IRS RESPONSE TO RECOMMENDATION: The IRS remains committed to increasing the capabilities and functionality of Individual Online Account (IOLA) to provide robust self-service options available at the convenience of the taxpayer. We are awaiting final approval for the IOLA Fiscal Year 24 Inflation Reduction Act Delivery Plan. While we do not yet have the functionality to allow users to track submissions through the entire process as recommended, we are tentatively planning to develop and deploy numerous IOLA enhancements to support transparency. These include the ability to view one’s audit status (May 2024), refund tracking (June 2024), Amended Return tracking, (September 2024), and Status Tracking Notifications (December 2024).

In addition, we are planning to develop and deploy IOLA functionality allowing taxpayers to submit an Offer in Compromise (OIC) online. Using an incremental approach, we plan to incorporate an OIC Eligibility check (August 2024), add OIC related payment options (September 2024), and provide OIC Pre-Qualifier and OIC Submission tools (November 2024).

IOLA generates all available balance due amounts owed, and if available, total amounts owed. Currently IOLA is not able to automatically calculate a payoff figure for all balances because of certain account restrictions. These accounts require manual calculations by an IRS assistor. However, the introduction of a Lien Payoff calculator in IOLA (June 2024), will further expand our ability to provide customers with current and accurate payoff balances.

The scheduled dates referenced above are tentative. Planned development and enhancements are contingent on funding approval as determined by the prioritization of other planned work.

CORRECTIVE ACTION: The IRS is tentatively planning to develop and deploy numerous IOLA enhancements to support transparency. These include the ability to view one’s audit status (May 2024), refund tracking (June 2024), Amended Return tracking, (September 2024), and Status Tracking Notifications (December 2024). The IRS is also planning to develop and deploy IOLA functionality allowing taxpayers to submit an Offer in Compromise (OIC) online. Using an incremental approach, it plans to incorporate an OIC Eligibility check (August 2024), add OIC related payment options (September 2024), and provide OIC Pre-Qualifier and OIC Submission tools (November 2024).

TAS RESPONSE:It is a positive development that the IRS is working toward expanding the capabilities and functionalities available within IOLA. Providing additional features within IOLA will improve the taxpayer experience.

ADOPTED, PARTIALLY ADOPTED or NOT ADOPTED: Partially Adopted

OPEN or CLOSED: Open

DUE DATE FOR ACTION (if left open): 12/31/2024

IRS RESPONSE TO RECOMMENDATION: The IRS agrees to implement the TAS recommendation in full, with the assumption that this recommendation refers to applicable self-service applications being accessible within both individual and business online accounts and not a recommendation to merge the individual and business online accounts.

When adding access to the various self-assistance applications that are available, we plan to integrate access based on the intended audience for the relevant applications. Most self-service applications are designed for a specific user group and integrating that functionality into offerings for other groups would not make sense. As an example, integrating our Tax Withholding Estimator tool, which is designed specifically for individual taxpayers, into Business Tax Account would not make sense. Capabilities with similar functions to the applicable self-service applications will be integrated into the appropriate products.

The IRS is already working to integrate several of our most trafficked self-service applications into individual online account. We plan to integrate the majority of these applications by FY25. Additional integrations will occur as product planning permits.

CORRECTIVE ACTION: The IRS is already working to integrate several of our most trafficked self-service applications into individual online account. It plans to integrate the majority of these applications by FY25. Additional integrations will occur as product planning permits.

TAS RESPONSE: It is a positive development that the IRS is working toward integrating the unauthenticated self-service applications into online accounts. Allowing taxpayers to access all self-service tools within online accounts will improve the taxpayer experience.

ADOPTED, PARTIALLY ADOPTED or NOT ADOPTED: Adopted

OPEN or CLOSED: Open

DUE DATE FOR ACTION (if left open): Ongoing

IRS RESPONSE TO RECOMMENDATION: The IRS’s Business Tax Account (BTA) application is already live and available to some business entity types. By FY 2025, BTA will be available to most business entities, and will include comprehensive features including viewing tax balance due, making payments, viewing payment history, obtaining digital tax transcripts, and obtaining digital notices and letters. Currently, certain business tax refunds can be tracked through the Individual Online Account (IOLA) depending on the type of business entity (e.g., Sole Proprietor). Technically, due to the flow through income from
Forms 1065 and 1120-S, refund tracking is available because it is tracked through IOLA. Other more complex business entities do not have refunds attributed to tax returns in the same way that individual taxpayers do, and a refund tracking tool would not be appropriate in those cases.

CORRECTIVE ACTION: By FY 2025, BTA will be available to most business entities, and will include comprehensive features including viewing tax balance due, making payments, viewing payment history, obtaining digital tax transcripts, and obtaining digital notices and letters.

TAS RESPONSE: Although it may not be able to bring a comprehensive set of features to BOLA by the end of FY 2025, the IRS continues to expand the available features and business entities served. The IRS should continue working toward a comprehensive BOLA offered to all types of business entities.

ADOPTED, PARTIALLY ADOPTED or NOT ADOPTED: Partially Adopted

OPEN or CLOSED: Open

DUE DATE FOR ACTION (if left open): Ongoing

IRS RESPONSE TO RECOMMENDATION: The IRS remains committed to increasing the capabilities and functionality of Tax Pro Account to provide authorized representatives seamless access to their clients’ online account information. We are awaiting final approval for the Tax Pro Account Fiscal Year Inflation Reduction Act Delivery Plan. The ability for tax professionals to view notices sent to their clients is not currently planned for inclusion in Tax Pro Account as there are systemic limitations to accessing that data. Development of Secure 2-Way Messaging has begun, which will allow authorized representatives to upload documentation in specific instances. However, there are dependencies for deploying this capability within Tax Pro Account that must be addressed and we do not yet have tentative timeframes for completion or deployment. The ability to provide these capabilities within Tax Pro Account is dependent on the identified dependencies being removed.

The IRS is actively planning to develop and deploy numerous capabilities to increase Tax Professional access to their clients’ online account information. Adding functionality to View and Act on behalf of an individual taxpayer will include the ability to view posted (November 2023), scheduled/pending, cancelled, and returned payments (December 2023), as well as allow authorized representatives to create and revise payment plans including Installment Agreements (Quarter (Q) 4 2024). In addition, we plan to incorporate the capability to request a CAF for individuals (Q3 2024), request and submit business taxpayer authorizations (Q1 2025), and support for Business Tax Professionals to link and manage business CAF access (Q4 2024). The ability to view and act on behalf of a business taxpayer is also planned for inclusion in Tax Pro Account. It will include the ability to view a business taxpayer’s balance due (deployed December 2023) and posted, scheduled/pending, cancelled, and returned payments (Q4 2024). The above planned development and other future enhancements are contingent on funding approval as determined by the prioritization of other planned work. The dates cited are tentative. We will continue to evaluate.

CORRECTIVE ACTION: The IRS is actively planning to develop and deploy numerous capabilities to increase Tax Professional access to their clients’ online account information. Adding functionality to View and Act on behalf of an individual taxpayer will include the ability to view posted (November 2023), scheduled/pending, cancelled, and returned payments (December 2023), as well as allow authorized representatives to create and revise payment plans including Installment Agreements (Quarter (Q) 4 2024). The IRS plans to incorporate the capability to request a CAF for individuals (Q3 2024), request and submit business taxpayer authorizations (Q1 2025), and support for Business Tax Professionals to link and manage business CAF access (Q4 2024). The ability to view and act on behalf of a business taxpayer is also planned for inclusion in Tax Pro Account. It will include the ability to view a business taxpayer’s balance due (deployed December 2023) and posted, scheduled/pending, cancelled, and returned payments (Q4 2024). The above planned development and other future enhancements are contingent on funding approval as determined by the prioritization of other planned work.

TAS RESPONSE: Tax professionals play an important role in tax administration. Helping them access taxpayer data easily, quickly, and accurately is essential. Although the IRS is not able to bring a full set of features to Tax Pro immediately, continuing to add features and expand functionality of Tax Pro accounts is beneficial. The IRS should continue working toward a comprehensive Tax Pro account.

ADOPTED, PARTIALLY ADOPTED or NOT ADOPTED: Partially Adopted

OPEN or CLOSED: Open

DUE DATE FOR ACTION (if left open): 12/31/2025

IRS RESPONSE TO RECOMMENDATION: The Reporting Agents can already access return transcripts through e-Services. They must register through ID.me and complete an e-file application with the role as a Reporting Agent. If the requirements are met, they will have access to “Reporting Agent TDS.”

In addition, Reporting Agents can validate taxpayer identification numbers (TIN)s, by completing the TIN Matching Application and meeting the qualifications for the TIN Matching Program. Form 8655, Reporting Agent Application, is on the Modernized electronic Filing (MeF) future development list and contingent on prioritizing funding and other work.

CORRECTIVE ACTION: Form 8655, Reporting Agent Application, is on the Modernized electronic Filing (MeF) future development list and contingent on prioritizing funding and other work.

TAS RESPONSE: We support the IRS continuing to expand online services for Reporting Agents. The IRS should continue discussions with Reporting Agents to understand their needs and issues and determine if the above steps provide the necessary services.

ADOPTED, PARTIALLY ADOPTED or NOT ADOPTED: Partially Adopted

OPEN or CLOSED: Open

DUE DATE FOR ACTION (if left open): Ongoing

IRS RESPONSE TO RECOMMENDATION: Digital Inventory Management (DIM) is the digital backend workflow for processing Document Upload Tool (DUT) submissions. Currently, DUT does not integrate with Enterprise Case Management (ECM). However, IT is working to determine if ECM can connect to DUT and be used as a backend workflow. If not, then those users who currently use ECM, will have to access DIM first to view the submissions and then access ECM to view the corresponding case and make updates as necessary. The two systems (DIM and ECM) will not be connected in any way at this time.

Update: The Digital Inventory Management (DIM) is an employee-facing system that offers enhanced document management features and functionality to assist the IRS in efficiently and effectively managing inventory received electronically.

DIM is the digital backend solution for managing taxpayer submissions received via the Document Upload Tool (DUT) for All for BODs/organizations that either do not have an existing downstream system that can accept the information or when a connection to one cannot be made. The first release of DIM for DUT for All inventory deployed July 30, 2024.

Currently, DUT does not integrate with Enterprise Case Management (ECM) as there is not a current BOD use-case for doing so. However, DUT IT can establish a connection from DUT to ECM when the appropriate BOD use-case is determined (e.g., for a BOD, like TE/GE or RPO, that manages responses to Repository Letters through ECM. DIM and ECM will not be connected in any way at this time.

The DUT IT team established a similar connection to CII in 2023 and is partnering with TS AM to establish a connection with EFS (targeting late 2024/early 2025). As additional notices/letters are added to the DUT and additional BODs/groups are onboarded, the DUT and DIM project teams will work with BODs to understand where connections to existing downstream systems can be made before onboarding users to DIM.

CORRECTIVE ACTION: IT is working to determine if ECM can connect to DUT and be used as a backend workflow.

TAS RESPONSE: While we are encouraged by the development of DIM as a backend workflow, we do not think the IRS will realize full potential or efficiencies of a backend workflow until the IRS integrate it with ECM.

ADOPTED, PARTIALLY ADOPTED or NOT ADOPTED: Partially Adopted

OPEN or CLOSED: Open

DUE DATE FOR ACTION (if left open): 4/15/2025

IRS RESPONSE TO RECOMMENDATION: ​​The IRS agrees to include courses that contain IOLA, Tax Pro, BTA, and digital communication tools to offer to employees during their mandatory annual CPE training. Currently, CSRs are referring taxpayers to our self-help resources located on IRS.gov. This information is accessed by navigating to the ‘Help’ option at the top of the IRS.gov homepage. IRS.gov also provides links to Publications, Form Instructions, and an Interactive Tax Assistant.

CORRECTIVE ACTION: The IRS agrees to include courses that contain IOLA, Tax Pro, BTA, and digital communication tools to offer to employees during their mandatory annual CPE training.

TAS RESPONSE: We support the IRS’s plan to provide annual training on online accounts and digital communications tools. Training employees on available online account features will improve the taxpayer experience.

ADOPTED, PARTIALLY ADOPTED or NOT ADOPTED: Adopted

OPEN or CLOSED: Open

DUE DATE FOR ACTION (if left open): Ongoing

IRS RESPONSE TO RECOMMENDATION: In support of The Inflation Reduction Act Strategic Operating Plan, the IRS remains committed to notifying taxpayers, tax professionals, and our employees about new features and enhancements to IOLA, Tax Pro, BTA, and digital communication tools as soon as they are completed and deployed.

There are specific Internal Revenue Manual (IRM) references for IOLA and Tax Pro with information about the applications, including what functionality is available and what data is presented to the taxpayer or authorized representative. We make updates after verification of a successful deployment. IRM Procedural Updates and Servicewide Electronic Research Program Alerts are published for our frontline employees to keep current with new developments.

We also maintain an Employee Demo site for both IOLA and Tax Pro Account to better educate our employees. The site contains test data to highlight the functionality of the tools as well as various end user scenarios. The demo site is updated after live deployments, to ensure employees are aware of the latest front-end functionality. In addition, we will continue to partner with W&I Communications and Liaison to inform our external stakeholders about new features and relevant upgrades. An IOLA Awareness briefing is hosted on ITM (Course 67802) and is available for use during training.

CORRECTIVE ACTION: The IRS continues to partner with W&I Communications and Liaison to inform our external stakeholders about new features and relevant upgrades.

TAS RESPONSE: We are encouraged that the IRS provides information on updates internally and externally. However, the information is challenging to locate and lags behind the updates. We would encourage the IRS to consider ways to more effectively and timely communicate these updates, including highlighting the Employee Demo site as an Employee Resource on the IRS employee homepage.

ADOPTED, PARTIALLY ADOPTED or NOT ADOPTED: Adopted

OPEN or CLOSED: Open

DUE DATE FOR ACTION (if left open): Ongoing

IRS RESPONSE TO RECOMMENDATION: The IRS is very interested in expanding identity proofing options, including increasing the number of Credential Service Providers (CSPs) and expanding in-person identity assistance to taxpayers. The IRS tested in-person identity proofing assistance and is evaluating the results, which will inform the expansion of identity proofing options that align with IRS Strategic Operating Plans to deliver seamless service. While the IRS is ready to partner with additional CSPs, it is the CSPs who are not yet equipped to authenticate at the level taxpayer data requires and provide the number of transactions per second the IRS needs to meet taxpayer demands. IRS Cybersecurity continues to revisit the marketplace for new and emerging CSPs that have developed a mature solution that aligns with NIST 800-63-3 and other industry certifications. The implementation of additional CSPs will depend on the readiness of the CSPs, not the readiness of the IRS.

CORRECTIVE ACTION: The IRS tested in-person identity proofing assistance and is evaluating the results, which will inform the expansion of identity proofing options that align with IRS Strategic Operating Plans to deliver seamless service. While the IRS is ready to partner with additional CSPs, it is the CSPs who are not yet equipped to authenticate at the level taxpayer data requires and provide the number of transactions per second the IRS needs to meet taxpayer demands. IRS Cybersecurity continues to revisit the marketplace for new and emerging CSPs that have developed a mature solution that aligns with NIST 800-63-3 and other industry certifications. The implementation of additional CSPs will depend on the readiness of the CSPs, not the readiness of the IRS.

TAS RESPONSE: While the IRS cannot currently adopt this recommendation, it is encouraging that the IRS continues to explore expanding CSP options while prioritizing taxpayer service and security.

ADOPTED, PARTIALLY ADOPTED or NOT ADOPTED: Partially Adopted

OPEN or CLOSED: Open

DUE DATE FOR ACTION (if left open): 12/31/2025

IRS RESPONSE TO RECOMMENDATION: The IRS is exploring opportunities for taxpayers to access their online accounts. Field Assistance is actively strategizing methods to expand its footprint and increase the number of Facilitated Self Assistance (FSA) service options. This includes possibly replacing kiosks with laptops. By replacing kiosks and determining if the same service can be offered on a laptop, we may deploy additional FSA laptops in more TAC locations.

Currently, the IRS has 37 locations with kiosks that provide self-help assistance to taxpayers by offering access to IRS e-services. Service tasks that can be addressed by using www.irs.gov, such as filing tax returns and making payments on accounts, are accessible to walk-in taxpayers. A Field Assistance employee serves as a facilitator and guides the taxpayers in navigating through the menus using touch-screen technology.

Services offered include access to: IRS.gov; Forms and Publications; Tax Law Questions – Interactive Tax Assistant; Transcripts; Tax ID Application; Online Payment Agreement; Free-File Services; EITC Assistant; Where’s my Refund?; and EFTPS-Electronic Federal Tax Payment System.

CORRECTIVE ACTION: The IRS is exploring opportunities for taxpayers to access their online accounts. Field Assistance is actively strategizing methods to expand its footprint and increase the number of Facilitated Self Assistance (FSA) service options. This includes possibly replacing kiosks with laptops.

TAS RESPONSE: It is encouraging that the IRS is exploring opportunities to increase FSA options. The program needs to expand beyond 37 locations, focus on underserved communities and populations, and publicize the locations and benefits of use to provide more taxpayers access to online services.

ADOPTED, PARTIALLY ADOPTED or NOT ADOPTED: Partially Adopted

OPEN or CLOSED: Open

DUE DATE FOR ACTION (if left open): 12/31/2024

IRS RESPONSE TO RECOMMENDATION: IRS has currently met all data calls required for actions required in the Delivering a Digital-First Public Experience policy memo and continues to collaborate closely with Treasury and OMB on completion of the remaining actions as details are provided. In addition to these actions, OMB Memorandum M-23-22 includes more than 70 unique requirements for Agencies to implement to improve the delivery of digital services to the public. The majority of these requirements require sustained, ongoing operational support rather than being achieved as a specific milestone. IRS has completed a preliminary assessment of current operations against the criteria in M-23-22, and is already meeting, or making progress toward achieving, the majority of these requirements. Some requirements, such as the adoption of the USWDS, will require more significant transition across IRS digital services, and the Agency is in the process of evaluating how to make this transition most effectively in a timely manner. IRS expects to be able to show demonstrable progress toward achieving all outlined requirements by the start of FY26.

CORRECTIVE ACTION:IRS has completed a preliminary assessment of current operations against the criteria in M-23-22, and is already meeting, or making progress toward achieving, the majority of these requirements. Some requirements, such as the adoption of the USWDS, will require more significant transition across IRS digital services, and the Agency is in the process of evaluating how to make this transition most effectively in a timely manner. IRS expects to be able to show demonstrable progress toward achieving all outlined requirements by the start of FY26.

TAS RESPONSE: Though it is a long-term project, it is encouraging to see the IRS’s plan to continue working toward achieving full compliance with M-23-22. Continuing progress toward meeting the M-23-22 requirements will improve the customer service experience for taxpayers.

ADOPTED, PARTIALLY ADOPTED or NOT ADOPTED: Adopted

OPEN or CLOSED: Open

DUE DATE FOR ACTION (if left open): Ongoing