U.S. Department of the Treasury 

 

How A Transformed IRS Will Provide World-Class Customer Service

President Biden in August 2022 signed the Inflation Reduction Act (“IRA”), providing critical 

resources to modernize the IRS after decades of underfunding. The Strategic Operating Plan 

shows how the IRS will use IRA resources to provide taxpayers with world class customer 

service and reduce our deficits by hundreds of billions by pursuing high dollar noncompliance.

Due to a lack of resources, the IRS has not been able to deliver the customer service taxpayers 

deserve. Long-term funding challenges were exacerbated by the pandemic. The IRS in 2022 

answered just 13 percent of calls and millions of refunds were delayed by a backlog of paper 

returns.

Thanks to IRA resources, the IRS will transform the taxpayer experience. The IRS will help 

taxpayers get it right, and taxpayers will be able to seamlessly interact with the agency in the 

ways that work best for them: on the phone, in-person, and online. For the first time, the IRS will 

help taxpayers claim the credits and deductions for which they are eligible, strengthening the 

financial security of American families. Service options will continue to be improved and 

expanded in the years to come, allowing the IRS to achieve a 21st century customer service 

experience. 

Significantly improved service over the phone: Taxpayers are experiencing significantly 

improved service over the phone this filing season. 

• As expected, call volume is down from pandemic highs, but remains higher than prepandemic. Thanks to the 5,000 new hires made possible, in part, by IRA resources this 

year, IRS customer service representatives have answered over 5.5 million taxpayer calls 

this filling season, 2 million more calls with live assistance since the start of the year 

through March 25, compared to the same period in 2022. 

• IRS has consistently achieved an 80-90% level of service with live assistance since the 

start of Filing Season 2023.

• The IRS also integrated new technology features like customer callback options, which 

will be available for 95% of taxpayers calling for toll-free live assistance by the end of 

July 2023. The IRS will continue to integrate improved technology to bring customer 
service into the 21st by looking at the full picture and giving taxpayers options that work 

for them. 

Fully staffed and reopened Taxpayer Assistance Centers (TACs): IRS is fully staffing its 362 

TACs across the country, including reopening many TACs that have been closed or unstaffed in 

recent years due to lack of resources. 

• The IRS has hosted more than 100 monthly Taxpayer Experience Days to provide 

Saturday in-person help. The IRS recently reopened TACs that have been closed, such as 

the recent opening of the Binghamton, NY TAC and the Charlottesville, Virginia TAC, 

and the anticipated opening of 15 TACs across the country this filing season.

• IRS in 2024 will further expand in-person taxpayer assistance services to reach more 

communities by expanding service available and options, by giving taxpayers 

information about wait times for on-demand service so they can plan their visit, and by 

scheduling capabilities for appointments at Taxpayer Assistance Centers.

Expanded digitization to eliminate paper-based processes and expand service options:

Automating paper-based processes and making more forms available online will deliver 

significant service improvements for taxpayers, including faster processing and refunds.

• In the first five years of the 10-year plan, the IRS will eliminate paper backlogs that have 

delayed taxpayer refunds by making more forms available for e-filing and by digitizing 

all forms and returns when they are received. 

• The IRS is expanding scanning of paper forms to the most used forms, 1040 and 941. The 

IRS is on track to scan millions of returns in 2023.

• Customers will have more options to receive information and submit information and 

documents digitally, resulting in fast and accurate information exchange.

• Business tax transcripts will be made available online in easy-to-read format through 

Online Accounts and current individual tax transcripts will be updated to be more userfriendly and available in additional languages by 2024. 

New ability to respond to notices and file online: Taxpayers are now able to respond to notices 

online and have new online filing options. These will continue to be improved and expanded. 

• In the first five years of the 10-year plan, taxpayers will be able to securely file all 

documents and respond to all notices online.

• The IRS will add capabilities for 72 notices to individual Online Account by 2024, with 

further capabilities launched a new tool to respond to nine notices online, making it easier 

for taxpayers resolve issues and get their refunds in a timely manner. Until this year, 

when taxpayers received notices for things like document verification, they had to 

respond through the mail. Taxpayers are now able to respond to the most common 

notices for credits like the Earned Income and Health Insurance Tax Credits online, 

saving them time and money.

• The IRS launched an online portal to allow businesses to file Form 1099 series 

information returns electronically. These forms previously needed to be submitted 

through the mail. Small business owners often prepare their own taxes, rather than hire 

professional preparers, and this new tool is saving millions of small business owners time 

and money.
New direct deposit refund option: These refunds were previously only available by paper 

check, delaying taxpayers’ receipt of their refunds.

• IRS enabled a direct-deposit refund option for 1040X amended returns.

New online service tools: IRS will continue to improve online service options and develop new 

online service tools.

• The IRS will provide expanded access to self-service account and payment options by 

launching Business Online Accounts in 2023. Taxpayers will be able to fully access their 

data, schedule payments, track the status of payments and refunds, and more, as IRS 

continues to expand individual online accounts.

• The IRS will use the information included in these new online service tools, like notices 

to provide self-service options for taxpayers to interact with the IRS in real time, to get 

information and resolve issues, such as secure messaging with the IRS.

• Business tax transcripts will be made available online in easy-to-read format through the 

Business Online Account in FY 2024. With continued enhancements, small business 

owners will also be prompted to correct simple processing errors at time of filing, 

ensuring returns are quickly processed.

• By 2025, IRS will have end-to-end digital processing for high-volume forms and returns, 

while maintaining paper submission options.

New capabilities to help taxpayers correct errors quickly and easily: For the first time, the 

IRS will help taxpayers identify mistakes before filing, quickly help them fix errors that delay 

their refunds, and claim the credits and deductions they are eligible for. 

• By quickly resolving taxpayer issues at the front end and removing barriers to claiming 

tax credits and deductions, IRS will reduce the gap between incentives owed and 

claimed, while maintaining robust measures to prevent fraud and abuse.

• In the coming years, IRS will use available third-party and internal data to systematically 

check e-filed returns for accuracy and identify issues in real time.

• The IRS will send notifications to taxpayers when returns are submitted to help them 

correct errors and claim available credits and deductions. This will help taxpayers get it 

right up front, reducing the instances where refunds are delayed. 

Achieving a 21st century customer service experience: When a customer calls a company, 

customer service representatives access the customer’s previous interactions with the company, 

including previous calls and online chat logs, and view key account information. IRS customer 

service representatives do not have this ability, making it more difficult to resolve taxpayers’ 

issues efficiently, and for taxpayers to track the status of their interactions with the agency.

• The IRS will create a user-friendly experience that allows taxpayers to securely access 

account data, respond to notices online, and receive timely status information regarding 

their return and refund status.

• The IRS will improve the taxpayer experience with expanded phone and online service 

options such as enhanced callback options.

• The IRS will enable seamless transfer between phone and online service options, 

allowing taxpayer issues to be resolved more quickly. 
• Taxpayers will be able to use IRS data and resources to get information to make the filing 

process easier, including interactive and navigational tools and clearer guidance on how 

to correctly file taxes.

Along with IRS’ annual discretionary budget, the IRA investment over 10 years will transform 

the IRS so that it provides world class service to taxpayers, delivers refunds quickly, enforces tax 

laws with a focus among high earners and corporations, supports the IRA’s clean energy 

investments, and ensures that all Americans receive tax benefits for which they are eligible. 

These additional resources will not be used to increase the audit rates for small businesses and 

households making less than $400,000, relative to historical levels. The IRS is focused on 

pursuing high-income and high-wealth individuals, complex partnerships, and large corporations 

that are not paying the taxes they owe. Put together, the IRA is a historic investment in building 

an economy that works for everyone.

For Further Information:

• Strategic Operating Plan

• IRS.gov Tools

• Taxpayer Experience Days

• Taxpayer Online Account

• Tax Information in Non-English Languages