Bill Overview
Title: IRS Customer Service and Transformation Act of 2022
Description: This bill requires the Internal Revenue Service (IRS) to submit an initial plan to Congress to address how it intends to meet customer service and technology modernization and related objectives. The IRS must submit semiannual updates to the plan, indicate progress made in implementing the plan, and any changes or challenges in implementing the plan. The bill requires the Government Accountability Office in each calendar year after 2022 and before 2032, to report to specified congressional committees on various matters relating to the IRS, including the progress of the IRS in meeting its objectives and on technology modernization. The bill sets forth customer service objectives that the IRS must accomplish not later than January 1, 2025. It must make available to the public not later than January 1, 2026, certain electronic forms and filing procedures. Finally, the National Taxpayer Advocate is authorized to appoint counsel in the Office of the Taxpayer Advocate to report directly to the National Taxpayer Advocate.
Sponsors: Sen. Portman, Rob [R-OH]
Target Audience
Population: Individuals who interact with the IRS for tax-related services
Estimated Size: 261000000
- The IRS Customer Service and Transformation Act of 2022 focuses on improving the IRS's customer service and modernizing its technology.
- These changes will impact all U.S. taxpayers who interact with the IRS for tax-related services, including filing returns and seeking assistance.
- The IRS tax filing service is primarily a concern for U.S. citizens and residents.
- Approximately 261 million individuals in the U.S. filed taxes in 2022, so nearly all U.S. citizens who file taxes will be affected by this improvement.
- Internationally, there are few direct implications unless foreign entities are subject to U.S. tax obligations.
Reasoning
- The IRS Customer Service and Transformation Act of 2022 will impact a diverse group of U.S. taxpayers, ranging from individuals filing simple tax returns to businesses interacting with the IRS for corporate tax obligations.
- The expected improvements should enhance ease of access, efficiency, and reduce errors in tax filing processes, benefiting those who have traditionally found IRS interactions cumbersome.
- A significant portion of the population may see no immediate change if their IRS interactions are minimal or unaffected by these changes, especially if they primarily depend on third-party tax services.
- Wellbeing impacts will likely vary, with those who encounter IRS-related stress or difficulties in the current system potentially seeing a noticeable improvement.
- Given the significant budget allocated, technological advancements and improved customer service might actually result in cost savings or reduced stress for households—affecting their overall wellbeing positively.
Simulated Interviews
Small Business Owner (New York, NY)
Age: 55 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 20.0 years
Commonness: 5/20
Statement of Opinion:
- I've had issues in the past with accessing online IRS tools quickly.
- It's a hassle to get customer service on the line and they rarely resolve my issues efficiently.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 5 |
| Year 5 | 9 | 5 |
| Year 10 | 9 | 4 |
| Year 20 | 10 | 4 |
Software Developer (San Francisco, CA)
Age: 30 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 5.0 years
Commonness: 12/20
Statement of Opinion:
- I rarely deal directly with the IRS, so I don't expect much impact on my tax experiences.
- Having more modern interactions would be nice but not essential.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 9 | 8 |
| Year 3 | 9 | 8 |
| Year 5 | 9 | 8 |
| Year 10 | 9 | 8 |
| Year 20 | 9 | 8 |
Accountant (Houston, TX)
Age: 45 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 15.0 years
Commonness: 7/20
Statement of Opinion:
- Improved technology and customer service at the IRS would directly impact how efficiently I can manage my clients' tax issues.
- Delays in IRS responsiveness have been a significant operational frustration.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 8 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 9 | 4 |
| Year 20 | 9 | 4 |
Retired Teacher (Miami, FL)
Age: 62 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 10/20
Statement of Opinion:
- Any improvements that minimize the need to contact the IRS or make it easier to access information would be beneficial.
- As I age, understanding tax regulations online is becoming more critical.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 7 |
Freelance Graphic Designer (Chicago, IL)
Age: 28 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 10/20
Statement of Opinion:
- I hope the new policies make self-service more intuitive and faster to use.
- Waiting on IRS responses can be tense, especially with deadlines.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 8 | 6 |
Restaurant Owner (Atlanta, GA)
Age: 50 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 15.0 years
Commonness: 5/20
Statement of Opinion:
- Any enhancements for quicker IRS response would be greatly appreciated.
- The past few audits and verifications were grueling due to slow IRS processes.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 8 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 9 | 4 |
| Year 20 | 9 | 4 |
Stay-at-home Parent (Seattle, WA)
Age: 38 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 5.0 years
Commonness: 15/20
Statement of Opinion:
- I think the new system will likely improve transparency and ease of filing—not that I've had many issues.
- The betterment in technology will be good for confidence in the system.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 9 | 8 |
| Year 3 | 9 | 8 |
| Year 5 | 9 | 8 |
| Year 10 | 9 | 8 |
| Year 20 | 9 | 8 |
Plumber (Denver, CO)
Age: 40 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 10/20
Statement of Opinion:
- If IRS systems are easier to navigate and save time, I'm all for it.
- Tax preparers often complain about IRS inefficiencies.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 9 | 7 |
| Year 20 | 9 | 7 |
Nurse (Boston, MA)
Age: 35 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 9/20
Statement of Opinion:
- Improved electronic access would simplify our complex tax filing process.
- Any reduction in wait time for IRS responses would be appreciated.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 9 | 7 |
Retired (Phoenix, AZ)
Age: 68 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 8/20
Statement of Opinion:
- I'm on a fixed income, so any reduction in complexity or cost for tax services is welcome.
- Hopefully, I won't have to personally deal much with IRS changes directly.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 7 | 6 |
Cost Estimates
Year 1: $400000000 (Low: $350000000, High: $450000000)
Year 2: $450000000 (Low: $400000000, High: $500000000)
Year 3: $500000000 (Low: $450000000, High: $550000000)
Year 5: $550000000 (Low: $500000000, High: $600000000)
Year 10: $600000000 (Low: $550000000, High: $650000000)
Year 100: $700000000 (Low: $650000000, High: $750000000)
Key Considerations
- The upfront investment in technology and human resources is necessary for achieving long-term gains in efficiency and service quality.
- The legislative reporting requirements could put additional administrative pressure on the IRS to comply, potentially affecting other areas of operation.
- Potential long-term reduction in taxpayer frustration and disputes if improvements are successful.