05/24/2018

IRS Issues Five-year Strategic Plan

The plan will serve as a roadmap to help guide its programs and operations

On May 23, 2018, the Internal Revenue Service (IRS) released a new five-year strategic plan that focuses on implementation of the new tax law as a top priority but also improving taxpayer service and tax administration.

In a news release, the IRS said that the strategic plan will serve as “a roadmap to help guide the agency’s programs and operations.”

“Providing service to taxpayers is a vital part of the IRS mission, and the new strategic plan lays out a vision of ways to help improve our tax system,” said IRS Acting Commissioner David Kautter. “The plan is part of an ongoing effort by the IRS to work with the tax community and find ways to improve our work for taxpayers and for the nation.”

The IRS is attempting to modernize its systems and improve its responsiveness to stakeholders after years of sustained criticism from the GOP-led Congress. The IRS endured a “glitch” on Tax Day that affected millions of taxpayers attempting to file their taxes online April 17, underscoring the need to modernize its technology systems. IRS officials have warned Congress for years that it needs more funding to upgrade its IT systems but the agency’s budget has been cut by more than $900 million since 2010.

The House in April passed a number of IRS reforms though the Senate has not acted on the package. One of the bills passed by the House would establish an independent appeals office to resolve taxpayer disputes, and would require the IRS to submit a reorganization plan focused on customer service by Sept. 30, 2020. Another bill would update the agency’s cybersecurity and IT systems.

Earlier today, the House Appropriations Financial Services Subcommittee approved $11.6 billion for the IRS for the 2019 fiscal year, which is $186 million more than current funding levels. The IRS would get $77 million targeted for implementing the new tax law.

This article was provided to OSAE by the Power of A and ASAE's Inroads.