IRS toward modernization thus far as well as major initiatives currently underway.
Since the enactment of the Inflation Reduction Act, the IRS has made significant progress in improving customer service, making tax filing simpler, and reducing the tax gap. This CAP column highlights just how much has been accomplished in just more than one year. Important areas of advancement include:
- Improving customer service: Wait times for filers seeking telephone assistance from the IRS dropped from 27 minutes in 2022 to just 4 minutes in 2023.
- Creating a no-cost public option for filing: The IRS will inaugurate Direct File, a no-cost public option for tax filing for eligible individuals in 12 states as part of the 2024 filing season. The new option will be a mobile friendly filing system and will offer real-time support.
- Collecting taxes owed by the very wealthy: Inflation Reduction Act-supported efforts to boost compliance among individuals with incomes in excess of $1 million who owe more than $250,000 in tax debt have already resulted in the collection of $520 million in previously unpaid taxes.
- Addressing corporate tax avoidance: The funds provided by the Inflation Reduction Act have allowed the IRS to expand targeted audit programs to ensure that large corporations pay their fair share with a focus on complex cross-border issues and making sure that U.S. subsidiaries of foreign multinationals pay what they owe.
“The infusion of funds from the Inflation Reduction Act has enabled the IRS to improve customer service and begin to make a dent in the tax gap,” said Jean Ross, CAP senior fellow for Inclusive Growth. “Congress should reject House Republican-backed proposals to rescind more of these funds and should protect baseline spending for the IRS through the appropriations process.”
Read the column: “Rebuilding the IRS improves customer service and reduces the tax gap” by Jean Ross
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