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Internal Revenue Service

Program Summary by Budget Activity 

Dollars in Thousands

Appropriated Resources

FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT

New Appropriated Resources:

Taxpayer Services 25,989 $2,587,606 27,990 $2,763,606 32,865 $3,385,723 33,041 $3,684,593 17.42% 22.51% 18.05% 33.33%

Pre-Filing Taxpayer Assistance and 

Education 4,514 657,618 5,536 720,276 5,967 803,873 6,003 866,539 7.79% 11.61% 8.44% 20.31%

Filing and Account Services 21,475 1,929,988 22,454 2,043,330 26,898 2,581,850 27,038 2,818,054 19.79% 26.36% 20.42% 37.91%

Enforcement 34,989 $5,004,622 35,604 $5,004,622 38,607 $5,861,649 38,831 $6,272,313 8.43% 17.12% 9.06% 25.33%

Investigations 3,012 678,193 2,965 667,279 3,223 785,121 3,243 838,596 8.70% 17.66% 9.38% 25.67%

Exam and Collections 30,987 4,170,886 31,615 4,160,748 34,331 4,883,575 34,530 5,228,803 8.59% 17.37% 9.22% 25.67%

Regulatory 990 155,543 1,024 176,595 1,053 192,953 1,058 204,914 2.83% 9.26% 3.32% 16.04%

Operations Support 12,037 $4,104,102 11,631 $3,928,102 11,923 $4,543,268 11,523 $3,833,734 2.51% 15.66% -0.93% -2.40%

Infrastructure 886,713 918,659 1,039,852 405,408 13.19% -55.87%

Shared Services and Support 5,122 1,046,754 5,067 1,109,740 5,183 1,200,105 4,783 1,125,014 2.29% 8.14% -5.60% 1.38%

Information Services 6,915 2,170,635 6,564 1,899,703 6,740 2,303,311 6,740 2,303,312 2.68% 21.25% 2.68% 21.25%

Business Systems Modernization 394 $222,724 308 $222,724 412 $310,027 412 $310,027 33.77% 39.20% 33.77% 39.20%

Subtotal New Appropriated Resources 73,409 $11,919,054 75,533 $11,919,054 83,807 $14,100,667 83,807 $14,100,667 10.95% 18.30% 10.95% 18.30%

Other Resources:

Reimbursables 694 98,412 585 157,000 614 164,851 614 164,851 4.96% 5.00% 4.96% 5.00%

Offsetting Collections - Non 

Reimbursables 66,504 10,000 10,500 10,500 5.00% 5.00%

User Fees 81 502,449 86 414,364 1,006 340,733 1,006 340,733 1069.77% -17.77% 1069.77% -17.77%

Recovery from Prior Years 35,304 19,476 19,476 19,476

Unobligated Balances from Prior 

Years 1,590 652,599 3,144 1,332,422 41 421,908 41 421,908 -98.70% -68.34% -98.70% -68.34%

Transfers In/Out 140 140 140

Recoveries Paid 3,398 3,398 3,398

Resources from Other Accounts4 334 138,409 460 117,243 821 146,057 34 146,057 78.48% 24.58% -92.61% 24.58%

Subtotal Other Resources 2,699 $1,493,677 4,275 $2,054,043 2,482 $1,107,063 $1,695 $1,107,063 -41.94% -46.10% -60.35% -46.10%

Total Budgetary Resources 76,108 $13,412,731 79,808 $13,973,097 86,289 $15,207,730 $85,502 $15,207,730 8.12% 8.84% 7.13% 8.84%

% Change

FY 2022 to FY 2023 

Request with Technical 

Adjustment

% Change

FY 2021

Operating Plan1, 2

FY 2022

Annualized CR3

FY 2023

Request

FY 2022 to FY 2023 

Request

1 FY 2021 Other Resources represent actuals.

3 FY 2022 Annualized CR includes an interappropriation transfer of $208 million from Enforcement to Taxpayer Services.

FY 2023

Request with Technical 

Adjustment

4

Resources from Other Accounts reflect planned spending from Private Collection Agency retained earnings.

2 FY 2021 Operating Plan includes an interappropriation transfer from Enforcement ($208 million) to Taxpayer Services ($32 million) and Operations Support ($176 million).

Note: The new appropriated resources do not include the $15 million in the Families First Coronavirus Response Act (FFCRA) (P.L. 116-127), $750.7 million under the Coronavirus Aid, Relief, and 

Economic Security (CARES) Act (P.L. 116-36), the $509 million provided in the Consolidated Appropriations Act, 2021 (P.L. 116-260), and the $1.86 billion provided by the American Rescue Plan 

(ARP) (P.L. 117-2). Unobligated balances in FY 2022 and FY 2023 inlcude ARP funding.
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Summary 

The IRS FY 2023 budget request is $14.1 billion, $2.2 billion (18.3 percent) more than the 

FY 2022 annualized continuing resolution level of $11.92 billion. 

The Budget includes total program increases totaling $1.31 billion that includes 

resources for the following categories: Putting Taxpayers First ($320.17 million); Ensure 

Fairness of the Tax System ($469.25 million), Enhance Taxpayer Service ($389.11 million), 

IT Modernization ($78.14 million), Critical IT Operations ($39.52 million), and Reaching 

Underserved Communities ($10.17 million). It funds costs associated with the FY 2022

pay annualization, FY 2023 pay raise, and non-pay inflation. The Budget comprises 

initiatives to improve the taxpayer’s experience with the IRS, that will ultimately lead to 

increased voluntary tax compliance. The request also aims to ensure we stay current

with paper inventory receipts and improve telephone and in-person service; facilitate 

better oversight of high income and corporate tax returns; and accelerate the 

development of digital tools to enable smarter communication with taxpayers. In 

addition, the Administration continues to support a multiyear investment in IRS 

enforcement to increase tax compliance and revenues that the President has previously 

proposed.

In FY 2021, the IRS delivered a successful filing season that opened February 12, 2021. IRS

announced on March 17, 2021, that the deadline would be extended from April 15, 2021,

to May 17, 2021. During the 2021 filing season, the IRS:

• Received about 148 million individual tax returns by mid-May and issued more than 

95.6 million refunds totaling more than $270 billion with an average individual 

refund of $2,827 as of May 21, 2021. Almost 93.6 percent of these individual returns 

were filed electronically by mid-May; 

• Achieved a 15.4 percent filing season level of service (LOS), defined as the relative 

success rate of taxpayers calling the toll-free line for assistance, 45 percent below the 

target of 28 percent which was set due to funding constraints and extraordinary 

demand;

• Answered more than 35 million calls, similar to last year’s filing season, with 11

million being answered by IRS assistors and over 24 million being answered through 

automation;

• Served approximately 394,000 taxpayers face-to-face in the Taxpayer Assistance 

Centers (TAC). Almost 792,000 taxpayers called the IRS’s TAC appointment line 

resulting in around 351,000 appointments being scheduled. Approximately 441,000 

taxpayers had their issues resolved without having to make an appointment; and

• Received 1.4 billion visits to the IRS.gov website with 483 million Where’s My 

Refund? completions. This represents a 15 percent increase in the use of IRS.gov and 
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a 14 percent increase in Where’s My Refund? compared to the same period during 

2020.

 

Restructuring IRS Appropriations to Align Support Costs to Mission Costs

With this budget, the Administration proposes a change to the appropriations language 

that would allow Taxpayer Services and Enforcement funding to be used for certain 

associated support costs that are currently reserved for Operations Support funding. 

Currently, Taxpayer Services and Enforcement funding only pays for an employee’s labor 

cost, not the cost to hire the employee or the IT equipment and space needed to make 

them productive. There are significant benefits to this change – future IRS budgets would 

reflect the full cost of Taxpayer Services and Enforcement, to include their necessary 

support costs. The changes would also prompt IRS Business Units to be more efficient 

with their support costs because they stand to directly benefit from savings.

The IRS proposes using an internal reimbursable agreement process to carry out the 

proposed funding structure. In FY 2023, rental and Chief Financial Officer (CFO) costs will 

be reallocated from Operations Support to Taxpayer Services and Enforcement with more 

costs planned to move out of Operations Support in the future. A total of $710 million 

will be shifted from Operations Support to Taxpayer Services ($299 million) and 

Enforcement ($411 million). For additional information, please see Section D of the IRS's 

Congressional Justification (CJ) – Appropriations Language and Explanation of Changes, 

which includes a detailed description and justification of this proposal.

FY 2023 

Request Rent CFO

Adjustment

Total

Proposed 

Funding Levels

3,385,723 265,830 33,040 298,870 3,684,593

5,861,649 368,613 42,051 410,664 6,272,313

4,543,268 (634,443) (75,091) (709,534) 3,833,734

310,027 310,027

Grand Total $14,100,667 - - - $14,100,667

Proposed Adjustments 

Appropriation

Taxpayer Services

Enforcement

Operations Support

Business Systems Modernization 

FY 2023 

Request Rent CFO

Adjustment

Total

Proposed 

Funding Levels

3,385,723 265,830 33,040 298,870 3,684,593

5,861,649 368,613 42,051 410,664 6,272,313

4,543,268 (634,443) (75,091) (709,534) 3,833,734

310,027 310,027

Grand Total $14,100,667 - - - $14,100,667

Proposed Adjustments 

Appropriation

Taxpayer Services

Enforcement

Operations Support

Business Systems Modernization 
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IRS FY 2023 Budget Highlights 

Dollars in Thousands

 

Bureau: Internal Revenue Service 

Summary of FY 2023 Request $000 FTE $000 FTE $000 FTE $000 FTE $000 FTE

FY 2022 Annualized CR (ACR) $2,763,606 27,990 $5,004,622 35,604 $3,928,102 11,631 $222,724 308 $11,919,054 75,533

Changes to Base:

FY 2023 Maintaining Current Levels (MCLs) $108,631 $202,663 $119,339 $5,730 $436,363

Pay Annualization (2.7% average pay raise) 17,105 32,228 12,812 401 62,546

Pay Raise (4.6% average pay raise) 88,016 165,832 65,928 2,061 321,837

Non-Pay 3,510 4,603 40,599 3,268 51,980

Base Adjustment $90,285 825 $229,176 358 $115,991 $3,430 $438,882 1,183

Adjustment to Reach Current Operating Levels 90,285 825 229,176 358 115,991 3,430 438,882 1,183

Subtotal FY 2023 Changes to Base $198,916 825 $431,839 358 $235,330 $9,160 $875,245 1,183

FY 2023 Current Services $2,962,522 28,815 $5,436,461 35,962 $4,163,432 11,631 $231,884 308 $12,794,299 76,716

Program Increases:

Putting Taxpayers First 119,034 192 54,331 152 146,805 229 320,170 573

User Authentication 81,000 81,000

Taxpayer Experience Strategy 38,034 192 54,331 152 146,805 229 239,170 573

Ensure Fairness of the Tax System 370,857 2,493 98,396 20 469,253 2,513

Enhance Taxpayer Service 304,167 3,858 84,945 389,112 3,858

Integrated Modernization Business Plan 78,143 104 78,143 104

Critical IT Operations 39,521 36 39,521 36

Focused Strategies for Reaching Underserved Communities 10,169 7 10,169 7

Subtotal FY 2023 Program Increases $423,201 4,050 $425,188 2,645 $379,836 292 $78,143 104 $1,306,368 7,091

Total FY 2023 Request $3,385,723 32,865 $5,861,649 38,607 $4,543,268 11,923 $310,027 412 $14,100,667 83,807

Dollar/FTE Change FY 2023 Request over FY 2022 ACR $622,117 4,875 $857,027 3,003 $615,166 292 $87,303 104 $2,181,613 8,274

Percent Change FY 2023 Request over FY 2022 ACR 22.51% 17.42% 17.12% 8.43% 15.66% 2.51% 39.20% 33.77% 18.30% 10.95%

Technical Adjustments

Rent Adjustment 265,830 368,613 (634,443)

CFO Adjustment 33,040 176 42,051 224 (75,091) (400)

Subtotal FY 2023 Technical Adjustments $298,870 176 $410,664 224 ($709,534) (400)

Total FY 2023 Request incuding Technical Adjustments $3,684,593 33,041 $6,272,313 38,831 $3,833,734 11,523 $310,027 412 $14,100,667 83,807

Dollar/FTE Change FY 2023 Request Including Technical Adjustments over FY 2022 ACR $920,987 5,051 $1,267,691 3,227 ($94,368) (108) $87,303 104 $2,181,613 8,274

Percent Change FY 2023 Request Including Technical Adjustments over FY 2022 ACR 33.33% 18.05% 25.33% 9.06% -2.40% -0.93% 39.20% 33.77% 18.30% 10.95%

TAXPAYER SERVICES ENFORCEMENT OPERATIONS SUPPORT BSM TOTAL
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Budget Adjustments 

Maintaining Current Levels (MCLs)....................................... +$436,363,000 / 0 FTE 

Pay Annualization (2.7%) +$62,546,000 / 0 FTE 

Funds are requested for annualization of the January 2022 2.7 percent average pay raise.

Pay Raise (4.6% in FY 2023) +$321,837,000 / 0 FTE 

Funds are requested for a 4.6 percent average pay raise in January 2023.

Non-Pay +$51,980,000 / 0 FTE 

Funds are requested for non-labor expenses such as travel, contracts, rent, 

supplies, and equipment.

Base Adjustment........................................................... $438,882,000 / +1,183 FTE

The FY 2022 annualized CR level of $11.9 billion is the base of this budget. In addition to 

$436 million to maintain current staffing levels, the base was adjusted by $439 million 

dollars to reach current operating funding level.

Program Increases................................................... +$1,306,368,000 / +7,091 FTE

Enhance Taxpayer Service +$389,112,000 / +3,858 FTE 

This investment will allow the IRS to increase the telephone LOS and enhance 

information technologies to improve taxpayer services. This investment will build on the 

IRS’s efforts to improve telephone services for underserved communities such as those 

who are deaf or hard of hearing, limited English proficiency communities, and victims of 

identity theft. This investment provides a projected LOS of 85 percent in FY 2023

assuming phone demand return to pre-pandemic levels and the IRS can provide inperson services at pre-pandemic levels This investment will continue to return the IRS’s 
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LOS to pre-pandemic levels. During the 2021 filing season, the IRS’s LOS fell short of its 

targets because of the COVID-19 pandemic and legislation aimed at providing relief that

resulted in massively increased demand for the toll-free lines. Individual and Business 

taxpayer telephone demand increased by 456 percent and 244 percent, respectively

during the 2021 filing season. In FY 2021, the number of taxpayers calling to schedule 

appointments at Taxpayer Assistance Centers (TACs) was 3.9 million above the same 

period in the prior year.

In addition to expanding LOS for underserved communities, funding for this initiative 

will improve the ways taxpayers interact with IRS by enhancing and expanding the range 

of modern, digital tools provided by IRS to deliver a service experience comparable to 

those available in the private sector. By empowering taxpayers to address certain needs 

without requiring live assistance, development of these tools is essential to IRS’s longterm success in satisfying taxpayer expectations and meeting the ongoing growth in 

demand for assistance. 

Critical Information Technology Operations +$39,521,000 / +36 FTE 

The IRS continues to transform its technological landscape and it has made progress on 

its modernization journey to provide taxpayers with a seamless customer experience, 

while empowering employees with the tools and systems needed to provide top quality 

services and enforce the tax law. These successes have increased the need to sustain 

critical IT operations to maintain optimum network performance and functionality. The 

IRS continues to deploy and incorporate new, modernized tools for taxpayers, tax 

professionals and employees. Taxpayer service improvements (additional digital services, 

up-to-the-minute account information, etc.), enterprise efficiency advances (automation, 

artificial intelligence, machine learning, etc.) and new employee tools (case 

management, collaboration, learning platforms, etc.) all require additional bandwidth to 

sustain a high volume of users processing digitalized capabilities.

Focused Strategies for Reaching Underserved Communities +$10,169,000 / +7 FTE 

The IRS will cultivate new opportunities for adults and students in underserved 

communities by partnering with state labor and human services officials to identify 

talent and design training programs for adult candidates. Additionally, the IRS will 

develop a talent pipeline by partnering with colleges, universities (with a special focus 

on Historically Black Colleges and Universities and other minority servicing institutions) 

and high schools to design training programs to prepare participants for IRS careers. 

These partnerships will foster equitable economic growth, establish long-term federal 

employment options, and develop a continual stream of talent suited to further enhance 

the taxpayer experience and support the IRS mission. As a first step, the IRS plans to 
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create a center in the Mississippi Delta Region, which currently has the highest rate of 

poverty in the United States, excluding the U.S. territories.

During the latter part of the development of the 2023 Budget, a full year FY 2022 

appropriations bill was not enacted. Therefore, we assume the starting point to be an 

annualized CR, the FY 2023 budget includes proposed FY 2022 CJ program increases. 

Although the investments vary slightly in cost, the overall amounts originally proposed in

FY 2022 remain the same. The FY 2022 budget levels may impact the prioritization of 

these investments in FY 2023. The following descriptions are summarized from the FY 

2022 CJ:

• $320.2 million for continuing the execution of the Taxpayer First Act implementation 

activities, including developing a Taxpayer Experience Strategy (TXS) and delivering new 

online service platforms to facilitate filing and payment for individuals and businesses;

• $469.3 million for establishing enforcement strategies that will ensure a fair tax system, 

so Americans can feel confident that all taxpayers are paying their fair share of taxes. 

These enforcement efforts will also help increase the audit coverage rate which, in 

aggregate, has been cut in half since FY 2010 of large corporations, pass-through 

entities, and high wealth individuals;

• $78.1 million for the Integrated Modernization Business Plan is a key IRS priority. The 

plan provides a roadmap for improving IRS systems and taxpayer services. Additionally, 

the plan will enable the IRS to provide quality customer service to taxpayers and deliver 

long-term budget efficiencies as the IRS modernizes capabilities currently provided via 

legacy applications.
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Legislative Proposals 

For information on the FY 2023 revenue legislative proposals, please follow this link:

https://home.treasury.gov/policy-issues/tax-policy/revenue-proposals

Reduce Paperwork Burden by Permanently Authorizing Current Home to Work 

Transportation for the IRS Commissioner

The IRS requests that the IRS Commissioner position be permanently added to 31 U.S.C.

§ 1344(b)(6) as one of the government officials authorized home-to-work transportation. 

The IRS Criminal Investigations unit completed an extensive assessment of the 

Commissioner’s threat environment and has classified the threat status as high. 

PROPOSAL:

Amend Title 31 U.S.C. § 1344(b)(6) to include “the Commissioner of Internal Revenue” as 

a Federal executive with authorization for passenger carrier transportation between 

residence and place of employment. 

REASONS FOR CHANGE:

As head of one of the most controversial organizations in the Federal government, the 

Commissioner is the “face of the IRS” and a frequent fixture in national media. Historically, 

Commissioners average multiple formidable threats per year directed at them and their 

family members, including threats of assassination. The internet has allowed anyone with 

a web browser to access personal information of government officials, including photos 

and home addresses. Instances of individuals phoning, mailing, or visiting a 

Commissioner’s residence, including the current Commissioner, are common and well 

documented. 

Dignitary protection experts have long recognized the vulnerability of protected 

individuals who are engaged in predictable activities, such as commuting to/from the 

workplace and for many years IRS Criminal Investigation Division (CI) has consistently 

provided transportation for the IRS Commissioner from Home to Work under recurring 

90-day authorizations. The administrative burden of compiling, organizing, and 

summarizing the information required for the recurring 90-day Home to Work 

authorizations is significant, requiring executive approval from IRS’s Chief of Criminal 

Investigations, Treasury’s Assistant Secretary for Management, and the Secretary of the 

Treasury.
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Fund the Federal Payment Levy Program via collections (proposal also included in

the Fiscal CJ)

Estimated costs: $220 million in Fiscal Service costs to operate the Tax Levy Program in 

the Treasury Offset Program over 10 years. Fiscal Service is currently being reimbursed for 

this cost from IRS appropriated funding. 

This proposal improves the way the Fiscal Service collects its reimbursement from IRS to 

cover Fiscal Service’s costs in developing and operating the Federal Payment Levy 

Program (FPLP), which utilizes the Treasury Offset Program to process levies of federal 

payments to collect delinquent tax debts. Under the Economy Act, the IRS pays fees to 

Fiscal Service from the IRS annual discretionary appropriation. This proposal authorizes 

Fiscal Service to recover its costs from levy collections, rather than from IRS’s direct 

appropriation, which reduces administrative and overhead costs for both Fiscal Service 

and IRS. It would also allow IRS to re-direct the use of appropriated dollars that are 

currently needed to fund FPLP to other initiatives that will aid in the collection of 

delinquent tax debt.

IRS Performance Highlights

 

Budget Activity Performance Measures

FY2019 

Actual

FY2020 

Actual

FY2021 

Actual

FY2022 

Target

FY2023 

Target

Pre-Filing Taxpayer 

Assistance and Education Enterprise Self-Assistance Participation Rate1 85.4% 90.6% 92.3% 91.0% 91.0%

Filing and Account Services Customer Service Representative Level of Service (LOS)2 65.4% 53.1% 18.5% 30.0% 85.0%

Investigations Criminal Investigations Completed 2,797 2,624 2,766 2,600 2,500

Investigations Conviction Rate 91.2% 90.4% 89.4% 92.0% 92.0%

Exam and Collections Examination Efficiency - Individual 109 76 108 100 114

Information Services Percent of Aged Hardware 31.0% 16.0% 9.3% 20.0% 20.0%

2

 The CSR LOS includes toll-free telephone phone lines answered by Accounts Management assistors only. These lines service 82 percent of all telephone traffic. 

Achieving the FY 2023 LOS target of 85 percent requires timely enactment of appropriations so the IRS can complete hiring and training ahead of the filing season 

and assumes that demand and in person services return to pre-pandemic levels. The IRS's Automated Collection System (ACS) toll-free line is used by taxpayers for 

compliance related inquiries. For FY 2021, the ACS LOS was 37.8 percent. These are both included in the Enterprise LOS, which measures the relative success rate 

of taxpayers calling to speak with an IRS Assistor on any IRS toll-free telephone line. The Enterprise LOS in FY 2021 was 21.3 percent.

1

 In FY 2017, the IRS renamed the Taxpayer Self Assistance Rate measure to Enterprise Self Assistance Participation Rate.
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Description of Performance 

In FY 2021, the IRS continued to provide service to taxpayers and to enforce the laws with 

integrity and fairness. During the pandemic, IRS’s experienced, talented workforce 

overcame numerous obstacles to serve taxpayers, uphold the law and maintain the 

integrity of the tax system. IRS has been called on repeatedly to provide economic relief 

during this national crisis, while also fulfilling our core responsibilities of tax 

administration. For additional information on IRS’s COVID related programs, please 

reference the Treasury Coronavirus Relief, Response, Aid, and Recovery Programs 

Congressional Justification. The IRS’s core responsibilities include collecting more than $4

trillion in gross taxes each year and generating approximately 96 percent of the funding 

that supports the federal government’s operations.

Taxpayer Services 

The IRS strives to deliver high quality and timely service to taxpayers and stakeholders

and help them understand and meet their tax obligations. The IRS:

• Achieved a rate of 92 percent of Timeliness of Critical Individual Filing Season Tax 

Products to the Public (i.e., tax forms, schedules, instructions, and publications) with 

81 out of 88 products delivered timely, exceeding the FY 2021 target of 85 percent by 

8.3 percent. The FY 2022 and FY 2023 targets are 89 percent;

• Achieved an accuracy rate of 92.9 percent in terms of Customer Accuracy – Tax Law, 

exceeding the target of 85 percent by 9.3 percent. The FY 2022 and FY 2023 targets 

are 89 percent. IRS will continue to monitor results through data-driven analysis of 

reports to achieve future goals; 

• Answered more than 67.7 million calls, a 33 percent increase compared to the same 

period last year; and

• Answered over 93 percent of account questions over the telephone correctly.

In delivering the Economic Impact Payments, we took every step possible to reach 

potential recipients. The IRS expanded its taxpayer services through proactive outreach 

efforts to connect with underserved communities such as those with limited English 

proficiency , lower-income earners, military, veterans, retired and homeless, among 

other communities. The IRS engaged hundreds of local and national groups, religious 

organizations, and numerous others to help contact underserved communities.

The IRS’s toll-free telephone line is one of the world’s largest customer service phone 

operations. New legislation resulted in added, unplanned demand for toll-free 

assistance. Compared to FY 2020, total assistor demand was up more than 200 percent, 

with some lines seeing increases of more than 2 million calls. Despite these challenges, 

the IRS was able to answer 3.8 million more calls in FY 2021 than the prior year. The IRS 

will continue to monitor demand in real time and shift staff between telephones and 
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paper processing to address demand. Due to the unprecedented increase in 

correspondence inventory levels, the IRS will lower its FY 2022 LOS target to 30 percent. 

The Budget requests additional resources for Taxpayer Services to increase of the FY 

2023 LOS target to 85 percent assuming phone demand returns to pre-pandemic levels 

and the IRS can provide in-person services at pre-pandemic levels, and as inventories 

are expected to reach normal levels.

The IRS continues to improve taxpayer services by developing and improving selfassistance tools. The Enterprise Self-Assistance Participation Rate (ESAPR) represents the 

percent where a taxpayer uses one of the IRS’s self-assistance service channels (e.g., 

automated calls, web services) versus needing support from an IRS employee (e.g., faceto-face, over the phone, or via paper correspondence). In FY 2021 ESAPR was 92.3

percent, exceeding the target by 3.7 percent. The web services that had the largest 

percent change are: Where’s My Amended Return (226.4 percent); Online Accounts 

Sessions (117.8 percent); and Get Transcripts Online (108.1 percent). Compared to FY 

2020, total services increased by 36.4 percent, self-assisted services increased by 38.9 

percent and assisted services rose 12.4 percent. In FY 2022, IRS will update the existing 

Online Payment Agreements (OPA) and Installment Agreements (IA) applications to 

include business taxpayers and include a new chatbot application for OPAs and IAs for 

small business and self-employed taxpayers. The FY 2022 and FY 2023 target is 91 

percent.

Enforcement 

In FY 2021, the IRS collected $75 billion through enforcement programs, a return on 

investment (ROI) of about $5 to $1 compared to the IRS appropriated budget. This 

number is likely understated, since the ROI estimate does not include the revenue effect 

of the indirect deterrence value of IRS enforcement programs.

The IRS Criminal Investigation Division (CI) serves the American public by investigating 

potential criminal violations of the Internal Revenue Code and related financial crimes in 

a manner that fosters confidence in the tax system and compliance with the law. In FY 

2021, CI completed 2,766 criminal investigations, achieved 1,263 convictions with a rate 

of 89.4 percent, and achieved a Department of Justice case acceptance rate of 93.6

percent and a U.S. Attorney case acceptance rate of 93.2 percent, which compares 

favorably with other federal law enforcement agencies. The criminal investigations 

completed performance measure has a FY 2022 target of 2,600 and a FY 2023 target of 

2,500, and the FY 2022 and FY 2023 conviction rate target is 92.0 percent.

The Examination program provides taxpayers top quality service by helping them 

understand and meet their tax responsibilities and by applying the tax law with integrity 
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and fairness. In FY 2021, Exam Efficiency - Individual (the number of 1040 return closures 

divided by the total Exam FTE) was 108, below the target of 111 and up from the FY 2020 

level of 76. The IRS lowered the target to 100 for FY 2022 as qualified Exam staff will be 

reassigned to work unprecedented correspondence inventory levels. The FY 2023 target 

is 114.

Operations Support 

The Percentage of Aged Hardware measure shows the quantity of IT hardware in 

operation past its useful life as a percentage of total hardware in use. The IRS made 

considerable progress reducing the percentage of aged hardware from 16 percent at 

the end of FY 2020 to 9.3 percent at the end of FY 2021. This represents a reduction of 

more than 8,000 aged assets during the fiscal year. The major driver in exceeding this 

goal was the large volume of refreshed workstations. The industry standard for aged 

hardware is between 20 and 25 percent. The IRS will maintain that target at 20 percent 

for fiscal years 2022 and 2023.

Business Systems Modernization 

In FY 2021, the IRS continued to strengthen its IT infrastructure and introduce new 

electronic services to taxpayers. Some key accomplishments were: 

• IRS Enterprise Case Management Release 1 occurred, which enhanced data 

analytics, reporting, and automation capabilities that increase productivity and 

efficiency;

• Expanded the Customer Callback feature, which offers taxpayers and opportunity 

to choose between waiting for a representative or receiving a call back when an 

assistor is available;

• Implemented the first phase of releasing the electronic Form 1040X enabling 

taxpayers to electronically file an amended return; and

• Deployed the Child Tax Credit Update Portal and the Advance Child Tax Credit 

Eligibility Assistant. These systems inform users of their eligibility of the Advance 

Child Tax Credit, verify their banking and personal information, and unenroll in 

the tax credit.

The IRS has navigated unexpected changes that have both challenged and accelerated 

modernization efforts—from the emergence of new technology and taxpayer 

expectations to sustaining technological resilience throughout an ongoing global 

pandemic. At an inflection point, having concluded the first phase of the six-year IRS 

Integrated Modernization Business Plan, the IRS will continue to adapt as it embraces 

industry-leading technology and meets taxpayer needs in an ever-evolving digital world.

With the funding provided through the American Rescue Plan (ARP) Act of 2021 and 

other resources, the IRS has strong momentum behind modernization, with a clear 
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vision for delivering near-term impact and long-term transformation. IRS employees are 

making a difference and want to continue to successfully pursue the mission on behalf 

of our country. The road ahead is full of challenges, both known and unknown, but we 

are confident that the plan, if adequately resourced, paves the way to providing the 

highest-quality service to taxpayers and the tax community.