IRS Delays And Backlogs: What The Agency Is Doing to Improve: Part III
The IRS backlog persists despite staffing changes, automated notice suspensions, and many other Band-Aid solutions. Critics believe that bigger changes will be needed to get the agency back on track. This doesn’t simply involve throwing more money at the IRS, but rather, finding targeted solutions that integrate advanced technology.
If you’ve read the first two parts of this blog series, you have a solid idea of the scope of this problem, as well as concrete short and long-term solutions.
Now, we’ll highlight a few additional options that are by no means guaranteed — but that, if approved, could make a world of difference for both the agency and struggling taxpayers. These hold their fair share of advantages and downsides, so some skepticism is to be expected before they can be implemented. Still, the following options warrant serious consideration:
Enhance Availability of Digital Resources
Throughout the latest IRS backlog, representatives have made it clear that the slowdown often stems from paper-based tax returns. As such, it behooves the agency to make digital solutions available whenever possible. The current reality is, however, that while digital filing is incredibly popular, it can prove more difficult than expected at times.
In the future, taxpayers will hopefully be able to easily access all tax forms digitally. What’s more, taxpayers should be capable of uploading these within secure document exchange accounts, where they should also receive personalized digital notifications.
Use Predictive Analytics to Be More Proactive
The IRS has made no secret of its intentions to increasingly use big data to plug the gaps created by limited funding and related staffing issues. Already, the National Coordinated Investigations Unit and the Large Business and International Division are heavily reliant on data analytics.
With the greater implementation of predictive analytics, the IRS could add to the successes already imparted by big data, primarily by shifting its focus towards the tax returns with the greatest likelihood of noncompliance. This should improve case selection and make the agency far more efficient in the future.
The IRS backlog may take time to fix, but you can streamline your dealings with the agency as soon as you get in touch with an enrolled agent. Our team at the Highland Tax Group is happy to help, so don’t hesitate to reach out.