IRS Reduces Taxpayer Phone Assistance After Missing Hiring Targets
The IRS is dialing down its expectations for taxpayer phone assistance this filing season, falling short in staffing goals. A report from the Treasury Inspector General for Tax Administration (TIGTA) revealed that the IRS has lowered its telephone service target from 85% to 70%. This reduction reflects challenges in responding effectively to taxpayer calls.
Changes in Telephone Assistance
Historically, the IRS has used the level-of-service metric for over two decades, but this only represents about 25% of its total call volume. Previously, a level of service at 60% translated to only 26% of taxpayers successfully connecting with an IRS employee. IRS CEO Frank Bisignano announced plans to change the service measurement system to better capture the agency’s current performance.
A Challenging Filing Season Ahead
According to Larry Gibbs, a former IRS commissioner, the upcoming filing season will be particularly tough. New tax law changes under the One, Big Beautiful Bill Act have made it imperative for the IRS to improve service. Taxpayers now face long wait times of 30 to 90 minutes when calling the IRS, and many may find it difficult to get timely answers to their questions.
Impact of Staffing Reductions
The IRS has undergone significant staffing cuts, with a 27% reduction in personnel last year. Many experienced workers have departed, leaving a gap in institutional knowledge. These cuts have raised concerns about delays in call responses and overall service quality for taxpayers.
Modernization Efforts and Hiring Challenges
- The IRS has struggled to meet hiring goals due to the longest government shutdown in U.S. history.
- Only 2% of the approved positions for submission processing were filled.
- Hiring approvals have slowed down, impacting training for new employees.
In addition, modernization initiatives, such as the Zero Paper Initiative aimed at digitizing tax returns, may not show immediate benefits this filing season. As of last December, only 4% of paper returns had been digitized, raising concerns over processing efficiency.
Calls for Better Taxpayer Support
National Taxpayer Advocate Erin Collins emphasized the potential for increased productivity if the IRS would adjust its level-of-service target. She noted that overstaffing during non-peak hours has prevented resources from being utilized effectively, suggesting that a lower target might allow for more efficient taxpayer service.
Future Implications
The IRS is also facing a substantial budget cut of nearly 9% from current spending levels. This budget reduction, along with the rescission of billions from the Inflation Reduction Act, threatens to impact its modernization plans and efficiency methods.
As taxpayers prepare for the upcoming filing season, the IRS’s reduced phone service expectations and ongoing staffing issues may lead to increased challenges in obtaining crucial assistance.
