Politics & Finances

IRS Must Present "Modernization Plan" Within Six Months

IRS Must Present "Modernization Plan" Within Six Months

The Internal Revenue Service (IRS) has been given a six-month timeframe to present a "modernization plan" that will improve the American taxpayer experience.

Now that the Inflation Reduction Act of 2022 has been officially signed into law by President Joe Biden -- providing the IRS with $80 billion in additional funding and resources to hire 87,000 new employees -- Treasury Secretary Janet Yellen has issued a memorandum to the powers-that-be at the agency.

The Associated Press obtained the memo, and reported the following details:

...[Yellen] outlines the importance of modernizing IRS computer systems and ensuring the agency has an adequately-staffed workforce now that the tax collector is set to receive nearly $80 billion over the next 10 years.

That funding is needed for more than technology. At least 50,000 IRS employees are expected to retire over the next five years.

Yellen gave the IRS six months to present a "modernization plan" that will make tax filing simpler for all Americans from coast to coast, plus those living abroad.

Although Yellen's deadline for the tax agency is new, the IRS confirmed a five-year plan to improve the taxpayer experience in July.

The government agency's existing processes are infamously clunky, so this is good news for tax filers nationwide.

In an official release, the IRS shared details about its goal to help taxpayers over the coming years:

The IRS Strategic Plan FY2022-2026 will serve as a roadmap to help guide the agency's programs and operations. The plan will also help meet the changing needs of taxpayers and members of the tax community.

"Through the Strategic Plan, we want to share our priorities and how they shape the important work that takes place at the IRS, year in and year out, to help taxpayers," said IRS Commissioner Chuck Rettig. "We serve and interact with more Americans than nearly any other public or private organization. The IRS has undergone tremendous change over the last five years, and we continue to evolve to better serve the nation's taxpayers."

Furthermore, the Tax Filing Simplification Act of 2022 could have a major impact on how families file their federal taxes in the future.

The federal bill was introduced by longtime Senator Elizabeth Warren (D-MA) and has support from nearly two dozen of her colleagues. The bill is co-sponsored by Representatives Katie Porter (D-CA) and Brad Sherman (D-CA).

Per Accounting Today, the legislation is intended to fix problems with the IRS’s traditional Free File program, and even requires the agency to create a completely free filing system that would eliminate the need for Americans to use TurboTax and other third-party software options.

What do you think about Secretary Yellen's IRS deadline?

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Rebekah Barton

Rebekah Barton

Rebekah's search engine optimization career began completely by accident as a college student. Over the course of her career so far, she has "grown up" with the SEO industry, from writing content while juggling classes to managing her own teams of writers and overseeing SEO strategy in subsequent roles. She is excited to bring her passion for high-quality content to CountingWorks, Inc.

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