G1-2023

FY23 Goal 1: Resolve Taxpayer Problems Accurately and Timely

Organizational Objectives

Recruit college graduates, increase staffing, and realign TAS’ services to better meet taxpayer needs.

Status: Closed
Completion Date: 09/29/2023

Quarterly Update:
1st Quarter: The Taxpayer Advocate Service (TAS) continued to identify ways to recruit new employees and better meet taxpayer needs during the first quarter of Fiscal Year (FY) 2023 through several areas including building an aggressive hiring plan for the next four years to maximize an additional $15 million in funding so TAS is ready for the downstream impact from IRS increases in Level of Service and increased enforcement activities. Also, TAS initiated a system to route international callers to either the Hawaii office or Puerto Rico office depending on their country of residence. The call routing system will be available in the second quarter. Further, TAS’ Human Resources (HR) function is hiring a permanent Recruiting Analyst for the stand-up of the our recruiting program to ensure TAS remains competitive in the increasingly tight job market.

TAS is considering all diverse recruiting options including: Special Hiring Authority, Schedule A Hiring, Veteran Hiring Programs, the Veteran’s Repository, Internships, and High School and College Student Hiring. TAS HR is tracking events through CSO’s Outreach and Recruitment database on National-Level activities, including Virtual job fairs, USA Jobs info sessions, IRS info sessions, TAS and IRS websites, videos and social media. Through IRS Human Capital Office (HCO) Strategic Talent Analytics & Recruitment Solutions (STARS) team, and additional support from the IRS’s Social Media Team, we have access to numerous platforms, including: IRS news, CIRCA, Event bright, Handshake, Indeed, LinkedIn/LinkedIn Recruiter, Yello, Purple Briefcase, YouTube, ListServe messages to hundreds of external agencies, and more.

2nd Quarter: TAS has implemented an aggressive hiring plan over the next four years and, in the Fiscal Year 2023 Budget, we received an increase of $15 million in support of advocating on behalf of taxpayers. This funding allows TAS to maintain or increase advocate staffing in all 76 offices so we are ready for the downstream impacts from IRS’ increase in Level of Service and increased enforcement activities will have on TAS operations. We are projecting to hire 340 case advocates and have announced these positions in our offices across the US on USAJOBS.gov and we have held several recruitment events. These announcements are open for one year starting December 27, 2022, through December 2023. Further, through March 11, 2023 TAS has hired 180 employees giving us 1,710 employees, a net increase of 86 employees compared to the same time last year.

Lastly, to continue to improve advocacy to international taxpayers, we evaluated our phone capabilities to automatically route international callers based on their country of origin.

3rd Quarter: TAS has continued to increase staffing in our local offices. Through June 17 TAS hired 327 employees and, to date, we have 1,745 employees on rolls, representing a net increase of 53 compared to the same time last year. To continue to identify potential new employees, we are targeting high schools, community colleges, and university graduates as potential new TAS employees through community job fairs, discussions with students about TAS careers, partnerships with non-profit organizations, and professional organizations.

Further, we continued to improve advocacy offered to our international taxpayers by implementing automatic routing of international callers, based on their country of origin, and established a fax number for international taxpayers in our Honolulu, Hawaii office.

4th Quarter: Through September 23, 2023, the Taxpayer Advocate Service (TAS) hired 531 employees. To date, TAS has 1,826 employees, a net increase of 103 compared to the same time last year. TAS has developed an aggressive hiring plan for Fiscal Year 2024 and depending on our budget we plan to add an additional 140 Case Advocates.

This objective is closed.

Evaluate the IRS’s transparency by reviewing the IRS’s progress in processing returns and other forms as well as its progress in providing taxpayers as much information as possible about processing delays or their refund status.

Status: Closed
Expected Completion Date: 03/31/2023

Quarterly Update:
1st Quarter: In order to better evaluate the IRS’ transparency, TAS has reviewed IRS’ progress in processing returns and its progress in providing information to taxpayers regarding delays in refunds. Specifically, the National Taxpayer Advocate (NTA) has provided IRS with information regarding developing an easy to read dashboard for taxpayers. The NTA included IRS’s Transparency in her Fiscal Year (FY) 2022 Annual Report to Congress (ARC) as one of the top ten Most Serious Problems (MSPs) facing taxpayers.

2nd Quarter: The IRS has recently stated it does not plan to pursue the dashboard at this time. TAS continues to remain available for collaboration with the IRS to provide taxpayers more information regarding return processing.

This objective is complete.

Work with the IRS to eliminate correspondence audit barriers that hinder low-income taxpayer audit resolution, increase burden on taxpayers, and increase the use of downstream resources.

Status: Closed
Completion Date: 09/30/2023

Quarterly Update:
1st Quarter: The Taxpayer Advocate Service (TAS) is working with IRS to eliminate correspondence audit barriers by participating on a cross-functional team examining Automated Underreporter (AUR) and correspondence exam issues. TAS advocated for the IRS to focus on the root causes of non-response rates experienced by low-income taxpayers involved in the correspondence audit process; however, they have not yet pursued this recommendation. Further, TAS focused on developing a docketed exam assistance (DEA) process where Appeals could submit information and records provided by taxpayers which were not previously considered by IRS. Stakeholders agreed to implement the DEA process and facilitate a review of taxpayer information and records by IRS. Additionally, improvements to the process includes communications to inform Appeals about no-change determinations made after the issuance of a Statutory Notice of Deficiency.

2nd Quarter: TAS is working with IRS’s Wage and Investment (W&I) division to stand up a cross-functional team with the Taxpayer Experience Office (TXO) and TAS to address the high default and non-response rates. Also, TAS is working with IRS’ Small Business/Self Employed (SB/SE) division to stand up a cross-Business Operating Division (BOD) team to work to develop short-term and long-term solutions to improve taxpayer service to mitigate premature assessments and potential tax court delays with processing petitions. The teams will meet during the 3rd quarter of fiscal year 2023.

3rd Quarter: TAS continued to participate on cross-functional teams with the IRS, including the Audit Improvement Team led by the Refundable Credits Examination Operations (RCEO). The team provides taxpayers a variety of tools to facilitate the correspondence audit process related to refundable credits. During the third quarter, the team evaluated the online tools developed to assist taxpayers with audits to ensure the IRS.gov webpages include the required links to make it easier for taxpayers to find the information needed in understanding the audit process and sending the correct documents the first time to achieve quicker resolution. TAS also worked with the IRS Automated Underreporter (AUR)/Correspondence Exam Taxpayer Experience team to implement a docketed exam assistance (DEA) process between AUR/Correspondence Exam and Appeals where Appeals can refer “new information” received from taxpayers back to the originating function for consideration before Appeals works the case. The IRMs are being updated with this new guidance and interim guidance memos will be issued by August 15, 2023.

Also, the team created a process where AUR/Correspondence Exam will upload “no-change” certifications on cases onto an Appeals SharePoint site. This will inform Appeals and Counsel about “no-change” determinations made after the issuance of a Statutory Notice of Deficiency and will minimize instances where Counsel and Appeals begin working a case that has been no-changed. Lastly, we are working with a Premature Assessment team which held its first meeting on May 9, 2023.

4th Quarter: During the fourth quarter, the Taxpayer Advocate Service (TAS) continued working on the IRS Automated Underreporter (AUR)/Correspondence Exam Taxpayer experience cross-functional team. The team implemented a docketed exam assistance (DEA) process between AUR/Correspondence Exam and Appeals and issued Interim Guidance Memo AP-08-0823-0007, on August 28, 2023. Additionally, email addresses were established for each campus exam and AUR function for transmission of these DEA requests. These actions addressed all of the issues being considered by the cross-functional team. The IRS closed the Premature Assessment cross-functional team after its initial kick-off meeting and decided there was no longer a concern with premature assessments. Further, the Taxpayer Advocate Service will continue to be members of the Audit Improvement Team in Fiscal Year 2024 and work with examination to improve the taxpayer experience by providing tools that facilitate the audit process and achieve faster resolution by simplifying the audit process.

This objective is closed.

Work with the IRS to assist taxpayers whose requested ITIN renewal was not processed timely.

Status: Open
Expected Completion Date: 12/30/2023

Quarterly Update:
1st Quarter: The Taxpayer Advocate Service (TAS) is working with IRS to assist taxpayers whose Individual Tax Identification Number (ITIN) renewals were not processed timely by identifying the number of times errors were charged to taxpayers related to expired ITINs. Also, throughout Processing Year (PY) 2022, TAS continued to assist taxpayers whose tax benefits were denied improperly due to IRS not processing the renewal applications timely. Further, TAS confirmed from IRS case reviews the primary reason for the increased renewal application reject rate is because of taxpayer non-adherence to an IRS policy change requiring all renewal applications be filed along with a tax return. Lastly, IRS informed TAS of plans to use the digital upload tool to submit supporting documentation for W-7 processing.

2nd Quarter: TAS continues to work to identify the number of math errors charged to taxpayers due to expired Individual Taxpayer Identification Numbers (ITINs) that occurred in Processing Years (PYs) 2022 and 2023 to help more efficiently address ITIN application renewals not processed timely. Also, through the remainder of fiscal year 2023, we will continue assisting taxpayers whose tax benefits were improperly denied because the IRS did not timely process ITIN renewal applications. Lastly, we will monitor and report out on the development of the Case Acceptance Agent (CAA) program modifications, including the Digital Upload Tool (DUT) in the fiscal year 2024 June Report to Congress (JRC).

3rd Quarter: In the third quarter, TAS continued investigating the number of ITIN holders who claimed tax benefits the IRS disallowed by identifying the number of math errors charged to taxpayers due to expired ITINs that occurred in Processing Years 2022 and 2023. Also, we continued identifying obstacles allowing Certifying Acceptance Agents (CAAs) to use a digital upload tool and reported on the development of the CAA program modifications, including the Digital Upload Tool (DUT), in the FY 2024 JRC.

4th Quarter: During the fourth quarter, the Taxpayer Advocate Service identified the number of math errors charged to taxpayers due to expired Individual Taxpayer Identification Numbers (ITINs) that occurred in Processing Years 2022 and 2023 by December 31, 2023. Also, we reported on the development of the Case Acceptance Agent (CAA) program modifications, including the Digital Upload Tool (DUT) in the 2023 Annual Report to Congress. The CAA moratorium will be extended to December 2023 due to a delay caused by a $2 million shortfall for programming enhancements but has since been funded. The program enhancement will enable CAAs to submit applications on-line to participate in the CAA program, using a DUT to submit the applications and supporting documents like fingerprint cards.

This objective will continue in Fiscal Year 2024.

Continue to work with the IRS to identify opportunities to minimize refund delays for taxpayers whose legitimate tax returns are delayed by IRS fraud filters.

Status: Closed
Expected Completion Date: 04/01/2023

Quarterly Update:
1st Quarter: The Taxpayer Advocate Service (TAS) advocated for the widespread use of the digital document upload portal or other technology to allow taxpayers to securely submit identity and income verification documents electronically. TAS worked with Return Integrity and Compliance Service (RICS) to expand the ability of Low Income Taxpayer Clinic (LITC) staff to verify identities of low income taxpayers caught up in identity theft fraud filters and to help get their refunds released. Additionally, TAS representatives participated with IRS on initiatives surrounding Secure Access Digital Identity (SADI) authentication and the Document Upload Tool (DUT) expansion efforts, including participating in the rollout of an international and Individual Taxpayer Identification Number authentication pathway with a Third Party Credential Service Provider. Lastly, we reviewed our local cases and external submissions in the Systemic Advocacy Management System (SAMS) to identify potential programming errors or taxpayer burden deficiencies with IRS fraud filters and advocate for the processing and refund releases for impacted taxpayers.

2nd Quarter: The National Taxpayer Advocate included Online Access for Taxpayers and Tax Professionals in her 2022 Annual Report to Congress (ARC) as one of the top ten Most Serious Problems (MSPs) facing taxpayers. TAS’s preliminary recommendations with IRS initial comments and the final recommendations outlined for IRS response through the ARC tracking and report card process. TAS will continue to collaborate and participate on teams to provide taxpayer perspective feedback for IRS consideration.

3rd Quarter: The NTA concluded work on this activity during the third quarter but will continue to collaborate and participate on teams to provide taxpayer perspective feedback for IRS consideration.

This objective is closed.

Partner with the Taxpayer Experience Office to provide improved options for taxpayers accessing IRS services.

Status: Closed
Expected Completion Date: 03/31/2023

Quarterly Update:
1st Quarter: The Taxpayer Advocate Service (TAS) partnered with the IRS to create an all-new Taxpayer Rights course. TAS and the IRS reimagined the training materials to provide new scenarios, one for each of the 10 fundamental rights and one for civil rights which provide real life instances of how to incorporate and protect taxpayer’s rights. The training is designed to build a strong and vibrant workforce and to advance our mission and passion for helping the taxpayers.

Return to FY23 TAS Operational Plan