By Peter Calcara, PICPA Vice President – Government Relations

Earlier this spring, the IRS unveiled its much-anticipated plan on how it will spend the $80 billion it was allocated under the Inflation Reduction Act of 2022. The Internal Revenue Service Inflation Reduction Act Strategic Operating Plan provides details on how the agency will use the additional funding over the next decade, including plans to hire thousands of new employees to audit big corporations and high-wealth citizens, and to modernize its technology and improve customer service. The plan includes goals and timetables covering areas such as operations support, enforcement, taxpayer services and technology modernization.  

The proposal was welcomed by the AICPA. “Based on what we see in the outlined plan, AICPA is encouraged that many of the spending areas line up with items AICPA has also requested, including increased customer service and the reduction of the backlog of returns,” said Peter Mills, senior manager, AICPA tax policy and advocacy.

Over the past two years, the AICPA has consistently recommended that the IRS focus on stronger taxpayer services, concentrating on modernization. The new plan focuses on expanding digital services and innovation, enabling taxpayers to access their data, helping taxpayers understand and claim appropriate credits and deductions, and enhancing efforts to make payment easier.

The AICPA is encouraged by IRS plans to retire legacy applications, adopt modern systems, give IRS employees the technology they need to effectively serve taxpayers, and give taxpayers and practitioners the tools they need to access their data.

While the AICPA is encouraged by the the overall scope of the plan, it has some additional recommendations for the IRS. For example, the AICPA continues urging the IRS to suspend certain automated collection notices and to make all forms available for electronic filing. Another suggestion is to broaden the use of the $45.6 billion that was congressionally allocated to enforcement and use some of those funds on training, customer service, and systems modernization related to any type of enforcement.  

Working in conjunction with the AICPA, the PICPA will be working to ensure that the IRS spends its expanded resources wisely and that tangible improvements are made to streamline the processes and make them more functional for our membership. The initial plan seems to be a step in the right direction.  

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Statements of fact and opinion are the authors’ responsibility alone and do not imply an opinion on the part of the PICPA's officers or members. The information contained herein does not constitute accounting, legal, or professional advice. For actionable advice, you must engage or consult with a qualified professional.