U.S. Department of the Treasury 

How A Transformed IRS Will Deliver For Taxpayers 

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 Inflation Reduction Act Resources to provide taxpayers with world 

class customer service and reduce our deficits by hundreds of billions by pursuing high dollar 

noncompliance. 

For the first time, the IRS will help taxpayers get it right—filing accurate returns that ensure 

timely refunds and claiming the credits and deductions for which they are eligible. The IRS will 

reimagine the taxpayer experience to ensure workers and families are able to seamlessly interact 

with the IRS in the ways that work best for them: on the phone, in-person, and online. Integral to 

delivering on its promise to better support the American public, the IRS will build relationships 

with communities that have often felt disconnected and underserved by building a physical 

presence, establishing relationships with trusted local partners, providing educational materials 

and events, and incorporating community feedback into system upgrades. These improvements 

will enable the IRS to serve all taxpayers fairly and in the way they want to be served.

Delivering For Rural Taxpayers

Appropriate and personalized issue resolution: Nearly 20 percent of Americans live in rural 

areas. To provide equitable access to IRS services and opportunities for taxpayers, the IRS 

recognizes that many populations, especially in rural communities, have different needs in 

meeting their tax obligations. 

• Many qualified individuals and families who live in rural areas don’t claim the EITC and

other credits. The IRS will address taxpayer issues with personalized treatments and

streamlined procedures to minimize burden and unnecessary delays that prevent

taxpayers from claiming credits and deductions for which they are eligible.

New ability to respond to notices online: Services are less accessible in rural communities than 

in urban areas, so information about available tax credit and tax assistance may be difficult to 

find. The IRS launched a new tool to respond to nine notices online, making it easier for rural 
taxpayers to get it right and get their refunds in a timely manner. In the past, when taxpayers 

received notices for things like document verification they had to respond through the mail.

• Taxpayers in rural communities 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.

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

documents and respond to all notices online.

Expanded service options nationwide: IRS will expand its service and outreach presence into 

rural and suburban locations, underrepresented and underserved communities, and tribal lands.

• While IRS will improve communications to taxpayers and invest in technology to provide

them added digital options, some taxpayers will not or cannot access those tools.

Therefore, the IRS will continue to offer and expand nondigital options for taxpayers

including on the phone and through our Taxpayer Assistance Centers to reach more rural

communities.

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

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

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

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

Delivering For Seniors

Help seniors understand and claim credits and deductions for which they are eligible: 

Seniors have special tax situations and benefits. The IRS will improve the taxpayer experience 

with expanded in-person assistance and phone service to get seniors the help they need.

• 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 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 will expand the availability and services offered and raise awareness of existing

forums, including refundable credit summits, IRS education and outreach, Volunteer

Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE), Low-Income

Taxpayer Clinics (LITCs), and webinars to help seniors get it right the first time in

meeting their obligations and claiming the credits and deductions to which they are

eligible.

• The IRS will expand its partnerships with public and private institutions, including tax

preparation service providers, software companies, VITA, LITCs, faith-based

organizations, non-profits, and libraries to distribute educational materials on available

credits and deductions.
Expanded service options nationwide: IRS will expand its service and outreach presence into 

rural and suburban locations, underrepresented and underserved communities, and tribal lands.

• While IRS will improve communications to taxpayers and invest in technology to provide

them added digital options, some taxpayers will not or cannot access those tools.

Therefore, the IRS will continue to offer and expand nondigital options for taxpayers

including on the phone and through our Taxpayer Assistance Centers to reach more rural

communities.

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

Saturday in-person help. The IRS 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.

Improved 21st century customer service experience: The IRS will create a filer experience 

that is user-friendly, seamless, and efficient, with modern processes that allows seniors to correct 

errors and receive timely status information.

• The IRS also recognizes that many populations, including seniors, have different needs in

meeting their tax obligations and receiving information. Seniors will be able to use IRS

data and tools to access the information necessary to file returns easily, such as

developing user-friendly, easily navigable website that increases accessibility and clearer

guidance on how to correctly file taxes.

• This year, IRS will improve robust online accounts and expanded digital options for

seniors to take care of business quickly and independently, bringing the customer service

experience into the 21st century.

Delivering For Immigrant Families

Help taxpayers understand and claim credits and deductions for which they are eligible: 

Robust and scaled outreach and education that is personalized and timely will help immigrant 

communities access and use IRS data to remove barriers to getting the information necessary to 

file returns and claim the credits and deductions for which they are eligible. 

• The IRS will engage with taxpayers in underserved communities to deliver education and

technical tools that directly address issues or opportunities identified on filed returns and

help taxpayers access appropriate tax credits and incentives.

• By next year, individual tax transcripts and notices will be updated to be more userfriendly and available in more languages based on taxpayer needs.

• The IRS will use data to proactively deliver clear, informative, and personalized alerts to

help immigrant families claim the credits and deductions for which they are eligible.

Expanded digitization: Leveraging digitalization will help deliver drastically improved service, 

faster refunds, enhanced taxpayer interaction in in languages other than English, and 

significantly lower levels of paper returns this filing season and, in the years to come.

• The accuracy of translation of return data would increase as IRS expands digitization.

Digital tools would be available in taxpayers’ preferred languages.

• By FY 2025, IRS will become fully digital and modernize processes to improve the

taxpayer experience and organizational efficiency, which may include modernizing the
Individual Tax Identification Number (ITIN) process and fully digitalizing the amended 

return processing in the next five years.

Streamlined multichannel communication: Immigrant families will be able to get the help 

quickly, securely, and accessibly they need, resolve more issues in a single contact, and 

experience minimal delays during interactions with us.

• The IRS will expand several credentialing service providers for identity proofing,

providing more services available to authenticated taxpayers, and expanding access for

certain types of taxpayers, such as ITIN holders and international taxpayers.

Delivering For Non-filers

Help taxpayers understand and claim credits and deductions for which they are eligible:

IRS will approach compliance with a holistic approach by looking at each taxpayer’s individual 

situation and make sure non-filers are aware of the credits and deductions for which they are 

eligible.

• The IRS will utilize enhanced and personalized data and additional personalized alerts

and notifications to proactively help taxpayers receive the credits and incentives that they

might have missed.

• The IRS will incorporate a “credits and deductions” search function in Online Accounts

and improve relevant content on IRS.gov.

Analysis on gaps in tax credit and incentive participation: Improve the understanding of the 

credits and incentives gap, especially in underserved communities, and put in place leading 

advanced analytics techniques to enable improved measures for voluntary compliance and 

taxpayer experience and behavior to foster benefit uptake. 

• The IRS will use analytics to analyze gaps in tax credits and deductions participation in

FY 2024, especially those intended to benefit underserved communities. These findings

would be incorporated into IRS statistical reporting.

Expanded outreach and engagement in many communities: Robust and scaled outreach and 

education that is personalized and timely will help educate non-filers about the tax provisions 

and their requirements. 

• The IRS will engage with both filers and non-filers in underserved communities to

deliver education and technical tools that help them access appropriate tax credits and

incentives.

Delivering For State, Local, and Tribal Governments

New monetization and transferability mechanisms: The new mechanisms for taxpayers and 

other entities to monetize clean energy incentives are another important focus area for IRA 

implementation. 

• The IRS will develop a digital intake process to facilitate claiming tax credits by state and

local governments, tribal governments, and other tax-exempt entities. These new

incentive monetization mechanisms will significantly expand the range of actors
undertaking clean energy investments and receiving associated benefits through the tax 

code. 

• The IRS will ensure that state, local, and tribal governments have the tools, data, and 

information they need to be aware of and claim clean energy credits and deductions.

Expanded engagement with state administrators: The IRS will partner with state 

administrators to support systems and processes being developed.

• By FY 2024, IRS will establish federal and state partnerships to support personalized 

alerts.

• Through continued partnership with state tax administrators, the IRS will address issues 

and optimize progress for other data driven projects.

Expanded outreach and engagement in many communities: IRS will expand its outreach and 

engagement into rural and suburban locations, underrepresented and underserved communities, 

and tribal land to reach all taxpayers.

• The IRS will share data and information with federal, state, local government institutions, 

and Tribal governments, as appropriate and legally permissible, so they can serve as 

effective partners in helping underserved tax filers claim available credits and receive 

IRS services.

Along with IRS’s 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 gain 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