Whether you’re filing taxes for yourself or your business, filing taxes can feel like being lost in the woods. You know there is a right path out, but you can’t quite read the complicated trail map. The IRS has been trying to help taxpayers find their way by utilizing new AI services. The IRS hopes to boost efficiency and improve taxpayer services by implementing AI. This means you spend less time waiting if you need to contact the IRS, making filing easier. Let’s examine how the IRS plans to use AI to benefit you.
Cutting Wait Times
Long wait times when calling the IRS have been a longstanding problem for taxpayers. Hours and hours on hold for simple questions and clarifications have been the norm. The IRS has begun using AI-powered voice and chatbots to handle basic tax questions from the general public.
These AI technologies allow taxpayers to get help on the most common issues that taxpayers call the IRS to discuss. These issues include checking the status of tax returns, setting up payment plans, and tracking refunds. When AI handles fundamental matters, IRS agents can spend more time addressing tax issues that AI cannot appropriately handle.
Streamlining Tax Return Processing
Starting in 2024, the IRS began using AI to process paper filings. The Modernized Paper Processing System combined AI with existing IRS scanning technology to take information directly from paper filings and input it into the IRS tax processing system. The technology minimizes the data that IRS agents must manually enter into computers, saving time and reducing human error. The system then uses AI to validate the electronic filing before submitting it.
How Does the IRS Using AI Impact Me?
Hopefully, the IRS’s use of AI technology makes filing your taxes easier and receiving refunds faster, but AI can’t replace tax agents for everything. If you have a tax issue that falls outside the limited scope of the IRS’s AI systems, you should consider contacting the qualified tax professionals at Highland Tax Group.