IRS Cracks Down On Tax Evaders With New Technology

The latest IRS news release announced improvements, updates, and ongoing changes to IRS procedures following the Inflation Reduction Act resources granted in 2022. The agency appears satisfied with its improved service after the 2023 filing season and plans to continue to improve on its progress through a multi-pronged focus, which include better overall service for taxpayers, increased enforcement against high income tax evaders, and more modernized technology to improve data security and improve service.

Improved Service For Taxpayer

In years to come, the IRS is dedicated to providing quality service to taxpayers, especially in their first contact with the agency. Improving communication over the phone, in person, and online will help taxpayers across the nation to be more aware of the deductions and credits they are eligible to claim without needing to contact the agency multiple times when errors or confusion is discovered. The goal of the agency is to more effectively meet taxpayers in their preferred method of communication.

The IRS is seeking to expand their in-person service abilities, specifically in underserved communities and rural areas, by the expansion of Taxpayer Assistance Centers (TAC) across the country. At this time, the IRS has opened or reopened 35 TACs in over 30 states. Temporary community assistance visits have been announced to give taxpayers the opportunity to meet in person with IRS customer service representatives in multiple locations.

Improved Online Service Access

Many taxpayers will be glad to hear that over the next five years, the IRS will be expanding a secure online account system that will enable taxpayers to securely file documentation, respond to notices, access their data, and review their account history. The IRS anticipates secure messaging, online chat features, and virtual assistant services that will enable taxpayers to utilize multiple account features, including bank account validation, saving multiple accounts, and easier access to customer service for questions and updates on their tax returns. Taxpayers will be able to respond to their notices online, saving time and reducing the risk of lost documentation in the mail. A variety of forms and tax return amendments will be available in a mobile-friendly format.

Tax professionals and business owners can also expect improved, secure online services that include account authorization, two way messaging, online payment capabilities, and business tax check services. Employers will also be able to submit 1099 forms in bulk online. Finally, the agency anticipates improvements to their own website that will make it easier for taxpayers to find the information they are looking for.

Targeting High Income Tax Evaders

Another IRS goal is expanding their investigation abilities for high income tax evaders. Prior to the Inflation Reduction Act, the agency struggled with low budget, ever-changing technology, and creative taxpayer schemes to hide income. This has already begun to change and is expected to continue as the investigation branch of the IRS expands its budget and personnel. In the last few months alone, the IRS has generated over $38 million in recoveries and plans to continue to pursue delinquent millionaires and other high income earners who are behind on payments or evading their tax obligations.

Other elements of this goal include further investigation and prosecution of money laundering schemes and cryptocurrency related evasion, intensifying investigation efforts into high income individuals who choose not file tax returns, and elimination of international tax evasion schemes in locations such as Puerto Rico and Malta.

More Modern Technology & Services

The IRS is working to modernize their technology processes in order to better protect taxpayer data and improve their ability to provide customer service. Updated technology aims include new mail sorting machines to improve their speed of service, new scanners, and increased digitization. Currently, the IRS is making progress in their ability to scan and process paper returns and is testing a new mobile application that will help taxpayers get their questions answered while increasing the agency’s processing speed. This will be a welcome relief to many taxpayers who have spent many months waiting for tax returns or amendments.

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Facing an IRS auditor or special agent can be overwhelming, but you have options! Call the trusted Arizona tax attorneys at Silver Law, PLC. As former IRS agents, we have a deep understanding of both sides of tax disputes and will put our knowledge and experience to work on your behalf. Whether you are seeking guidance on an audit, representation in U.S. Tax Court, or need trusted legal advice for another tax-related matter, our Arizona tax crime lawyers are ready to help. Call our office today to schedule your confidential consultation.

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