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FY24 Goal 1: Resolve Taxpayer Problems Accurately and Timely

Organizational Objectives

1
1.

Work with the IRS to improve taxpayer correspondence audit participation and agreement and default rates.

Status: Closed
Expected Completion Date: 09/30/2024

Quarterly Update:
1st Quarter: TAS worked with the IRS to improve taxpayer correspondence audit participation and agreement and default rates during the first quarter by participating on an IRS Taxpayer Experience cross-functional team, analyzing data, and confirming low-income taxpayers have a high default and no response rate to campus initiated examinations. Also, the team worked to put procedures in place for the newly implemented Docketed Exam Assistance (DEA) process between Automated Underreporter/Correspondence Exam and Appeals. This allows taxpayers to begin using the process which enables them to have their new documentation reviewed by Exam employees faster than the previous process. Further, TAS continues to serve on the Audit Improvement Team and continued their work on enhancing the Form 886-H Earned Income Credit (EITC) Toolkit.

2nd Quarter: During the second quarter, TAS participated in Audit Improvement Teams that collected information from repeat callers to determine why they called the Refundable Credit Exam line multiple times, reviewed IRS.gov webpages to determine the best place(s) to add information about the Document Upload Tool to make it easier for taxpayers to provide supporting documents, reviewed acceptable documents for the Earned Income Tax Credit (EITC) claims to update the list of documents that taxpayers can provide to support their EITC, reviewed the IRS.gov templates for school, healthcare, and childcare providers to determine what updates should be made to make the forms current, and reviewed the IRS.gov EITC webpages to determine improvements that will make information easier for taxpayers to find.

3rd Quarter: During the third quarter, TAS participated on an Audit Improvement Teams that completed its sample review of calls to the Exam toll-free number where the taxpayer had called more than once regarding their exam. The team compiled the information from the calls and is in the process of reviewing that information to determine if there are possible areas of improvement the team can recommend to potentially lower the number of callers that must call the Campus Exam Department more than once to get their questions answered. Further, the team identified several websites to add the link to the Correspondence Exam Document Upload Tool (DUT) to help taxpayers send in documentation without having to call the Internal Revenue Service. Also, the team completed proposed several updates to the acceptable document lists that taxpayers can reference when providing documents to support the refundable credits reported on their tax return. In addition, the team made several updates to the IRS.gov templates that relate to school, healthcare, and childcare providers. Lastly, we identified several IRS.gov webpages to be updated with additional information to make it easier for taxpayers and practitioners to find the information they need such as credit eligibility, acceptable documentation, and how to find a reputable tax preparer.

4th Quarter: During the fourth quarter, the Audit Improvement Team (a TAS/IRS Collaborative team) completed their review of calls to the Exam toll-free number where the taxpayer had called more than once regarding their exam. As a result, an Internal Revenue Manual update has been recommended for examiners to review any and all documentation submitted by the taxpayer during the first call to avoid the need to ask for or submit additional information. Also, the Team made several updates to the acceptable document lists that taxpayers can reference when providing documents to support the refundable credits reported on their tax return. And, the team made several updates to the IRS.gov templates that relate to school, healthcare, and childcare providers. Lastly, the Team identified several IRS.gov webpages to be updated with additional information to make it easier for taxpayers and practitioners to find the information they need such as credit eligibility, acceptable documentation, and how to find a reputable tax preparer. Changes included reducing redundancy, removing unnecessary material, and ensuring plain language.

This objective is closed.

2
2.

Work with the IRS Business Operating Divisions to develop procedures for the IRS in reviewing and responding to the Taxpayer Advocacy Panel recommendations, and if necessary, establish steps to reach a Service Level Agreement or mutually agreed upon standard operating procedure for considering Taxpayer Advocacy Panel recommendations

Status: Closed
Completion Date: 06/30/2024

Quarterly Update:
1st Quarter: During the quarter, TAS worked with the IRS in developing procedures for them in reviewing and responding to the Taxpayer Advocacy Panel (TAP) recommendations and establishing steps to reach a Service Level Agreement (SLA). We focused on establishing a process for TAP recommendations through the different Business Operating Divisions and to develop a baseline set of procedures for the analysis of an SLA. These items were determined to be a necessity for accomplishing the NTA’s goals:

  • Priority level of Referral
  • Confirmation of receipt of Referral
  • Establish timeframes to respond to Referral (30 days)
  • Opportunity to perfect the Referral
  • Provide name of assigned Employee
  • Training to employees responsible for process
  • Support in delivering recommendations
  • Levels of management and protocol to address unresolved elevated issues and extensions.
  • Periodic Liaison Meetings
  • Cross-Functional Training on SLAs
  • Annual Review of SLAs

2nd Quarter: During the second quarter, TAS drafted a Service Level Agreement for the Taxpayer Advocacy Panel recommendations and is currently awaiting review.

3rd Quarter: During the third quarter, TAS tabled discussions at this time on the Service Level Agreement (SLA). We will monitor this internally moving forward. All actions on this objective are complete. This objective is closed.

3
3.

Work with the IRS as it implements plans to modernize paper processing procedures to streamline the processing of paper-filed returns and correspondence

Status: Open
Expected Completion Date: TBD

Quarterly Update:
1st Quarter: TAS anticipates beginning work on this objective in February 2024.

2nd Quarter: During the second quarter, TAS processed low volumes of paper returns from vendors for the pilot program to digitalize paper forms. Vendors continue to process Forms 940 and 941 through Lockbox and digitalized work may start as early as May to get previously filed paper returns into the digital format. At this time, Form 709 United States Gift (and Generation – Skipping Transfer) Tax Return is being scanned.

3rd Quarter: No significant activity during the 3rd quarter.

4th Quarter: During the fourth quarter, the Service Center Recognition/Image Processing System (SCRIPS) project that will provide the scanning and digitization of tax returns has paused development. Historical scanning of forms has also been paused due to issues encountered with the process. Historical scanning will continue when better control of systems has been established. TAS will continue working this objective in Fiscal Year 2025.

4
4.

Provide a report to the National Taxpayer Advocate estimating the volume and amount of tax year 2020 refund returns still held by the IRS because of taxpayer non-response with a goal of advocating for the IRS to implement additional procedures to release legitimate refund claims to taxpayers

Status: Open
Expected Completion Date: TBD

Quarterly Update:
1st Quarter: During the first quarter, TAS issued outreach letters to gather additional information and determined the next steps will be developed once more data is gathered from the receipt of outstanding outreach letters.

2nd Quarter: During the second quarter, TAS received over 100 responses to outreach letters sent in the first quarter. We anticipate additional responses will be received over the next two quarters and further actions will begin after all responses are received.

3rd Quarter: During the third quarter, TAS continued to receive new cases from the outreach letter. TAS continues to collect data as the cases close to determine how many of these returns belonged to legitimate taxpayers who were able to complete the IRS identity authentication process with TAS assistance. This project has been extended to the end of the 2024 calendar year because taxpayers have taken considerably longer to respond to the outreach letter than anticipated.

4th Quarter: During the fourth quarter, TAS continued receiving new cases from the outreach letter and these cases often take several months for TAS to work. We are collecting data as cases close to determine how many of these returns belonged to legitimate taxpayers who were able to complete the IRS identity authentication process with TAS assistance. TAS will continue working this objective in Fiscal Year 2025.

5
5.

Conduct and report the findings of a survey along with additional qualitative data from subsequent focus groups to IRS stakeholders that assess the accessibility of tax credits designed to improve the financial circumstances of taxpayers, particularly those with children, and identify the barriers that increase the difficulty or even prevent taxpayers from claiming these credits

Status: Closed
Completion Date: 06/30/2024

Quarterly Update:
1st Quarter: The National Taxpayer Advocate has put this project on hold while IRS’s Research, Applied Analytics and Statistics function conducts research in this area.

2nd Quarter: Research, Applied Analytics, and Statistics is currently conducting research and gathering data in this area.

3rd Quarter: During the third quarter, TAS continued to receive new cases from the outreach letter. TAS continues to collect data as the cases close to determine how many of these returns belonged to legitimate taxpayers who were able to complete the IRS identity authentication process with TAS assistance. This project has been extended to the end of the 2024 calendar year because taxpayers have taken considerably longer to respond to the outreach letter than anticipated.

6
6.

Continue recruitment efforts to increase staffing levels focusing on targeted areas, i.e., external applicants, second career professionals, and realign TAS’ services to better meet taxpayer needs

Status: Open
Expected Completion Date: TBD

Quarterly Update:
1st Quarter: During the first quarter, TAS continued to recruit and hire aggressively to keep ahead of attrition and grow our staffing levels. As of December 30, 2023, TAS net onrolls increased by 34 positions, including 24 additional case advocates. Also, we are developing a comprehensive hoteling, recruiting, hiring and training plan to synchronize all necessary activities. We identified several successful recruiting efforts including Lunch and Learn sessions promoting case advocate positions and emailing messages with TAS job announcement flyers to IRS Senior Commissioner Representatives for local distribution.

2nd Quarter: During the second quarter, TAS continued to recruit and hire aggressively to keep ahead of attrition and grow our staffing levels. Our net onrolls increased this fiscal year by 82 positions, including 60 additional Case Advocates. To address the space needs for many of the new hires, we have implemented hoteling in eight local offices and anticipate completing hoteling bargaining and implementation in 11 additional offices in the coming months.

Some of our most successful recruiting efforts include hosting Lunch “n” Learn sessions promoting Case Advocate positions shortly before we planned to hire. Further, we sent email messages with TAS job announcement flyers to IRS Senior Commissioner Representatives for distribution to employees in the geographic area.

3rd Quarter: TAS continued recruiting and hiring activity to keep ahead of attrition and grow our staffing levels. As of June 15, 2024, our net onrolls have increased this fiscal year by 136 positions, including 92 additional Case Advocates. To address the space needs for many of the new hires, we have implemented hoteling in 11 local offices and anticipate completing hoteling bargaining and implementation in 5 additional offices in the coming months. We continued our successful recruiting efforts including hosting Lunch “n” Learn sessions promoting Case Advocate positions shortly before we planned to hire.

4th Quarter: During Fiscal Year 2024, TAS net onrolls increased by 152 positions, eight percent, including a net increase of 114 additional case advocates. Fiscal Year 2024 recruitment activities have reached more than 86,000 potential applicants through: in-person recruitment events, virtual Lunch-n-Learn information sessions, email blasts, and job postings on external websites such as Handshake and at local unemployment offices. TAS will continue working this objective in Fiscal Year 2025 and we will explore new recruitment ideas and opportunities based on specific demographics in hard to fill locations.

7
7.

Continue to work with the IRS to establish a status “Dashboard” to provide near real-time processing information including returns and refunds

Status: Closed
Completion Date: 06/30/2024

Quarterly Update:
1st Quarter: During the first quarter, TAS’ Executive Director of Intake and Technical Support provided input and feedback to IRS regarding the dashboard design. IRS presented the dashboard to the Advisory Committee including the IRS Commissioner in October 2023.

2nd Quarter: TAS continued developing the dashboard in the second quarter and expects additional progress in the third quarter.

3rd Quarter: All actions on this objective are complete. This objective is closed.