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TAXPAYER FIRST ACT

REPORT TO CONGRESS

January 2021

Internal Revenue Service | Taxpayer First Act

Publication 5426 (1-2021) Catalog Number 74637F Department of the Treasury Internal Revenue Service www.irs.gov

TABLE OF CONTENTS

SECTION 1

SECTION 2

SECTION 3

SECTION 4

PROLOGUE

1.0

COMMISSIONER’S WELCOME

2.0

EXECUTIVE SUMMARY

3.0

OUR APPROACH

4.0

TAXPAYER EXPERIENCE STRATEGY

4.1

INTRODUCTION AND EXPLANATION OF STRATEGY

4.2

MEASURING SUCCESS

4.3

EXPANDED DIGITAL SERVICES

4.4

SEAMLESS EXPERIENCE

4.5

PROACTIVE OUTREACH AND EDUCATION

4.6

COMMUNITY OF PARTNERS

4.7

FOCUSED STRATEGIES FOR REACHING

UNDERSERVED COMMUNITIES

ENTERPRISE DATA MANAGEMENT AND

ADVANCED ANALYTICS

5.0

TRAINING STRATEGY

5.1

INTRODUCTION AND EXPLANATION OF STRATEGY

5.2

IRS UNIVERSITY

5.3

TAXPAYER-FIRST TRAINING

5.4

CONTINUOUS LEARNING FOR ALL EMPLOYEES

5.5

UTILIZING TECHNOLOGY

5.6

MEASURING SUCCESS

4.8

SECTION 5

TABLE OF CONTENTS

SECTION 6

SECTION 7

SECTION 8

6.0

ORGANIZATIONAL REDESIGN STRATEGY

6.1

INTRODUCTION AND EXPLANATION OF STRATEGY

6.2

PROPOSED FUTURE ORGANIZATIONAL

STRUCTURE AND DIVISIONS

6.3

COMMISSIONER DIRECT REPORTS

6.4

RELATIONSHIPS AND SERVICES DIVISION

105

6.5

COMPLIANCE DIVISION

110

6.6

ENTERPRISE CHANGE AND INNOVATION DIVISION

113

6.7

OPERATIONS MANAGEMENT DIVISION

116

6.8

INFORMATION TECHNOLOGY DIVISION

118

6.9

MEASURING SUCCESS AND ADDITIONAL

CONSIDERATIONS

120

6.9.1

MEASURING SUCCESS

120

6.9.2

NON-STRUCTURAL COMPONENTS CRITICAL

TO SUCCESS

124

7.0

KEY CONSIDERATIONS

128

7.1

INTERNAL REVENUE MANUAL GUIDANCE

130

7.2

CHANGE MANAGEMENT

131

7.3

COMMUNICATIONS PLAN

133

7.4

RESOURCE CONSIDERATIONS

134

8.0

IRS NEXT STEPS

137

TABLE OF CONTENTS

SECTION 9

9.0

APPENDIX

140

9.1

METHODOLOGY OVERVIEW

141

9.1.1

ESTABLISHING THE TAXPAYER FIRST ACT OFFICE

141

9.1.2

RESEARCH AND INFORMATION GATHERING

141

9.2

STRATEGIC ALIGNMENT

144

9.3

STATUS OF THE 42 OPERATING DIVISION

PROVISIONS

145

9.3.1

EXECUTING DIVISION PROVISIONS

147

9.4

COMMUNICATIONS AND OUTREACH

151

9.4.1

INTERNAL COMMUNICATIONS VEHICLES

151

9.4.

INTERNAL OUTREACH ACTIVITIES

160

9.4.3

INTERNAL COMMUNICATIONS AND OUTREACH

ACTIVITIES ANALYSIS

163

9.4.4

EXTERNAL COMMUNICATION VEHICLES

164

9.4.5

EXTERNAL OUTREACH ACTIVITIES

166

9.4.6

EXTERNAL COMMUNICATIONS AND OUTREACH

ACTIVITIES ANALYSIS

174

9.5

COSTING METHODOLOGIES AND DETAILED COSTS

175

9.5.1

COSTING METHODOLOGIES

175

9.5.2

ESTIMATED COSTS

178

9.6

TAXPAYER EXPERIENCE ADDITIONAL INFORMATION

181

9.6.1

STRATEGIC GOAL: UNDERSTAND, INFORM AND

EDUCATE TAXPAYERS

182

STRATEGIC GOAL: PROVIDE A SEAMLESS

TAXPAYER EXPERIENCE

187

STRATEGIC GOAL: EMPOWER, EQUIP AND ENABLE

WORKFORCE

192

ENABLERS

196

9.6.2

9.6.3

9.6.4

TABLE OF CONTENTS

SECTION 9

9.6.5

INTERNAL REVENUE MANUAL ADDITIONAL

INFORMATION

197

ORGANIZATIONAL REDESIGN ADDITIONAL

INFORMATION

198

COMMISSIONER DIRECT REPORTS ALIGNMENT TO

OVERSIGHT RECOMMENDATIONS

200

RELATIONSHIPS AND SERVICES DIVISION

ALIGNMENT TO OVERSIGHT RECOMMENDATIONS

202

COMPLIANCE DIVISION ALIGNMENT TO

OVERSIGHT RECOMMENDATIONS

203

ENTERPRISE CHANGE AND INNOVATION DIVISION

ALIGNMENT TO OVERSIGHT RECOMMENDATIONS

204

OPERATIONS MANAGEMENT DIVISION ALIGNMENT

TO OVERSIGHT RECOMMENDATIONS

205

INFORMATION TECHNOLOGY DIVISION ALIGNMENT

TO OVERSIGHT RECOMMENDATIONS

205

9.7.7

CRIMINAL INVESTIGATION

206

9.7.8

CYBERSECURITY

210

9.7.9

POLICY AND LEGISLATION

214

9.7

9.7.1

9.7.2

9.7.3

9.7.4

9.7.5

9.7.6

9.7.10 EXTERNAL OVERSIGHT AND ADVISORY

215

9.7.11 GOVERNANCE

216

9.7.12 CURRENT TO FUTURE ORGANIZATIONAL

STRUCTURE CROSSWALK

220

9.8

FUNDING ALIGNMENT

221

9.8.1

NEW APPROPRIATIONS STRUCTURE

221

9.8.2

ORGANIZATIONAL ALLOCATION OF FUNDING

223

TABLE OF CONTENTS

SECTION 10

10.0

BIBLIOGRAPHY

224

10.1

OVERSIGHT REPORTS, TESTIMONIES AND

RECOMMENDATIONS

224

10.2

CUSTOMER SATISFACTION SURVEY RESULTS

232

10.3

PUBLICATIONS, STUDIES, BRIEFINGS

AND STATU ES

237

PROLOGUE

The Taxpayer First Act (TFA) was enacted on July 1st, 2019 with strong bipartisan support to reimagine and enhance the way we serve taxpayers, continue to enforce the tax laws in a fair and

impartial manner, and train IRS employees to deliver a world-class customer experience. The

Act consists of 45 provisions, including specific mandates to improve the taxpayer experience.

There are three provisions requiring the development of the critical plans included in this report

(Taxpayer Experience, Training, and Organizational Redesign). These plans lay out a vision to

revolutionize tax administration in our country for the 253 million citizens who interact with the

IRS annually, and ensure that the $3.6 trillion of federal revenue that the IRS collects annually

will continue. This is an aspirational vision that builds on work that is already underway and

provides an investment framework for evaluating IRS funding levels in future years. However,

without the commitment of significant multi-year funding, the IRS cannot make the taxpayer

improvements necessary to maintain trust and confidence in the federal government and its tax

collection system.

High-quality, personalized service is key to helping taxpayers understand and comply with their

filing and reporting obligations, well-trained employees provide excellent taxpayer service, and

a streamlined organizational structure makes it easier for taxpayers and employees to navigate

the agency and get the help they need when they need it. Strong technology infrastructure is

critical to delivering on this vision. The Integrated Modernization Business Plan, delivered in

April 2019, was developed to establish the underlying infrastructure required to modernize the

IRS. However, the initial funding requested for modernization only takes us so far. While the

Integrated Modernization Business Plan lays the foundation for improving the taxpayer and

employee experience, the Taxpayer First Act requires us to build upon this foundation to deliver

the experience taxpayers expect.

The IRS currently estimates that full implementation of the Taxpayer First Act plans and

Integrated Modernization Business Plan would cost $4.1 billion over the five-year period from

FY2021 – FY2025 broken into three broad categories:

•

TFA Legislatively Mandated Provisions: $550 million over five years to implement specific

mandates outlined in the act, apart from the development and implementation of strategies

TFA Strategy Development and Implementation: $1.6 billion over five years to develop

and implement the Taxpayer Experience, Training and Organizational Redesign plans

required by the TFA

IRS Modernization Plan: $1.9 billion associated with achieving necessary modernization of

IRS systems, cybersecurity and operations

Additional costing details can be found in the Appendix 9.5.2.

Internal Revenue Service | Taxpayer First Act

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PROLOGUE

In addition, in FY2020 the IRS spent $68 million on the implementation of TFA legislatively

mandated provisions. FY2020 expenses were funded out of our original budget allocation as

no funding was specifically appropriated to cover those needs. Our FY2021 budget submission

requested funding of $106 million for implementation of the legislatively mandated provisions of

the Taxpayer First Act and $300 million for the Modernization Plan.

The TFA mandates included in the Act are aimed at strengthening taxpayer rights, modernizing

the IRS and combating identity theft and fraud. The IRS estimates that full implementation of

these requirements by FY2025 would cost an additional $444 million, roughly $111 million per

year, above the amounts previously committed or requested. Some of the provisions that require

significant additional investments include:

•

Provision 1001, Establishment of IRS Independent Office of Appeals: Renames the IRS

Office of Appeals as the IRS Independent Office of Appeals and adds new rules that require

the Independent Office of Appeals to make its referred case files available to:

•

Individuals with adjusted gross incomes of $400,000 or less for the tax year to which

the dispute relates;

•

Entities with gross receipts of $5 million or less for the tax year to which the dispute

relates.

In addition, when the IRS or Chief Counsel has issued a notice of deficiency to a taxpayer

and denies the taxpayer’s request for referral to the IRS Independent Office of Appeals, the

IRS must now issue a notice to explain the reasons. It also needs to tell the taxpayer how to

protest the denial.

•

Provision 2102, Internet Platform for 1099 Filings: Requires the IRS to develop an

Internet portal by Jan. 1, 2023 that allows taxpayers to electronically file Forms 1099. The

website will provide taxpayers with IRS resources and guidance, and allow them to prepare,

file and distribute Forms 1099, and create and maintain tax records.

•

Provision 2005, Identity Protection Personal Identification Numbers: Requires the

Secretary to establish a program to issue an Identity Protection (IP) PIN to any U.S. resident

who requests one. Additionally, the Act requires the Secretary to expand the issuance of IP

PINs every year and ensure nationwide availability within five years.

•

Provision 3101, Mandatory E-filing by Exempt Organizations: Extends the requirement

to e-file to all tax-exempt organizations required to file statements or returns in the Form 990

series or Form 8872 (Political Organization Report of Contributions and Expenditures). The

Act also requires that the IRS make the information provided on the forms available to the

public in a machine-readable format as soon as possible.

Internal Revenue Service | Taxpayer First Act

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PROLOGUE

The IRS stands ready to begin a new era in tax administration that is:

•

Taxpayer Focused: We should provide interactions that are efficient, informative,

personalized and convenient. Taxpayers should have the information they need to understand

and comply with their taxes. Key elements of this program include:

•

Expanded Digital Services: Simplifying the tax process with enhanced mobile

and online experiences, digital filing and payment options, and online portals for tax

professionals.

•

Seamless Experience: Enhancing self-service capabilities and IRS-assisted service

capabilities, expanding access to the IRS by providing taxpayers with their preferred

channel of service (website, telephone, in person, etc.) and integrating those

channels to provide a seamless experience throughout the taxpayer lifecycle.

•

Proactive Outreach and Education: Providing clear and timely communications,

improving how and when we provide information to taxpayers by using new

technology, applying behavioral insights, expanding our social media strategy, and

making use of our trusted partnerships.

•

Community of Partners: Building on our existing partnerships and developing

new partnerships to create an interactive network of trusted partners across the tax

community.

•

Focused Strategies for Reaching Underserved Communities: Establishing

specific strategies to engage with underserved communities to address issues of

communication, education, transparency, trust, and access to quality products and

services, including providing customized education and outreach in the languages

spoken by specific taxpayer groups.

•

Enterprise Data Management and Advanced Analytics: Developing a secure data

management strategy that includes an agency-wide understanding of operational

data and applying advanced analytics to better understand taxpayer needs to improve

service and compliance.

Internal Revenue Service | Taxpayer First Act

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PROLOGUE

•

Employee Focused: Our employees should be well-trained, adaptable, highly motivated and

customer-focused. IRS employees would receive comprehensive and thorough training - both

substantively (on the law and mechanics) and attitudinally (utilizing world-class customer

experience techniques). Key elements of this program include:

•

Streamlining current training processes through the creation of a centralized

educational organization, or “IRS University” to support the IRS mission.

•

Developing annual training on taxpayer rights and focusing employee training on

early, fair, and efficient resolution of taxpayer disputes.

•

Ensuring consistent skill development and employee evaluations across the IRS.

Delivered Efficiently: We are modernizing our organizational structure to better align

operations with our mission, increase agency-wide collaboration, and deconstruct

operational silos. Key elements of this program include:

•

Realigning the IRS’s organizational structure to increase consistency across

compliance functions and taxpayer services.

•

Improving the leadership structure, reducing organizational redundancies and

removing silos.

•

Providing solutions to best position the IRS to combat cybersecurity and other

threats.

Compliance with the statutory requirements of the TFA, including the full implementation of

the strategies included in this report and the key TFA mandates, will fundamentally change

the taxpayer experience. This would improve trust and confidence in the IRS which can result

in improved compliance, reducing the tax gap and benefiting every taxpayer. But we must

first improve our core technology infrastructure. To truly “Put Taxpayers First” and successfully

implement the Taxpayer First Act, the IRS needs adequate funding. Investing in the IRS

represents an investment in the future of the United States and the delivery of important

services every American deserves.

Internal Revenue Service | Taxpayer First Act

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1.0 | COMMISSIONER’S WELCOME

1.0 COMMISSIONER’S

WELCOME

I am pleased to provide you with this report on the progress we have made to implement

the Taxpayer First Act and our Taxpayer Experience, Training and Organizational Redesign

Strategies. As the Commissioner of the Internal Revenue Service (IRS), I would like to thank the

Congress for providing us with a great opportunity to reimagine the way the IRS does business.

Signed into law on July 1, 2019, the TFA gives us the opportunity to shape our future and rethink

the way we operate. In particular, the way we interact with taxpayers, the way that we train our

employees, and the way we structure our organization are important foundations for our future

success. This report lays out a vision to fundamentally change the way we operate, building

upon our strengths, with additional focus on areas to improve the important service we provide

to our great country.

More than 20 years ago, the IRS Restructuring and Reform Act of 1998 led to significant

changes, including increased taxpayer rights and our organizational design based on taxpayersegment focused operating divisions. While those changes served tax administration well,

the world has evolved. The IRS must consider the increased role of technology in our lives,

globalization, and our diverse and expanding taxpayer base. If enabled by adequate funding,

TFA gives us a chance to transform the IRS into a true 21st century Agency.

In this report, we explain our vision for the Taxpayer Experience, Training, and Organizational

Redesign Strategies required by the TFA and our implementation progress to date. By integrating

our three Strategies, we will train and empower IRS employees to deliver exceptional taxpayer

service within an efficient organizational structure. Throughout the report, you will find a

consistent theme of improved technology, seamless service, and access for all taxpayers. I hope

you will share my excitement about our path to transform the IRS into a trusted, user-friendly,

Internal Revenue Service | Taxpayer First Act

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1.0 | COMMISSIONER’S WELCOME

digital enterprise accessible to all taxpayers, regardless of location, occupation, educational

level, or language proficiency.

While some of our plans are aspirational, I want to emphasize that we are committed to tangible,

lasting reform. Taxpayers will see improvements over the next 1-2 years as we more deliberately

integrate and design services, and incrementally expand our capabilities. Our goal is for the IRS

to evolve into an organization that anticipates their needs and proactively communicates easyto-understand information in the languages they prefer. Similarly, tax professionals should have

access to the information they need and be empowered to collaborate with the IRS to further

innovate and improve the taxpayer experience. We will continue to build upon our current use

of data analytics to drive efficient decision making and implement changes. We are committed

to ensuring that our programs and services are accessible to all our customers, fairly, and

equitably, with emphasis on reaching traditionally underserved communities. We can accomplish

all of this and more in partnership with the Congress, taxpayers, tax practitioners and other

stakeholders.

IRS employees are key stakeholders in this effort. During my tenure at the IRS, I have been

constantly amazed at the talent and diligence of our employees, their desire to serve taxpayers

and the pride they have as civil servants. Although we have faced a number of challenges in a

short time, from the 35-day government shut-down in 2019 to the ongoing COVID-19 pandemic,

our employees continue to collect the funds to support our nation and deliver payments to assist

Americans. Through this spirit and the desire to do the right thing for taxpayers we serve, the

IRS has developed what I believe are the strongest strategies to drive our agency into the future.

Our TFA team worked diligently and collectively with the IRS leadership team over the past year

to research, listen, learn and synthesize information from many sources. These sources include

IRS employees, taxpayers, tax professionals, oversight partners and other external stakeholders.

The amount of feedback collected is nothing short of phenomenal, and I am proud of the report

Internal Revenue Service | Taxpayer First Act

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1.0 | COMMISSIONER’S WELCOME

we produced. That being said, the work is not yet done. It will take major effort, strategy and

funding to execute the plans we have made. The listening does not stop with the information we

have collected. We will implement continuous feedback loops to hear from taxpayers and our

stakeholders.

As you will read, the full report includes both near term operational plans and a long term

aspirational vision. We recognize that it will take additional planning and funding to execute the

plans outlined in these strategies. I trust that you will recognize the strength and vision in the

strategies we present and provide the support the IRS requires to execute them in the coming

years. I am also confident our efforts to be more transparent and transform the IRS will increase

trust in the IRS, improve voluntary compliance and assist all taxpayers in meeting their tax

obligations to provide crucial funding for our nation’s operations.

The future of the IRS belongs to us. If we stand together, focused on our mission, there is no

limit to what we can do.

Thank you,

Charles P. Rettig

IRS Commissioner

Internal Revenue Service | Taxpayer First Act

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SECTION

2 SUMMARY

Internal Revenue Service | Taxpayer First Act

EXECUTIVE

2.0 | EXECUTIVE SUMMARY

2.0 EXECUTIVE SUMMARY

The IRS operates at an unparalleled level of scale and complexity. We aim to provide America’s

taxpayers top-quality service by helping them understand, enable them to voluntarily comply,

and meet their tax responsibilities while enforcing the law with integrity and fairness to all. In

FY2019, the IRS collected more than $3.56 trillion in gross taxes and issued almost 122 million

refunds1 - all amounting to more than $452 billion in tax refunds. All of this is possible because

of our workforce; the approximately 75,000 dedicated public servants that take pride in serving

taxpayers and their country.

This report describes how we can transform the IRS into a modern, efficient, and taxpayercentric centered agency. One that is easily accessible for all taxpayers, including traditionally

underserved communities. The report outlines three strategies that build upon one another:

Taxpayer Experience, Training and Organizational Redesign. Our Taxpayer Experience, Training,

and Organizational Redesign Strategies will re-shape the IRS into a nimbler enterprise, readily

capable of taking advantage of emerging technology. These strategies are built upon the

exceptional work the IRS is already doing, but in many other ways, they are aspirational. We

intend for the strategies described in this report to reimagine the taxpayer experience. Our

strategies will guide our future strategic planning efforts and we will continue to coordinate

across the agency to align on new initiatives. We will leverage the Taxpayer First Act strategies

to inform our FY2022-2026 Strategic Plan. While the strategies are flexible enough to adjust to

budget realities, delivering the type of experience American taxpayers expect and deserve will

require funding.

Scope of the Report

With 45 provisions, the Taxpayer First Act reflects a wide-ranging effort to improve IRS

operations. As described below, this report addresses the Act’s three most-sweeping provisions

related to taxpayer service (Section 1101), employee training (Section 2402) and organizational

structure (Section 1302).2 Each of these provisions mandates a report to the Congress.

IRS 2019 Data Book.

Unless otherwise specified, all Section references herein are to the Taxpayer First Act of 2019, Pub. Law No. 116-25, 133

Stat. 981 (2019). See Appendix 9.3 for more information about the other TFA provisions, many of which have already been

implemented.

Internal Revenue Service | Taxpayer First Act

15 1

2.0 | EXECUTIVE SUMMARY

•

Section 1101, Comprehensive Customer Service Strategy, requires the IRS to develop

a comprehensive customer service strategy that includes best practices similar to those

provided by private industry to meet taxpayers’ reasonable expectations, including expanded

online services, telephone callback services and employee training. The provision also

requires us to assess opportunities to co-locate services with other Federal agencies.

Importantly, Section 1101 requires that we identify short-term (one to two years), mid-term

(three to five years) and long-term (ten years) goals and to develop metrics for measuring

our progress.3

•

Section 2402, Comprehensive Training Strategy, directs the IRS to create a

comprehensive training strategy to streamline and improve our current training processes,

technology and funding. Under this provision, our strategy must include annual training

on taxpayer rights with a focus on ensuring that employees can resolve taxpayer issues

early, fairly and efficiently. Our strategy must also ensure consistent skill development and

employee evaluations throughout the IRS.

•

Section 1302, Modernization of IRS Organizational Structure, mandates the IRS develop

an organizational redesign strategy that prioritizes the taxpayer experience to ensure

taxpayers can easily and readily receive the help they need. The strategy will also streamline

the structure of the organization and best position the IRS to combat cybersecurity and

other threats. Finally, Section 1302 requires us to specifically address whether the current

IRS Criminal Investigation Division should report directly to the Commissioner. Rather than

prescribing a particular outcome, Section 1302 gives the IRS the flexibility to determine what

type of organizational structure would best serve taxpayers.

We consolidated the reports required by Sections 1101, 2402 and 1302, because we believe our

Taxpayer Experience, Training and Organizational Redesign Strategies are inextricably linked.

Well-trained employees provide excellent taxpayer service, and a streamlined organizational

structure makes it easier for taxpayers and employees to navigate the agency and get help when

they need it.

Our three strategies represent the IRS’s vision and bring the intent of the TFA to life.

Implementation of the other 42 TFA provisions complements our three strategies. Together, they

will bring a game-changing focus to the agency and our workforce.

Throughout this report, we use the terms “taxpayer” and “customer” interchangeably. We also refer to the strategy developed

under Section 1101 as our Taxpayer Experience Strategy, because the “experience” is the sum of all interactions and includes

every touchpoint with a product or service.

Internal Revenue Service | Taxpayer First Act

2.0 | EXECUTIVE SUMMARY

The Three Strategies

To develop our strategies, we conducted in-depth research and devoted months to engaging

with a wide array of stakeholders. We listened carefully with an emphasis on lessons learned

and we strongly considered prior recommendations from our oversight partners.4 As a part of our

development process, we developed three overarching goals:

•

Enhance the taxpayer experience

•

Enhance the employee experience

•

Improve operational efficiencies

Our report further details the objectives and measures that we will use to meet these

three goals.

Taxpayer Experience Strategy

The taxpayer experience goes beyond “customer service” to solve a problem. It encompasses

all taxpayer transactions with the IRS across our service, compliance, and other program areas

throughout their lifetime of interactions with the organization.

In addition to helping individual and business taxpayers meet their responsibilities and providing

services to the tax professionals who represent them, the IRS devotes significant resources

to meeting the special needs of tax-exempt organizations, employee retirement plans and

government entities in complying with tax laws. These entities, though exempt from federal

income tax, rely on IRS services and represent a significant aspect of tax administration.

Section 3.0 and Section 9.4 provide detailed descriptions of our outreach and research.

Internal Revenue Service | Taxpayer First Act

2.0 | EXECUTIVE SUMMARY

With this in mind, we set out to develop a holistic strategy to meet the needs of all taxpayers and

other entities that rely on the IRS for information and services. Reflecting both near-term and

long-term goals, our Taxpayer Experience Strategy consists of six components:

•

Expanded Digital Services to provide self-service channels by building on existing online

accounts and introducing online accounts for tax professionals and business taxpayers.

•

Seamless Experience to guide taxpayers to the resources and communication channels

that will resolve their issues.

•

Proactive Outreach and Education to educate taxpayers by providing information at the

time, in the language, and by the method they prefer through applying behavioral insights,

using new technology, and continuing to use and expand upon our trusted partnerships.

•

Focused Strategies for Reaching Underserved Communities to consolidate programs

that engage with these communities to address communication, education, transparency,

trust, and other constraints some face in accessing information and services.

•

Community of Partners to establish, guide and facilitate a collaborative and interactive

network of partnerships across and beyond tax administration – including the public, private

and non-profit sectors – to share best practices and amplify our ability to reach taxpayers

with the information they need.

•

Enterprise Data Management and Advanced Analytics to develop a data management

strategy that includes an agency-wide understanding of the taxpayer experience, emerging

needs and expectations, and operational data.

We will develop capabilities that are scalable across all taxpayer segments – including individuals,

domestic and international businesses, tax exempt organizations, governmental entities, as well as

our private industry partners and other communities. In this report, we present estimated timelines

(1-2, 3-5, and 10 years), high-level costing, and measures of success for each component.

Implementing our Taxpayer Experience Strategy will give taxpayers the information they need to

understand and comply with their taxes. Furthermore, taxpayers will know their feedback has been

heard. As a result, taxpayers should have more confidence and trust in the IRS.

Section 4 of this report provides a detailed description of the Taxpayer Experience Strategy.

Internal Revenue Service | Taxpayer First Act

2.0 | EXECUTIVE SUMMARY

Training Strategy

With approximately 75,000 IRS employees assigned to over 500 offices across the nation,

training has never been easy. Effective training and development improves employee

productivity, overall job satisfaction and commitment. Additionally, it reduces employee turnover,

decreases costly errors and increases overall quality of work.

Our Training Strategy will strive to improve upon existing training and employee development

efforts and our unified approach will enable training to be more relevant and holistic for

employees. We will enhance training technology and integrate additional technological tools

to improve the employee training experience. We will build on previous efforts to develop this

Service-wide approach and include new taxpayer-service concepts into our curriculum. This

strategy includes five components:

•

IRS University to serve as an innovative, centralized learning function to improve training

and encourage collaboration across the organization. The University will build on and unify

our training and development communities and will feature four academies (Taxpayer

Service, Tax Administration, Information Technology (IT) and Operations Management, and

Leadership) to organize training curricula around structured yet flexible career paths.

•

Taxpayer-First Training to equip all employees with a working knowledge of our Taxpayer

Experience Strategy, Taxpayer Rights and organizational awareness through a standardized

curriculum, while encouraging professionalism, effective communication and empathy. The

IRS will also emphasize training on civility, inclusive behaviors, cultural competency, taxpayer

rights and multi-language access. We will integrate new taxpayer-service concepts into

current training to ensure employees are well equipped to solve taxpayer issues.

•

Continuous Learning for All Employees to build on our efforts to provide ongoing

professional training for employees from the first day on the job throughout their entire career

with the organization. A fully realized continuous learning environment will equip employees

to perform their current role, develop higher levels of technical expertise along a career path

and support the acquisition of portable skills to allow employees to change roles within

the IRS.

•

Improving Technology to create accessible, high-quality and effective training programs

to optimize the employee training experience. We will implement new technology to

accommodate the administration, delivery and tracking of the training lifecycle.

•

Measuring Success to allow us to make necessary training adjustments and continuously

improve our training capabilities.

Internal Revenue Service | Taxpayer First Act

2.0 | EXECUTIVE SUMMARY

Based on our research, we know that employees want to get the most out of their training. They

respond well to experienced trainers who are confident in their field and adept in engaging in

traditional and virtual classroom environments. IRS employees want training that is appropriately

paced and allows time for practical application. Our comprehensive Training Strategy is intended

to create an environment where employees receive timely training, have access to personal

development resources and are equipped with the skills necessary to identify opportunities to

enhance taxpayer service.

As explained in this report, we aligned our Training Strategy with our Taxpayer Experience

and Organizational Redesign Strategies to create a continuous learning environment for our

employees.

Section 5 of this report provides a detailed description of the Training Strategy.

Organizational Redesign Strategy

While our current organizational model was, and is, effective in many areas, we recognize that

changing times call for new ways of doing business for taxpayers and IRS employees. As the

first high-level restructuring plan in more than 20 years, our Organizational Redesign Strategy

considers areas of success and opportunities for improvement. We will capitalize on our

strengths and make structural changes where needed to better serve taxpayers.

As mandated by Section 1302, the IRS built

on previous strategic initiatives and insights,

studied industry and global revenue agency

trends and best practices, and assessed

evolving taxpayer expectations. Through careful

research of oversight recommendations,

taxpayer insights and employee interviews,

we identified efficiencies and eliminated

redundancies, while ensuring leadership

accountability for key components of the

taxpayer experience and employee training.

Our new organizational structure will increase

agency-wide collaboration and deconstruct

operational silos, thereby improving our ability

to provide seamless service to our employees

and taxpayers. By design, our new structure

fully supports our Taxpayer Experience and

Training Strategies.

Internal Revenue Service | Taxpayer First Act

This belongs to you; it belongs

to your clients; it belongs to every

person in the IRS workforce,

and we want to get it right.

— Charles Rettig, IRS Commissioner

2.0 | EXECUTIVE SUMMARY

Our Organizational Redesign Strategy focuses on the following key areas:

•

Improve Integration of Strategic Planning and Initiative Prioritization at the Enterprise

Level

• Create a new Enterprise Change and Innovation Division that would serve as

the IRS’s “strategic integrator”. This division would work with leadership across

the agency to coordinate annual strategic planning and prioritization activities to

streamline decision making and enable the agency to set and meet its short and

long-term strategic goals.

• The Enterprise Change and Innovation Division would pull together the Taxpayer

Experience, Training, and Organizational Redesign Strategies described in this

report as well as other work on strategic direction (e.g., The Modernization plan;

the Enterprise Case Management and Digitalization strategies; and future-focused

efforts being led by our Human Capital and Equity Diversity and Inclusion offices) to

perpetuate an integrated, collaborative, agency level strategic direction.

•

Improve the Taxpayer Experience and Provide a Continued Emphasis on Taxpayer

Rights

• Create a new senior position for a Chief Taxpayer Experience Officer, who will seek

to drive strategic direction for improving the taxpayer experience across the IRSincluding both service and compliance interactions.

• Integrate taxpayer experience related strategies and initiatives with other

agency priorities.

• Provide an enterprise level holistic view of the taxpayer experience, identify

opportunities in existing taxpayer-facing processes and drive continuous

improvements in real time.

• Combine and centralize taxpayer-facing program offices to streamline responses to

taxpayer inquiries and increase coordination across the agency.

• Integrate IRS services and communication channels to facilitate a more seamless

and holistic taxpayer experience.

• Create a smaller, taxpayer-focused Senior Leadership Team5 led by the

Commissioner to ensure that taxpayer rights are foremost in our long-term planning

activities.

In the new organizational structure, the Senior Leadership Team will serve in place of the current Senior Executive Team.

While the total number of direct reports to the Commissioner is increasing under this organizational structure, the Senior

Leadership Team will be significantly reduced.

Internal Revenue Service | Taxpayer First Act

2.0 | EXECUTIVE SUMMARY

•

Improve Operational Efficiencies

• Consolidate previously segmented examination operations into one function to

reduce internal duplication and fragmentation of activities and provide consistent

outcomes for resolving taxpayer compliance issues.

• Create a new Relationships and Services Division that operationalizes the taxpayer

experience and:

• Consolidates all toll-free telephone and taxpayer assistance center operations

under one, “Assisted Services” organization.

• Combines all outreach activities under one organization.

• Combines all third-party partnership activities within one division.

• Create a Data Office and an Enterprise Digitalization and Case Management Office

that will improve our use of data to reduce manual processes and reliance on paper

while improving compliance operations and taxpayer service initiatives.

Increase Collaboration

• Flatten and streamline the headquarters executive leadership structure to increase

collaboration and continuity in decision making.

• Provide the Commissioner with a more direct line of sight into operations and

functions.

Enhance Innovation

• Establish a direct line from the Commissioner to the Information Technology Division

to enhance critical focus on cutting-edge business processes and technology.

• Continue our emphasis on innovation in existing offices that are already driving or

enabling creative taxpayer approaches across the IRS, such as Procurement and

Information Technology, to build an even more innovative culture throughout the

organization.

Continue to Improve Critical Operations Currently Serving Taxpayers Well

• Focus on individualized service to combat identity theft through strong identity theft

and victim assistance efforts.

• Support the vital efforts of the Whistleblower Office.

• Maintain an effective Criminal Investigation Office to drive an enforcement presence

aligned to other compliance offices for continued coordination and emphasis.

• Deliver filing season services by continuing the successful filing season Executive

Steering Committee approach while gaining efficiencies through close coordination

between our Information Technology Division and the new Relationships and

Services Division.

Internal Revenue Service | Taxpayer First Act

2.0 | EXECUTIVE SUMMARY

Key Features and Benefits of the New Organizational Structure

Figure 1: Notional Future IRS Organizational Structure

The IRS Organizational Structure as of September 2020 can be found in Section 6.1. Under

the new structure, shown in Figure 1, the Commissioner would be supported by a Deputy

Commissioner, a Chief of Staff and ten direct reports. This team would work together to set the

direction of the agency, empower the workforce, enhance innovation and improve the taxpayer

experience.

Internal Revenue Service | Taxpayer First Act

2.0 | EXECUTIVE SUMMARY

The new Chief Taxpayer Experience Officer (CTXO) would drive strategic direction for

improving the taxpayer experience across the IRS and would help ensure a consistent voice

and experience across all taxpayer segments by developing agency-wide taxpayer experience

guidelines and expectations. Collaborating with peers across the entire agency, the Chief

Taxpayer Experience Officer would drive an enterprise-level holistic view of the taxpayer

experience. Working closely with the Relationships and Services and Compliance Divisions which will be the originating source for most taxpayer interactions, and the Enterprise Change

and Innovation Office (ECIO) - the “strategic integrator”, the Chief Taxpayer Experience Officer

would drive continuous improvement across the service delivery operations. The Chief Taxpayer

Experience Officer’s close collaboration with the ECIO would ensure that Taxpayer Experience

Strategies align with overarching enterprise priorities and any key legislative initiatives. The

Chief Taxpayer Experience Officer would also seek to drive consistency across many different

areas, including working within the Relationships and Services Division, Compliance Division,

IRS Independent Office of Appeals and Office of Chief Counsel to facilitate the use of new tools

for communicating with taxpayers and their representatives. We envision the Chief Taxpayer

Experience Officer as a subject matter expert with the ability to provide other organizational units

with information on changing taxpayer expectations, industry trends and ways to apply customer

service best practices within the framework of IRS operations and federal limitations. This

enterprise-wide approach to the taxpayer experience will ensure that taxpayer-facing capabilities

are developed and deployed in a way that is scalable and usable across all interactions and

not for single purpose/single use/single program area. The Taxpayer Experience Office (TXO)

will also identify opportunities in existing taxpayer-facing processes and drive continuous

improvements in real time. This office would help to eliminate systemic breakdowns before they

can have a negative impact on taxpayers.

The new Relationships and Services Division would bring together all taxpayer-facing service

activities, serving as the front door to the IRS for all taxpayers and stakeholders. This division

would deliver services and information to America’s taxpayers through a variety of channels –

including telephone, digital, correspondence, social media and face-to-face (both in-person and

through virtual technology). While the Chief Taxpayer Experience Officer would be responsible

for developing and continuously evolving the Taxpayer Experience Strategy, the Assistant

Commissioner of Relationships and Services would work with the Chief Taxpayer Experience

Officer and Enterprise Change and Innovation Division to execute on the vision of the Taxpayer

Experience Strategy. With all taxpayer-facing service channels under a single umbrella, this

structure would create one division responsible for end-to-end service delivery and relationship

management, while sustaining the value of having some aspect of taxpayer segmentation

and specialization within the program areas. This structure would integrate channels and

facilitate easier navigation of the IRS enabling a more seamless experience for taxpayers and

stakeholders.

Internal Revenue Service | Taxpayer First Act

2.0 | EXECUTIVE SUMMARY

The new Compliance Division would consolidate compliance functions across taxpayer

segments into one division and establish an enterprise-level Chief Compliance Officer. This

change would facilitate the development of a consolidated compliance strategy that considers

emerging issues across all taxpayer segments and enables Exam and Collection leadership to

identify cross-cutting behavioral trends. This coordination would reduce variability in compliance

processes and, working with the Chief Taxpayer Experience Officer, provide a more consistent

taxpayer experience across all taxpayer interactions. Ultimately, this consolidation aims to reduce

duplicative activities related to strategic planning, issue identification, work plan development,

case selection, performance monitoring, and research. Coupled with our Training Strategy, this

structure would create more complete and connected career paths for IRS employees.

The new Enterprise Change and Innovation Division would serve as a “strategic integrator,”

responsible for planning and overseeing the implementation of enterprise-wide initiatives. The

Assistant Commissioner of the Enterprise Change and Innovation Division would work with

leadership across the agency to coordinate annual strategic planning and prioritization activities

to streamline decision making and enable the agency to set and meet its short and long-term

strategic goals. Most immediately, the Strategic Planning and Legislative Implementation

Office (SPLIO) within this division would coordinate the implementation of the TFA strategies

(Taxpayer Experience, Training, and Organizational Redesign) through program management,

governance, change management and other tactical implementation functions. SPLIO would

partner closely with the Taxpayer Experience Office and the Relationships and Services

Division on implementing the Taxpayer Experience Strategy, and with the Human Capital Office

on implementing the Training Strategy. As strategic integrator, this office would bring together

these and other discrete strategies developed across the IRS into an enterprise integrated

strategy which would be leveraged by IRS Senior Leadership to identify and drive prioritization

of investments. While SPLIO would be responsible for implementing TFA legislation, it would

have the capabilities in place to effectively transition to leading other significant legislative

implementations or enterprise level strategic initiatives as they arise. This would enable the

IRS to strategically address legislative changes, standardize execution and coordinate with the

appropriate operating divisions.

The Chief Data Officer will be part of the Enterprise Change and Innovation Division.

Working closely with his or her peers across the agency, the Chief Data Officer will develop

an enterprise-wide data strategy and oversee all activities related to data and data analytics.

This data strategy will provide the IRS with a framework to assess, prioritize, and address

data access and analytics needs across the IRS and to guide program and policy decisions.

The Chief Data Officer will also incorporate new evidence building processes needed to make

better decisions to meet the changing needs and expectations of taxpayers as well as ensure

strategic planning business decisions are data driven and in line with documented organizational

challenges and risks. The Chief Data Officer will be instrumental in the implementation of the

Data Management and Advanced Analytics aspect of the Taxpayer Experience Strategy and

Internal Revenue Service | Taxpayer First Act

2.0 | EXECUTIVE SUMMARY

will support the Enterprise Case Management and Digitalization strategies. Improved data

management and analytics will feed improvements to the Compliance and Relationships and

Services divisions.

The Operations Management Division will be a revitalized support structure that will help

the agency address many of the challenges we face in today’s current tax administration

environment. Their work will include a focus on delivering internal operations and facilitating

delivery of taxpayer and external stakeholder facing programs. Operations Management links

various functions throughout the organization, ensuring a smooth flow of information and ease of

internal and workforce operations. This division will be comprised of many of the critical existing

support functions within Operations Support’s current structure. The newly designed Operations

Management Division will support critical day-to-day IRS operations, enabling other functions

within the organization to increase their focus on taxpayer service. Operations Management will

include the Diversity Office and the Risk Office. Due to their critical roles, the Diversity Office and

Risk Offices will also have dotted line6 direct reporting relationships to the IRS Commissioner.

The Assistant Commissioner Chief Information Officer will oversee the Information

Technology Division and will regularly interface across the IRS to understand its technology

needs. The Information Technology Division will be responsible for coordinating and leading

focused initiatives on technology (e.g., Strategic Oversight, Enterprise Development, Cyber,

Enterprise Operations, Computing Centers, User and Networks Service, Enterprise Architecture

and Engineering, and Program Modernization) in order to better respond to taxpayer demand

for innovative information technology solutions and online services. This division will be

responsible for all IT services and will retain a similar operational structure to the existing IT

Division, including the Cybersecurity Office. However, the Cybersecurity Office will be expanded

to incorporate the various cybersecurity activities across the agency. By aligning the Information

Technology Division as a direct report to the Commissioner, it better enables earlier awareness

and more rapid response to critical emerging technology issues. This structure will also increase

collaboration with peer direct reports to address enterprise priorities and better align with our

modernization efforts.

This report also addresses the alignment of structural changes with oversight recommendations

and the positioning of the IRS Criminal Investigation Office.

Additional Considerations for the Organizational Redesign Strategy

The Organizational Redesign Strategy also addresses changes to our governance structure,

appropriations allocation, policy and legislation, and working relationships with our oversight

and advisory partners. By modernizing our structure to increase collaboration, combine

similar operations and support our employees throughout their careers, we will transform

For daily operations, offices with dotted line reporting to the Commissioner, will report to their leadership but will have direct

access to provide regular updates and guidance to the Commissioner. These offices will also serve in advisory roles to the

Senior Leadership Team.

Internal Revenue Service | Taxpayer First Act

2.0 | EXECUTIVE SUMMARY

both the taxpayer experience and our internal operations. Knowing that a restructuring of this

scale cannot be realized overnight, we will take a multi-year approach to implementing our

Organizational Redesign Strategy. We are committed to short-term, mid-range and longer-term

improvements; however, we note that significant and long-term changes depend on continuous

investment as well as legislative and policy changes. We envision dedicating FY2021 to

developing an Organizational Blueprint Report that includes a detailed roadmap and project plan

for restructuring the organization. Our Organizational Blueprint Report will further define the role

and structure of key offices in our future organizational structure as well as an updated operating

model. Lastly, we envision using FY2021 to establish and fill key new positions (e.g. Chief

Taxpayer Experience Officer) and make initial organizational changes. The divisions and offices

outlined in this report may change as we continue to refine our organizational structure.

Section 6 of this report provides a detailed description of the Organizational Redesign Strategy.

Implementation of the Taxpayer Experience, Training and Organizational Redesign

Strategies

We designed our strategies to be flexible depending on fiscal realities. Our implementation plans

prioritize the tools, training and structure we need to fit within the funding we receive. This report

will also illustrate how the IRS is already implementing some aspects of each strategy.

Section 7 of this report provides a detailed description of additional key considerations for the

implementation of our proposed strategies. In particular, it summarizes the estimated notional

costs over five years of $2. billion in order to put this plan in place.

| WHAT WE HEARD |

Reimagining our organizational structure to place key organizations and Senior Leadership

Team members with direct alignment to the Commissioner will strengthen the IRS’s ability to

drive agency priorities and executive accountability on future initiatives while administering the

tax code. The internal policies we identified under the direction of former Commissioner Larry

Gibbs (serving from 1986-1989) established that, “The Internal Revenue Service be a progressive

organization...and will be so administered to provide vigorous and dedicated attention to making

the Internal Revenue Service a truly forward thinking organization.” (Policy Statement 1-21). Our

current policy statement and future activities underscore the relevance of this thinking even today.

Internal Revenue Service | Taxpayer First Act

SECTION

3 APPROACH

Internal Revenue Service | Taxpayer First Act

OUR

3.0 | OUR APPROACH

3.0 OUR APPROACH

The Commissioner assigned a team of executives to launch and lead a Taxpayer First Act Office

(TFAO) shortly after the TFA became law. The TFAO sits within the Commissioner’s Office of

Chief of Staff and coordinates agency-wide implementation of all TFA provisions. For the past

year and a half, the TFAO has led the integration of TFA-related communications, program

management and governance. With input from IRS senior leaders, employees and other

stakeholders, the TFAO also spear-headed development of our Taxpayer Experience Strategy

(Section 1101), Training Strategy (Section 2402) and Organizational Redesign Strategy (Section

1302). The TFAO executives identified emerging IRS leaders and additional staff to support this

work.

Program planning for the office included developing a vision statement, a set of guiding

principles and a timeline.

Vision Statement:

Working collaboratively, the Taxpayer First Act Office will reimagine our organization to enable an

agency-wide focus on providing a high-quality taxpayer experience for all.

Guiding Principles:

As we pursue our mission and vision with honesty and integrity, we will:

•

Coordinate and integrate.

Listen, learn and then design.

Build excitement through regular and transparent communications.

Embrace accountability through results.

Internal Revenue Service | Taxpayer First Act

29 2

3.0 | OUR APPROACH

The listen, learn and then design principle was particularly powerful in guiding our work:

•

Listen: We approached this effort without preconceived notions of what our stakeholders

expect from the IRS. We dedicated the first four months to conducting listening sessions

across the country and around the globe, engaging a wide variety of stakeholders inside and

outside of our organization.7

•

Learn: Across all three strategies we reviewed extensive documentation including existing

research studies, customer satisfaction results, business data, peer agency best practices

and private sector industry best practices.

•

Design: We committed to designing a comprehensive Taxpayer Experience Strategy,

Training Strategy and Organizational Redesign Strategy that would best position the agency

to put taxpayers first. We based our design on what we learned from our listening sessions,

research and feedback.

Putting taxpayers first requires understanding taxpayer perspectives as well as the perspectives

of members of the tax community, such as tax professionals and tax software developers. We

gathered feedback from a wide range of stakeholders to develop comprehensive strategies.

Our outreach included town halls, focus groups, internal and external interviews and forums

with stakeholders across tax administration. We held more than 150 events to collect feedback,

recommendations, solutions and to better understand common areas of concern. We established

electronic mailboxes to receive input directly from employees, taxpayers and other stakeholders.

We analyzed more than 1,000 pieces of correspondence through these inboxes. In addition, we

communicated directly with internal and external stakeholders to answer questions related to the

Taxpayer First Act.

Internally, we engaged employees, management and senior executives from across the agency.

Externally, we engaged a wide range of stakeholders to ensure we obtained a comprehensive

view of taxpayers’ unique needs. This included taxpayers; partners; self-employed individuals;

small, large and international businesses, tax exempt entities; advisory groups; industry groups;

oversight organizations and other government agencies. We also coordinated periodically with

the Office of Management and Budget (OMB), the Department of Treasury and the Congress

throughout the development process. We will maintain open lines of communication with our

oversight partners as we continue to implement the strategies outlined in this report.

See Section 9.4 for full list of stakeholders who provided feedback.

Internal Revenue Service | Taxpayer First Act

30 3

3.0 | OUR APPROACH

As part of our research and analysis, we

examined numerous research studies,

third-party research articles, industry best

practices, as well as results from 61 different

customer satisfaction surveys. Additionally,

we considered recommendations from

oversight reports, including the U.S.

Government Accountability Office (GAO),

the U.S. Treasury Inspector General for Tax

Administration (TIGTA) and the National

Taxpayer Advocate (NTA) and related case

studies. Throughout the process, we ensured

our strategies aligned with and supported the

Taxpayer Bill of Rights.

Based on what we learned, we identified

key insights and opportunities that serve

as the foundation for our strategies. This

comprehensive approach allowed us to

develop the Taxpayer Experience Strategy,

Training Strategy and Organizational

Redesign Strategy based on the needs and

concerns of our stakeholders.

Internal Revenue Service | Taxpayer First Act

In developing its

Taxpayer Experience Strategy

and Organizational Redesign Plans,

the TFAO has been listening

to a wide array of internal and

external stakeholders

including tax professionals,

IRS leadership, IRS employees,

and the National Treasury

Employees Union.

— National Taxpayer Advocate

31 3

3.0 | OUR APPROACH

Figure 2: TFAO Methodology

For details about our methodology, engagement activities and research, please refer to the

Methodology Section 9.1.

Internal Revenue Service | Taxpayer First Act

32 3

SECTION

TAXPAYER

EXPERIENCE

STRATEGY

Internal Revenue Service | Taxpayer First Act

4.0 | TAXPAYER EXPERIENCE STRATEGY

4.1 INTRODUCTION AND

EXPLANATION OF STRATEGY

The taxpayer experience is the cornerstone of

our mission. A positive experience increases

trust in government and promotes voluntary

tax compliance. During listening sessions, we

learned that taxpayers and other stakeholders

appreciate the service IRS employees provide,

but they want more consistency and access to

a wider range of services. Through interactions

with online retailers, banks and other businesses,

the public has come to expect top-notch service,

technological solutions and personalized

communications from organizations. Similarly,

taxpayers expect the IRS to provide convenient

access to easy-to-understand information when

they need it.

We must modernize our service and compliance models to meet taxpayer expectations.

We have developed a strategy in which interactions with the IRS are efficient, informative,

personalized and convenient. We are putting taxpayers first while ensuring fairness and

compliance with the tax law.

”

Internal Revenue Service | Taxpayer First Act

34 3

4.0 | TAXPAYER EXPERIENCE STRATEGY

4.1 STRATEGY OVERVIEW

To transform how we operate, we reimagined the taxpayer experience across six areas of focus:

Expanded Digital Services to improve online experience for all taxpayers and authorized tax

professionals. This includes enhancing the IRS’s online accounts for individual taxpayers and

expanding this service to tax professionals and businesses. Research shows that promoting

the use of self-service channels along with the use of plain language has increased voluntary

compliance and decreased phone calls.

Seamless Experience to provide taxpayers with their preferred channel of service (website,

telephone, in person, etc.) and integrate those channels to seamlessly guide them to the help

they need throughout the taxpayer lifecycle. IRS employees should be trained and empowered

to resolve issues in a timely manner and will guide taxpayers to resources or to another IRS

employee as appropriate. By increasing organizational awareness, integrating channels,

reducing wait times and streamlining taxpayer service we increase the likelihood of taxpayer’s

issues being resolved, which research shows improves compliance.8

Proactive Outreach and Education to

improve how and when we provide information

to taxpayers by using new technology,

applying behavioral insights, expanding our

social media strategy and making use of our

trusted partnerships. We should communicate

with (and be open to receiving communication

from) taxpayers at times that are convenient

to them, in a multitude of languages, and by

the method they prefer. Educating taxpayers

will serve to increase taxpayer confidence in

meeting their tax obligations and decrease the

likelihood that they will encounter compliance

issues or need to contact the IRS. Accelerated

outreach allows taxpayers to resolve issues

and balances before the penalties and interest

make these balances too large for taxpayers to

effectively manage.

We heard from external

stakeholders – and our own

employees – that it is hard to navigate

the IRS. Tax administration is too

broad and complex for us to ever train

our employees to handle every issue

that could come up, so we must focus

on increasing their organizational

awareness and equipping them with

the tools to shepherd taxpayers

to resolution.

— James Clifford, TFAO Executive

The 2019 Comprehensive Taxpayer Attitude Survey found, on average, that taxpayers are willing to wait approximately 15

minutes on hold when using the phone.

Internal Revenue Service | Taxpayer First Act

4.0 | TAXPAYER EXPERIENCE STRATEGY

4.1 STRATEGY OVERVIEW

Community of Partners to build on our existing

relationships and develop new partnerships to

create an integrated delivery network of trusted

partners across the tax community. Trusted

partnerships will encourage the sharing of

perspectives and best practices and provide

a forum to discuss innovative ideas and

approaches for working with a diverse range

of customer segments. The Community of

Partners will support the Focused Strategies

for Reaching Underserved Communities.

Leveraging partnerships with those who already

have established relationships and networks

in hard to reach communities can amplify our

messaging by providing IRS content via a trusted

voice in communities. This approach already

delivers benefits. For example, each year the IRS

leverages partnerships with Volunteer Income

Tax Assistance organizations whose programs and volunteers prepare 3.6 million returns for

taxpayers with the support of only about 400 IRS employees.

Focused Strategies for Reaching Underserved Communities to build on existing successes

and establish specific strategies to engage with underserved communities to address issues

of communication, education, transparency, trust, and access to quality products and services.

We understand that some segments of the taxpayer population face unique obstacles to getting

access to the information and services needed to comply with their tax obligations. To address

the needs of these communities, the IRS should provide customized education and outreach

in the languages spoken by specific taxpayer groups. As shown by the Earned Income Tax

Credit (EITC) Underserved Outreach Project,9 developing specific strategies for underserved

communities is crucial to increasing their participation. This project identified individuals who

were likely eligible to claim the EITC but did not file returns. The 2014 study showed that

individuals who received outreach through the mail increased filing rates for current and prioryear returns by roughly 0.5% to 1%. The study resulted in 53,000 additional filers with $180

million in additional refunds.

Inattention and Tax Benefits: Third-Party Reporting and IRS Outreach to Low-Income Nonfilers Research Project –

conducted by Research, Analysis & Statistics Division in IRS Office of Research.

Internal Revenue Service | Taxpayer First Act

4.0 | TAXPAYER EXPERIENCE STRATEGY

4.1 STRATEGY OVERVIEW

Enterprise Data Management and Advanced Analytics to develop a secure data

management strategy that includes an agency-wide understanding of administrative data, the

ability to integrate operational, employee, and customer feedback data, and analyze that data

to pinpoint specific improvements to reduce costs and improve the taxpayer experience. In

addition, new technology applied in a responsible and ethical manner, such as chat bot tools

needs and ultimate compliance actions, further improving both the taxpayer experience and

delivery of our mission. Applying advanced analytics will help us better understand taxpayer

behavior to determine the most meaningful offerings to support the taxpayer experience.

This strategy is not a series of discrete

approaches, but rather integrated strategies that

build on each other to create the best holistic

Every IRS employee is a

experience for the greatest number of taxpayers.

customer service officer.

When woven together, and supported by the

Training and Organizational Redesign Strategies,

Every interaction is important.

the Taxpayer Experience Strategy creates a

comprehensive taxpayer experience in which

—Charles Rettig, Commissioner

interactions with the IRS are efficient, informative,

personalized and convenient. The results of this

strategy will ensure our stakeholders know that

their feedback was heard and valued, increasing

trust between the IRS and taxpayers. The five-year cost of the Taxpayer Experience Strategy is

estimated at approximately $1.2B. Details can be found in Section 9.5.2.1.

The following Sections describe each component of the strategy in detail. For each, we present

the capabilities that will provide value to taxpayers, high-level costs, measures of success and

an estimated timeline for phased implementation over one to two, three to five and ten years.

Where applicable, we also share examples of how we are already using some capabilities

to improve the taxpayer experience. For instance, IRS efforts to adapt to and address the

COVID-19 emergency provide a real-time opportunity to test and evaluate some aspects of our

Taxpayer Experience Strategy.

See the Appendix 9.6, for more information about the strategic goals and underlying objectives

that provide the framework for our Taxpayer Experience Strategy, including alignment with other

IRS strategies, such as the Integrated Modernization Business Plan.

Internal Revenue Service | Taxpayer First Act

4.0 | TAXPAYER EXPERIENCE STRATEGY

4.2 MEASURING SUCCESS

To measure the success of the Taxpayer Experience Strategy, we developed a tiered framework.

By gathering and analyzing data associated with these measures, the IRS will be able to

evaluate the progress of this strategy and assess the degree of success in offering new or

enhanced capabilities. We also identified three measures that collectively assess the degree of

success of implementing the Taxpayer Experience Strategy as a whole.

The Taxpayer Experience Strategy measures are built on a tiered step framework in Figure 3,

which includes “Access” measures, “Adoption” measures, and “Impact” measures.

Figure 3: Taxpayer Experience Tiered Step Framework

Internal Revenue Service | Taxpayer First Act

4.0 | TAXPAYER EXPERIENCE STRATEGY

4.2 MEASURING SUCCESS

At its highest level, this framework will help assess how the Taxpayer Experience Strategy

impacts voluntary compliance. However, given the time it takes to accurately measure voluntary

compliance, the framework relies on intermediary outcome measures like trust and confidence

and taxpayer satisfaction as a proxy for improving voluntary compliance. Measures will be

reported annually and will include baselines, targets (as appropriate)10 – or projections, and

sources, for a given fiscal year. Some of these measures are new to the IRS, and for those we

lay out a timetable for designing, testing and baselining them.

This framework will allow us to track the

effectiveness of the strategy in real-time – are we

having the intended impact? Are taxpayers adopting

the options we invest in? What drivers are most

important to our taxpayers’ experiences? Does the

way we’re implementing our strategy need to be

adjusted? This robust suite of measures will inform

our decision-making, and the Sections that follow

each include measures to help us answer these

questions. While we have aligned measures to each

component of the strategy, we also developed three

measures (see below) that will help us determine

the success of the Taxpayer Experience Strategy as

a whole.

TIER

WHAT WE ARE TRYING

MEASURE / INDICATOR

The IRS is an investment that

will pay back. Investing in better

customer service will result in

better compliance.

—John Koskinen, Former IRS Commissioner

BASELINE

TARGET / PROJECTION

70% (FY2019)

Increase to 72% by FY2022

77% (FY2019)

Increase to 79% by FY2022

73% (FY2019)

Increase to 75% by FY2022

TO MEASURE

Impact / Outcome

Increase trust and confidence

Comprehensive Taxpayer

among taxpayers interacting

Attitude Survey (CTAS): I

with the IRS

trust the IRS to help me

understand my tax obligations

CTAS: The percentage of

Impact / Outcome

Satisfaction with IRS

taxpayers satisfied with their

interactions

personal interactions with

the IRS

Taxpayer Experience Survey

Impact / Outcome

Time to resolve your issue

(TES): How satisfied were you

with the IRS

with the time it took to resolve

your issue?

In some cases, it is more effective to simply monitor a measure rather than set targets that could encourage unintentional

behaviors or results. For example, while it is useful to track the usage of a call back feature, we would not want to set a target

to increase the use of that feature since that would be a direct result from increased wait times.

Internal Revenue Service | Taxpayer First Act

4.0 | TAXPAYER EXPERIENCE STRATEGY

4.2 MEASURING SUCCESS

The 2018 President’s Management Agenda lays out a long-term vision for modernizing the

Federal Government in key areas that will improve the ability to deliver mission outcomes,

provide excellent service, and effectively steward taxpayer dollars on behalf of the American

people. The Taxpayer Experience Strategy aims to align to the recent Presidential Management

Agenda by enhancing customer service, establishing new relationships with our diverse set of

partners, expanding existing digital capabilities, and developing new taxpayer experience tools

and technology that compares to or exceed that of other Federal agencies and private industry.

The suite of taxpayer experience measures will continue to evolve as the Taxpayer Experience

Strategy progresses and our performance management process matures. We will continue to

refine these measures and identify new measures that will best inform our efforts to continually

improve and enhance the taxpayer experience. To a significant degree, our future work on

measuring the taxpayer experience will be informed by repeating the listening and learning

campaigns employed as part of our work to develop the Taxpayer Experience Strategy and

through, the Continuous Feedback Loops and Community of Partners we deploy as part of this

strategy.

Internal Revenue Service | Taxpayer First Act

4.0 | TAXPAYER EXPERIENCE STRATEGY

4.3 EXPANDED DIGITAL SERVICES

We will expand digital services through secure online accounts and other paperless initiatives.

Our goal is to empower taxpayers to resolve certain issues themselves before contacting the

IRS. To do this, we must make sure taxpayers have the digital tools they need. Many taxpayers

will be familiar and comfortable with this type of interaction due to similar services provided by

banks and other private sector organizations. However, we continue to recognize the need to

have some non-digital options, such as phone and paper, to be available for accessibility.

IRS online accounts are a digital portal for taxpayers to securely access their tax information,

make changes to their personal information, and communicate with the IRS online. As part of

our Taxpayer Experience Strategy, we will improve the secure online accounts currently available for individual taxpayers and make similar online accounts available for businesses and tax

professionals. The IRS will continue to apply the highest security standards to online accounts

to protect taxpayer information, but we will also continue to make some self-service digital tools,

such as online payments, available to taxpayers unable to meet identification verification and

authentication requirements. Whether through a computer, tablet, or mobile phone, access to

online accounts and digital self-service tools will provide a more convenient and efficient taxpayer experience. Customer feedback data across government has already showed increased satisfaction rates with Federal online services when users are logged into a personalized account.

The following key capabilities form the basis of Expanded Digital Services—

•

Expand Individual Online Accounts:

•

Secure Two-Way Messaging: Give taxpayers the ability to communicate with IRS

employees through their online accounts.

•

Taxpayer View History: Allow taxpayers to see information about their tax histories

(such as refunds, payments received, amounts owed, returns filed, etc.) through their

online accounts to ensure transparency and accessibility of records.

•

Change Account Information (“Self-Correct Entity”): Allow taxpayers to update

contact information and other key details.

•

Digital Notifications: Generate customized taxpayer notices and letters accessible

through online accounts. Taxpayers will be able to opt in to receive personalized

notifications about changes to their tax situation, payment reminders and status

updates on refunds or audits. This capability also supports Proactive Outreach and

Education.

Internal Revenue Service | Taxpayer First Act

4.0 | TAXPAYER EXPERIENCE STRATEGY

4.3 EXPANDED DIGITAL SERVICES

•

Business Online Account: Provide online accounts and services for businesses.

•

Tax Professional Online Accounts: Provide online accounts for tax professionals, which

allows eligible representatives to access client information and services.

•

Expand Payment Options: Provide taxpayers, businesses and tax professionals the ability to

make payments through all channels including telephone, online accounts, mobile apps and

walk-in assistance. Electronic funds transfer (EFT) and credit and debit cards interactions will

remain available as well.

•

Secure Document Exchange: Allow taxpayers, businesses, tax

professionals and IRS employees to securely upload and access

documents in a centralized repository.

•

Digital Signatures: Allow authenticated individual taxpayers

and representatives to submit electronic signatures via online

accounts.

The IRS has already implemented several electronic tools and

paperless initiatives. For example, when the IRS began to scale

back operations in March 2020 due to the COVID-19 pandemic,

critical work could not continue without a way to securely and virtually

communicate with taxpayers. The IRS Information Technology

Division quickly provided secure email capabilities with an attachment

feature that enabled taxpayer services and compliance case activities

to continue. By the first week of April, the IRS procured and expanded

licenses to support up to 6,000 IRS users, while simultaneously

implementing enhanced security and operational requirements.

In addition, the IRS Non-Filers’ online tool, developed to support

taxpayers during the COVID-19 pandemic, remains available to help

taxpayers sign up for Economic Impact Payments (EIP).

Image of Free Tax Help page on

IRS2Go app

While we work to enhance existing tools and take additional steps toward an electronic

environment, we understand that security must remain the foundation of our efforts. The IRS

established an integrated Enterprise Case Management (ECM) and Digitalization function to take

steps toward integrating these tools. Through the Secure Access Digital Identity Initiative,11 we

continue to improve identity verification and authentication to reduce fraud and identity theft. In our

efforts to ensure taxpayer information is protected, we must employ stringent security standards.

However, data shows that not all taxpayers can pass these stringent standards and this may limit

access to IRS online accounts for some taxpayers.

The IRS established the Secure Access Digital Identity initiative to satisfy digital identity guidelines released by the National

Institute of Standards and Technology. These guidelines apply to all federal agencies implementing digital identity services.

Internal Revenue Service | Taxpayer First Act

EXPANDED DIGITAL SERVICES

The following page outlines the goals, objectives,

taxpayer benefits, tax professional benefits, timeline, costs

and measures associated with Expanded Digital Services.

GOALS

Understand, Inform and

Educate Taxpayers;

Provide a Seamless

Experience

VALUE FOR THE TAXPAYER

Convenient, simple and secure way to access tax

information, make changes to accounts, make

payments from any device and communicate with the

IRS that will significantly increase the functionality of

existing self-service channels

Personalized notifications about changes to tax

situation, refund status and reminders, audit status

and payments through Online Account

Secure upload and sharing of files with the IRS

Enhancements to existing IRS online accounts for

individual taxpayers

OBJECTIVES

Provide Clear and Timely

Communications

New online accounts for tax professionals and

businesses

VALUE FOR TAX PROFESSIONALS

Increase Access and Promote

Transparency

Establish and maintain authorized relationships with

clients through the Online Account

Simplify the Tax Process

Secure access to clients account information and

notices and perform other account services and

representational duties through their Online Account

Less time establishing the taxpayer’s authorization to

act on their behalf

Internal Revenue Service | Taxpayer First Act

Expanded Digital Services Timeline and Measures

Secure Two-Way Messaging

FY2021-2022

FY2023-2025

FY2026-2030

1-2 years

3-5 years

10 years

• Establish secure one-way

messaging through their

online account

• Establish secure two-way

messaging through their

online account

• Expand available types and

methods of secure two-way

communications through their

online account

• View payment history

• Integrate refund tracking

• Enhance integrated refund

tracking

• Issue resolution tracking

• Provide additional third-party

options for making payments

• Provide the ability to link bank

account

• Opt-in subscription for

notifications

• Display online payment

agreement eligibility messaging

• Display payment agreement

status

• Provide the ability to create or

revise a payment agreement in

online account

• Enable the ability to update

account information, including

Address, Phone Number, etc.)

• Secure document exchange

• Deliver ability to view case

status

• Increase the functionality of

online account

• Expand secure document

exchange capabilities

• Digital notices w/ opt-in

subscription for notifications

• Taxpayer Digital

Communications Outbound

Notifications (TDC-ON) initial

solution for certain notices

• Tax Pro Online Account:

Notifications for “Waiting for

signature” or “Has been signed”

statuses

• Expanded TDC-ON

Taxpayer View History

Change Account Information

Digital Notifications

Business Online Account

• Establish business online

account

Tax Professional Online Account

• Establish Digital Authorization

(Form 8821) with eSignature

• Power of Attorney (Form 2848)

with eSignature

Internal Revenue Service | Taxpayer First Act

• Add Authorization and POA/

Fully Digital CAF

• Update/Remove Authorization

and POA

• Expedited Access to taxpayer

transcripts

• Notifications for waiting for

signature or has been signed

• List of Clients with Access to

Online Account

• View payment and notice history

• View case status

• Practitioner Premium Access

• Expanded Tax Pro Account

• Enhanced digital

communication tools with

IRS

• Access to taxpayer online

account

• Expanded notifications

• Document exchange

• Expanded practitioner

premium access

Expanded Digital Services Timeline and Measures

FY2021-2022

FY2023-2025

FY2026-2030

1-2 years

3-5 years

10 years

Expand Payment Options

• Establish ability to link bank

account

• Establish third party Access to

additional payment vendors

• Provide additional third-party

options for making payments

• Expand ability to link bank

account

• Expose APIs to third parties

• Expanded Payment Options

for all taxpayer segments

• Large and small business

secure messaging/file sharing

• Secure document exchange

• Tax Professional secure

document exchange

• Introduce base functionality for

Digital Signatures

• Establish Digital Authorization

(Form 8821) with eSignature

• Power of Attorney (Form 2848)

with eSignature

• Expand digital signatures to

more forms

• Allow digital signatures for

the full universe of forms

Secure Document Exchange

Digital Signatures

STRATEGIC

GOAL

Provide a

Seamless

Taxpayer

Experience

OBJECTIVE

TIER

WHAT WE ARE

TRYING TO

MEASURE

Access

Provide taxpayers with

additional digital options for

interacting with the IRS

Percent of taxpayer interaction

types that have a digital

alternative

39% or 18 interaction

types13

75% or 35 interaction

types by FY2024

Increase use of digital selfhelp tools through Online

Accounts

Number of taxpayers with an

active secure online profile

6.51M14

Increase by 5%

annually though

FY2024

Increase use of self-help

tools

Percent of taxpayer interactions

accomplished through self-help

tools (Enterprise Self Assistance

Participation Rate (ESAPR))

79%15, 16

82% FY2021 and

FY2022

Adoption

Increase Access

and Promote

Transparency

MEASURE/ INDICATOR

Volume of interactions completed

through self-help options

Impact

BASELINE12

Volume:

581,374,970 FY2019

503,177,386

FY201816

Taxpayer burden reduction

(Hours saved)

Baselines are as of the beginning FY2019 unless otherwise noted.

IRS Integrated Modernization Business Plan FY2019 Key Insights Report.

Source: IRS Integrated Modernization Business Plan FY2019 Key Insights Report.

Source: Enterprise Self Assistance Participation Rate.

Internal Revenue Service | Taxpayer First Act

Time savings will

need to be designed,

developed and tested

TARGET/

PROJECTION

Test measures in

FY2021; Baseline in

FY2022; Set target/

projection for FY2023

4.0 | TAXPAYER EXPERIENCE STRATEGY

4.4 SEAMLESS EXPERIENCE

To augment expanded digital services, we will create a seamless experience that helps

taxpayers solve problems and comply with their tax obligations. We will integrate digital tools

with other service channels (e.g., toll-free telephone assistance and walk-in assistance) into a

seamless experience to resolve issues efficiently and further improve the taxpayer experience.

Taxpayers expect and routinely encounter similar “omni-channel”17 approaches with services like

online banking and shopping. Using our omni-channel model, taxpayers will have the flexibility

to communicate with the IRS and resolve issues via their preferred method and transition

seamlessly to another resource or channel. The seamless experience will reduce telephone wait

times and help resolve issues more quickly and efficiently. As part of the Seamless Experience,

we will equip IRS employees across service and compliance functions to better navigate the

IRS and to identify resources to solve taxpayer issues outside the scope of their training and

expertise.

The following key capabilities are the foundation of our Seamless Experience—

•

Expand Automated Callback: Allows taxpayers to provide their telephone number and opt for

an IRS employee to call them back instead of waiting on hold.

•

Wait Time Transparency: Provides taxpayers estimated wait times to inform their decision on

whether to remain on hold, opt for a call back or seek information on IRS.gov.

•

Concierge Navigation Support: Gives taxpayer-facing IRS employees the ability to provide

taxpayers with the information they need or personally connect them with a subject matter

expert who can assist. Each employee will receive calls and handle contacts based on the

nature of the issue identified in the web chat, through topic-based routing on the phone or

during casework contacts. The employee will resolve all issues within the scope of their training

and expertise. If the initial employee cannot provide the assistance the taxpayer is looking

for, the employee will smoothly transition the taxpayer to a subject matter expert with the

knowledge and authority to handle the type of taxpayer assistance required.

•

360-Degree View of Taxpayer Accounts: Provides IRS employees with a global view of each

taxpayer account and gives them access to taxpayer records in real-time, including interaction

history, appointment schedules, etc. This will be available through an ECM system.

Omni-channel can be defined as providing a set of seamlessly integrated channels that cater to customer preferences and

actively steers them toward the most efficient resolution.

Internal Revenue Service | Taxpayer First Act

4.0 | TAXPAYER EXPERIENCE STRATEGY

4.4 SEAMLESS EXPERIENCE

•

Artificial Intelligence (AI)-Powered Informational Web Chat (Virtual Assistance):

Allows for an AI-powered chat bot to attempt to answer questions or direct the taxpayer to

helpful information on IRS.gov or to their online account based on a taxpayer’s browsing

preferences on IRS.gov. Chat bots will also be able to connect taxpayers to an IRS assistor

for a web chat or voice call. The chatbot will improve over time as the knowledge base

expands and more taxpayer experience feedback becomes available. If the chatbot cannot

resolve a taxpayer’s issue, contact routing will guide the taxpayer to live support from an IRS

employee.

•

AI-Powered Digital Appointments: Allows taxpayers to speak with an assistor or schedule

an appointment if the chatbot is unable to resolve a taxpayer’s issue. Taxpayers will also

be able to schedule AI-Powered appointments with employees in other IRS organizations,

like exam and collection. The chatbot will be able to determine if an assistor is needed and

either “introduce” the caller to an assistor or schedule an appointment with an employee for

a later time. The appointment could be with a service or compliance employee and can be

in-person, telephonic, or via secure video chat.

•

AI-Powered Employee Assistant: Supports IRS employees when answering taxpayers’

questions with an AI-powered knowledge base that will make suggestions based on a

taxpayer’s experience, questions or pages visited on IRS.gov.

These capabilities integrate ongoing work within the IRS by creating a stronger, more strategic

approach to putting taxpayers first. The IRS is already testing assistor-based chat and AIpowered chatbots, and we are improving our callback services. What began as a customer

callback solution to support the internally facing service desk has been expanded to include

a taxpayer-facing solution. Both callback deployments have met with considerable success

with the service being used more than 700,000 times by taxpayers and 85,000 times by IRS

employees. We estimate, in the first calendar quarter of 2020, taxpayers saved 77,000 hours

per month waiting in queue. Additionally, the IRS recently integrated personalized payment plan

messaging into online accounts.

Once a taxpayer’s identity has been authenticated, that authentication will carry with them

through the next steps in the process, saving time for both the taxpayer and the IRS. Notably,

when transferring, the assistor will remain engaged with the taxpayer until assured the subject

matter expert has picked up the inquiry. Handoffs between employees will be collaborative, and

information will carry forward with the taxpayer. If a subject matter expert is unavailable, the IRS

assistor will schedule a callback or an appointment, so taxpayers get the help they need.

Internal Revenue Service | Taxpayer First Act

4.0 | TAXPAYER EXPERIENCE STRATEGY

4.4 SEAMLESS EXPERIENCE

We will train employees to answer questions, resolve issues, and identify additional resources

within this omni-channel approach.18 In most instances, IRS assistors will provide initial live

support through web chat with the ability to offer audio or video calls if preferred. As part of our

Training Strategy, employees’ skills will increase over time enabling them to resolve more issues

at the first point of contact. The strategy will be implemented incrementally over time as funding,

staff and technology become available.

To facilitate a more seamless experience for the taxpayer, the IRS will modernize the employee

experience through Knowledge Bases, an organized source of information to assist employees

with taxpayer inquires. In addition, a database of frequently asked questions and automated

tools will further improve and streamline the employee experience. All employees who have

contact with taxpayers will have access to an AI-powered Assistant that will be trained to aid

them in meeting the needs of the taxpayer. If the taxpayer issue is complex in nature, the

employee - as part of our new concierge navigation model - will be equipped with navigational

support tools and organizational awareness training to identify a subject matter expert who can

resolve the issue.

We recognize that to fully implement the Seamless Experience we must invest in new

technology. For example, the IRS needs an Enterprise Case Management system to give

employees a single source for real-time access to a 360-degree view of a taxpayer’s history.

Our current case management environment is comprised of multiple systems that often cannot

communicate with each other. ECM will allow authorized IRS employees to see a taxpayer’s

full account, filing history, relevant case data and prior communications to resolve cases more

quickly allowing employees to resolve more inquiries in a single contact and better facilitate

handoffs. For instance, a revenue agent working with a taxpayer on a compliance issue will be

able to guide the taxpayer to another function for support on an account issue.

See Section 5.0 for additional details on the Training Strategy.

Internal Revenue Service | Taxpayer First Act

4.0| TAXPAYER EXPERIENCE STRATEGY

4.4 SEAMLESS EXPERIENCE

The IRS receives more than seven million

pieces of paper correspondence per year.

There is significant opportunity to increase

efficiencies and improve the taxpayer

The current structure confines

experience by increasing the ability for

work within specific BODs and limits

taxpayers to submit that correspondence

inter-BOD interactions of employees that

digitally and enabling the IRS to convert

incoming paper to digital format. The

would more efficiently address problems to

IRS vision is to create new and enhance

improve taxpayer experience.

existing digital-first channels for taxpayers to

—National Treasury Employees Union

correspond with the IRS, alongside enhanced

digitalization capabilities to convert residual

paper into a digital format. This approach will

meet taxpayers in their preferred domain,

which is increasingly online and on their

phones. We will still provide paper options for those who may need them as well as enable the

use of advanced technologies such as robotics process automation and AI to speed back office

functions, promote self-service and improve the taxpayer experience. Getting paper into digital

format will also enhance the employees’ 360-degree view discussed above.

In sum, the Seamless Experience is key to our holistic approach to the taxpayer experience

across both service and compliance interactions. IRS employees will be empowered and

equipped with innovative tools to efficiently navigate across IRS operations and access

Knowledge Bases to deliver seamless experience meeting the needs of taxpayers. This

enhanced experience will lead to greater transparency, reduced burden and foster voluntary

compliance.

Internal Revenue Service | Taxpayer First Act

SEAMLESS EXPERIENCE

The following page outlines the goals, objectives, taxpayer benefits, timeline,

costs and measures associated with Seamless Experience.

GOALS

Provide a Seamless

Taxpayer Experience;

Empower, Equip and

Enable Workforce

OBJECTIVES

Increase Access and Promote

Transparency

Simplify the Tax Process

Equip Employees with Tools

Necessary to Provide Excellent

Taxpayer Service

Internal Revenue Service | Taxpayer First Act

VALUE FOR THE TAXPAYER

Issues resolved swiftly, easily and conveniently

Efficient and definitive interactions

with the IRS making journey for

assistance as painless as possible

Information from the very first engagement

with the IRS will be transferred seamlessly

to the next assistor, negating the need for the

taxpayer to repeat information

A well-trained and better equipped IRS staff able to

listen to concerns and be more responsive to any

taxpayer issue raised

Less time waiting on the phone with the expanded

use of appointment and call back technology

Seamless Experience Timeline and Measures

FY2021-2022

FY2023-2025

FY2026-2030

1-2 years

3-5 years

10 years

• Expand telephone customer

callback to additional telephone

lines

• Deploy expanded toll-free

portal

• Introduce callback by

appointment

• Increase number of

applications that offer callback

options

• Add callback to Spanish

applications

• Enhance all callback solutions

• Establish wait time

communication methods

• Enhance wait time

communication methods

• Enhance wait time

communication methods

• Establish robotics and Artificial

Intelligence for initial taxpayer

interface

• Test concierge concept on

limited basis

• Rollout training employees on

the concierge concept

• Expand concierge concept

capabilities and better equip

IRS employees to guide

taxpayers through the system

• Increase resolution frequency

by escalating complex issues

to a Subject Matter Expert

• Introduce AI-assisted chat-bot

for appointments

• Introduce AI-assisted employee

knowledge search

• Introduce Natural Language

Processing by AI

• Provide “click to contact” for

Live Assistor Connection from

digital interaction

• Continue to enhance upon

concierge routing and processing

• Design a long-term strategy

to deliver Enterprise Case

Management (ECM) solution

• Procure ECM Solution

• Deliver initial case

management capabilities

• Enhance ECM solution for

efficient and seamless view of

all taxpayer actions, accounts

and cases

• Incrementally increase case

management systems included

in ECM to build toward a

360-degree view of Taxpayer

Account by IRS Employee

• Deploy omni-channel model to

360 degree view of taxpayer

records in real time

• tax filings

• interaction history

• appointment schedule, etc.

• Deploy AI powered chat-bot

(virtual assistance) to answer

taxpayer questions or direct

taxpayers to the information on

the IRS.gov

• Deliver capabilities to

seamlessly transfer inquiries

from IRS.gov to live IRS

assistor for a web chat and / or

a voice call

• Expand AI powered information

web chat to include advanced

virtual assistance technologies

• Expand IRS knowledge base

for international taxpayers

• Enhance AI web chat capabilities

based on taxpayer feedback and

evolving industry practices

Expand Automated Callback

Wait Time Transparency

Concierge Navigation Support

360 Degree View of Taxpayer

Accounts

AI-Powered Informational Web Chat

(Virtual Assistance)

Internal Revenue Service | Taxpayer First Act

Seamless Experience Timeline and Measures

FY2021-2022

FY2023-2025

FY2026-2030

1-2 years

3-5 years

6-10 years

• Test chat-bot creation of

appointments

• Deploy and enhance AI

powered chat-bot appointments

• When the issue is not resolved

during chatbot interaction,

chatbot should be able to

“introduce” the taxpayer to

an assistor or schedule an

appointment

• Enhance chat-bot appointments

• Establish and test AI-based

Knowledge Base search for

IRS assistors

• Deliver training and Resolution

Guide to IRS assistors

• AI natural language support

• Expand AI knowledge base

• Improve the clarity of the IRMs

focusing on the taxpayer’s

journey

• Enhance AI Support and issue

de-escalation process increasing

resolution frequency

AI-powered Digital Appointments

AI-Powered Employee Assistant

STRATEGIC

GOAL

OBJECTIVE

TIER

Access

Provide a

Seamless Taxpayer

Experience

Increase Access

and Promote

Transparency

Adoption

Impact

WHAT WE ARE

TRYING

TO MEASURE

Access to an IRS Assistor

when needed

Access to an IRS Assistor

when needed

Taxpayer Satisfaction

MEASURE/INDICATOR

Enterprise LOS*

Calls answered

BASELINE19

56.63% LOS in

FY201920

25.8M Assistor

calls answered in

FY201921

A-11 Survey Question: I am

satisfied with the service I

received from the IRS

Develop and

test measures in

FY2021; Baseline

in FY2022, and set

target/projection

for FY202322

TARGET/

PROJECTION

Test FY2021;

baseline FY2022;

target/ projection

FY2023

Develop and

test measures in

FY2021; Baseline

in FY2022, and set

target/projection

for FY2023

Develop and

test measures in

FY2021; Baseline

in FY2022, and set

target/projection

for FY2023

* Currently the enterprise LOS measure does not include all telephone lines, additional lines will be added in FY2021

Baselines are as of the beginning FY19 unless otherwise noted.

2019 Internal Revenue Service: Data Book.

This question is not currently asked on all telephone lines.

Internal Revenue Service | Taxpayer First Act

4.0 | TAXPAYER EXPERIENCE STRATEGY

4.5 PROACTIVE OUTREACH AND EDUCATION

Improving outreach is critical to our Taxpayer Experience Strategy. We want all taxpayers to

understand how to comply with their tax obligations and access our services. With Proactive

Outreach and Education, the IRS will use various means to reach taxpayers at the right time

through the right format. We will deliver information and personalized messages to taxpayers

using social media, simplified correspondence translated into multiple languages, customized

digital options and community outreach through trusted partners. Information may be generated

based on issue campaigns, errors the IRS identifies, emerging trends, and other insights

gathered from our continuous feedback loop. Our success depends, in part, on expanding

trusted partnerships with external stakeholders (Community of Partners) as well as amplifying

efforts to reach underserved communities (Focused Strategies for Underserved Communities),

which we discuss more in the next two Sections of this report. Community outreach, virtual

seminars, partnerships, and engagements with schools, can assist the IRS in helping taxpayers

to access services and resolve issues. Ultimately, educating taxpayers will increase taxpayer

confidence in our organization, enable them to meet their tax obligations, and enable us to

better anticipate and respond to taxpayer needs.

The following capabilities are key to Proactive Outreach and Education—

•

Personalized Tax Updates: Through online accounts, allow taxpayers to opt in to receive

personalized notifications about changes to their tax situation, filing reminders or status

updates for refunds, audits, and payments. Further developing online accounts, increasing

digital correspondence and providing more electronic reminders and notices will help ensure

taxpayers have up-to-date information to comply with their tax obligations.

•

Social Media Strategy: Use multiple social media platforms to share IRS news and

educational updates that are customized based on demographics and other taxpayer

behavioral information. Social media will be used to engage taxpayers, guide them to the

appropriate channel for service and communicate in a voice and style consistent with the

respective platform. As our social media strategy evolves, we plan to incorporate two-way

communication to resolve inquires.

•

Simplified Notices and Correspondence: Analyze and use data to identify necessary

language translations for our notices and correspondence. Use data to improve the

effectiveness of our communications in various taxpayer segments.

Internal Revenue Service | Taxpayer First Act

4.0 | TAXPAYER EXPERIENCE STRATEGY

4.5 PROACTIVE OUTREACH AND EDUCATION

•

Plain Language Communications: Redesign notices and standardize correspondence

across the agency to simplify the format, educate and provide information to taxpayers

in a manner that is easy to read and eliminate unnecessary legal language. Provide

clear information and plain instructions to the taxpayers about why they are receiving

the communication from us, and what actions they need to take. This may also include

instructions for using online accounts for more detailed account information.

Currently, the IRS has an extensive, multipronged communications strategy focused

| WHAT WE HEARD |

on print and social media, stakeholder

LEP taxpayers are significantly more

relationships, virtual communications and

likely to be aware of IRS information on

reaching underserved taxpayers. To reach

Limited English Proficiency (LEP) communities,

social media platforms and to have looked

the IRS has developed Twitter, Facebook, and

for tax information there compared to

YouTube accounts entirely in Spanish and

taxpayers overall.

additionally, select posts on Twitter, Facebook,

— 2017 Taxpayer Experience Survey

LinkedIn and Instagram have been translated

into five additional languages (Vietnamese,

Korean, Russian, Chinese23 and Haitian

Creole). Furthermore, there is also a YouTube

channel in American Sign Language. We will build on these efforts and use continuous feedback

and analytics to monitor the effectiveness of our communications and services and to determine

the best methods, messengers, and forums to communicate and resolve taxpayer issues early

and efficiently. The IRS will develop a Social Media Strategy to share content, updates, and

respond in a voice and style consistent with the respective platforms and will use technology

proactively to collaborate with different organizations.

Through social media, we can facilitate early issue resolution, including increasing awareness of

IRS service options and promoting convenient self-service digital tools. The IRS demonstrated

this approach with expanded social media work during delivery of the Economic Impact

Payments. Expanding our social media presence will also allow our external partners, such as

other government agencies, members of the Congress, and Low-Income Tax Clinics to better

serve their constituents by easily linking to critical IRS messages. Later in this report, as part of

our Focused Strategies for Reaching Underserved Communities, we further explain how we will

use social media and other outreach practices to communicate with underserved taxpayers and

address specific community needs.

Traditional and Simplified.

Internal Revenue Service | Taxpayer First Act

4.0 | TAXPAYER EXPERIENCE STRATEGY

4.5 PROACTIVE OUTREACH AND EDUCATION

Historically, communicating tax information effectively through standardized correspondence

and notices has presented challenges. With the passage of the Plain Writing Act in 2010, the

IRS began reviewing and streamlining our correspondence process to restyle and coordinate

notices, expedite approvals, simplify language and improve taxpayer responses. We have

already taken steps to improve taxpayer correspondence by convening a Correspondence

Summit and developing a Taxpayer Correspondence Strategy to define challenges and identify

opportunities for improvement. Our research suggests that placement of information, color, font,

type and spatial design affects the readers’ ability to understand and respond to key information

in notices and letters. Using evidenced-based approaches, we will design easy-to-understand

correspondence to help taxpayers meet their tax obligations.

With Proactive Outreach and Education, the IRS can get the right information to the right

taxpayer at the time they need it.

Internal Revenue Service | Taxpayer First Act

PROACTIVE OUTREACH AND

EDUCATION

The following page outlines the goals, objectives, taxpayer benefits, timeline,

costs and measures associated with Proactive Outreach and Education.

GOALS

Understand, Inform

and Educate Taxpayers;

Provide a Seamless

Experience

VALUE FOR THE TAXPAYER

Efficient and effective communications

Quicker access to information and

resolution of issues

Plain language information and

communications through a variety

of channels and methods in a variety of

languages

OBJECTIVES

Provide Clear and

Timely Communications

Understand Taxpayer Needs

Better understanding of tax obligations for

communities and underserved populations

Increased availability and accessibility

for underserved taxpayers and

community members

Personalized notifications about changes

Build Trusting Relationships

and Partnerships

to tax situations to assist them in meeting

Simplify the Tax Process

More trusting relationship with IRS

Internal Revenue Service | Taxpayer First Act

their tax obligations and goals

Proactive Outreach and Education Timeline and Measures

Personalized Tax Updates

FY2021-2022

FY2023-2025

FY2026-2030

1-2 years

3-5 years

10 years

• Provide taxpayers with

information to open online

accounts

• Provide personalized

notifications about changes

to their tax situation, filing

reminders or status updates for

refunds, audits, and payments

• Leverage tax data to notify

taxpayers about specific

campaigns or upcoming

changes impacting them

• Deliver information and

education through additional

social media platforms based

on topics specific to taxpayer

demographics or businesses

• Capture data and analytic

points for social media

demographics information

• Expand social media platforms

to attract additional viewers

• Analyze data to determine

language translations needed

for specific notices and letters

• Translate notices and letters

based on data analytics for

specific taxpayers for whom

English is not their primary

language

• Expand updates to two-way

communication.

Social Media Strategy

Simplify and Improve Notices and

Correspondence

Plain Language Communications

• Use evidenced-based

approaches to design easy-tounderstand correspondence

to help taxpayers meet their

tax obligations e.g. research

suggests that placement of

information, color, font, type,

and spatial design impacts the

readers’ ability to understand

and respond to key information

in notices and letters

STRATEGIC

GOAL

OBJECTIVE

Understand,

Inform and

Educate the

Taxpayer

Provide Clear

and Timely

Communications

TIER

Impact

WHAT WE ARE TRYING

TO MEASURE

MEASURE/

INDICATOR

BASELINE24

TARGET/

PROJECTION

Effectiveness of communications

Conduct 3 - 5 studies to

assess how improved

and increased social

media presence impact

taxpayer behavior

Develop and test

measures in FY2021,

baseline in FY2022,

and set target/

projection for FY2023

Develop and test measures

in FY2021; Baseline in

FY2022, and set target/

projection for FY2023

Baselines are as of the beginning of FY19 unless otherwise noted.

Internal Revenue Service | Taxpayer First Act

4.0 | TAXPAYER EXPERIENCE STRATEGY

4.6 COMMUNITY OF PARTNERS

The IRS has many longstanding and successful partnerships with external stakeholders

including tax professional associations, community-based organizations, other government

agencies, and advisory and industry groups in addition to our cross-functional collaboration

supporting bureaus across Treasury. As we build upon existing relationships and seek new

partners, we are creating a sustainable Community of Partners to explore innovative ways to

improve service and lessen taxpayer burden. Expanding our partnerships will help us reach

underserved communities, which is discussed further in the next Section of this report.

Our Community of Partners will focus on the following key capabilities—

•

Building and Expanding Trusted Stakeholder Network: Use existing partnerships and

develop new ones to improve information-sharing between organizations and collaborate on

solving common problems.

•

Leveraging Community Outreach Best Practices: Work with our partners to benefit from

their experience in developing community partnerships, such as joining with other agencies

to learn how they access hard-to-reach communities.

•

Co-Locating Federal Government Services: Partner with other federal agencies to allow

the IRS to provide co-located services (for example, post offices, U.S. embassies, etc.).

These partnerships could apply to both service and compliance interactions.

•

Expanding Community Presence: Cultivate trusted relationships with local leaders,

community centers, cultural and faith communities and organizations and chambers of

commerce to help us provide outreach, education and other services. This collaboration will

also help us better reach populations that may be underserved or under-represented.

•

Data Sharing Opportunities: Ensure secure and authorized information-sharing with

federal and state agencies, Security Summit25 participants, and other third parties within

the boundaries of the established law to allow us to incorporate new sources of information

from a secure network to drive enforcement decisions, combat identify theft and improve the

taxpayer experience.

Our Security Summit Initiative is a unique partnership between the IRS, state revenue departments and private-sector tax

industry leaders. It is the first public-private partnership of its kind with the goal of putting new and innovative safeguards in

place to protect taxpayer information and the integrity of the Federal and state tax systems.

Internal Revenue Service | Taxpayer First Act

4.0 | TAXPAYER EXPERIENCE STRATEGY

4.6 COMMUNITY OF PARTNERS

This approach to partnerships proved effective during the implementation of recent legislation,

including the Tax Cuts and Jobs Act, Public Law No. 115-97. In these instances, the IRS

facilitated forums with external groups to obtain valuable input from a cross-section of

stakeholders. These helpful sessions demonstrated the benefits of institutionalizing the concept

of a Community of Partners.

The agency must continue

to build its trusted partner

network in new and creative

ways, enhancing the

power of bringing individuals or

groups to the table to solve a

common problem.

—IRS Employee

This past spring and summer, the IRS conducted a

sweeping outreach and education campaign. In April

2020, the IRS met with 175 representatives from

25 government agencies about Economic Impact

Payments established by the Coronavirus Aid, Relief

and Economic Security (CARES) Act, Public Law

No. 116-136. During this meeting, the IRS discussed

payment procedures and how to reach specific

audiences in need. Stakeholder participants included

the Treasury Financial Literacy and Education

Commission, the Department of Health and Human

Services, and the Department of Housing and

Urban Development. The Consumer Financial

Protection Bureau shared information about scams

and identity theft. The IRS also shared information

about Economic Impact Payments with an additional

34 federal agencies, 35 state governments, 27

local governments and with over 200 public service

agencies, including 324 Indian tribal leaders from around the country. These efforts continued

throughout 2020, with IRS outreach efforts expanding, building on a network of thousands of

partners across the country, inside and outside of the tax community. Agency efforts included

working with state and local governments, Congressional offices, as well as many local nonprofit groups and social service agencies. Many citizens with no tax filing requirement were

eligible to receive an Economic Impact Payment by using the IRS.gov Non-Filers’ tool and we

engaged our partnership network to assist us with reaching these individuals. For example,

the IRS worked with more than 350 local and national organizations to share information about

Economic Impact Payments specifically focused on those experiencing homelessness as well as

seniors and veterans. These efforts were supplemented with proactive campaigns in traditional

and social media as well as specially designed toolkits for use by IRS partners. The CARES

Act passed on March 27. Within 14 days taxpayers started seeing Economic Impact Payments

in their bank accounts. By the end of July, IRS delivered approximately 160 million payments

totaling nearly $270 billion.

Internal Revenue Service | Taxpayer First Act

4.0 | TAXPAYER EXPERIENCE STRATEGY

4.6 COMMUNITY OF PARTNERS

Following are a few additional examples of this approach:

•

Co-location with Social Security Administration (SSA) offices: Since January 2017, the

IRS and the SSA have worked together to jointly provide taxpayers access to information

and assistance. The co-location of IRS employees in SSA offices began with four SSA

locations hosting IRS employees. IRS currently has Taxpayer Assistance Centers (TAC)

employees in six SSA offices. IRS employees provide TAC services from SSA sites, including

face-to-face meetings with taxpayers using the appointment system. The IRS and SSA also

collaborate on anti-fraud initiatives. SSA and IRS held multiple meetings in the past year to

discuss anti-fraud best practices. Leaders from both agencies partnered to devise a plan

to determine the best way to exchange data and best practices. The IRS will continue to

expand this service channel as part of our Taxpayer Experience Strategy.

Community outreach best practices with the Department of Education (ED): The IRS

partnered with the ED White House Initiative on Historically Black Colleges and Universities

(HBCUs) to expand our Volunteer Income Tax Assistance program on HBCU campuses and

in some cases, the surrounding communities. Through this program, volunteers prepare

thousands of tax returns each year.

Expanded community presence through the Department of Veterans Affairs (VA): The

IRS has partnered with the VA since 2002 to provide outreach and free tax preparation at VA

centers. Our shared goal is to ensure all veterans can easily access our services. The IRS

currently has six sites at VA locations.

Security Summit with States and Private Sector: The Security Summit is an

unprecedented partnership that includes the IRS, states and the private sector. Between

2015 and 2019, the number of taxpayers reporting they were victims of identity theft fell

80%. The IRS protected a combined $26 billion in fraudulent refunds by stopping confirmed

identity theft returns. As we got better at blocking returns from entering our systems, the

number of confirmed identity theft returns declined to the point where in 2019 it was 68%

below 2015.

These amplified efforts will bring together partners from across the tax community and the

Federal Government to improve access to our services, reach diverse communities and drive

innovative ways to improve the taxpayer experience.

Internal Revenue Service | Taxpayer First Act

COMMUNITY OF PARTNERS

The following page outlines the goals, objectives, taxpayer benefits, timeline,

costs and measures associated with Community of Partners.

GOALS

VALUE FOR THE TAXPAYER

Understand, Inform

and Educate

Taxpayers;

Provide a Seamless

Taxpayer Experience

Improved relationship between agency,

partners, stakeholders and taxpayers

OBJECTIVES

Increased ability to file complete and

accurate return

Build Trusting Relationships and

Partnerships

Expanded access to information

Enhanced and improved filing experience

Increased ability to voluntarily comply

with tax laws

Expanded service channels and partners

Provide Clear and

imely ommunication

Customized interaction assistance

Simplify the Tax Process

Decreased taxpayer burden

Understand Taxpayer Needs

Internal Revenue Service | Taxpayer First Act

Community of Partners Timeline and Measures

Build and Expanding Trusted

Stakeholder Network

Leverage Community Outreach

Best Practices

FY2021-2022

FY2023-2025

1-2 years

3-5 years

FY2026-2030

10 years

• Begin network design

• Establish agency/stakeholder

relationships

• Develop/implement

strategic plan

• Baseline critical taxpayer needs

in relevant taxpayer groups and

underserved communities

• Design outreach programs and

align key partners/stakeholders

to assist relevant taxpayer

groups and underserved

communities

• Implement outreach programs

and events in key taxpayer

groups and underserved

communities

• Begin annual reassessment of

services provided in relation to

needs in key taxpayer groups

and underserved communities

• Continue building andredefining programs to better

serve key taxpayer groups and

underserved communities

• Establish agency/partner

working groups to create colocation parameters and ideals

• Implementation of service

offerings in co-located

government services

• Continue expansion of colocated services

• Establish agency/partner

working groups to reach

previously underserved

taxpayers

• Implementation of programs

and services in underserved

taxpayer populations

• Continue building and

expanding efforts across

additional underserved taxpayer

populations

• Expand data sharing

opportunities with other state/

federal agencies, and other

third parties

• Establish strong Community

of Partners with state/federal

agencies, and other third

parties where data sharing is

governed and formalized

• Continue expansion work with

other federal/state agencies,

and third parties to build

Application Programming

Interfaces (APIs) where possible

Co-Located Government Services

Expand Community Presence

Data Sharing Opportunities

STRATEGIC

GOAL

OBJECTIVE

TIER

Access

Understand, Inform

and Educate

Build

Trusting

Relationships

Adoption

Impact

WHAT WE ARE

TRYING TO

MEASURE

Total number of new agency

collaborations with

partners and stakeholders

MEASURE/

INDICATOR

Number of new

partnership forums

conducted each year

Level of participation in

partnership forums

Participation in

partnership forums

Increase in taxpayer satisfaction

with IRS

Level of satisfaction with

service received

through partnerships

BASELINE26

TARGET/

PROJECTION

Develop and test

measure in FY2021,

baseline in FY2022,

and set target/

projection

for FY2023

Develop and test

measure in FY2021,

baseline in FY2022,

and set target/

projection for FY2023

Develop and test

measure in FY2021,

baseline in FY2022,

and set target/

projection

for FY2023

Develop and test

measure in FY2021,

baseline in FY2022,

and set target/

projection for FY2023

Develop and

test measure in

FY2021, baseline

in FY2022, and set

target/ projection for

FY2023

Develop and test

measure in FY2021,

baseline in FY2022,

and set target/

projection for FY2023

Our Baselines are as of the beginning of the FY2019 unless otherwise noted.

Internal Revenue Service | Taxpayer First Act

4.0 | TAXPAYER EXPERIENCE STRATEGY

4.7 FOCUSED STRATEGIES FOR REACHING

UNDERSERVED COMMUNITIES

Our focused program for underserved communities will unify existing IRS efforts and involve our

Community of Partners to further address issues of communication, education, transparency,

trust, and limited access to high-quality products and services, including lack of access to digital

resources. We need a focused approach as some segments of the taxpayer population face

unique challenges in getting access to the information and services needed to comply with their

tax obligations. These traditionally underserved communities are not limited to, but include:

•

Taxpayers with limited English proficiency

Native American communities

Members of the armed forces

Taxpayers with disabilities, including

taxpaying populations needing special

assistance due to sight, hearing, dexterity,

limited mobility, and cognitive challenges

Elderly taxpayers

Low-income taxpayers

Taxpayers living in rural communities

International taxpayers

For those with English

as a first language the IRS

websites and general information

is difficult to understand, therefore

for those without English as a first

language it can be impossible to

comprehend. More resources in

more languages is a must.

—American Citizens Abroad

In addition to the IRS’s existing initiatives,

we will develop an agency-wide strategy for

underserved communities to enhance existing

programs, products and services. Working with

our partners such as the Taxpayer Advocate

Service, Low Income Tax Clinics, Taxpayer Advocacy Panel, Equity, Diversity and Inclusion,

and Customer Assistance, Relationships and Education, we will learn more about the unique

needs of these segments. We will identify best practices to customize our approach to meet the

specific needs of each underserved segment and provide personalized education and outreach

through the service channels and in the languages preferred by these taxpayers. Additionally, we

will design our underserved strategies to help us identify and develop accessible products and

services. We can use our Community of Partners and co-located services to amplify our efforts.

Through these efforts, we will build trust and confidence in the IRS among underserved

populations, increase our emphasis on fairness, expand access to information and services

and increase voluntary compliance. Creating a single, agency-wide program will ensure the IRS

meets underserved communities where they are and that IRS messages reach intended

Internal Revenue Service | Taxpayer First Act

4.0 | TAXPAYER EXPERIENCE STRATEGY

4.7 FOCUSED STRATEGIES FOR REACHING

UNDERSERVED COMMUNITIES

recipients in the languages they need. Additionally, expanding existing partnerships will allow us

to efficiently identify best practices, while benefiting from economies of scale.

To illustrate our approach, we outline key aspects of our strategies for two specific underserved

communities below.

Multilingual Strategy

More than 20% of U.S. residents speak a language other than English at home. Of these

approximately 66.6 million people, 26 million describe themselves as speaking English “less

than very well” and are considered individuals with limited English proficiency.27

The key capabilities for our Multilingual Strategy are—

• Translate Forms, Publications and Notices: Increase the languages available for most

widely used forms, publications and notices.

• Digitally Aided Translation and Interpretation: Translate documents and phone

conversations to other languages.

• Recruitment: Increase incentives for prospective bilingual / multilingual employee and

specify the languages we are looking for during hiring.

• Leverage Employee Multi-lingual Skills: Incentivize employees to be certified as multilingual and recruit these employees to provide multi-lingual assistance and services.

• Translation App: Enable better communication between field employees and taxpayers in

their preferred language using a new translation application for mobile devices.

“

This strategy will

guide the direction, mission

alignment, investments, and

accountability of the IRS community

in providing meaningful access

for multilingual taxpayers to IRS

products and services.

—Charles Rettig, Commissioner

Earlier this year, the IRS began rolling out a new

agency-wide Multilingual Improvement Strategy. As

part of this effort, we charged our Language Services

Executive Advisory Committee with expanding

available platforms and increasing available

languages across multiple channels, including

digital tools, telephone assistance, tax forms and

publications, written correspondence and outreach

and education. While the strategy will continue to

evolve and improve, most of these capabilities will be

delivered by the end of FY2022. In addition, the IRS

expanded outreach efforts to these groups as part

of the Economic Impact Payment public awareness

campaign. More than 250 new partnerships were

created with non-traditional tax groups, including

dozens in the LEP community.

2018 American Community Survey, Census Bureau.

Internal Revenue Service | Taxpayer First Act

•

4.0 | TAXPAYER EXPERIENCE STRATEGY

4.7 FOCUSED STRATEGIES FOR REACHING

UNDERSERVED COMMUNITIES

International Strategy

Non-resident individuals and businesses with a connection to the United States have unique

tax considerations and may have difficulty accessing IRS services. They tend to rely on IRS.gov

as their main resource for information on U.S. filing requirements, taxable income, tax treaties,

payments, etc. Yet, because they often lack U.S. financial accounts or have foreign addresses

and international telephone numbers, these taxpayers are frequently unable to access online

IRS services due to current identity proofing and authentication standards. Also, as of tax year

2017, only 48.4% of international individual taxpayers filed electronically,28 compared to 88.3%

of domestic individual taxpayers. As a result, there is a tremendous opportunity to increase

international taxpayer use of the IRS eFile program.

Additionally, a key part of the International Strategy is improving communications to

accommodate language preferences and challenges. IRS systems will be improved to allow

for taxpayers to indicate their primary language and expand service channels to provide virtual

options.

The key attributes of our International Strategy are—

• International Online Account Authentication: Expand online account authentication to

international taxpayers to provide access to additional self-service channels including the

expanded digital tools and seamless experience described above.

• Focused Promotion of IRS eFile: Continue promoting IRS eFile to increase electronic filing,

expedite the filing process and reduce errors, ultimately improving the taxpayer experience

for international taxpayers.

• Virtual Face-to-Face: Provide the ability for taxpayers to have a scheduled video chat with

an IRS employee, using computer, tablet or mobile phone.

• Virtual Discussion Forums: Facilitate a new virtual discussion forum where taxpayers

can initiate discussions around filing requirements, rules, procedures, and other topics.

The forums will provide a moderated outlet for asking questions and sharing answers.

International taxpayers will also have the ability to be a part of virtual one-on-one or group

conference via the forums.

Our Multilingual and International Strategies are two examples of a broader IRS effort to

integrate and coordinate activities focused on underserved communities. Working with these

partners and conducting additional research will help us better understand the unique needs

of these segments. With these strategies, we hope to transform underserved communities into

well-served communities.

Wage and Investment, Research and Analysis Division Research Study Report: Understanding the International Taxpayer

Experience: Service Awareness, Use, Preferences and Filing Behaviors, February 2010.

Internal Revenue Service | Taxpayer First Act

FOCUSED STRATEGIES FOR REACHING

UNDERSERVED COMMUNITIES

The following page outlines the goals, objectives, taxpayer benefits, timeline,

costs and measures associated with Focused Strategies for Reaching

Underserved Communities

GOALS

Understand, Inform and

Educate Taxpayers;

Provide a Seamless

Taxpayer Experience

OBJECTIVES

Provide Clear and Timely

Communications

Understand Taxpayer Needs

VALUE FOR THE TAXPAYER

Tailored outreach, education,

communications, products and services

Communication in preferred language

through preferred communication channels

Understanding of tax obligations and easier

access to the tools that lead to compliance

Awareness of the different ways to engage

the IRS for assistance when necessary

Greater trust in the Federal Government

Increased emphasis on the fairness of

the tax system

Build Trusting Relationships and

Partnerships

Increase Access and Promote

Transparency

Internal Revenue Service | Taxpayer First Act

Focused Strategies for Reaching Underserved Communities

Timeline and Measures

Translate Forms,

Publications and Notices

Digitally Aided Translation and

Interpretation

FY2021-2022

FY2023-2025

FY2026-2030

1-2 years

3-5 years

10 years

• Translate 1040 and associated

forms in 5 additional languages

(Spanish, Chinese Traditional/

Simplified, Korean, Russian,

Vietnamese)

• Translate Pub 17 in 5 additional

languages

• Send translated notices

systemically

• Continue to analyze the most

highly used forms, publications

and notices to identify potential

candidates for translation into

top five languages

• In 2020, IRS implemented

language preference indicator

as a part of the form 1040

package. We will use data

gathered through this

prioritization of translation

beginning in 2023

• Continue to analyze the most

highly used forms, publications

and notices to identify potential

candidates for translation into top

languages

• Translation software

assessment (translates text)

• Translation software pilot

(translates text)

• Pilot digitally translated

voice conversation software

• Release translation software

(text) for IRS employee use

service-wide

• Launch digitally translated voice

conversation software

• Establish multilingual hiring

needs

• Update recruit

channels and incentives

• Execute multilingual

recruit

plan

• Continued multilingual recruiting

• Expand existing process and

incentives for employees to

become certified as multilingual

• Launch new multilingual

certification program

• Promote new multilingual

certification program

• Continued promotion of

multilingual efforts

• Continued promotion of

multilingual efforts

• Assess translation mobile apps

compatible on government

issued mobile devices

• Pilot translation mobile app

• Launch app in IRS suite of

apps for government issued

mobile devices

• Assess identity proofing

options to allow authentication

of individual taxpayers living

abroad

• Pilot online account

authentication of individual

taxpayers living abroad

• Implement online account

authentication for individual

taxpayers living abroad

• Identify the best ways to

promote IRS eFile to individual

taxpayers living abroad

• Promote IRS eFile to individual

taxpayers living abroad

• Continued promotion of IRS

eFile to individual taxpayers

living abroad

• Continued promotion of IRS

eFile to individual taxpayers

living abroad

Recruitment

Leverage Employee Multilingual

Skills

Translation App

International Online Account

Authentication

Focused Promotion of

IRS Free File

Internal Revenue Service | Taxpayer First Act

Focused Strategies for Reaching Underserved Communities

Timeline and Measures

Virtual Face-to Face

FY2021-2022

FY2023-2025

FY2026-2030

1-2 years

3-5 years

6-10 years

• Expand virtual face-to-face

technology as alternative to

more face-to-face service

channels

• Expand virtual face-to-face

technology as alternative to

more face-to-face service

channels

• Expand virtual face-to-face

technology as alternative to all

face-to-face service channels

Virtual Discussion Forums

• Assess products to host online

virtual discussion forum

• Develop policies and

procedures for IRS to provide

responses

• Pilot virtual discussion forum

• Implement virtual discussion

forum

STRATEGIC

GOAL

Understand, Inform

and Educate the

Taxpayer;

Provide a Seamless

Taxpayer Experience

OBJECTIVE

Access

Increase the initiatives

developed as a result of

underserved strategies

Adoption

Increase the adoption of new

initiatives developed as a result

of an underserved strategy

Understand

Taxpayer Needs;

Increase Access

and Promote

Transparency

Impact

WHAT WE ARE

TRYING TO

MEASURE

TIER

Increase the taxpayer

satisfaction with new products

or services which are

developed as a result of an

underserved strategy

MEASURE/

INDICATOR

BASELINE29

TARGET/

PROJECTION

Number of products and

services implemented

as a result of an

underserved strategy

Develop and

test measure in

FY2021, baseline

in FY2022, and set

target/ projection for

FY2023

Develop and

test measure in

FY2021, baseline

in FY2022, and set

target/ projection for

FY2023

Number of taxpayers by

underserved community

that use new product or

service

Develop and

test measure in

FY2021, baseline

in FY2022, and set

target/projection for

FY2023

Develop and

test measure in

FY2021, baseline

in FY2022, and set

target/ projection for

FY2023

Taxpayer Feedback via

Survey Question via

Foresee and/or ECSS

Develop and

test measure in

FY2021, baseline

in FY2022, and set

target/ projection for

FY2023

Develop and

test measure in

FY2021, baseline

in FY2022, and set

target/ projection for

FY2023

“I am satisfied with

the product/service I

received from IRS.”

Baselines are as of the beginning of FY2019 unless otherwise noted.

Internal Revenue Service | Taxpayer First Act

4.0 | TAXPAYER EXPERIENCE STRATEGY

4.8 ENTERPRISE DATA MANAGEMENT AND

ADVANCED DATA ANALYTICS

We can make better use of data, a core business asset, to drive compliance decisions and

improve the taxpayer experience in all the ways described throughout this strategy. To get

there, the IRS needs a data management strategy that uses agency-wide operating data; other

federal, state, and publicly available data; secure information sharing with IRS partners; and an

understanding of taxpayers’ experiences, emerging needs and expectations. Taxpayer account

and service usage data will inform how to improve existing services and develop new digital

tools. Similarly, analytics will drive better enforcement issue identification and case selection.

The following key capabilities will allow the IRS to manage data efficiently for taxpayer service

and enforcement—

•

Automated Feedback Loop: Provide a better taxpayer experience, based on feedback

collected from taxpayers, IRS employees, survey data or from automated tools and reports.

Build on our ability to use information and feedback by providing real-time access for quick

analysis to improve services for taxpayers.

•

Capturing a Comprehensive Set of Data Assets: Advance data access, usability, and

governance to inform decision making and improve operational outcomes across the

enterprise. To make this happen, the IRS will iteratively expand its data environment,

to include making data more readily accessible through transition from paper to digital

environment, allowing analysts to solve data-driven problems faster. This comprehensive

data repository will be built on fundamental data collection principles of gathering, defining,

perfecting, and storing information. This will inform better compliance enforcement decisions,

which will in turn reduce the burden on compliant taxpayers and direct IRS enforcement

resources more strategically.

•

Employing Advanced Data Analytics: Analyze behavioral research and other data to better

identify and separate taxpayers who are trying to comply from those who are intentionally

violating our tax laws, minimizing compliance contacts where direct enforcement activity

would not be necessary. This will also help us avoid placing compliant taxpayers into

compliance treatments while enhancing detection of non-compliant taxpayers so we can

respond appropriately to encourage compliant behavior.

Internal Revenue Service | Taxpayer First Act

4.0 | TAXPAYER EXPERIENCE STRATEGY

4.8 ENTERPRISE DATA MANAGEMENT AND

ADVANCED DATA ANALYTICS

•

Data Sharing Opportunities: Implement secure and authorized information sharing with

federal and state agencies, Security Summit participants, and other third parties, within the

boundaries established by law - by creating new software applications using Application

Programming Interfaces where feasible. This will allow us to incorporate new sources of

information to drive enforcement decisions, combat identity theft and improve the taxpayer

experience. Adherence to 26 U.S.C. Section 6103 is critical to ensure taxpayer return data is

adequately protected.

Implementing enterprise data management will bring many benefits. A robust collection of IRS

taxpayer data sources, including customer account, customer service, and third-party data

will help the IRS better identify underserved communities, design focused digital tools and

strategies, and offer opportunities for the IRS to launch proactive alerts, resulting in avoidance of

unintended tax issues. For example, feedback loops will be significantly improved with the ability

to monitor information agency-wide. Expanded feedback loops may also help identify areas for

proactive outreach and education and opportunities to partner with federal and state agencies

to address non-compliance. Strong security protocols and continuous monitoring of programs

will protect taxpayer information from unauthorized access and safeguard IRS systems against

cyberattacks.

The IRS has already started this effort, and our strategy will be based on that foundation.

Building this data management system will take time and significant financial investment. In

order to benefit from this vast set of data and information, the IRS needs to strengthen its ability

to collect and integrate large, diverse datasets from which decisions and discoveries are based,

ensure we are capturing and utilizing the most complete and accurate taxpayer information, and

expanding governing relationships through better sharing of data assets. Through an appropriate

governance process, the IRS will take a prudent and disciplined approach to identifying and

sequencing the most essential data assets to be added to the data repository. The IRS will

be able to use comprehensive data to improve existing analytic methods, expand analytical

collaboration, and drive greater digital enhancements for tax administration.

Internal Revenue Service | Taxpayer First Act

ENTERPRISE DATA MANAGEMENT AND

ADVANCED ANALYTICS

The following page outlines the goals, objectives,

taxpayer benefits, timeline, costs and measures associated

with Enterprise Data Management and Advanced Analytics

GOALS

VALUE FOR THE TAXPAYER

Understand, Inform and

Educate Taxpayers; Provide

a Seamless Taxpayer

Experience; Equip, Enable

and Empower the Workforce

Expanded access to services, both assisted

and self-digital

OBJECTIVES

Quicker resolution and more transparent

customer service for taxpayers

Provide Clear and Timely Communication

Understand Taxpayer Needs

Increased quality of interactions, both assisted

and self-digital

Better use of artificial intelligence and data

analytics, delivering greater accuracy in

identifying potential compliance risks

Launch of customized proactive alerts resulting

in avoidance of unintended tax issues

Increase Access and Promote Transparency

Simplify the Tax Process

Equip Employees with the Tools Necessary

to Provide Excellent Taxpayer Service

Improved taxpayer service based on realtime evaluation of information via feedback

loop from taxpayers, IRS employees and

automated tools

Increase Employee Knowledge

and Expertise

Empower Employees to Solve

Taxpayer Issues

Internal Revenue Service | Taxpayer First Act

Enterprise Data Management and Advanced Analytics

Timeline and Measures

FY2021-2022

FY2023-2025

FY2026-2030

1-2 years

3-5 years

10 years

Automated Feedback Loop

Capturing a Comprehensive

Set of Data Repository

Employing Advanced Data

Analytics

• Establish data points from

taxpayers, employees, and

automated systems for

feedback loop

• Incorporate feedback, in real

time

• Expand feedback loop concept

for numerous IRS operations

and processes

• Capture a more

comprehensive set of data

assets for operational,

service, and analytic

purposes

• Increase availability of

taxpayer data for

downstream business

processes in a

machine-readable format

• Increase number of IRS

business processes using

Artificial Intelligence (AI),

Natural Language Processing

(NPL), Process Automation

(Robotics), and Machine

Learning

• Build on analytics efforts

underway with the IRS

research community

• Employ advanced data analytic

strategies for service delivery

and compliance purposes

• Increase efficiency gains on

work processes where robotic

process automation is applied

• Expand data sharing

opportunities with other state,

federal agencies, and other

third parties

• Establish strong Community

of Partners with state, federal

agencies, and other third

parties where data sharing is

governed and formalized

• Expand working with other

federal agencies, state

authorities, and third parties to

build Application Programming

Interfaces (APIs), where

possible

Data Sharing Opportunities

STRATEGIC

GOAL

OBJECTIVE

Access

Equip, Enable and

Empower

Workforce

WHAT WE ARE

TRYING TO

MEASURE

TIER

Empower

Employees to

Solve Taxpayer

Issues

Impact

MEASURE/

INDICATOR

TARGET/

PROJECTION

BASELINE30

Increase percent of captured

electronic, paper, and other data

assets for anomaly detection,

case selection, and other

customer service initiatives

Captured data

elements in central

data repository

245,000 data elements

Increase availability of taxpayer

data for downstream business

processes in a machinereadable format

Data tables available

within the data

repository for

business analytics

3,000 data tables

Percent of individual taxpayers

with repeat non-compliance two

years after the initial tax year

for filing, payment, or reporting

compliance

Repeat NonCompliance Rate

29.2%

Baselines are as of the beginning FY2019 unless otherwise noted.

Source: Compliance Data Warehouse.

Internal Revenue Service | Taxpayer First Act

(FY2017)

Increase percentage

of data elements

within centralized data

repository by 5% by

FY2023

Increase percentage of

data tables within the

data repository by 10%

by FY2023

Indicator - anticipate

reporting as “Indicator”

in the FY2022 CJ

5.0 | TRAINING STRATEGY

SECTION

5 STRATEGY

Internal Revenue Service | Taxpayer First Act

TRAINING

5.0 | TRAINING STRATEGY

5.1 INTRODUCTION AND

EXPLANATION OF

STRATEGY

Our employees are the primary way we instill confidence in taxpayers and increase trust in

tax administration. IRS employees must be well trained, adept, and knowledgeable to provide

exceptional taxpayer service. To implement our Taxpayer Experience Strategy and improve

training across the IRS, we will strive to create a centralized educational organization, or “IRS

University,” to support the IRS mission. This will allow for a strategic curriculum that will instill the

importance of taxpayer service in all employees. High-quality, taxpayer-first training will further

develop employee skill sets, improve morale, increase productivity, enhance knowledge transfer

between employees, and foster innovation.

Based on clear goals and long-term strategic plans, we will align our training with the Taxpayer

Experience Strategy and Organizational Redesign Strategy to provide IRS employees with

developed curricula, “just-in-time” courses, continuous learning, and professional development.

Our Training Strategy will enhance previous efforts and our Service-wide approach will enable

training to be more relevant and holistic for employees. Updating and integrating innovative

technological tools will further ensure employees across the IRS receive consistent, high-quality

training. A continued commitment from leadership is critical to meeting employees’ training and

development needs now, and in the future.

We developed this strategy after months of outreach and extensive research. As part of this

effort, we visited IRS locations around the country to observe work processes and interview

employees at all levels of the organization. Additional focused interviews gave us insight into

the current training environment and helped us to pinpoint where key stakeholders (including

partners and parties both internal and external to the IRS) think improvements are needed. We

also assessed best practices across government and the private sector to identify ways to better

meet the needs of our high-performing workforce.

Employees emphasized the importance of investing in development throughout their careers.

Training should be timely and interactive and should use multiple delivery methods to ensure

a high quality and engaging training experience. Stakeholder feedback revealed that we need

to better use internal resources to eliminate knowledge gaps and centrally manage vendor

contracts for improved economies of scale. Stakeholders also stressed the importance of

Internal Revenue Service | Taxpayer First Act

74 7

5.0 | TRAINING STRATEGY

5.1 INTRODUCTION AND EXPLANATION

OF STRATEGY

using integrated technology and data to drive decision-making about training needs. The IRS

must also provide adequate IT infrastructure to support a variety of online and virtual learning

opportunities in addition to supporting our core business of tax administration.

Training Strategy Key Components

With a university model as the centerpiece of our new approach, our Training Strategy has

several critical components:

IRS University (IRSU) to establish an innovative, centralized learning function within the

IRS that relies on technology to provide enhanced training experiences for employees.

IRSU will begin by establishing four academies including Taxpayer Service, Tax

Administration, IT and Operations Management and Leadership to organize all training

curricula and developmental activities that align under IRS functions discussed in Section

6. The four-academy structure will meet the needs of IRS as it transitions to a more

taxpayer centric approach and structure and also supports continuous employee learning

and development around structured yet flexible career paths.

Taxpayer-First Training to equip all IRS employees with a working knowledge of our

Taxpayer Experience Strategy, Taxpayer Rights, and organizational awareness through

a standardized curriculum, while encouraging professionalism, effective communication

and empathy. The IRS will also emphasize training on civility, inclusive behaviors, cultural

competency, taxpayer rights, understanding taxpayer needs, and multi-language access.

Continuous Learning For All Employees to establish and promote a continuous

learning environment. This will equip employees to perform their current role, develop

higher levels of technical expertise along a career path, and support the acquisition

of portable skills (such as project management, effective communication and risk

management) that allow individuals to change roles within the IRS. Since the last

substantial reorganization the IRS has undergone a variety of changes in how it conducts

its business. As technology advances so must the IRS workforce. Continuous learning

allows us to reskill employees based on changing organizational needs as we implement

the key components of the taxpayer experience strategy and adjust the organizational

structure to better serve the public. Our approach includes the use of competency

assessments, career pathing and career planning tools that provide employees

opportunities to re-skill and upskill.

Internal Revenue Service | Taxpayer First Act

5.0 | TRAINING STRATEGY

5.1 INTRODUCTION AND EXPLANATION

OF STRATEGY

Utilizing Technology to improve technology to create accessible, high-quality and

effective training programs to optimize the employee training experience. We will

implement new technology to accommodate the administration, delivery and tracking of

the training lifecycle.

Measuring Success to evaluate feedback on training from employees, taxpayers and

key stakeholders. The IRS will use this feedback to make necessary training adjustments

and continuously improve our training capabilities.34

Our Training Strategy is closely aligned

with the Taxpayer Experience Strategy

Training is one of the most important

and the Organizational Redesign

programs that needs addressing. If the

Strategy. Improved fundamental

training will ensure that all employees,

Quality and Empathy is there – it will go

regardless of their roles within the IRS,

beyond making the IRS a great place to

have a positive effect on the taxpayer

work. It will give the employees a source

experience. We will integrate new

taxpayer-service concepts into current

of pride.

training to ensure employees are well

—IRS Employee

equipped to solve taxpayer issues. A

more unified approach to employee

development will make us more flexible

and responsive to the ever-changing

needs and priorities of taxpayers and our partners. Successfully implementing this agency-wide

strategy will require leadership commitment and a strategic governance structure to ensure

accountability and effectiveness.

U.S Office of Personnel Management Training Evaluation Field Guide Demonstrating the Value of Training at Every Level

January 2011.

Internal Revenue Service | Taxpayer First Act

6.0 | TRAINING

5.0

ORGANIZATIONAL

STRATEGY

REDESIGN STRATEGY

5.2 IRS UNIVERSITY

IRS will strive to establish an innovative, centralized

learning organization that relies on technology to

We want

provide enhanced training experiences for employees

everyone at the

similar to Corporate Universities models that are used

successfully across government and in prominent

IRS to advance and

private sector organizations. A newly-created IRSU

do well at their job.

within IRS would seek to serve as the umbrella for

developing and educating employees to deliver the

—Senior Executive IRS Employee

IRS mission and our strategic plan by strengthening

individual and organizational learning, knowledge,

competencies and skills. In this university model,

experts in learning and education delivery, policies and

guidelines will support the development and execution

of training activities and content to ensure a consistent, high-quality experience. IRSU will

initially establish four academies, Taxpayer Service; Tax Administration; IT and Operations

Management; and Leadership Development, that will serve to unify and organize training and

development activities across the agency. IRSU will partner closely with operating divisions to

provide subject matter experts from across the IRS to develop and deliver training activities and

content. Coordination across the IRS will support the development of relevant and high-quality

content, skilled instructors, strong delivery platforms whether in person or virtual. Continued

commitment from leadership will enable employees to develop along career paths. IRSU will

identify the offerings in these areas that best meet IRS organizational and employee needs. We

will establish these key areas with an emphasis on equity, diversity, and inclusion. This model

will provide numerous benefits to the IRS, including consistent training across organizations;

improved alignment between learning, development, and the IRS Strategic Plan; and reduced

resource duplication between operating divisions.

The IRS University will feature—

• Requirements Planning: We will use organizational workforce planning data and skills

assessment tools to create an agency-wide, standardized needs assessment process. We

will develop this needs assessment process to continuously identify skill gaps based on

input from key stakeholders to ensure employees’ training needs are met. This approach

will help us identify opportunities to enhance the taxpayer experience through training and

developmental activities.

Internal Revenue Service | Taxpayer First Act

5.0 | TRAINING STRATEGY

5.2 IRS UNIVERSITY

•

Multi-year Training: We will use results from the needs assessment and ongoing input from

key stakeholders to develop a multi-year training plan that reflects the IRS’s strategic goals

and objectives. The multi-year training plan will also consider workforce planning, projected

hiring needs and leadership succession planning. A multi-year training strategy will promote

collaboration across the IRS, provide more advanced notice about upcoming training, and

realize economies of scale when acquiring external course materials. We will also be able to

time training delivery to avoid peak workload periods.

•

Leadership Development: We will establish a centralized leadership and management

development function within the IRSU to train and develop employees continuously at

each step of the leadership journey. Developing strong and effective leaders at every level

is critical to the IRS’s long-term success. We will design learning and career development

activities, including assessments, coaching, mentoring, and group and self-directed

learning that instill the competencies and behaviors needed to build strong leaders. We will

also equip leaders with the skills needed to support employee development and ensure

leaders are accountable for their employees’ development. Together, supervisors and their

employees will design developmental activities and training to track progress along desired

career paths.

•

Strategic Sourcing: We will strategically acquire and manage learning platforms, design

and delivery tools, as well as learning content from external providers and partners. By

making these tools available to each operating division across the IRS, we will eliminate

duplicative purchases of learning content and reduce overall costs.

•

Blended Learning Model: We will use a mix of on-site learning centers and virtual training

to deliver technical skills. Training may be delivered through traditional classroom training,

virtual courses, micro-learning activities (such as videos or podcasts, simulations, job aides,

wikis or blogs, coaching and on-the-job instruction) and developmental assignments. Our

blended approach will use adult learning principles and accommodate different learning

styles, enhance employees’ training experiences and provide the agency with greater

ability to address changes and challenges in the workplace through training. Training plans

will include developmental assignments such as shadow or detail assignments, growth

opportunities, and coaching or mentoring. We will look to identify the most effective ways to

support employee needs and the delivery of training materials.

Internal Revenue Service | Taxpayer First Act

5.0 | TRAINING STRATEGY

5.2 IRS UNIVERSITY

•

Expanded Learning Management System (LMS): We will establish a centralized hub for all

training administration by adding capabilities to our existing LMS under Treasury’s Integrated

Talent Management (ITM) system that supports the activities and operations of IRSU. The

improved system will create a single access point for employees and training personnel to

define and prioritize requirements, register for classes, attend virtual classes and submit

training evaluations. Stored training data will also support reporting, analysis and evaluation.

•

Ongoing Training Evaluation: We will apply the New World Kirkpatrick Model35 to evaluate

training. By establishing additional guidelines and controls, this model will help us follow best

practices to improve our training products and capabilities.36

Better customer

service starts with better

skilled employees.

—Taxpayer Advocate Service Employee

Kirkpatrick’s Four Levels of Training Evaluation, James D. Kirkpatrick and Wendy Kayser Kirkpatrick, 2016, ATD Press.

See Section 5.6 for more details.

Internal Revenue Service | Taxpayer First Act

5.0 | TRAINING STRATEGY

5.3 TAXPAYER-FIRST TRAINING

With training centralized in the IRS, we will be better able to deliver consistent training with a

focus on taxpayers’ needs. All IRS employees will understand how they contribute to the overall

taxpayer experience. To support our Taxpayer Experience Strategy, the IRS will educate all

employees about our different functions so they can easily navigate across the organization to

resolve taxpayer issues.

We will develop a high-quality, agency-wide, core taxpayer experience curriculum for all

employees. This curriculum will focus on organizational awareness to reduce knowledge gaps,

key principles of customer service, taxpayer rights (including the Taxpayer Advocate’s role in

tax administration), early dispute resolution, and research-based behavioral insights. Providing

our employees with a working knowledge of taxpayer rights is essential to our efforts to provide

high quality taxpayer service. Training on taxpayer rights is a key component of the core

taxpayer experience curriculum. We will develop Taxpayer Bill of Rights (TBOR) Training for all

IRS employees relying on the Taxpayer Advocate Service as a key partner and primary subject

matter expert. Taxpayer Bill of Rights training will be delivered to all IRS Employees beginning

in FY2021. This core taxpayer experience curriculum will be supplemented with on-the-job

resources, references, and job aides. We will also train all employees to resolve taxpayer issues

pertinent to their roles, and tailor role-specific training to help employees assist taxpayers based

on their occupation and relationship to the taxpayer. This training will also emphasize how

employees should guide taxpayers to the appropriate resources to resolve any issues beyond

the scope of their knowledge to provide taxpayers with ‘concierge’37 support through all stages of

tax administration.

In addition to updates to the general curriculum for all IRS employees, we’ll update our taxpayerfacing training in phases over the next five years to provide role-specific, in-depth knowledge

of the Taxpayer Experience Strategy and the tools and resources available to assist taxpayers.

Taxpayer-facing training will be updated as the capabilities outlined in the Taxpayer Experience

Strategy are introduced. We will also review emerging taxpayer behaviors to improve training

content. This specialized curriculum for IRS assistors will focus on customer service principles,

problem-solving and people skills such as active listening, cultural competency and how to use

plain language to explain complicated concepts. We will teach IRS assistors to use internal

resources and collaborate with other employees to provide outstanding taxpayer service and will

use feedback from taxpayers and other key stakeholders to evolve our training over time.

See Seamless Experience Section 4.4 for additional detail on the concierge model.

Internal Revenue Service | Taxpayer First Act

5.0 | TRAINING STRATEGY

5.4 CONTINUOUS LEARNING FOR ALL EMPLOYEES

To truly put taxpayers first, we must promote the personal development and growth of our

approximately 81,000 dedicated IRS employees. The IRSU will encourage active engagement

with employees throughout their careers, ensure consistent access to information, and enable

advancement along career paths. Continuous learning is a development concept that involves

an employee receiving ongoing training throughout their careers. This includes requisite training

to meet current job demands as well as long term career growth. The goal of the continuous

learning approach is to create more ties between these different tools and programs to offer a

more cohesive end to end development process.

An increased focus on continuous learning will help us:

• Boost employee engagement

• Retain a skilled and knowledgeable workforce

• Expand our ability to forecast and budget for training needs

• Increase taxpayer satisfaction with exceptional taxpayer service

• Unde

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