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Inflation Reduction Act

Strategic Operating Plan

FY2023 – 2031

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The IRS mission statement

“Provide America's taxpayers top-quality

service by helping them understand and

meet their tax responsibilities and enforce

the law with integrity and fairness to all.”

IRS IRA Strategic Operating Plan

APRIL 5, 2023

MEMORANDUM FOR SECRETARY YELLEN

FROM:

Daniel I. Werfel, Commissioner of Internal Revenue

SUBJECT: IRS Inflation Reduction Act Strategic Operating Plan

I am pleased to transmit the IRS Inflation Reduction Act Strategic Operating Plan.

In my short time as IRS Commissioner, I am already impressed with the dedication of the IRS workforce

and the progress the agency has been making in delivering for the American people. I hope that through

some of our recent efforts, such as an improved filing season this year and delivery of Economic Impact

Payments during the pandemic, taxpayers see how our workforce makes a difference for the nation. We

can do even more to deliver for taxpayers when sufficient resources are provided to the IRS.

The Plan is structured to achieve five objectives, which will be accomplished through a series of initiatives

and projects aligned to each.

1. Dramatically improve services to help taxpayers meet their obligations and receive the tax incentives

for which they are eligible

2. Quickly resolve taxpayer issues when they arise

3. Focus expanded enforcement on taxpayers with complex tax filings and high-dollar noncompliance to

address the tax gap

4. Deliver cutting-edge technology, data, and analytics to operate more effectively

5. Attract, retain, and empower a highly skilled, diverse workforce and develop a culture that is better

equipped to deliver results for taxpayers

Taken as a whole, the contents of the Plan provide a vision for the future of Federal tax administration,

which can be summarized as follows:

• A world class customer service operation where taxpayers can engage with the IRS in a fully digital

manner if they choose, where helpful tools for taxpayers to navigate the complexity of our tax laws are

deployed and then refreshed and updated regularly based on taxpayer feedback, and where our

customer service workforce is maintained at the right size and with the right resources and training to

always be ready to meet the taxpayer demand for assistance.

• New capacities, including specialized skills, in place to unpack the complex filings of high income

taxpayers and large corporations and partnerships so Americans have confidence that all taxpayers,

regardless of means, are doing their part to meet their responsibilities under our tax laws.

• An organization and infrastructure rooted in modern technology that provides taxpayers increased

confidence that data is secure and that we are prepared to more rapidly meet new requirements or

responsibilities that may emerge in the future.

We will hold ourselves to achieving the Plan vision by regularly monitoring and reporting to Congress on

our progress. We will also update the Plan details as we learn more about what works and as the

IRS IRA Strategic Operating Plan

operating environment changes. More important than any detail in this Plan, however, is our

responsibility to improve the customer experience we provide to the American people. The IRS looks

forward to demonstrating how the actions under this Plan will translate into real improvements in how

taxpayers engage with us and in the assistance we provide. The Plan articulates how, through both

service and technology enhancements, the experience of the future will look and feel much different from

the IRS of today.

Ensuring taxpayers file accurate returns and pay the taxes they owe is another important component of

this Plan. For the first time, we will help taxpayers identify potential mistakes before filing and quickly fix

errors that delay their refunds. We will focus IRA enforcement resources on hiring the accountants,

attorneys, and data scientists needed to pursue high-income and high-wealth individuals, complex

partnerships, and large corporations that are not paying the taxes they owe. All efforts will comply with

your directive not to use IRA resources to raise audit rates on small businesses and households making

under $400,000 per year, relative to historic levels. Our efforts outlined in the Plan to provide better

service to taxpayers, help them file accurately and resolve issues at filing, coupled with technology and

data advances, will allow us to focus enforcement on taxpayers trying to avoid taxes, rather than

taxpayers trying to pay what they owe.

I can’t overstate the importance of sustained annual resources for IRS operating costs. To help put this

issue in perspective, IRS funding has steadily declined over the last decade causing suboptimal staffing

and investment. In 2010, for example, we operated with 95,370 FTE to meet the demands of the U.S.

population (310 million). Today, the IRS is almost 20 percent smaller (80,006 FTE as of the end of FY

2022), whereas the U.S. population has increased by over 7 percent (334 million) and the tax law has

grown more complex. To cover steady state operations, annual discretionary appropriations must be fully

maintained at the FY 2022 level, including growth for inflation and pay raises. Any reduction in annual

discretionary funds – including not providing for inflationary increases to maintain current levels – will

require IRA funding to be shifted to general operations. This would be to the detriment of the service,

technology, and compliance initiatives envisioned to transform the IRS. Diverting IRA funding to cover

base discretionary enforcement needs would lead to more noncompliance, leading to decreased revenue

collection and increased deficits. In rebuilding and sustaining our capacity and capabilities with

discretionary and mandatory funding, we plan to focus on hiring and growing talent with the right skills to

address the nation's increasingly complex tax system. By leveraging technology, automation, and other

tools, we will enable higher staff efficiency than was historically achieved.

As we publish this Plan and work with stakeholders to obtain their feedback, we are also preparing to

transmit supplemental budget materials in the weeks to come to the relevant Congressional committees

outlining our preliminary spending plans by appropriation. These preliminary plans are in addition to the

estimated spending outlined in the plan through FY 2024. We understand the expectation and

responsibility for transparency in spending and will provide more details as they are available. We intend

to work with these Committees as we have more details on our spending plans and will include updated

estimated spending in future updates of the Plan and budget submissions. Specifically, we intend to

share staffing information as we move forward and more detailed technology spending in advance of

major technology investments.

I look forward to continued engagement with our employees and external stakeholders as we implement

this Plan. I also look forward to continued work with you and your staff on this great opportunity to deliver

the modernized tax administration system that the American people deserve.

IRS IRA Strategic Operating Plan

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Contents

Internal Revenue Service Inflation

Reduction Act Strategic Operating Plan

Part I: Executive summary

Overview of the plan

What we will deliver

Part II: Objectives and initiatives

Objective 1: Dramatically improve services to help taxpayers meet their obligations and

receive the tax incentives for which they are eligible

Objective 1 Initiatives 1.1-1.12

Objective 2: Quickly resolve taxpayer issues when they arise

Objective 2 Initiatives 2.1-2.7

Objective 3: Focus expanded enforcement on taxpayers with complex tax filings

and high-dollar noncompliance to address the tax gap

Objective 3 Initiatives 3.1-3.7

Objective 4: Deliver cutting-edge technology, data, and analytics to operate

more effectively

Objective 4 Initiatives 4.1-4.8

Objective 5: Attract, retain, and empower a highly skilled, diverse workforce and develop

a culture that is better equipped to deliver results for taxpayers

Objective 5 Initiatives 5.1-5.8

102

106

Part III: Managing the transformation

124

Implementation and accountability

124

High level roadmap

126

Estimated allocation of funds

128

Stakeholders impacted by the Strategic Operating Plan

132

Part IV: Case study

134

Energy security and clean energy provisions of the IRA

134

Part V: Context and background

136

Alignment with the U.S. Treasury Strategic Plan

136

Context and trends that shaped the development of this plan

138

IRS IRA Strategic Operating Plan

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Part I: Executive summary

The Inflation

Reduction Act

creates a major

opportunity

In August 2022, Congress enacted the Inflation Reduction Act (IRA), giving the Internal Revenue

Service (IRS) a historic opportunity to transform the administration of the tax system and the

services provided to taxpayers. The IRA provides us with approximately $80 billion over the next

decade to significantly improve the way we serve the public. We will transform service to

taxpayers by using this long-term funding to update technology capabilities and invest

in our employees with new tools, skills, and capabilities. These resources will also ensure the

fairness of the tax system by addressing the tax gap—the difference between taxes due and

taxes paid—most recently estimated at $496 billion.

The IRS has been significantly underfunded for the past decade, with a budget reduction of 22%

in real terms from 2010 to 2021, leaving us with outdated technology and a shrinking workforce

in the face of an increasingly complex tax environment in which to administer the U.S. tax code.

This lack of investment has led to low levels of service, paper-based processes, antiquated

technology, and an overall experience for taxpayers that falls short of what we want to deliver.

The IRA investment is already transforming our ability to improve service to taxpayers.

Shortly after enactment, the Department of the Treasury and the IRS initiated an effort to develop

a Strategic Operating Plan, identifying the highest-priority opportunities to deliver transformational

change for taxpayers. The planning process leveraged prior IRS planning efforts, including the

Taxpayer First Act Report to Congress, new thinking around best practices and available

technology capabilities, and current and past input from a wide range of stakeholders in tax

administration. Additional context that shaped the development of this Plan is available in Part III

and Part V.

IRS IRA Strategic Operating Plan

Part I: Executive Summary

Overview of the Plan

This Strategic Operating Plan (also referred

to as the “Plan”) outlines how we will deploy the

investments in the IRA to better serve taxpayers,

tax professionals, and the broader tax ecosystem.

We will improve the taxpayer experience through

better customer service, clearer guidance on how

to correctly file taxes, increased options for filing

electronically, and robust online accounts to take

care of business quickly and independently. We

will utilize tailored solutions to meet the diverse

needs and preferences of all taxpayer groups.

Congress has given us responsibility to administer,

as effectively and efficiently as possible, more than

150 credits, deductions and other tax preferences

in the tax law (generally referred to as “incentives”

throughout this Plan). We know that many factors

drive unintentional noncompliance and prevent

taxpayers from claiming the incentives for which

they are eligible. We will significantly improve the

services we provide and tailor our compliance work

in new ways. Taxpayers will have the tools,

information and assistance needed to get their tax

filings right – both in paying what they owe and

claiming the incentives for which they are eligible.

Our employees will likewise have the data,

analytics, and tools to ensure compliance and

fairness in the tax system.

Our work to improve service must also be coupled

with efforts to improve compliance by those who

choose not to meet their obligations. The IRA

acknowledges that an adequately funded federal

tax administration will generate significant revenue

for the country. The federal government loses

nearly half a trillion dollars each year due to

taxpayer noncompliance. This investment will

significantly improve the IRS’s ability to address

the tax gap.

We will devote resources to enforcing the tax laws

against taxpayers who attempt to avoid paying

their tax obligations. All compliance efforts will be

consistent with the Secretary of the Treasury’s

August 10, 2022, directive that IRA resources are

not used to increase the share of small businesses

or households earning $400,000 or less that are

audited relative to historical levels. We will use

IRS IRA Strategic Operating Plan

Part I: Executive Summary

the additional resources provided under the IRA to

address high-dollar compliance issues, such as

those related to complex partnership structures,

large corporations, and high-income individuals.

The Congressional Budget Office estimates that

the additional $80 billion provided to the IRS by

the IRA will increase federal revenue by more than

$180 billion in the decade ahead, considering only

direct enforcement revenue based on additional

staffing.1 We believe the actual increase will be

greater, since all our efforts as outlined in this

plan—including in the areas of service, issue

resolution and effective enforcement—will increase

overall tax compliance. We will also use data and

technology to ensure our resources are focused on

noncompliant taxpayers. Through both service and

enforcement efforts, ensuring taxpayers get their

taxes right will help address the tax gap over time.

For a more detailed allocation of funds of the Plan,

please see Part III.

To enable improved taxpayer services and

compliance, we must deliver technology

capabilities at a faster pace and bigger scale than

we have achieved before. We will invest in new

technology, building on contemporary foundational

platforms, with modern architectures designed to

meet our future needs. This will require careful

coordination between delivering new capabilities

and modernizing or retiring legacy platforms. It will

also require shifting to an IT delivery model that

better integrates business unit perspectives to

deliver faster and better results to improve services

to taxpayers. While ensuring the continued privacy

and security of taxpayer data, we will enhance our

use of data and analytics to drive operations and

decision-making. Improved data analytics will

better position us to optimize operations for

taxpayers and employees alike.

We will work to attract and retain the best talent as

we transition to being a modern, digitally capable,

customer-centric agency. We will develop and

support a workforce that has modern tools to do its

job effectively, broad knowledge of complex tax

issues, analytical capabilities to work efficiently

and effectively, and the organizational culture

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to deliver together. As we deliver on the data

and technology aspects of our transformation,

the necessary skill sets and composition of our

workforce will change. This Plan envisions a

modernized IRS that is focused on the customer

experience and prefers digital to manual

processes and prioritizes compliance efforts that

focus on complex tax issues. Looking at

transformations of a similar scope, we know that

the work needs of the future will look different from

those of today (e.g., analytical and technical skills).

This plan provides our employees and

stakeholders with the information they need to

understand where we are going and how we

intend to get there.

IRS IRA Strategic Operating Plan

Part I: Executive Summary

What we will deliver

IRA transformation vision

We will make it easier for taxpayers to meet their tax responsibilities and receive

tax incentives for which they are eligible. We will adopt a customer-centric

approach that dedicates more resources to helping taxpayers get it right the first

time, while addressing issues in the simplest ways appropriate. We will address

noncompliance, using data and analytics to expand enforcement in certain

segments. We will become an employer of choice across government and

industry. These changes will enable us to serve all taxpayers more equitably

and in the ways they want to be served.

IRA transformation objectives

Objective 1

Dramatically improve services to help taxpayers meet their

obligations and receive the tax incentives for which they

are eligible

Objective 2

Quickly resolve taxpayer issues when they arise

Objective 3

Focus expanded enforcement on taxpayers with complex tax

filings and high-dollar noncompliance to address the tax gap

Objective 4

Deliver cutting-edge technology, data, and analytics

to operate more effectively

Objective 5

Attract, retain, and empower a highly skilled, diverse workforce

and develop a culture that is better equipped to deliver results

for taxpayers

IRS IRA Strategic Operating Plan

Part I: Executive Summary

Ø Data-driven decision-making will be the core

of our approach to fundamentally shift how we

manage operations and deliver services to

taxpayers.

Ø Taxpayers and tax professionals will be able

to interact with us in the ways they prefer,

including expanded digital, phone, and inperson assistance options.

Ø Taxpayers will have easy, secure access to

their data, as well as the tools to help them use

it, to help them meet their tax obligations.

Ø We will help taxpayers both meet their tax

obligations and receive the credits and

deductions for which they are eligible.

Ø Electronic filing and communication options

will be simpler and will make it easier to interact

with the IRS.

Ø We will offer notifications and proactive help

for taxpayers and tax professionals to find and

correct mistakes earlier.

Ø We will resolve filing issues with clear notices

and the fastest, simplest possible solution for

the taxpayer.

Ø We will use enhanced data and analytics

to assist in the selection of compliance cases

based on the highest risk of noncompliance.

Ø We will increase capacity and expertise

for enforcement to better address high-dollar

noncompliance among complex filers.

Ø We will retire outdated legacy IT systems

and invest in new technology to improve

customer experience, to provide data-driven

enforcement, and to carry out skill-building on

technology and data across the IRS workforce,

so employees are able to use real-time data

and analytics to drive their work and improve

productivity.

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The IRS that emerges from this

Plan will deliver a best-in-class

experience for taxpayers. U.S.

tax administration of the future

will look different in many ways:

Ø We will devote a larger share of employees

to taxpayer-facing roles as demand for

manually processed paper returns and

correspondence decreases and systems are

automated.

Ø We will recruit, train, and retain a workforce

with the skills and capabilities we need—people

who put customer service first and are able to

use our new technologies to work effectively.

Ø We will improve the employee experience

and empower the workforce to drive better

taxpayer experiences, with clearer career

pathways that will improve retention and

support career growth and opportunity.

Ø We will ensure the privacy and security

of taxpayer data in all that we do.

In addition to the transformation funding for the

IRS, the IRA also includes technical tax provisions

designed to incentivize energy security and clean

energy investment in the United States. We are

actively working to implement these provisions.

While most of this Plan focuses on our overall

transformation, we will also describe how these

broader efforts will equip us to better deliver the

energy security and clean energy provisions that

Congress provided in the IRA.

IRA Transformation Outcomes.

As we move toward the future state described

above, powered by the IRA investment and the

initiatives outlined in this plan, we will measure the

overall progress of the transformation according to

the following transformation outcomes. In addition

to these outcomes, we will monitor progress in

several other indicators of success defined in Part

II of this Plan. We will define detailed performance

metrics for initiatives during implementation.

• World-class service experience: Improved

customer satisfaction metrics

• Digital-first organization: Digital options for

all taxpayer interactions with the IRS, alongside

the continued option for taxpayers to interact

in their preferred mode, such as phone or in

person

IRS IRA Strategic Operating Plan

Part I: Executive Summary

• Improved take-up of tax incentives by

eligible taxpayers: Increased eligible

participation rate of credits and deductions,

as well as decrease in inadvertent errors

and improper payments

• Effective enforcement: Reduce the gap

between taxes owed and paid

• Employer of choice within government

and industry: Improved Federal Employee

Viewpoint Survey results

Accountability to stakeholders

and previous IRS strategies

The IRS will make this vision a reality and deliver

on the commitments in this Plan by collaborating

across the organization and engaging in

disciplined and transparent accountability

processes. This Plan outlines the framework that

we will use to achieve the objectives in this Plan.

While this Plan supersedes any previous IRS

strategic planning documents, it is based in part on

insights from those materials, including the 20222026 IRS Strategic Plan, and other planning

efforts, including the Taxpayer Experience

Roadmap; Business Unit strategic plans;

Agencywide Equity, Diversity, Inclusion, and

Accessibility (EDIA) Strategy and Roadmap; and

the IRS Integrated Modernization Business Plan.

The IRA gives the IRS the resources to turn our

plans to improve the way we serve taxpayers into

reality.

The IRS serves and partners with a broad range

of stakeholders. We also recognize that many

populations have unique needs, and we will

implement new services, resources, and other

initiatives outlined in this Plan with accessibility for

all. For details on impacted stakeholders, see Part

III: Stakeholders impacted by the Strategic

Operating Plan.

IRS IRA Strategic Operating Plan

Part I: Executive Summary

Immediate actions we have taken

to improve outcomes for taxpayers

and employees

While we plan for the longer-term improvements

we will make with IRA funding, we have already

begun to deliver results. Over the past year, we

have taken a range of actions to assist taxpayers,

including:

Ø Hiring over 5,000 new customer service

representatives to process correspondence

and answer phone inquiries, and beginning

the process of hiring approximately 650 new

employees to work in our Taxpayer Assistance

Centers across the country

Ø Reducing the inventory of original individual

returns from 4.7 million waiting to be processed

in January 2022 to pre-pandemic levels

between 400,000 and 1 million in January 2023

Ø Consistently achieving a level of service

between 80% and 90% weekly during the filing

season, which includes phone calls answered

by live customer service representatives

Ø Preparing to scan and digitalize millions

of business and individual tax returns in 2023,

with Form 940 scanning underway as of

February 2023 and Form 1040 scanning

underway as of March 2023

Ø Providing customer callback option for 75%

of calls to IRS live assistance toll-free telephone

lines, with plans to expand coverage to 95%

of taxpayers calling for toll-free live assistance

by the end of July 2023

Ø Enabling direct-deposit refunds for 1040X

(amended) returns in February 2023;

previously, these refunds were solely issued

as paper checks

Ø Giving taxpayers the option to respond and

upload documents electronically in response

to a range of IRS notices

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Ø Launching Information Returns Intake

System (IRIS) for businesses to electronically

file 1099-series forms in January 2023

Ø Creating a tactical operations center to

increase hiring and onboarding speed and

capacity, in tandem with campaigns to improve

employees’ access to critical supplies and

equipment, pilots for increased flexibilities

to compete with the private sector, and other

efforts to improve the culture and value

proposition of working at the IRS

Above Immediate Actions figures and timeframes

as of March 2023

IRS IRA Strategic Operating Plan

Part I: Executive Summary

Objective 1

Dramatically improve services to help taxpayers meet their

obligations and receive the tax incentives for which they are eligible

Objective 2

Quickly resolve taxpayer issues when they arise

Objective 3

Focus expanded enforcement on taxpayers with complex tax filings

and high-dollar noncompliance to address the tax gap

Objective 4

Deliver cutting-edge technology, data, and analytics to operate

more effectively

Objective 5

Attract, retain, and empower a highly skilled, diverse workforce

and develop a culture that is better equipped to deliver results

for taxpayers

This Plan will serve as a guide for decision-making by IRS leadership and project managers.

The Transformation and Strategy Office will coordinate detailed planning and execution efforts.

See Part III for details on how implementation will be governed. The following describes the

organization of this plan.

Elements in Part II

Example

Transformation objective

describes what we will do

to make the vision a reality.

Initiatives outline strategic

bodies of work that will drive

transformation.

To be refined during detailed planning

Pa r t I I : O b j e c t i v e s a n d i n i t i a t i v e s

The Plan has five main objectives, which will be achieved through

the completion of a set of initiatives:

Key Projects are discrete,

actionable efforts for each

initiative. The projects in the

Plan are not comprehensive

of all projects an initiative

will include.

Major Milestones

will be tracked during

implementation. The years

provided in this Plan are

best estimates. Timing

will be updated as detailed

planning proceeds

IRS IRA Strategic Operating Plan

Part II: Objectives and Initiatives

Objective 1: Dramatically improve services to help

taxpayers meet their obligations and receive the

tax incentives for which they are eligible

Initiative 1.2: Expand digital services and digitalization:

Taxpayers will be able to file all documents securely

and exchange correspondence electronically

Create digital

forms

Expand

digitalization

Create viewable

digitized data

Milestone 1 (FY 20XX)

Milestone 2 (FY 20XX)

Milestone 3 (FY 20XX)

Milestone 4 (FY 20XX)

Milestone 5 (FY 20XX)

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Objective pages

For each objective, the Plan includes the following information:

Objective number and title

Navigation bar

Clean energy

callout box

Where we

are heading

Strategic shifts

Exhibit

Initiatives

included in

this objective

Indicators

of success

Initiative pages

Each objective is associated with a group of initiatives.

For each initiative, the Plan includes the following information:

Initiative number and title

Navigation bar

Where we

are heading

Key

dependencies

Key projects

What success

would look like

Milestones

IRS IRA Strategic Operating Plan

Part II: Objectives and Initiatives

Objective

Dramatically improve services to help taxpayers meet

their obligations and receive the tax incentives for which

they are eligible

Filing taxes can be time-consuming and difficult, and we have not been able to meet all demands

for taxpayer services. Taxpayers want a more seamless filing process, similar to the services available

in other sectors. We will significantly improve our services by providing taxpayers, including individuals,

businesses, and tax professionals, with tools, information, and assistance to make it easier to comply.

Initially this will require us to increase the number of employees providing customer services, but over time

many of these improvements will be made possible by the technology investments outlined in Objective 4.

Where we are heading

• We will make interactions with us easier and more convenient for taxpayers and tax professionals,

on par with the experience they expect from best-in-class public and private organizations and tailored

to their needs.

• We will improve our communications to taxpayers and invest in technology to provide them added

digital options—in addition to in-person and paper options—for their interactions with us.

• We will provide taxpayers and practitioners with the data and tools they need to interact with us via

their preferred communication channels, proactively notify them of changes and events that impact

their filings, and help them more easily, accurately, and securely file their taxes and receive the

incentives for which they are eligible.

What taxpayers could experience in the near future

Ø A Taxpayer creates a secure Business Online Account at

IRS.gov and lets us know which communications methods

they prefer – email, paper mail or phone. The taxpayer

selects email.

Ø They later receive an email explaining tax credits

and deductions for which they may be eligible.

Ø Their online account gives them access to easy-to-read

data to start this year’s tax return.

Ø They have questions about how to file employment tax

returns. A chatbot provides initial answers, and if they have

specific questions, they can request a call from an agent.

Ø An agent calls them back, reviews their account history

with them, and answers their questions. The taxpayers

then prepare their own return.

Ø When they submit a return online, taxpayers get a real-time

alert that shows easy-to-fix errors. They correct the errors

and re-submit the return.

Ø After they file, they use their online account to track refund

status and adjust preferences. They opt to receive their

refund via direct deposit.

Visuals are illustrative

IRS IRA Strategic Operating Plan

Part II: Objectives and Initiatives

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Indicators of success

ü Increased service levels

ü Increased taxpayer service options

and increased access to, and accessibility

of, those options

ü Decreased filing burdens for taxpayers

ü Wider array of digital options to help taxpayers

and tax professionals interact with the IRS and

have a more seamless customer experience

ü Decreased percentage of returns filed with math

errors or errors related to third-party information

reported to the IRS

ü Decreased difference between credits and

deductions available versus those claimed,

as well as fewer inadvertent errors and

improper payments

ü Higher proportion of taxpayers satisfied

with the filing process

ü Increased taxpayer satisfaction with IRS

interactions and service

ü Higher proportion of paperless processes

and systems throughout the IRS, from intake

to processing

How improving customer experience will further the energy security and

clean energy provisions of the IRA

• Through enhanced education and assistance, we will help taxpayers understand for which energy

security and clean energy credits they may be eligible, and how to claim them.

• Multichannel assistance will give taxpayers the ability to file and communicate with us through the

channel of their choice.

• Taxpayers will be able to log into their online account to track the status of their account and claims.

• Consumers will be able to transfer their clean vehicle tax credit to a car dealer for an equivalent price

discount starting in 2024.

• Mapping tools will help taxpayers identify potential eligibility for certain energy security and clean

energy tax credits.

IRS IRA Strategic Operating Plan

Part II: Objectives and Initiatives

Strategic shifts

From

Taxpayers often must call the IRS to get help

because self-service options are limited.

Taxpayers and tax professionals will be able

to interact with us in the way they prefer, including

expanded digital, phone, in-person assistance

options.

Taxpayers lack convenient ways to access

and use their tax data.

Taxpayers will have easy, secure access to their

data, as well as the tools to help them use it,

to meet their tax obligations.

Filing and communications are paper-based

and inconvenient for taxpayers.

Electronic filing and communication options

will be simpler and will make it easier to interact

with the IRS.

Taxpayers get limited help navigating the tax

system on their own.

We will help taxpayers both meet their tax

obligations and receive the incentives for

which they are eligible.

Initiatives included in this objective

1.1

1.2

Improve the availability and

accessibility of customer service:

Taxpayers will be able to receive

on-demand customer service or

schedule service ahead of time

Expand digital services and

digitalization: Taxpayers will be

able to file all documents securely

and exchange correspondence

electronically

1.5

1.6

1.7

1.3

Ensure employees have the right

tools: Employees will have the right

tools and information to quickly and

effectively meet the needs of taxpayers

1.8

1.4

Improve self-service options:

Taxpayers will have access to secure

online accounts where they can view

their account and profile information,

make changes, interact with the IRS,

and manage preferences for payments,

refunds, and communications

IRS IRA Strategic Operating Plan

Part II: Objectives and Initiatives

Explore direct file: The IRS will explore

providing taxpayers the option to file

certain tax returns directly with the

IRS online

Enable taxpayers to access their

data: Taxpayers will be able to access,

download, and seamlessly share their

tax data and IRS history

Provide earlier legal certainty:

Taxpayers will have greater upfront

clarity and certainty additional guidance

on tax issues

Deliver proactive alerts: Taxpayers

will be able to receive alerts to help them

meet filing and payment obligations,

understand opportunities to claim certain

incentives and learn about life changes

that could impact their taxes

1.10

1.11

1.12

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1.9

Help taxpayers understand and claim

appropriate credits and deductions:

Taxpayers, including individuals and

small businesses, will receive education

and assistance in claiming available

incentives

Make payments easy: Taxpayers

will be able to make payments more

easily and seamlessly through all

service channels

Build status-tracking tools for

taxpayers: Taxpayers will be able

to use new status-tracking tools to

see real-time status updates, next steps,

and estimated time to process

documents and resolve issues

Streamline multichannel customer

assistance: Taxpayers will be able

to quickly, securely and accessibly

get the help they need, resolve more

issues in a single contact, and

experience minimal delays during

interactions with us

IRS IRA Strategic Operating Plan

Part II: Objectives and Initiatives

Initiative

1.1

Improve the availability and accessibility of customer service

Taxpayers will be able to receive on-demand customer service and schedule service ahead of time ,

Where we are heading

What success would look like

When taxpayers have questions or concerns, they

need the right answers quickly in ways that work

for them. Low levels of service and limited

customer service options are especially

challenging for low-income taxpayers, those with

limited mobility or limited English proficiency, and

those who do not have flexible schedules. In short,

many of those who need help most do not get it,

contributing to tax compliance issues and loss of

trust in the tax system.

Success for this initiative would include a larger

share of taxpayers being satisfied with IRS

customer service options and perceiving that the

IRS is “here to help.” More taxpayers would feel

they are receiving accurate and timely answers

to questions in ways that meet their diverse needs.

Levels of service across all channels would

increase, wait times would fall, and compliance

with tax obligations would increase. The accuracy

of returns would also rise, including claims for

credits and deductions.

We have dramatically increased the number of IRS

employees providing customer service this filing

season, but over the next few years we want to

also dramatically improve technology-driven

options for taxpayers. We will use enhanced data

and analytics to forecast customer service demand

and improve customer service access and options,

staffing accordingly. We will enable taxpayers to

schedule service through digital and in-person

channels and develop a plan to provide estimated

wait times and on-demand service through all

channels, including at Taxpayer Assistance

Centers (TACs). We will also ensure that

communication channels for tax professionals,

such as the Practitioner Line, are available and

accessible.

We will equip the employees who interact with

taxpayers with training and the authority they need

to resolve issues at the lowest appropriate level.

As discussed in other initiatives, we will provide

a multichannel service experience and improved

employee tools to improve service delivery.

Customer service improvements will be

comparable across diverse taxpayer segments,

including those with disabilities and limited

English proficiency.

IRS IRA Strategic Operating Plan

Part II: Objectives and Initiatives

Key projects

1. Expand service offerings across multiple

service channels to meet the needs of

taxpayers and tax professionals. Use

improved data and analytics to project demand,

staffing, estimated wait and processing times,

and service locations. Adjust policies, services

offered, and locations to provide in-person,

telephone, and digital services for all taxpayers

and tax professionals, including those in rural

and underserved areas. This includes

expanding the services available through

current customer service channels such

as the TACs and phones.

2. Provide the public with accurate wait time

estimates. Include estimated wait times in

customer service channels and processing

times for high-volume returns and other forms.

3. Staff customer service functions to meet

projected demand. Use enhanced data and

analytics to project demand for customer

services and better allocate well-equipped

employees to meet demand.

4. Improve appointment scheduling and

on-demand capabilities. Offer appointment

scheduling and on-demand services across

service channels.

6. Enable equal access through equitable

practices. Provide equitable access to IRS

services and opportunities for taxpayers.

Meet the needs of rural populations, people

with disabilities, those with limited English

proficiency, other underserved communities,

and small businesses. Explore creative

opportunities for expanding the reach

of live assistance.

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5. Develop policies and tools that support

first-contact problem-resolution. Develop

policies and tools that support the immediate

involvement of the right people to resolve

taxpayer issues quickly, even when

first-contact employees do not have the

information or authority to resolve the issues.

Key dependencies

1.1 depends on projects in initiatives:

1.3, 1.4, 1.12, 4.5-4.7, 5.5-5.7

Initiatives dependent on projects in 1.1:

1.9, 2.6, 2.7, 5.8

Milestones

FY 2023

Expanded hours are available at the TACs

for appointments and on-demand service

with staffing to meet expected demand

FY 2024

Taxpayers and tax professionals can

schedule service appointments via

multiple channels, based on staff

availability

FY 2024

Data and analytics capabilities are used

to predict taxpayer demand and staffing

needs for customer service and to project

estimated processing time for certain

returns and other forms

FY 2024

Increased service availability and services

are offered in TACs and on phones

to meet taxpayer demand

FY 2025

Data and analytics capabilities are used

to develop real-time wait time projections

for taxpayers seeking on-demand service

IRS IRA Strategic Operating Plan

Part II: Objectives and Initiatives

Initiative

1.2

Expand digital services and digitalization

Taxpayers will be able to file all documents securely and exchange correspondence electronically ,

Where we are heading

What success would look like

Most taxpayers prefer to file IRS documents

electronically when available, but the remaining

paper-based filings have outsized effects on IRS

operations. Paper filings take longer, cost more,

and are more prone to errors, leading to a

downward spiral in service quality. More issues

create longer customer service wait times, which

increase our support costs and the volume of

issues we must work to resolve. We will enable

secure electronic filing and processing for IRS

documents, which will allow us to enhance our

support for taxpayers who continue to file on

paper, reducing the frequency of delays and

errors in processing.

Success for this initiative would include customers

finding it easier to prepare and submit documents

to the IRS. Processing times would fall for end-toend digital processes. Backlogs in paper and

manual processes would be eliminated.

The accuracy of translation of return data would

increase as we phase in digital (e-filed)

and digitalized (paper converted to digital data)

receipts. Digital tools would be accessible for

people with disabilities and available in taxpayers’

preferred languages. Expanding digitalization

would also lessen the environmental impact

of the IRS by reducing paper usage internally and

by taxpayers, reducing the need for shipping and

minimizing the amount of paper storage required.

We will provide taxpayers the option to file

documents electronically and securely. We

will process all forms, returns, and certifications

digitally regardless of how they are submitted,

while maintaining paper submission options.

We will ensure that taxpayers claiming credits

are able to securely file digitally and are not

unduly burdened during filing. We will scan and

digitalize all incoming paper forms, returns, and

communications to process them digitally. We

will modernize forms and other documents to

make them mobile-friendly, shifting away from

the structure of traditional paper forms toward

easy-to-use, interactive forms that can be easily

updated and improved in response to changes

in customer needs and tax laws. We will redesign

service delivery, business processes, enterprise

scanning, data intake, legacy systems, and case

management systems to fully enable digital

processing. We will become fully digital and

modernize processes to improve the taxpayer

experience and organizational efficiency;

examples may include modernizing the Individual

Tax Identification Number (ITIN) process, updating

Tax Pro Account features to submit authorizations

to assist clients, and fully digitalizing amended

return processing.

IRS IRA Strategic Operating Plan

Part II: Objectives and Initiatives

Key projects

1. Create digital forms. Modernize forms so they

are easier to use, mobile-friendly, and take

advantage of digital capabilities and interactive

features that paper forms lack.

2. Expand digitalization. Digitalize papersubmitted forms, returns, applications,

certifications, correspondence, or remittances

at the point of receipt. This includes scanning

and extracting data from forms, images,

barcodes, and other sources.

3. Enable digital data delivery throughout the

IRS. Clean and deliver data and images to the

appropriate workflows for processing.

4. Reinforce secure storage and archiving

practices. Implement necessary data storage

requirements and best practices to retain proof

of receipt and of senders’ identities. Archive

materials as appropriate and required.

5. Create viewable digitized data. Make an

image or representation of the submitted

content viewable after submission for

employees and taxpayer Online Accounts,

as appropriate.

7. Evaluate which taxpayers are most

burdened during filing and remove barriers

to electronic filing. Evaluate which taxpayers

face barriers during filing, such as those who

may be eligible for credits and deductions;

those who need information quickly from the

IRS, such as residency certificates; or those

who are required to paper-file in certain

circumstances. Prioritize creating and

improving digital pathways for these taxpayers.

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6. Enable and implement digital processing.

Replace and streamline case, account,

and payment systems to incorporate more

automation and digitally process data received

from any submission. Create and implement

a prioritization plan to digitalize end-to-end

processing across the IRS based on need,

impact, and feasibility.

FY 2026-2027

Additional forms, returns, and

certifications available for electronic filing

and digitalization based on prioritization

plan

Key dependencies

1.2 depends on projects in initiatives:

4.1, 4.3-4.5, 5.5

Initiatives dependent on projects in 1.2:

1.4, 1.9, 1.11, 2.2, 2.7, 4.1, 4.5, 5.3, 5.8

Milestones

FY 2023

Certain documents, paper

correspondence, and non-tax forms

digitalized using the new Digital

Enablement Platform launched in 2022

FY 2023

Enhanced scanning of key tax forms

(e.g., Forms 940, 941, 1040)

FY 2023

Planning and prioritization to enable

and implement digital processing

and electronic filing

FY 2024

Highest-priority end-to-end digital

processes implemented

FY 2024-2025

High-priority forms, returns, and

certifications available for electronic

filing and digitalization

FY 2025

Additional high-priority end-to-end

digital processes implemented

IRS IRA Strategic Operating Plan

Part II: Objectives and Initiatives

Initiative

1.3

Ensure employees have the right tools

Employees will have the right tools and information to quickly and effectively meet the needs ,

of taxpayers

Where we are heading

Our workforce of dedicated public servants

needs the right tools and information to deliver

the customer experience that taxpayers and tax

professionals deserve. Taxpayers need real-time

answers and secure access to account data that is

easy to understand and interpret, while employees

need the authority to make appropriate decisions

and help taxpayers understand and resolve issues.

We will create a simpler and more seamless

experience for taxpayers by giving employees

the tools to access and update taxpayer

information and accounts. We will study employee

needs holistically and create a centralized

information system with appropriate tools to enable

and empower them. We will train employees

to use new systems and supporting tools.

We will consider the needs of all employees,

not just those in formal customer service positions.

For example, in addition to studying the needs

of customer service representatives, we will

assess whether compliance employees have

the appropriate information, analytical skills,

communications tools, and authorities to resolve

certain account issues when engaging with

taxpayers on compliance issues.

When an employee cannot resolve an issue,

we will provide the taxpayer with quick access

to IRS employees who can. We will put policies

and systems in place to appropriately grant access

and control employees’ abilities to make account

changes. Taxpayer privacy and security will

remain paramount in all we do.

What success would look like

Success for this initiative would include a rise in

taxpayers’ satisfaction with the information they

IRS IRA Strategic Operating Plan

Part II: Objectives and Initiatives

receive during customer service interactions.

Employee morale and job satisfaction would

increase as they get more of the tools they need

to do their jobs. The workforce would become

nimbler, easier to train, and able to deliver

service to taxpayers more quickly and effectively.

Key projects

1. Build a holistic view of taxpayer accounts

that employees can access. Create a secure

centralized information system that provides

customer relationship management via

a history of all interactions across channels

(e.g., chat bot, live assistor, online self-service

experiences) and holistic views of taxpayer

data, information, and history.

2. Build analytical, communication-based,

and other tools for employees. Build tools

so employees understand information more

quickly, determine appropriate resolutions,

and either resolve issues for taxpayers or

immediately route them to the appropriate

places for resolution.

3. Empower employees with the right

information to answer questions and resolve

issues during the first interaction. Provide

employees with job aids and guidance to

resolve a wide range of issues and answer

questions during the first contact.

4. Give employees appropriate authorities

to resolve issues immediately or route the

taxpayer appropriately for fast resolution.

Assess and expand the scope of resolutions

employees can provide to taxpayers to

empower employees to resolve issues

effectively and efficiently at the lowest

appropriate level.

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Milestones

FY 2023

Partnership launched between IRS

employees and the National Treasury

Employee Union (NTEU) to study

and build tools to help employees

meet taxpayer needs more efficiently

and effectively

FY 2023

Comprehensive review and planning

related to case management, customer

relationship management, and data

access, intake, and viewing capabilities

to ensure employees have the tools they

need to service taxpayers

FY 2024

Delegations of authority studied

and modified to empower employees

to resolve issues at the lowest appropriate

level

FY 2024

Scope of services studied and modified

to empower employees to resolve issues

at the lowest appropriate level

FY 2024-2025

Employee job aids and tools made

accessible and searchable in a single

place; training provided for employees

on new tools, processes, and authorities

FY 2024-2027

Additional capabilities launched based

on prioritization plan

Key dependencies

1.3 depends on projects in initiatives:

4.4-4.7, 5.5, 5.7, 5.8

Initiatives dependent on projects in 1.3:

1.1, 1.4-1.6, 1.8, 1.10-1.12, 2.1-2.4, 2.7, 3.1-3.6,

5.3, 5.8

IRS IRA Strategic Operating Plan

Part II: Objectives and Initiatives

Initiative

1.4

Improve self-service options

Taxpayers will have access to secure online accounts where they can view their account and

profile information, make changes, interact with the IRS, and manage preferences for payments,

refunds, and communications

Where we are heading

Taxpayers and tax professionals should have

easy, secure self-service options to get information

and resolve issues. They should be able to interact

with the IRS just as they would with most other

customer-centric businesses and financial

institutions.

We will expand Individual Online Accounts to

enable taxpayers to capture and store preferences

and profile information, access user-friendly tax

data, schedule payments, view status-tracking

tools, opt into certain notifications, communicate

securely with the IRS, initiate customer service

requests, and more.

We will build Business Online Accounts and

enable business taxpayers to manage who

can access company information and act on

the entity’s behalf while offering a modern suite

of self-service options.

We will also offer options via online Tax Pro

Accounts to manage authorizations, view client

information, and take actions as authorized by

clients. We will ensure employees can access

and view online account information as appropriate

to provide taxpayers and tax professionals

a seamless customer service experience.

Taxpayer privacy and security will remain

paramount in all we do.

What success would look like

Success for this initiative would include an

increase in the share of taxpayers using selfservice options. Customers would be satisfied

with issue resolution times for self-service options.

We would reduce need for live customer service

as the primary issue resolution tool for customers

IRS IRA Strategic Operating Plan

Part II: Objectives and Initiatives

who use online accounts. Customer satisfaction

with ease of use and availability of online account

features would increase.

Key projects

1. Provide comprehensive secure online

account services for individual taxpayers.

Add features to Individual Online Accounts,

including the ability to schedule payments,

save payment information, create and change

payment plans, access user-friendly tax

records, view the status of returns, refunds,

and audits, opt into certain notifications, use

secure messaging, and more.

2. Provide secure online account management

for businesses. Include features to let

business taxpayers manage their profile

and designees, view balance and payment

history, make payments, view account history,

and more.

3. Expand Online Tax Pro Accounts.

Enable tax professionals to manage their client

authorizations online; view clients’ balances,

payment histories, and notices; and act on

their behalf to make payments, set up payment

plans, and complete other account updates

as authorized.

4. Create taxpayer profiles that integrate

with other IRS systems. Incorporate taxpayer

profiles into IRS accounts to holistically capture

taxpayer preferences and payment information.

5. Give employees access to information to

enable seamless customer service. Provide

employees the ability to access information

available to taxpayers, as appropriate, so

they can assist taxpayers when needed.

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6. Enhance IRS.gov systems and content

to support new digital tools, products,

and services for taxpayers. Upgrade systems

and improve content development to make

sure IRS.gov supports the new capabilities and

is accessible to taxpayers and stakeholders,

including underserved and limited English

proficient (LEP) populations.

Milestones

FY 2023

Full implementation plan for online

account enhancements developed for

Individual, Business, and Tax Pro Online

Accounts

FY 2023

Enhancements to Individual Online

Accounts and Tax Pro Online Accounts

implemented

FY 2023

Business Online Accounts for taxpayers

launched

FY 2024-2026

Enhancements to Individual and Business

Online Accounts implemented to support

capabilities that taxpayers and tax

professionals need, based on the

implementation plan

Key dependencies

1.4 depends on projects in initiatives:

1.2, 1.3, 1.12, 4.1, 4.4-4.6, 5.5

Initiatives dependent on projects in 1.4:

1.1, 1.6, 1.8, 1.10-1.12, 2.3, 2.7

IRS IRA Strategic Operating Plan

Part II: Objectives and Initiatives

Initiative

1.5

Explore direct file

The IRS will explore providing taxpayers the option to file certain tax returns directly with the ,

IRS online ,

Where we are heading

We will explore making it easier for many

taxpayers to file returns for free with a questionbased electronic service to prepare and file tax

returns directly with the IRS. This service could

lower barriers to claiming certain incentives.

Many other tax authorities have rolled out the

ability to file taxes directly for free as part of their

digital transformations. The IRA requires the IRS

to study the design of an IRS-run direct file service.

As the IRS examines the cost and feasibility of

building a direct file option, as required by the IRA,

it will also study taxpayer preferences for products.

The results of the study will inform if and how the

IRS should design such a service.

What success would look like

Success for this initiative would include high

satisfaction rates among customers who use the

direct file service, if pursued, and continued use

of a direct file service by taxpayers from one year

to the next.

Key projects

1. Study the feasibility of building a direct file

service and the preferences of taxpayers.

Ensure any direct file service is feasible,

cost-effective, secure, and meets the needs

of taxpayers.

2. If the outcome of the feasibility study

warrants, create an additional option for

how taxpayers can file their tax returns.

Direct file would give eligible taxpayers a free,

public electronic return-filing service option.

IRS IRA Strategic Operating Plan

Part II: Objectives and Initiatives

Milestones

May 2023

Congressionally mandated study on direct

file issued

FY 2023

Feasibility and cost of releasing a direct

file service determined based on direct

file study results

FY 2023

Next steps determined and communicated

to Congress and other stakeholders

Key dependencies

1.5 depends on projects in initiatives:

1.3, 4.4, 4.5, 4.7, 5.7

Initiatives dependent on projects in 1.5:

None

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Initiative

1.6

Enable taxpayers to access their data

Taxpayers will be able to access, download and seamlessly share their tax data and IRS history ,

Where we are heading

Key projects

We will enable taxpayers to securely access their

own account data, including transcripts, account

balances, payment and account histories, notices,

service history, and more. More taxpayers will be

able to understand the status of their accounts,

identify and correct errors, and get their questions

answered via self-service.

1. Make transcripts and account data easier

to read and understand. Use plain language

for IRS transcripts for all taxpayers and make

them available in additional languages.

We will also help taxpayers get their returns right

the first time by providing taxpayers and their

authorized tax professionals with data and

information to help them populate their tax returns

based on prior-year returns and current-year

information.

Providing taxpayers and authorized tax

professionals with the option to begin tax returns

using data the IRS already has will make the filing

process easier. We will explore ways to help lowincome taxpayers access and use IRS data to

remove barriers to getting the information

necessary to file returns and claim benefits to

which they are entitled. The information will be

provided in a format that can interact directly with

return preparation software or can be taken to a

return preparer when authorized by the taxpayer,

while still ensuring protection of taxpayer privacy.

This service will reduce the chance that taxpayers

will accidentally make a mistake or omission that

requires filing an amended return or correcting an

error after filing.

What success would look like

Success for this initiative would include improving

customer satisfaction by helping taxpayers access

and understand data. Customer service calls

asking for transcripts and other documents that

are accessible through the new online tools would

decrease. Taxpayers who use this data to begin

their returns would have fewer document-matching

issues and make fewer amended returns.

IRS IRA Strategic Operating Plan

Part II: Objectives and Initiatives

2. Offer user-friendly and portable views

of taxpayer account and return data

and information. Provide taxpayers and tax

professionals the ability to see or download

account history to see payments, balances,

notices, and other information, in line with

similar interactions with financial institutions.

3. Help taxpayers start their tax returns

with data that can go directly into return

preparation software or to authorized return

preparers based on taxpayer preference.

Provide taxpayers and their authorized tax

professionals the ability to retrieve data from

prior-year returns and current-year information

in a format that can interact with return

preparation software if preferred. Taxpayers

will have options to question the accuracy

of information and correct any information

return discrepancies prior to filing.

Milestones

FY 2024

Current transcripts updated to be

user-friendly and available in Spanish

and other languages

FY 2024

Business transcripts made available

online and in an easy-to-read format

through Business Online Account

FY 2025

Mechanism developed to push data

into return preparation software to help

taxpayers prepare current-year tax returns

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FY 2025

Online accounts upgraded to incorporate

user-friendly views of account and return

information (e.g., notices, letters, account

history, payment history, balances due,

etc.)

Key dependencies

1.6 depends on projects in initiatives:

1.3, 1.4, 4.1, 4.4-4.6

Initiatives dependent on projects in 1.6:

2.6

IRS IRA Strategic Operating Plan

Part II: Objectives and Initiatives

Initiative

1.7

Provide earlier legal certainty

Taxpayers will have greater upfront clarity and certainty through additional guidance ,

on tax issues ,

Where we are heading

To provide taxpayers with the information

they need to understand and comply with tax

obligations, the IRS and the Department of the

Treasury work together to issue guidance and

advice to ease filing burdens on taxpayers and

practitioners, as well as to provide certainty about

the positions the IRS takes on tax issues. With

limited resources, however, the IRS has been able

to provide this guidance only for priority issues,

leaving many taxpayers unaware of how the

IRS views the application of the law and

whether certain positions will be accepted.

In coordination with the Office of Chief Counsel

and the Department of the Treasury Office of Tax

Policy, we will expand capacity to provide as much

certainty on tax issues as possible. This will

include issuing more legal guidance, interpreting

the tax laws to address areas of uncertainty for all

taxpayer segments, including current issues and

those related to new legislation. We will emphasize

early clarity—through formal or informal

guidance—to address a wide array of taxpayer

questions and reduce the need for subsequent

enforcement actions. We will provide additional

legal guidance to enable more taxpayers to meet

their filing and tax obligations voluntarily, at the

lowest cost. We will identify and implement new

strategies to provide increased certainty for

taxpayers. We will explore the best practices

of other jurisdictions in providing taxpayers with

early certainty in more timely ways, such as for

risk stratification, safe harbors, or audit guidelines.

What success would look like

Success for this initiative would include a rise

in voluntary compliance due to increased

understanding. We would receive fewer requests

from stakeholders and IRS employees for

additional guidance and would be able to focus

IRS IRA Strategic Operating Plan

Part II: Objectives and Initiatives

more compliance resources on issues where there

are true legal disputes.

Key projects

1. Expand capacity for addressing taxpayer

issues through guidance interpreting the

tax law. Expand capacity in the Office of Chief

Counsel and with the Department of the

Treasury Office of Tax Policy to address more

taxpayer questions proactively using both

formal and informal legal guidance and rulings.

2. Explore new forms of informal guidance.

Pursue the use of additional guidance tools

to address current challenges and, where

possible, provide greater certainty for

taxpayers. We will continue to devise ways

to provide guidance that are helpful to all

taxpayers.

Milestones

FY 2024 and ongoing

More guidance provided quickly to

address tax compliance and taxpayer

services issues

FY 2024

Priority areas for formal and informal

guidance identified through consultation

with external stakeholders and IRS data,

in addition to expanding the annual

Priority Guidance Plan process for

published guidance

FY 2024

Additional legal specialists hired within

the Office of Chief Counsel and the

Department of the Treasury Office of Tax

Policy to support expansion of formal and

informal guidance

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Key dependencies

1.7 depends on projects in initiatives:

None

Initiatives dependent on projects in 1.7:

None

IRS IRA Strategic Operating Plan

Part II: Objectives and Initiatives

Initiative

1.8

Deliver proactive alerts

Taxpayers will be able to receive alerts to help them meet filing and payment obligations,

understand opportunities to claim certain tax incentives and learn about life changes that could

impact their taxes

Where we are heading

We want taxpayers—including businesses and the

self-employed—to have the information they need

to understand and comply with tax obligations,

claim credits and deductions, and understand the

impact of life changes on their tax situation (such

as marriage or the birth of a child). Educating

taxpayers about their eligibility for different options

and making it easier to access those options will

build trust in the tax system and help taxpayers

make more informed choices.

We will use available data to create clear,

informative, and personalized alerts that help

taxpayers understand their obligations and the

credits and deductions they may be eligible

to claim. We will also give taxpayers the option

to share life changes with us to learn about

the potential tax impacts of those changes, and to

opt into receiving notifications about potential life

changes that we learn about from IRS data

and partner data.

We will build a data environment to better utilize

taxpayer-related data sources, including customer

accounts, customer service, third-party information

reporting, and partner data. Taxpayers who

choose to participate will receive simple, easy-toread notifications to help them understand

how these life changes may impact their taxes.

Taxpayers will be able to choose what types of

information they receive, how often, and through

what channels. We will use research-based

education and outreach approaches to help

taxpayers understand the benefits of enrolling

in personalized alerts.

What success would look like

Success for this initiative would include an

increase in the accuracy of participating taxpayers’

IRS IRA Strategic Operating Plan

Part II: Objectives and Initiatives

tax reporting and claims for appropriate incentives.

We would see decreased penalties and interest

and have shorter examination cycles for taxpayers

who receive relevant alerts.

Key projects

1. Create options for taxpayers to receive

informational and reminder alerts. Allow

taxpayers to choose the types of alerts

they wish to receive and their preferred

communication channels, which could

include in-app notifications, secure messaging,

or email. Electronic alerts will incorporate

security and authentication measures

to protect taxpayer privacy.

2. Personalize what information taxpayers

include to inform their alerts. Enable

taxpayers to allow the IRS to use tax data

to personalize alerts.

3. Build the capability for taxpayers to inform

the IRS of major life changes and receive

educational content. Enable taxpayers to

update their life changes through their channels

of choice, which we will use to inform them

of potential impacts to tax obligations, credits,

and deductions.

4. Build a coordinated partnering strategy

to inform taxpayers. Partner with the Office

of Management and Budget and other federal

agencies working on life changes initiatives

to develop and implement our part of an interagency strategy to provide comprehensive

information to help customers make informed

decisions and navigate the federal system

during status changes.

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Milestones

FY 2024

Systems, data sources, and federal

and state partnerships established

to support personalized alerts

FY 2025

Intake process built so taxpayers can

opt into alerts and inform the IRS

of life changes

FY 2025

Alerts implemented for individual and

business taxpayers and tax professionals,

including putting customer service

mechanisms in place to answer calls

and questions related to the alert

process and the alerts themselves

Key dependencies

1.8 depends on projects in initiatives:

1.3, 1.4, 4.1, 4.4-4.6

Initiatives dependent on projects in 1.8:

1.9

IRS IRA Strategic Operating Plan

Part II: Objectives and Initiatives

Initiative

1.9

Help taxpayers understand and claim appropriate credits

and deductions

Taxpayers, including individuals and small businesses, will receive education and assistance ,

in claiming available incentives ,

Where we are heading

What success would look like

Over the course of the last several decades

Congress has given the IRS responsibility for

delivering certain incentives through tax credits

and deductions, including to small businesses

and individuals. We recognize that in order to

deliver on this mandate from Congress, we must

incorporate the appropriate delivery of these

incentives into every aspect of the IRS. Several

IRS education and outreach programs facilitate

taxpayer access, but many taxpayers remain

unaware of tax credits and deductions for which

they are eligible or face other barriers that deter

them from claiming appropriate credits and

deductions. For example, the IRS estimates

that 21% of all eligible taxpayers did not claim

the Earned Income Tax Credit in TY 2019.2

Success for this initiative would include an

increase in the share of taxpayers successfully

claiming incentives for which they are eligible.

Taxpayers would also face fewer barriers to

claiming credits and deductions they are eligible

to receive as we redesign policies, processes

and procedures to facilitate access. We would

also see fewer inadvertent errors, as well as less

fraud and abuse.

We will remove barriers to claiming tax credits

for eligible individuals and small businesses,

including those who are not required to file tax

returns, while maintaining robust measures to

prevent inadvertent errors, fraud, and abuse. We

will expand outreach, education, and partnerships

to help taxpayers access appropriate tax credits

and deductions and to coordinate credit and

deduction delivery across the IRS. We will also

review internal policies, processes and procedures

to reduce barriers and burdens for taxpayers to

claim appropriate credits and deductions. We will

develop tools to measure uptake by eligible

individuals and small businesses and estimate the

share of eligible individuals and small businesses

who do not claim their credits and deductions.

Based on this analysis, we will improve efforts to

help taxpayers receive the incentives for which

they are eligible.

IRS IRA Strategic Operating Plan

Part II: Objectives and Initiatives

Key projects

1. Coordinate incentive delivery across

initiatives. Ensure that all the related initiatives

under the Strategic Operating Plan include

design choices and use data to help taxpayers

understand and claim appropriate incentives.

Facilitate collaboration across programs

affecting credit and deduction delivery to

improve the experience of those making claims.

2. Review and revise policies and processes

to make the process for taxpayers to claim

credits and deductions more efficient.

Examine pathways and programs for

understanding and claiming incentives

to improve accessibility for eligible taxpayers.

3. Improve understanding of the credits

and deductions gap. Use analytics to assess

taxpayer uptake of credits, particularly those

intended to benefit small businesses and

underserved communities. Publish analyses

on uptake of incentives, including overclaims

and underclaims, and incorporate our findings

into tax gap reporting.

4. Incorporate a “credits and deductions”

search function in Online Accounts

and improve relevant content on IRS.gov.

Improve self-service pathways for taxpayers

to learn about credits and deductions for which

they might be eligible.

6. Enhance and cultivate community-based

relationships and improve direct outreach

to taxpayers, including small businesses.

Expand relationships with taxpayer

communities by developing a greater

understanding of their needs and finding

effective ways to provide information to different

demographics in ways they will understand

and trust, including distribution of educational

materials using current and new social

media platforms, podcasts, radio, television,

community-based organizations, and other

channels. Use a variety of platforms and

messages to reach new demographics

in cost-effective ways.

7. Expand partnerships with government

agencies, private institutions, and others

to provide education and service. As

appropriate and legally permissible, partner with

federal, state, and local government institutions,

as well as Tribal governments, to share data

and information to help taxpayers claim

available credits and receive IRS service,

particularly in under-resourced communities.

Expand partnerships with public and private

institutions, such as tax preparation service

providers, software companies, VITA, lowincome tax clinics, faith-based organizations,

nonprofits, and libraries, to distribute

educational materials on available

credits and deductions.

8. Support the IRS shift to a culture of service

and continuous improvement. Develop

policies and procedures to help IRS employees

look holistically at each taxpayer’s individual

situation and make sure the taxpayer is aware

of the credits and deductions for which they

are eligible.

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5. Expand the scale and scope of outreach

and education forums. Expand the availability

and services offered and raise awareness

of existing forums, including refundable

credit summits, IRS education and outreach,

Volunteer Income Tax Assistance (VITA)

and Tax Counseling for the Elderly (TCE),

Low-Income Taxpayer Clinics (LITCs),

and webinars.

Milestones

FY 2023

Key tax credits and deductions identified

as the focus of initial efforts; outreach

and community partnership plans

developed, including key details such

as communication channels, partnership

opportunities and messaging

FY 2023

Policies and procedures identified and

prioritized for revision to reduce taxpayer

burdens

FY 2024

Certain policies and procedures

updated according to prioritization

plan and feasibility

FY 2024

First new set of scaled outreach

and engagement programs launched

FY 2024

Enhanced training including updated

guidance on education and outreach

for taxpayer-facing employees

FY 2024

Methodology and estimate of selected

credits and deductions gap developed

FY 2024

Pilot completed for expanded partnership

programs with government agencies

and private partners; effective programs

refined and scaled up

FY 2025

New contacts launched for lawful

non-filers who may be eligible for a

credit or deduction to ensure they are

aware of their eligibility and have the

tools and assistance necessary to

claim appropriate credits or deductions

IRS IRA Strategic Operating Plan

Part II: Objectives and Initiatives

FY 2025

Outreach efforts scaled to include

broader list of tax credits and deductions

for individuals and small businesses

FY 2025

Additional updates to policies and

procedures to reduce taxpayer burdens

Key dependencies

1.9 depends on projects in initiatives:

1.1, 1.2, 1.8, 2.1, 2.6, 4.5-4.8, 5.1, 5.6-5.8

Initiatives dependent on projects in 1.9:

None

IRS IRA Strategic Operating Plan

Part II: Objectives and Initiatives

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Initiative

1.10

Make payments easy

Taxpayers will be able to make payments more easily and seamlessly through all service channels ,

Where we are heading

Taxpayers expect to have the same quick and

easy payment options with the IRS that they have

with other businesses, including online, by phone

and in person. The IRS should apply payments to

the appropriate tax accounts with full transparency

about when and how the payments are applied.

We will modernize payment systems and give

taxpayers the payment options they expect to

make it easier for them to pay the IRS seamlessly

and easily. We will expand features in online

accounts so that individuals, businesses, tax

professionals and payroll processors will be

able to make, manage, and view payments.

We will also improve and expand options

for online payments without registration, and

enable payments over the phone, through IRS

employees, and from international taxpayers.

4. Provide payment options to taxpayers

abroad and foreign governments. Allow

those with foreign bank accounts and foreign

currency to make and receive payments.

Milestones

What success would look like

Success for this initiative would include a rise

in the share of timely payments and declines

in accruals of interest and penalties. Customer

satisfaction regarding the ease and transparency

of payment processes would increase.

Key projects

1. Enable payments through online accounts.

Allow taxpayers and third parties to make

payments through online accounts, with

options to pay by bank account, credit

or debit card, or digital wallet.

2. Improve and expand guest payments.

Allow individual and business taxpayers

to pay without registration.

3. Give payors options to pay through IRS

employees, over the phone—including

on automated phone lines—and in person.

IRS IRA Strategic Operating Plan

Part II: Objectives and Initiatives

FY 2023

Online Account payment features

expanded so taxpayers can schedule

payments, cancel scheduled payments,

and save bank information

FY 2024

Business Online Account and Tax Pro

Account payments plus Direct Pay

enhancements implemented

FY 2024

Payment capabilities over the phone

and through employees launched

FY 2025

Business Online Account and Tax Pro

Account enhancements implemented

(e.g., batch payments, save and manage

bank information)

FY 2026

Integrated payment capability by card

and digital wallet developed

Key dependencies

1.10 depends on projects in initiatives:

1.3, 1.4, 4.4-4.6

Initiatives dependent on projects in 1.10:

1.11, 2.7

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Initiative

1.11

Build status-tracking tools for taxpayers

Taxpayers will be able to use new status-tracking tools to see real-time status updates, next steps,

and estimated time to process documents and resolve issues

Where we are heading

The IRS will provide taxpayers with access to

personalized, real-time status updates on returns,

refunds, and other IRS processes and decisions.

These tools will help taxpayers identify the causes

of delays or issues, get answers via self-service,

and understand what to expect and what actions

they need to take, if any.

We will update existing online status tools and

build capabilities into online accounts to enable

this personalized status tracking. We will improve

status categories and messaging to clarify next

steps, integrate data and analytics to provide

real-time personalized information and estimates,

connect information across systems, and ensure

employees have access to all the relevant

information for consistency across service

channels.

What success would look like

Success for this initiative would include more

accurate projections for process and decision

timeframes. Customer satisfaction with IRS statustracking tools would increase, including improved

satisfaction with accuracy, ease of use, and value

of information provided. We would receive fewer

calls related to tracking the status of tax returns,

refunds, audits, and other IRS processes.

2. Build access to status-tracking information

within Online Account and Business

Online Account for business and individual

taxpayers. Allow taxpayers to find all their

personalized status-tracking information

in one spot.

3. Provide status information regardless

of service channel chosen. Ensure that

self-service online tools provide the same

details via the phone and other channels

by allowing IRS employees to see what the

taxpayer sees online.

4. Allow tax professionals to view status

information for their clients. Give taxpayers

the ability to authorize tax professionals to track

status for them through the online Tax Pro

Account platform.

5. Give taxpayers the option to receive

notifications when their refunds, returns,

or payment status changes. Provide status

notifications to help taxpayers trust that they

have the most up-to-date information without

constantly checking online tools.

Milestones

Key projects

1. Provide real-time status updates on

taxpayer refund and return processing,

audits, and other service interactions.

Create status-tracking tools that show more

details about processes, incorporate data

and analytics into messaging about estimated

processing times, and provide clear instructions

for next steps when appropriate.

IRS IRA Strategic Operating Plan

Part II: Objectives and Initiatives

FY 2023

Current refund and amended return

status-tracking tools refined in Online

Accounts to provide more transparent

messaging for taxpayers that explains

processing status, errors and issues,

and next steps

FY 2024

Improved taxpayer status-tracking tools

in online accounts for filing season 2024

FY 2025

New status tracking enhancements

implemented in Business Online Accounts

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FY 2025

Real-time processing estimates launched

with data analytics to provide more

accurate status messaging

FY 2024-2027

Audit status and other process-tracking

launched and enhanced based

on prioritization plan

Key dependencies

1.11 depends on projects in initiatives:

1.2-1.4, 1.10, 4.1, 4.2, 4.4-4.7

Initiatives dependent on projects in 1.11:

2.6, 5.8

IRS IRA Strategic Operating Plan

Part II: Objectives and Initiatives

Initiative

1.12

Streamline multichannel customer assistance

Taxpayers will be able to quickly, securely, and accessibly get the help they need, resolve ,

more issues in a single contact, and experience minimal delays during interactions with us ,

Where we are heading

We will deliver taxpayers and tax professionals

two-way communication options that are secure

and easy to navigate. The IRS will manage

interactions in ways that minimize customer

burdens and make it easy to get information

and resolve issues.

We will offer taxpayers more options for

communicating securely with us through multiple

channels after proving their identity. We will add

initial identity-proofing options, establish methods

for linking identity information to all service

channels, and ensure taxpayers can communicate

back and forth with the IRS across all service

channels. We will enable information about each

customer’s history and current service interaction

to follow the customer, allowing employees

to understand what has happened so far and to

seamlessly help the customer take the correct next

steps, while appropriately protecting taxpayer data.

What success would look like

Success for this initiative would include higher

rates of first-contact resolution for a larger share

of issues. Taxpayers would resolve more issues

through self-service and automated channels

and require live customer service channels less

often. Customer satisfaction rates would increase

related to the ease of communicating with the IRS

and of escalating customer service issues through

different channels.

2. Allow taxpayers to use their initial identityproofing event for both digital and nondigital service options. Provide non-digital

service options for taxpayers to link initial

identity-proofing events to non-digital service

interactions.

3. Provide taxpayers with different digital

two-way communication service options.

Give taxpayers secure online options to talk

with IRS employees, view and send messages

to the IRS, and upload documents.

4. Manage customer histories so that

employees can view past and current

interaction data in real time. In a related

initiative, build tools that give employees

access to customer service histories and

minimize duplication, as customers should

not have to repeat information.

Milestones

Key projects

1. Offer a secure initial identity-proofing

option for all taxpayers. Offer identity-proofing

options that meet the unique needs of different

taxpayers.

IRS IRA Strategic Operating Plan

Part II: Objectives and Initiatives

FY 2023

Digital options built and implemented

to allow taxpayers to communicate back

and forth with the IRS across different

channels, including enhanced options

to submit documents online

FY 2023

Number of credentialing service providers

for identity-proofing expanded, more

services made available to authenticated

taxpayers, and access expanded for

certain types of taxpayers, such as ITIN

holders and international taxpayers

FY 2023

Technology tested to link identity

information between certain service

channels

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FY 2023-2024

Certain employee views of customer

histories delivered and enhanced, such as

with customer relationship management

tools

FY 2024

Additional online options available

for identity-proofing for individuals

and businesses

Key dependencies

1.12 depends on projects in initiatives:

1.3, 1.4, 4.4-4.6, 5.5

Initiatives dependent on projects in 1.12:

1.1, 1.4, 2.7, 5.6, 5.8

IRS IRA Strategic Operating Plan

Part II: Objectives and Initiatives

Objective

Quickly resolve taxpayer issues when they arise

Millions of taxpayers make simple mistakes when completing their returns, and millions fail to properly

claim tax incentives for which they are eligible. Resolving these and other simple mistakes can be a

prolonged process. Through investments in our data management and taxpayer communication tools,

we will work to resolve these issues more quickly and prevent their recurrence. The initiatives that support

this objective will leverage a multichannel outreach approach.

Where we are heading

• When taxpayers make filing errors, we will reach out to them faster and offer clearer, more accessible

ways to resolve issues.

• We will help taxpayers who reach out to us get the help they need more quickly, addressing

their concerns and fixing any problems they have.

• Informed by data and enabled by improved technology, we will reach out to taxpayers when

they may owe taxes and when they may have missed credits or deductions.

How we will tailor solutions to taxpayers

The most effective, least burdensome approach appropriate based on the taxpayers’ specific

circumstances

Installment

agreement offered

to a taxpayer unable

Notice for eligible

pay their taxes at

individual who missed

Digital alerts for

Inquiry for potential

time of filing

a credit

simple mistakes

misreporting

Visuals are illustrative

Indicators of success

ü Increased notice response rate

ü Decreased repeat noncompliance rate

ü Increased share of credits and deductions

claimed by those who are eligible

ü Decreased average days between return

filing and contacting taxpayers with issues

IRS IRA Strategic Operating Plan

Part II: Objectives and Initiatives

ü Faster resolution of compliance issues

after filing

ü For taxpayers with the ability to pay, increased

percentage of new balance-due cases closed

within one year of assessment

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How faster resolution of issues will further the energy security and clean

energy provisions of the IRA for consumers, small businesses, communities,

and industries

• We will flag issues with claimed credits at the time of filing so that taxpayers can correct them,

if necessary, and promptly get the credits for which they are eligible.

• Clear and transparent notices will promptly notify taxpayers claiming energy security and clean energy

tax incentives when issues arise and will provide information for the simplest pathways to resolution.

Strategic shifts

From

Taxpayers do not have tools to easily identify

potential mistakes and correct them before filing.

We will offer notifications and proactive help

for taxpayers to find and correct mistakes earlier.

Taxpayers learn of issues via paper notices that

can be difficult to understand and can be resolved

only via inconvenient, paper-based processes.

Electronic filing and communication options

will be simpler and will make it easier to interact

with the IRS.

Simple filing mistakes and larger inaccuracies

may require lengthy issue resolution processes.

We will resolve filing issues with clear notices

and the fastest, simplest possible solutions

for taxpayers.

Initiatives included in this objective

2.1

2.2

2.3

Identify issues during filing: The IRS

will send taxpayers notifications about

potential issues as they file returns

to help them correct errors and claim

credits and deductions

Deliver early and appropriate

treatments for issues: The IRS

will provide taxpayers with timely

and tailored post-filing treatments to

resolve issues and omissions on their

tax returns

Develop taxpayer-centric notices:

The IRS will send taxpayers notices they

can understand, delivered in ways they

prefer, with clear explanations

of issues and steps to resolution

2.4

2.5

2.6

2.7

Expand tax certainty and issue

resolution programs: Taxpayers will

be able to resolve potential compliance

issues up front through expanded

pre-filing and tax certainty programs

Offer proactive debt resolution:

The IRS will proactively offer taxpayers

appropriate options for past-due

payment resolution

Expand engagement with non-filers:

The IRS will provide early, tailored

outreach to taxpayers who do not file

on time

Use improved data and analytics

to tailor timely collections contacts:

The IRS will provide early, tailored

contacts to all taxpayers with past-due

balances, and will only escalate to more

intensive treatments when appropriate

IRS IRA Strategic Operating Plan

Part II: Objectives and Initiatives

Initiative

2.1

Identify issues during filing

The IRS will send taxpayers notifications about potential issues as they file returns to help them

correct errors and claim credits and deductions for which they are eligible

Where we are heading

The IRS will notify taxpayers and tax professionals

about potential issues and allow them to make

corrections at the point of filing, reducing the need

to resolve errors after filing. We will also offer realtime checks and notifications to help taxpayers

claim any credits or deductions for which they

may be eligible but have missed on their returns.

We will advance our ability to systematically check

each electronically filed return for errors in real

time, match it against available third-party and

internal data, and evaluate the taxpayer’s eligibility

for credits and deductions.

We will explain each potential issue in plain

language in notifications that could be delivered

to taxpayers or preparers directly or through

their tax software. Each notification will include

instructions on how to correct the issue and

resubmit the return. If the return is not corrected,

the IRS will follow its normal processes to reject or

accept it. If the return is accepted, the taxpayer will

still have opportunities to resolve errors later.

What success would look like

Success for this initiative would include rejecting

fewer returns and sending fewer returns to

error resolution for taxpayers who receive

these notifications. For taxpayers who receive

notifications about credits and deductions,

claims for appropriate credits and deductions

would increase.

Key projects

1. Enhance systemic checks for return

completeness and consistency. Identify

issues at the point of filing such as math

errors, missing forms, or missing income

reported by third parties.

IRS IRA Strategic Operating Plan

Part II: Objectives and Initiatives

2. Send notifications for each issue identified.

Include details of the issue and instructions

on how to get further explanations, correct it,

or dispute it.

3. Integrate notifications with filing software

or systems. Make notifications available to

taxpayers and preparers through their software

and through any potential IRS direct file system.

Milestones

FY 2024

Taxpayers and preparers notified

of mismatches for simple types of income

(W2s and 1099 NECs) and processing

errors

FY 2025

Taxpayers and preparers notified

of potential filing issues including tax

credits related to children and other

dependents, other missed or erroneous

credits and deductions, and other issues

to be determined

Key dependencies

2.1 depends on projects in initiatives:

1.3, 4.1, 4.4-4.7, 5.7

Initiatives dependent on projects in 2.1:

1.9, 2.5, 2.6

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Initiative

2.2

Deliver early and appropriate treatments for issues

The IRS will provide taxpayers with timely and tailored post-filing treatments to resolve issues ,

and omissions on their tax returns

Where we are heading

Key projects

Most taxpayers want to be compliant. When

issues are identified after filing, the IRS must

help the taxpayer to become compliant as quickly

and simply as possible. We will address issues

identified after filing that require IRS intervention

promptly and in ways tailored to the specific

circumstances of the taxpayer, such as a soft

notice to encourage self-correction instead of an

audit, modes of delivery such as an electronic

notice rather than an in-person visit, and pathways

toward increased review. Notification could start

with a soft notice, for example, and move to an

audit if no action is taken or the issue remains

unresolved. This approach will give taxpayers who

want to comply with simpler ways to correct issues

identified after filing and help to prevent

unnecessary audits. For issues unresolved by this

process, the IRS will move to audits. We will also

streamline procedures so that issues can be

resolved more quickly, with less burden on the

taxpayer, when the taxpayer is being audited or

affected by any other compliance contact.

1. Develop treatments tailored to taxpayers

based on our assessment of the relevant

issues. Based on a taxpayer’s unique

circumstances and issue-specific level of risk,

use advanced analytics to identify the most

appropriate treatment to address potential

noncompliance. Tailored treatments will

help the taxpayer to establish and maintain

compliance and minimize the burdens on

that taxpayer. IRS treatments will be easy

to understand and use multiple modes of

communication, including texts and email.

What success would look like

Success for this initiative would include helping

taxpayers resolve compliance issues more quickly,

a higher incidence of correcting or self-correcting

issues using less intrusive treatments when

appropriate, a reduction in repeat noncompliance,

and a higher incidence of taxpayers paying what

they owe. Earlier contacts as appropriate will also

improve the effectiveness of overall IRS

compliance actions by focusing enforcement

efforts on high-priority issues and cases with

significant evidence of noncompliance.

IRS IRA Strategic Operating Plan

Part II: Objectives and Initiatives

2. Develop tailored treatments to help

taxpayers claim missed incentives for which

they are eligible. Take a comprehensive

approach to detecting and helping taxpayers

claim any incentives for which they are eligible.

Establish tailored approaches addressing

unique constraints and employ various methods

of delivery. By applying advanced analytics,

identify situational trends and appropriate

treatments to alert taxpayers to credits and

deductions they may qualify for but did not

claim on their return.

3. Increase focused outreach in underserved

communities. Engage with taxpayers,

including small business taxpayers, in

underserved rural and urban communities

to deliver education and technical tools

that directly address issues or opportunities

identified on filed returns. Use communications

specific to the demographic to help them

understand.

4. Refine current treatments to make them

more efficient and effective. Use enhanced

data, analytics and digital tools to improve

efficiency and resolve cases sooner. Identify

opportunities to minimize taxpayer burden by

improving enterprise-wide planning and

coordination. Ensure communications are easy

5. Integrate data and analytics to increase the

timeliness of treatments. Provide treatments

as close to the time of filing as possible so that

taxpayers can address issues sooner and avoid

repeating them in subsequent years.

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to understand so that taxpayers can take

corrective action. Explore ways to reduce the

burdens on taxpayers affected by

correspondence audits.

Key dependencies

2.2 depends on projects in initiatives:

1.2, 1.3, 2.5, 3.1, 4.5-4.7, 5.5-5.7

Initiatives dependent on projects in 2.2:

None

6. Improve the administration of penalties.

Evaluate and improve the administration

of taxpayer penalties and consider reasonable

cause exceptions where applicable

to encourage voluntary compliance

and resolve issues faster when appropriate.

Milestones

FY 2023

New research identified to foster our

understanding of prevalent issues and the

most effective treatments for those issues

FY 2024

Refined methodology for assigning

optimal treatments and appropriate

follow-up treatments to taxpayers,

developed through data-driven analysis

and research; taxpayer indicators and

behavioral characteristics identified that

will help determine the most effective

treatment for each taxpayer archetype

FY 2024-FY 2026

Current treatments (e.g., correspondence

and field audits, soft notices, education

letters) refined to be more efficient and

effective (first set of refinements deployed

in FY 2024; improvements from

digitization and analytics deployed in FY

2026)

FY 2025-FY 2027

New tailored treatments developed and

piloted based on data and analytics (FY

2025); additional treatment options piloted

as new IT capabilities become available

throughout FY 2027

IRS IRA Strategic Operating Plan

Part II: Objectives and Initiatives

Initiative

2.3

Develop taxpayer-centric notices

The IRS will send taxpayers notices they can understand, delivered in ways they prefer,

with clear explanations of issues and steps to resolution

Where we are heading

We must make it easier for taxpayers and tax

professionals to understand the nature of potential

tax issues and how to resolve those issues.

We will redesign and update all notices for

clarity, simplicity, and plain language, and allow

for personalized notices in place of boilerplate

language. At the same time, we will improve

the process of redesigning and reviewing notices,

adjust underlying systems and software to make

updating notices easier, and ensure that the

review process focuses on using simple, clear

language. For those who prefer, we will make all

notices available to taxpayers, tax professionals,

and IRS employees online, even if they are also

required by law to be mailed. We will enable

taxpayers to respond to notices electronically and

make all notices available in Spanish; translation

into other languages will be added based on

taxpayer needs. As the IRS expands available

communication channels with taxpayers, they may

be able to elect how they receive their notices.

What success would look like

Success for this initiative would include increased

response rates and compliance rates among

taxpayers who receive improved notices.

Taxpayers would understand what information

must be provided to claim credits and deductions.

Their rate of using self-service options to resolve

issues would likewise increase. Customer

satisfaction measures would increase due to

clearer notices and easier response processes.

Key projects

1. Revise notices by simplifying the language.

Update the notice review process and redesign

all notices so that they clearly, briefly state the

issues and required actions, and that they are

IRS IRA Strategic Operating Plan

Part II: Objectives and Initiatives

personalized and consistent with IRS

messaging. Reduce notices’ length by

providing embedded links to additional content.

2. Add digital copies of all notices to online

accounts. Create digital copies of all notices

so that taxpayers and authorized third parties

can access them online.

3. Improve technology so notices can be

updated without coding or system changes.

Use new technology to accelerate updates and

digitalize the content of notices, with the aim

of increasing the current rate of five to seven

notices per year to as many as 500 per year.

4. Expand digital response options. Build

two-way communication channels so that

taxpayers can respond to notices online.

Include information about digital options

in redesigned and digitalized notices.

5. Prioritize work on notices based on needs.

Develop a long-term plan that reduces

competing priorities, translates only redesigned

notices, and includes all IRS notices and letters.

6. Translate notices written in plain language

to the top eight languages used by

taxpayers. Ensure that notices written

in other languages are as simple and

accessible as plain-English documents.

Milestones

FY 2023

Prioritization plan developed for revising

and implementing updated digitalized

notices

FY 2024

72 notices added to individual Online

Account

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FY 2024-2026

Capabilities launched for taxpayers

and tax professionals to receive and

respond to additional notices electronically

Key dependencies

2.3 depends on projects in initiatives:

1.3, 1.4, 4.2, 4.4-4.6

Initiatives dependent on projects in 2.3:

2.5, 2.6

IRS IRA Strategic Operating Plan

Part II: Objectives and Initiatives

Initiative

2.4

Expand tax certainty and issue resolution programs

Taxpayers will be able to resolve potential compliance issues up front through expanded pre-filing ,

and tax certainty programs ,

Where we are heading

Pre-filing programs, in which the IRS and

taxpayers work together to resolve complex issues

before a tax return is filed, are not broadly

available and are mainly focused on large

business taxpayers.

We will improve and expand tax certainty

programs so that other segments of taxpayers

can determine their tax obligations more quickly

and with finality. These tailored pre-filing programs

will provide more tax certainty to taxpayers who

face complex issues. We will also work to

adequately staff existing programs that have

under-delivered to taxpayers due to resource

constraints. In tandem with greater emphasis

on early formal and informal legal guidance,

this step will allow more taxpayers to reach tax

certainty sooner. We will also prioritize providing

clear answers earlier to a wide array of taxpayer

questions, which will reduce the need for later

compliance contacts. These steps will enable

more taxpayers to voluntarily meet their filing and

tax obligations right the first time, at the least cost.

how to participate and articulating the programs’

benefits to eligible taxpayers.

2. Refine programs to address current

challenges and, where possible, provide

more tax certainty to program participants.

Continue to refine current pre-filing and tax

certainty programs to make them more

streamlined and efficient for taxpayers.

3. Develop additional, tailored tax certainty

programs. Create new programs to provide

tax certainty to additional taxpayers who

face complex tax issues or need to resolve

outstanding errors. Develop these programs

based on IRS and taxpayer experience,

in close consultation with external stakeholders.

4. Consider removing user fees from programs

where appropriate. Make these programs

more accessible to taxpayers—particularly

for small and mid-sized businesses—who

could benefit from them. Further digitalize

and improve our pre-filing programs to make

it easier for these taxpayers to apply, upload

documents, and correspond with us digitally.

Milestones

What success would look like

Success for this initiative would include increased

participation in tax certainty programs, faster

resolution of taxpayers’ complex tax issues,

and a reduction in post-filing compliance activities

for participating taxpayers.

Key projects

1. Expand capacity, eligibility and accessibility

for current pre-filing programs where

appropriate. Enable more taxpayers who face

complex tax issues to use our tax certainty

programs. Increase efforts to make taxpayers

aware of these programs, including describing

IRS IRA Strategic Operating Plan

Part II: Objectives and Initiatives

FY 2023

Outreach and campaigns expanded

to increase awareness of tax certainty

programs and their benefits to taxpayers

with complex issues

FY 2024

Pilot program launched to invite taxpayers

to participate in pre-filing programs

FY 2024

Priority areas identified for new,

tailored tax certainty programs through

consultation with external stakeholders

and IRS data, especially after assessing

common issues that emerge following

an increase in compliance coverage

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FY 2026

Additional specialists hired and

onboarded to support expansion

of current tax certainty programs

FY 2027

Additional specialists trained and current

employees reskilled to support expansion

of current tax certainty programs

Key dependencies

2.4 depends on projects in initiatives:

1.3, 4.5, 5.1, 5.4, 5.6, 5.7

Initiatives dependent on projects in 2.4:

None

IRS IRA Strategic Operating Plan

Part II: Objectives and Initiatives

Initiative

2.5

Offer proactive debt resolution

The IRS will proactively offer taxpayers appropriate options for past-due payment resolution ,

Where we are heading

Key projects

More than 10 million taxpayers have past-due

balances.3 Many want to pay what they owe,

and many have filed their tax returns but are facing

hardships that hinder them from paying their full

tax balances on time. While it is taxpayers’

responsibility to pay their taxes or make alternative

arrangements, those experiencing hardship

may not be able to easily set up a payment

arrangement, such as an installment agreement

or offer in compromise. In some cases, fees apply

to taxpayers who enter these arrangements.

1. Develop analytics to identify the repayment

options best suited to each taxpayer’s

circumstances. Leverage IRS data and

analytics to develop solutions tailored to

taxpayers’ circumstances. For example, we will

proactively offer short-term payment plans or

installment agreements to eligible taxpayers.

We will simplify available options for taxpayers

who are seeking to resolve their past-due balances

or to make payment arrangements with the IRS.

We will also reach out to taxpayers who have

failed to make payments and offer them options.

For some taxpayers, we will offer potential

resolutions, such as short-term payment plans,

installment agreements, or a temporary delay

of collection, with terms appropriate for the

taxpayer’s circumstances. In other situations,

we will alert taxpayers to all balance resolution

options available and the processes for enrolling.

This outreach will be timely; we will contact

taxpayers as soon as payments are missed so that

they can address their past-due balance as quickly

as possible to reduce the accumulation of interest.

What success would look like

Success for this initiative would include

increased voluntary compliance with an increase

in the number of taxpayers who willingly enter

arrangements to address their past-due balances

in ways that are suited to their circumstances.

Other markers include reductions in the overall

amount of tax debt, the number of taxpayers

with past-due balances, and accumulated interest,

since taxpayers will be able to address past-due

balances more quickly.

IRS IRA Strategic Operating Plan

Part II: Objectives and Initiatives

2. Create processes for real-time identification

of taxpayers who miss payments and

contact them through the channel of

their choice. Develop and refine processes

to quickly identify accounts that miss payments

so that taxpayers can be contacted immediately

via the channel of their choice (e.g., phone,

email, text, or letter). Expand our capacity to

provide customer support to taxpayers who

seek to understand their options and choose

the most appropriate resolution.

3. Leverage IRS data and analytics

to notify and help taxpayers avoid repeat

delinquency. Leverage IRS data and analytics

to identify potential repeat delinquency.

Proactively contact taxpayers with information

about the consequences of missing a payment

and explain the options available to them.

4. Evaluate options for reducing or waiving

fees. Consider various options for eliminating

fees or expanding the use of fee waivers for

certain taxpayers who enter arrangements

with the IRS to resolve their past-due balances.

5. Refine resolution options to be more

effective at reducing debt and easier

for taxpayers to use. Incorporate offer in

compromise eligibility checks and enrollment

applications into online accounts. Develop and

improve tools for online installment agreements.

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Milestones

FY 2023

Improvements to online installment

agreement portal launched

FY 2024

Evaluation conducted of fees for payment

arrangements

FY 2025

Enhanced analytics launched

for predicting where a proactive

resolution may be appropriate

FY 2026

Capability launched for taxpayer access

to a broader range of self-service debt

repayment tools through online accounts

Key dependencies

2.5 depends on projects in initiatives:

2.1, 2.3, 2.7, 3.1, 4.6

Initiatives dependent on projects in 2.5:

2.2, 2.7

IRS IRA Strategic Operating Plan

Part II: Objectives and Initiatives

Initiative

2.6

Expand engagement with non-filers

The IRS will provide early, tailored outreach to taxpayers who do not file on time ,

Where we are heading

What success would look like

Individuals and entities who are required to file

tax returns but fail to do so on time are known as

delinquent non-filers. Many are not intentionally

avoiding taxes but fail to file for simple reasons,

such as being unaware of their obligation to file

taxes, forgetting to file, not knowing how to file,

missing the deadline to request an extension,

or attempting to file but failing to ensure that their

return reaches the IRS. Today, IRS notices to

non-filers are delayed and are not tailored to the

common reasons taxpayers do not file. Delinquent

non-filers may be subject to penalties when the

IRS assesses their tax obligations, and they may

even miss credits and deductions for which they

are eligible.

Success for this initiative would include

an increase in non-filers who are detected

and contacted in a timely manner so they can

voluntarily comply; an increase in simple options

that reflect the reasons why individuals and entities

do not file, thus improving the taxpayer experience;

an increase in the number of taxpayers who selfcorrect (i.e., pay on their own without intervention);

and a reduction in the number of taxpayers who

face additional penalties.

We will expand outreach to individuals and entities

as soon as they miss a filing deadline and provide

more options to help them become compliant.

These options will be simple, easy to understand,

and reflect common reasons why individuals and

entities do not file on time. We will explore options

such as: (1) prompting taxpayers to file a simple

request for an extension; (2) allowing certain

individuals to indicate that they have only wage

income and would like the IRS to complete their

returns based on reported information; (3)

informing individuals who are not required to file

returns about tax credits they may be eligible for;

and (4) proactively offering payment agreements

to taxpayers who may not be able to pay in full

immediately. Communications will provide clear

information about the consequences of not filing

and help taxpayers become compliant. We will

also enhance our use of data and analytics to

identify and contact more non-filers in a timely

manner.

IRS IRA Strategic Operating Plan

Part II: Objectives and Initiatives

Key projects

1. Develop tailored non-filer treatments

that are simpler for taxpayers and address

common issues that cause taxpayers not

to file. Explore more options to help taxpayers

become compliant that are simple, easy

to understand, and reflect common reasons

why individuals and entities fail to file.

2. Build enhanced analytics to detect more

non-filers sooner. Use improved data and

expand the use of analytics to detect more

non-filers as soon as they miss deadlines.

3. Build treatments tailored for non-filers

who are not required to file returns but

may be eligible for tax credits. Develop

analytics to better identify lawful non-filers who

may be eligible for a credit or deduction.

Explore simple tools and contacts to help them

access tax credits for which they are eligible.

4. Expand capacity and resources for our

non-filer and return-delinquency programs.

Increase capacity and resources for non-filer

programs so that we can proactively contact

all appropriate non-filing individuals and entities

identified, thereby providing exceptional

customer service to non-filers who need

assistance in becoming compliant.

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Milestones

FY 2023

Pilot program for new non-filer treatments

launched

FY 2024

Successful pilot treatments scaled

FY 2024

Analytics for detecting non-filers shifted

for use immediately after filing deadline

FY 2025

All appropriate non-filers receive tailored,

proactive outreach before receiving

automated assessments or penalties

Key dependencies

2.6 depends on projects in initiatives:

1.1, 1.6, 1.11, 2.1, 2.3, 4.5, 4.6

Initiatives dependent on projects in 2.6:

1.9

IRS IRA Strategic Operating Plan

Part II: Objectives and Initiatives

Initiative

2.7

Use improved data and analytics to tailor timely collections

contacts

The IRS will provide early, tailored contacts to all taxpayers with past-due balances,

and will only escalate to more intensive treatments when appropriate

Where we are heading

When taxpayers do not file or fully pay their taxes

on time, resolving their tax obligations becomes

increasingly difficult as time progresses. Early

contact gives the IRS an opportunity to assist

these taxpayers in resolving their underlying

problems so that they can avoid additional

liabilities.

We will use more data and better analytics to

reach out to taxpayers earlier, with more options

to address their unpaid balances quickly and

simply. We will shift to a collection approach that

treats all accounts individually, with a customized

approach that reflects the cause of the current tax

debt, considers appropriate collection alternatives

and enables the taxpayer to comply. We will

accelerate attempted resolution by basing the

first compliance contact on the most likely

ultimate resolution of that case.

What success would look like

Success for this initiative would include a higher

percentage of new balance-due cases closed

within one year of assessment, and a higher

number of communication methods used to

contact taxpayers based on their preferred

channels, including text, telephone and email.

Taxpayers would also resolve past-due tax

balances more quickly.

Key projects

1. Hire, onboard and train the workforce

needed to assist taxpayers and address

balance-due accounts more quickly.

Replenish the collection workforce by hiring

specialists and developing the current

workforce’s skills to reach the desired collection

coverage, to address high-priority segments,

and to assist taxpayers in compliance options.

IRS IRA Strategic Operating Plan

Part II: Objectives and Initiatives

Increase staff in the Independent Office

of Appeals to facilitate the resolution of

collection matters, as well as in the Office

of Chief Counsel to support collection and

appeals and to litigate cases when necessary.

2. Develop improved analytics models to better

inform taxpayer contacts. Predict which

accounts are unlikely to self-correct so that

we may prioritize contacts to these accounts

using real-time data. Build models to predict the

ultimate resolution of each balance-due case

to ensure that the case is treated appropriately.

3. Refine collection communications to make

them more efficient and effective. Redesign

current notices and other communications

to make them clearer and to help the taxpayer

understand directions and a seamless way

to resolve the issue.

4. Develop and pilot new collection treatments

based on data and analytics. Develop new

collection treatments by leveraging new

data and IT capabilities, such as digital

communications channels.

Milestones

FY 2024

Analytics models used earlier in the

collection process, so taxpayers receive

tailored communications immediately

after the first notice that balance is due

FY 2025

Analytics models refined to better predict

which taxpayers will self-correct and the

likely resolution of each balance-due

case to better inform taxpayer contacts

FY 2025

New collection treatments piloted and

developed based on data and analytics

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FY 2026

Workforce needed to achieve collection

coverage levels hired, onboarded

and trained

FY 2024-FY 2026

Notices refined to make them more

efficient and effective (first set of

refinements deployed in FY 2024;

improvements from digitalization

and analytics deployed in FY 2026)

Key dependencies

2.7 depends on projects in initiatives:

1.1-1.4, 1.10, 1.12, 2.5, 3.1, 4.5-4.7, 5.1, 5.5

Initiatives dependent on projects in 2.7:

2.5

IRS IRA Strategic Operating Plan

Part II: Objectives and Initiatives

Objective

Focus expanded enforcement on taxpayers with complex

tax filings and high-dollar noncompliance to address

the tax gap

Even with improved taxpayer service, some taxpayers will not comply. The rising breadth and complexity

of tax administration, coupled with the sophisticated ways that some taxpayers attempt to evade tax, have

outpaced our resources and ability to monitor compliance and close the gap between taxes owed and

collected. We will improve our efforts to help ensure that the proper amount of tax is paid and to promote

future compliance. Pursuant to Treasury’s directive, small businesses and households earning $400,000

or less will not see audit rates increase relative to historical levels. We will increase our focus on segments

of taxpayers with complex issues and complex returns where audit rates are minimal today, such as those

related to large partnerships, large corporations, and high-income and high-wealth individuals. Modern

data analysis tools can greatly streamline these efforts, and the technology investments from Objective 4

will enable this work.

Where we are heading

• We will increase compliance coverage in areas with complex issues and complex returns where

we have not had the resources to fully assess risks, such as those relating to complex partnership

structures, large corporations, and high-income and high-wealth individuals.

• We will improve enforcement and risk identification through better use of data analytics, technology,

and centralized operations.

• We will increase the expertise and capacity necessary to examine highly complex returns and issues

more effectively.

Large business filings and examinations can require a variety of expertise

and significant resources

Business structures

can be complex

Complex taxpayer filings

are long and timeconsuming to examine

Many specialists and

resources are needed

to examine these filings

Some returns are thousands

of pages long, requiring

hundreds of staff hours

to effectively review.

Complex returns require

many specialists, including

data scientists, auditors,

counsel, international and

financial products specialists,

economists, and engineers.

Spouse

Dependents

Wholly owned LLC

Related entities can include

hundreds of investors in

multiple tiers.

Visuals are illustrative

IRS IRA Strategic Operating Plan

Part II: Objectives and Initiatives

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Indicators of success

ü Decreased repeat noncompliance rates

ü Decreased enforcement contact with the IRS

for compliant taxpayers

ü Decreased tax gap relative to the gap without

the resources provided by the IRA

ü Appropriate compliance activities for priority

segments that are sufficient to achieve

voluntary compliance

How expanded enforcement will further the energy security and clean energy

provisions of the IRA for consumers, small businesses, communities, and

industries

• We will quickly identify and address noncompliant activity, including fraud, to ensure credits

are properly claimed by eligible taxpayers.

Strategic shifts

From

Enforcement efforts underutilize risk analytics

to identify high-priority segments.

We will use enhanced data and analytics to select

compliance cases based on highest risk

of noncompliance, and to choose enforcement

actions predicted to be most effective.

Enforcement is resource-constrained, with

coverage rates for complex filings and high

dollar noncompliance at historical lows.

We will increase capacity and expertise

for enforcement to better address high-dollar

noncompliance among complex filers.

Initiatives included in this objective

3.1

Employ centralized, analytics-driven,

risk-based methods to aid in the

selection of compliance cases:

The IRS will use improved analytics

to aid in the selection of cases predicted

to be at risk of noncompliance, choosing

enforcement treatments that maximize

opportunities to improve and sustain

taxpayer compliance while ensuring

fairness in selection

3.2

Expand enforcement for large

corporations: The IRS will increase

enforcement activities to help ensure tax

compliance of large corporate taxpayers

IRS IRA Strategic Operating Plan

Part II: Objectives and Initiatives

3.3

3.4

3.5

3.6

3.7

Expand enforcement for large

partnerships: The IRS will increase

enforcement activities to help ensure tax

compliance of large partnerships

Expand enforcement for high-income

and high-wealth individuals: The IRS

will increase enforcement activities to

help ensure tax compliance of highincome and high-wealth individuals

Expand enforcement in areas where

audit coverage has declined to levels

that erode voluntary compliance: The

IRS will increase enforcement activities

in other key areas where audit coverage

has declined while complying with

Treasury’s directive not to increase audit

rates relative to historical levels for small

businesses and households earning

$400,000 per year or less

Pursue appropriate enforcement

for complex, high-risk and emerging

issues: The IRS will enhance detection

of noncompliance and increase

enforcement activities for complex,

high-risk, and novel emerging issues,

including digital assets, listed

transactions and certain international

issues

Promote fairness in enforcement

activities: The IRS will help promote

fairness for all taxpayers by addressing

noncompliance appropriately in a

balanced manner

IRS IRA Strategic Operating Plan

Part II: Objectives and Initiatives

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Initiative

3.1

Employ centralized, analytics-driven, risk-based methods

to aid in the selection of compliance cases

The IRS will use improved analytics to aid in the selection of cases predicted to be at risk

of noncompliance, choosing enforcement treatments that maximize opportunities to improve

and sustain taxpayer compliance while ensuring fairness in selection

Where we are heading

Compliance prioritization and case selection

are currently decentralized across the IRS

organization. Some teams use risk analytics

and workload-selection models, but they do not

work in unison. We will develop a centralized,

integrated approach to assess risk to inform

the selection of cases and appropriate treatments.

A centralized planning function will use risk

analytics to prioritize and assign cases. We

will continuously refine risk analytics, informed

by compliance work and taxpayer outcomes,

tested for disparate impacts, and enabled by

data capabilities. We will select taxpayer

compliance cases centrally to make the most

appropriate compliance contact, with escalation to

a more intensive treatment if needed. To help

ensure optimal workload delivery, we will consider

redesigning the compliance organization to a more

centralized approach to enable dynamic allocation

of the workforce and to most effectively address

high-dollar noncompliance and complex

compliance issues.

What success would look like

Success for this initiative would include centralized

adoption of enhanced risk analytics by a more

agile IRS organization to respond more effectively

to emerging compliance issues with more

appropriate, less burdensome compliance

treatments for taxpayers.

Key projects

1. Establish a centralized function for

compliance planning and strategy. Create a

centralized compliance-planning function to set

strategic compliance priorities and route select

cases for compliance treatments.

IRS IRA Strategic Operating Plan

Part II: Objectives and Initiatives

Develop and enhance tools to enable

centralized routing of taxpayer cases

for compliance treatments.

2. Build a unified compliance organization

that enhances centralized case-planning

and strategy and enables us to refine

business processes. Rather than relying

on historical structures, redesign and unify

the compliance organization to achieve IRA

compliance priorities.

3. Establish a dynamic model for workforce

allocation. Explore ways to make the workforce

more flexible to address changing compliance

priorities.

4. Centralize compliance analytics and develop

a process to regularly model the population

of tax returns. Incorporate all existing models

and analytical tools for detecting

noncompliance into one centralized platform.

Develop a process to apply all analytical

models to the relevant population of tax

returns to holistically detect noncompliance.

Use risk analytics to inform resource allocation

in alignment with enterprise-wide priorities.

5. Develop a process for continually refining

compliance analytics models based

on feedback and new information.

Continually update analytic models as the

IRS receives more data and learns more

about noncompliance and the efficacy of

compliance treatments. Establish a structure

for incorporating feedback and ensuring that

the analytics we use continue to evolve.

6. Develop and implement a plan to improve

the IRS Whistleblower Program. Increase

capacity to use high-value whistleblower

information effectively, rewarding

whistleblowers fairly and as soon as possible,

keeping whistleblowers informed of their claims’

status and the basis for IRS decisions on

claims, and strengthening our collaboration with

stakeholders in the Whistleblower Program.

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Milestones

FY 2024

Enterprise review of current organizational

structure conducted and proposal for

organizational changes developed

FY 2024

Data and research approach implemented

to inform and continuously refine

compliance coverage levels needed

to promote voluntary compliance

FY 2024

Centralized compliance planning and

strategy function established to identify

potential high-risk compliance cases using

existing systems and analytics

FY 2026

Taxpayer compliance cases selected by

centralized compliance planning function

using new analytics systems and refined

risk-based case selection and routing

Key dependencies

3.1 depends on projects in initiatives:

1.3, 3.7, 4.5-4.7, 5.5, 5.7, 5.8

Initiatives dependent on projects in 3.1:

2.2, 2.5, 2.7, 3.2-3.7

IRS IRA Strategic Operating Plan

Part II: Objectives and Initiatives

Initiative

3.2

Expand enforcement for large corporations

The IRS will increase enforcement activities to help ensure tax compliance of large corporate ,

taxpayers ,

Where we are heading

Due to constrained resources, large corporate

enforcement activities have decreased in recent

years, with the audit rate falling from 10.5%

in 2011 to 1.7% in 2019.4 Large corporations

have complicated, voluminous tax filings that

involve a variety of tax issues such as crossborder activities, financial product issues and

transfer-pricing transactions. Ensuring that large

corporations pay the taxes they owe is a complex

endeavor and requires significant resources

and a range of specialists.

Milestones

We will increase audit rates and other compliance

treatments, focusing on the largest corporate

taxpayers where audit rates have been too low.

We will use data and analytics to improve our

understanding of these complex tax filings.

We will pursue noncompliance through a variety

of mechanisms, including audits and non-audit

contacts.

What success would look like

Success for this initiative would include an

increase in audit coverage and other types

of enforcement of large corporate taxpayers

to improve voluntary compliance.

2. Refine approaches for large corporate

enforcement and explore new treatments

using data and analytics. Use advanced

analytics to identify the most appropriate

compliance treatments to address potential

noncompliance given issue-specific levels

of risk. Deploy appropriate treatments to help

taxpayers resolve compliance issues—while

applying sufficient treatments to promote

compliance.

FY 2023

First wave of specialists hired and

onboarded to work toward increasing

compliance coverage rates for large

corporations

FY 2025

Refined approaches and treatments

piloted for large corporate enforcement

Ongoing

Workforce hired and onboarded

to achieve compliance coverage

rates for large corporations, including

specialists and experienced hires

Key projects

Key dependencies

1. Hire, onboard and train the staff needed to

achieve appropriate compliance coverage

rates. Strategically focus on hiring and training

to ensure appropriate resources to address

the variety of skill sets needed. Increase staff

in the Independent Office of Appeals to resolve

any tax controversies arising from enhanced

compliance efforts. Increase staff in the Office

of Chief Counsel to support both compliance

and appeals and to litigate cases when

necessary.

3.2 depends on projects in initiatives:

1.3, 3.1, 3.7, 4.5-4.7, 5.1, 5.4-5.8

IRS IRA Strategic Operating Plan

Part II: Objectives and Initiatives

Initiatives dependent on projects in 3.2:

None

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Initiative

3.3

Expand enforcement for large partnerships

The IRS will increase enforcement activities to help ensure tax compliance of large partnerships ,

Where we are heading

Key projects

The IRS has not had the resources in recent

years to sufficiently address the significant

growth of partnerships. The number of

partnerships increased by 32% in just a decade,

from 3.2 million in tax year 2010 to 4.3 million

in 2020. Partnerships with assets exceeding

$5 million grew even more, by 75%.5 Many of

these partnerships are complex, with many tiers

and sometimes thousands—or even hundreds

of thousands—of partner entities, each of which

can be a legally recognized entity such as an

individual, corporation, foreign entity or another

partnership. Because of their size and complex

structure, partnerships require specialized

capabilities and often significant resources

to audit. In 2019, the audit rate for partnerships

was 0.05%.6

1. Hire, onboard and train the staff needed

to achieve appropriate compliance coverage

rates. Strategically focus on hiring and training

to ensure appropriate resources to address the

variety of skill sets needed. Increase staff in the

Independent Office of Appeals to resolve

tax controversies arising from enhanced

compliance efforts. Increase staff in the Office

of Chief Counsel to support both compliance

and appeals and to litigate cases when

necessary. Hiring and training efforts

will focus on specialized enforcement

for large partnerships.

We will increase compliance coverage for large

partnerships to help ensure that their partners

are paying the taxes they owe. We will improve

our tools and processes for auditing and

enforcement actions for large partnerships.

We will hire specialized compliance employees

and train other employees to help ensure the

compliance of pass-through entities, with

a particular focus on enforcement for large

partnerships. We will use data and analytics

to improve our understanding of these complex

structures. We will pursue noncompliance through

a variety of mechanisms, including audit and

non-audit treatments.

2. Develop approaches and new treatments

for large partnership enforcement by

leveraging data and analytics. Explore

and pilot new compliance treatments for

large partnerships and refine existing tools

and processes for auditing them. Use improved

analytics to identify the most appropriate

treatments to address potential noncompliance,

given the issue-specific level of risk. Deploy

appropriate contacts to help these taxpayers

resolve their compliance issues while also

applying sufficient approaches to promote

compliance.

Milestones

What success would look like

Success for this initiative would include an

increase in audit coverage and other types

of enforcement of large partnership taxpayers

to improve voluntary compliance.

IRS IRA Strategic Operating Plan

Part II: Objectives and Initiatives

FY 2023

First wave of hires dedicated to large

partnerships hired and onboarded

to work toward increasing compliance

coverage rates for large partnerships

FY 2025

Refined approaches and treatments

piloted for large partnership enforcement

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Ongoing

Workforce hired and onboarded

to achieve compliance coverage

rates for large partnerships, including

specialists and experienced hires

Key dependencies

3.3 depends on projects in initiatives:

1.3, 3.1, 3.7, 4.5-4.7, 5.1, 5.4-5.8

Initiatives dependent on projects in 3.3:

None

IRS IRA Strategic Operating Plan

Part II: Objectives and Initiatives

Initiative

3.4

Expand enforcement for high-income and high-wealth individuals

The IRS will increase enforcement activities to help ensure tax compliance of high-income ,

and high-wealth individuals ,

Where we are heading

The IRS has not had sufficient resources

to adequately increase enforcement and close

the tax gap attributable to high-income and highwealth taxpayers. Taxpayers earning $1 million

or more were subject to an audit rate of just 0.7%

in 2019—a sharp decline from 7.2% in 2011.7

We will increase enforcement for high-income

and high-wealth individuals to help ensure they

are paying the taxes they owe. Given the size

and complex nature of these tax filings, this work

often requires specialized approaches, and we will

make these resources available. We will use data

and analytics to improve our understanding

of the tax filings of high-wealth individuals. We

will pursue noncompliance through a variety

of mechanisms, including audits and non-audit

contacts.

2. Refine approaches to high-income and

high-wealth enforcement and use data

and analytics to explore new treatments.

Leverage advanced analytics to identify optimal

interventions to address potential

noncompliance, given issue-specific risks.

Deploy appropriate interventions to help

taxpayers resolve compliance issues, while also

applying sufficient enforcement to promote

compliance.

Milestones

What success would look like

Success for this initiative would include an

increase in audit coverage and other types

of enforcement of high-income and high-wealth

taxpayers to improve voluntary compliance.

Key projects

1. Hire, onboard and train the staff needed

to achieve appropriate compliance coverage

rates. Strategically focus on hiring and training

to ensure appropriate resources to address

the variety of skill sets needed. Focus on hiring

employees with the education and experience

to examine high-income and high-wealth

taxpayers. Increase staff in the Independent

Office of Appeals to resolve tax controversies

arising from enhanced compliance efforts.

Increase staff in the Office of Chief Counsel

to support both compliance and appeals

and to litigate cases when necessary.

IRS IRA Strategic Operating Plan

Part II: Objectives and Initiatives

FY 2023

First wave of specialists hired and

onboarded to increase compliance

coverage rates for high-income and

high-wealth individuals

FY 2025

Refined approaches and treatments

piloted for high-income and high-wealth

enforcement

Ongoing

Workforce hired and onboarded

to achieve compliance coverage rates

for high-income and high-wealth

individuals, including specialists

and experienced hires

Key dependencies

3.4 depends on projects in initiatives:

1.3, 3.1, 3.7, 4.5-4.7, 5.1, 5.4-5.8

Initiatives dependent on projects in 3.4:

None

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Initiative

3.5

Expand enforcement in areas where audit coverage has declined

to levels that erode voluntary compliance

The IRS will increase enforcement activities in other key areas where audit coverage has declined

while complying with Treasury’s directive not to increase audit rates relative to historical levels

for small businesses and households earning $400,000 per year or less

Where we are heading

Maintaining appropriate compliance coverage

and enforcement across all taxpayer segments

helps to ensure that all taxpayers comply with tax

laws. Robust compliance enforcement also sends

a strong message that the IRS will detect and

address noncompliance, which will encourage

voluntary compliance. Recent resource limitations,

however, have reduced audit coverage in some

areas to levels that erode voluntary compliance.

We will increase enforcement in key areas

where audit coverage has declined, including

employment taxes, excise taxes and estate and

gift taxes. We will improve tools and processes

for auditing and other enforcement actions. We

will hire specialized compliance employees and

train employees to raise compliance across all

prioritized areas. We will pursue noncompliance

through a variety of robust mechanisms, including

audits and non-audit contacts.

2. Develop enforcement approaches and

compliance treatments tailored to each

area where enforcement will be expanded.

Explore and pilot new treatments for excise

tax, employment tax, and estate and gift taxes.

Refine the tools and processes for auditing

key areas. Use improved analytics to identify

patterns of noncompliance and to deliver the

most appropriate treatments to address

potential noncompliance.

Milestones

What success would look like

Success for this initiative would include

an increase in enforcement and compliance

coverage across all areas where coverage

has been too low, including excise tax,

employment tax, and estate and gift tax.

Key projects

1. Hire, onboard and train the staff needed to

achieve appropriate compliance coverage

rates using all available treatments tools.

Strategically focus on hiring and training to

ensure appropriate resources to address the

variety of skill sets needed. Increase staff in the

Independent Office of Appeals to resolve tax

controversies arising from enhanced

compliance efforts. Increase staff in the Office

of Chief Counsel to support both compliance

and appeals and to litigate cases when

necessary.

IRS IRA Strategic Operating Plan

Part II: Objectives and Initiatives

FY 2023

First wave of specialists hired and

onboarded to work toward increasing

compliance coverage rates for key

segments

FY 2025

Refined approaches and treatments

piloted for enforcement in key segments

Ongoing

Workforce hired and onboarded

to achieve compliance coverage rates

for key segments, including specialists

and experienced hires

Key dependencies

3.5 depends on projects in initiatives:

1.3, 3.1, 3.7, 4.5-4.7, 5.1, 5.4-5.8

Initiatives dependent on projects in 3.5:

None

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Initiative

3.6

Pursue appropriate enforcement for complex, high-risk

and emerging issues

The IRS will enhance detection of noncompliance and increase enforcement activities for complex,

high-risk and novel emerging issues, including digital assets, listed transactions and certain

international issues

Where we are heading

The IRS tracks many known, high-risk issues

in noncompliance, such as digital asset

transactions, listed transactions and certain

international issues. These issues arise in multiple

taxpayer segments, and data analysis shows

a higher potential for noncompliance. Recent

resource limitations have prevented the IRS

from sufficiently examining these issues,

while new issues that could significantly raise

noncompliance and fraud schemes emerge

each year, especially as new tax laws are enacted.

For issues known to have high, ongoing risks

of noncompliance or complexity, such as digital

assets and listed transactions, we will prioritize

resources to increase enforcement activities,

including criminal investigation as appropriate.

We will improve detection of emerging issues

and gather feedback within the IRS to identify

trends and risks. We will establish processes

for responding to emerging issues more quickly

with appropriate and tailored compliance

treatments. For emerging issues, we will

develop new treatments or adjust existing

treatments accordingly.

What success would look like

Success for this initiative would include increased

enforcement of known, high-risk issues and more

timely detection of and response to emerging

issues.

Key projects

1. Mobilize resources to focus on high-risk

and emerging issues that have not received

appropriate enforcement attention. Increase

enforcement pertaining to digital assets,

IRS IRA Strategic Operating Plan

Part II: Objectives and Initiatives

listed transactions, certain international issues

and any other key issues that emerge.

2. Improve, expedite and scale detection

of emerging issues, including building

stronger feedback processes from all

parts of the IRS. Reinforce and expand the

IRS’s strategic detection of issues and develop

pathways for providing feedback on important

emerging issues.

3. Establish processes to respond more

rapidly to emerging issues and develop

treatments that can be deployed quickly

and integrated into enforcement efforts.

Develop and deploy new digital tools and

analytics capabilities to respond to and enforce

tax laws pertaining to emerging issues. Explore

and pilot enforcement treatments for specific

emerging issues. Refine existing tools and

processes, such as audits, to adapt to a

changing landscape and account for key

emerging issues. Use improved analytics

to identify patterns of noncompliance and

apply the most appropriate treatment

to each taxpayer situation.

4. Hire, onboard and train the staff needed

to achieve appropriate compliance coverage

rates. Identify the optimal mix of employee

skills and strategically focus hiring and training

efforts to build a compliance workforce capable

of detecting and responding to key emerging

issues. Implement rapid, focused hiring

and skills development to cover key issues

for enforcement.

Milestones

FY 2024

Workforce trained and re-skilled with

specialized capabilities to address

complex and emerging issues

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FY 2025

New approaches and treatments piloted

for detection and enforcement of key

emerging issues

Ongoing

Workforce hired and onboarded, including

specialists and experienced hires,

to achieve compliance coverage rates for

complex, high-risk and emerging issues

Key dependencies

3.6 depends on projects in initiatives:

1.3, 3.1, 3.7, 4.5-4.7, 5.1, 5.4-5.8

Initiatives dependent on projects in 3.6:

None

IRS IRA Strategic Operating Plan

Part II: Objectives and Initiatives

Initiative

3.7

Promote fairness in enforcement activities

The IRS will promote fairness for all taxpayers by addressing noncompliance appropriately ,

in a balanced manner

Where we are heading

The IRS has an obligation to administer the law

in a fair manner. This is central to the agency’s

mission and essential to fostering public trust, as

everyone must play by the same set of rules.

Taxpayers must see that the IRS addresses

all types of noncompliance and does not focus

disproportionately on any particular area or

population.

We will use research and data to help us enforce

the tax laws as they apply to all taxpayers

and curtail any potential disparities in tax

administration. We will improve compliance among

taxpayer groups whose activities and finances are

legally complex or where we have historically had

less compliance coverage. We will do so while

ensuring that the additional funds provided

by the IRA are not used to increase the share of

small businesses or households below the

$400,000 threshold that are audited relative to

historical levels.

We will regularly assess whether IRS enforcement

actions, their application and enforcement-related

services are disproportionately burdening or

advantaging specific demographic populations,

geographies or customer categories, and we will

make real-time and regular adjustments to our

approach. This will build on the work already

started by the Department of the Treasury and the

IRS Research, Applied Analytics and Statistics

Division to examine the tax system as part of

OMB’s Equitable Data Working Group.

What success would look like

Success for this initiative would include

enforcement actions that appropriately reflect

risk and level of noncompliance and address

enforcement disparities.

IRS IRA Strategic Operating Plan

Part II: Objectives and Initiatives

This outcome would increase trust in the IRS

and voluntary compliance as taxpayers gain

confidence that the tax system is administered

in a fair manner.

Key projects

1. Develop procedures to regularly evaluate

the fairness of systems, selection tools

and programs, compliance strategies

and treatments. We will conduct research and

partner with others to understand any potential

systemic bias and identify disparities across

dimensions including age, gender, geography,

race and ethnicity.

2. Improve enforcement practices

to help ensure fairness in compliance

and enforcement. We will continually refine

our approaches to compliance and enforcement

to improve fairness in tax administration and

maintain accountability to taxpayers as

informed by our research.

3. Hire, onboard and train staff who enable

enforcement strategies that match risk

and degree of noncompliance. We will ensure

IRS employees have the right skills to address

noncompliance so that the full taxes owed

are paid. We will develop training and tools

for analytical staff to enable them to identify

and address any possible bias in data and

analytics. We will increase staff in business

operations to ensure taxpayers have the

support they need to understand enforcement

actions—including in the Independent Office of

Appeals to resolve tax controversies arising

from enhanced compliance efforts, and in the

Office of Chief Counsel to support both

enforcement and appeals and to litigate cases

when necessary.

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Milestones

FY 2024

Team established to evaluate whether key

enforcement programs and selection tools

are promoting fair treatment, and develop

an initial work plan

FY 2024

Statistical data improved to support equity

analyses developed in partnership with

other federal agencies and incorporating

strong safeguards to protect individual

privacy

Ongoing by FY 2025

Appropriate reforms to enforcement

practices continuously developed

and implemented to improve fairness

and equity

Ongoing

Workforce hired and onboarded to help

ensure fair enforcement, including hires

in the Independent Office of Appeals

and the Office of Chief Counsel

Key dependencies

3.7 depends on projects in initiatives:

3.1, 4.5-4.7, 5.4-5.8

Initiatives dependent on projects in 3.7:

3.1-3.6

IRS IRA Strategic Operating Plan

Part II: Objectives and Initiatives

Objective

Deliver cutting-edge technology, data, and analytics

to operate more effectively

Technology improvements at the IRS must always be driven by what will improve customer service

and enforcement and in a way that secures taxpayer information. The key dependency for many initiatives

in the Plan is the modernization of our core IT infrastructure, which now includes some of the oldest

information systems in the federal government. We currently cannot get the full value of the data we have

because we do not standardize or store it in a single environment. Until the passage of the IRA, the IRS

lacked the resources to bring our technology infrastructure into the current era. In addition, the inability

to plan for stable funding led to a start-and-stop approach that did not allow for sustained progress.

IRA funding will enable us to make dramatic improvements to our IT infrastructure. The multi-year nature

of the funding will allow us to successfully plan and deliver. We will design and deliver modern technology

platforms that center around data and applications, with natively integrated protective and detective

security controls. These platforms are embedded within Objectives 1, 2, 3 and 5, and will be built using

enterprise platforms and services.

Where we are heading

We will retire legacy applications and adopt

modern systems. We will deliver new technology

capabilities faster, at a larger scale and with better

reliability and cybersecurity built in, so taxpayers

can seamlessly access their data and rest assured

that their data is protected and secure. IRS

employees and taxpayers use more than 600

applications today, many of them over 20 years

old. Most applications are custom-built and loosely

integrated, requiring employees to use multiple

systems for similar tasks. We will consolidate

dozens of core applications into secure,

commercial, cloud-based platforms to provide

employees and taxpayers with new services faster

and with less technical knowledge, onboarding

time and operating costs required. As we

modernize, we will streamline software

development by incorporating modular designs

and reusability, including micro-services and

application programming interfaces (APIs). We will

move from a batch- to event-driven processing

model. Historically, the IRS designed its tax return

pipeline using legacy programming languages to

manage stacks of paper arriving at regional

service centers. We will change the underlying

logic and processing to post transactions to a

database—a modern approach that will allow

taxpayers and employees to update accounts,

send payments and resolve enforcement actions,

often via self-service, and to see the changes

IRS IRA Strategic Operating Plan

Part II: Objectives and Initiatives

in near-real time. This will provide taxpayers

with greater transparency into the status of their

returns, refunds, payments, etc., while also

enabling those who choose to leverage online

services to do so, thereby reducing demand

across other service channels for those who

need them.

We will modernize IT Infrastructure. We

will implement leading technology architecture,

software development, infrastructure, cloud,

network and data practices while replacing critical

legacy processing systems. This will automate

and standardize many of the manual processes

we use today and bring the rest of our technology

infrastructure into the current era. Our vision for

infrastructure operations is to work in an “alwayson” mode with redundancy built into missioncritical systems. We will design all applications

and core platforms to have built-in resiliency,

visibility and security to recover seamlessly

in the event of a mistake, outage or disaster—

with minimal impact to taxpayers or employees.

We will improve our ability to detect and address

issues before they interrupt services. As we

automate and standardize the environment across

cloud and vendor environments, we will provision

new secured, monitored and fully configured

servers on demand. This change will allow us to

reliably scale service, such as provisioning

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computing resources during filing season, and

then reclaim that capacity when no longer needed.

The network links our workforce, customers and

partners to IRS applications, data and services.

Network connectivity demands will rise as we

provide employees and taxpayers “any device,

anytime, anywhere” access and move applications

to software-as-a-service and platform-as-a-service

delivery models. With these enhancements,

taxpayers will be able to rely on online self-service

tools when and where they choose. Investments in

resiliency and scalability will negate concerns over

“peak” demand periods, again providing more

flexibility to taxpayers to engage with the IRS.

improve and integrate secure authentication

methods. Cybersecurity and data protection must

keep pace with new threats, technologies and

architectures. We already identify, assess

and respond to security risks, but our efforts must

increase to protect many more cloud vendors and

solutions, taxpayer interaction types and employee

data access capabilities. Similarly, our monitoring

and threat management must grow to ingest more

data from modern cloud services and platforms.

We will shift to technologies that enforce

authentication, authorization, accountability, and

encryption whenever an IRS asset connects to an

IRS information resource.

We will consolidate and improve access

to and use of data with data privacy

and security as a top priority. We will

bring together taxpayer account, case and

operational data in a platform accessible

to appropriate employees and applications, subject

to controls and protections to help ensure security

and privacy. Instead of data locked in siloed

applications, each with potential synchronization

and data integrity issues, the platform will have

authoritative data on a state-of-the-art, secure

platform to enable reporting, self-serve analytics,

customer service, application development and

external sharing where appropriate. We will

manage data across its lifecycle, including use,

archiving and destruction. If required by law or for

legal compliance purposes, we will be able to

intake new data streams using scalable, fast and

resilient cloud tools. Taxpayers will be able to

access their own data more easily when they need

it, and employees will be able to better assist

taxpayers who reach out for help.

We will scale modern data encryption across

dozens of systems to limit exposure of taxpayer

data. We will continue to espouse a continuous,

proactive and adaptive security posture through a

zero-trust model, which will allow us to reduce

fraud and better protect the system from

cyberattacks. Taxpayers can continue

to trust that their information and identities

are protected.

We will ensure continued security and privacy

of taxpayer data. Foundational to taxpayer

service is protecting the data entrusted to the

agency by confirming identities of employees,

taxpayers and tax professionals in every

interaction. We already prevent and block billions

of unauthorized access attempts, scans attacks,

and probes every year. Authentication and data

security challenges will increase as we use more

taxpayer- and employee-facing digital technology

and more accessible and powerful analytics and

data, share more information, and interact more

with taxpayers and tax professionals. We will

We will harness data and analytics to drive

operations and decision-making. Data will

inform every aspect of our operations and

decision-making, enabling taxpayers to get

information faster and allowing us to focus more

enforcement resources on those most likely to owe

large amounts of taxes. Adhering to strict data

protection safeguards, we will leverage the data

platform to use data as appropriate to support

operational needs. Improved data analytics will

better position us to optimize operations for

taxpayers and employees alike. For taxpayers,

secure access to their own data will enhance

voluntary compliance and improve the taxpayer

experience by giving them a fuller picture of their

account and tax obligations. Meanwhile, applying

new analytical approaches to better understand

taxpayer journeys will generate organizational

insights into the barriers and pain points that

frustrate taxpayers. Millions of taxpayers may call

the IRS to ask the same question; analytics will

allow the IRS to determine the root cause and

prevent the taxpayer issue in the first place.

Expanding the use of data and analytics will also

support compliance and enforcement by helping

us to better identify high-dollar noncompliance

IRS IRA Strategic Operating Plan

Part II: Objectives and Initiatives

cases while minimizing audits of compliant

taxpayers. Internally, improved personnel and

performance data will support strategic workforce

planning. For example, the human capital function

will use advanced analytics to provide insights

on internal performance, such as predictive

models of attrition and demand-driven hiring

and analysis of external labor trends, to inform

enterprise decisions and help ensure, for example,

that customer service capacity can meet taxpayer

demands.

We will work differently and improve our

processes to enable the above aspects of our

IT and data transformation strategy. Teams in IT

will work with business partners and the

Transformation and Strategy Office

to formalize decision-making and demand

management processes for technology

investments (and broader resource allocation and

business process change) that include

the right stakeholders and leadership sponsors.

Joint business and IT transformation teams will

agree upon requirements, design, and business

and technology changes to satisfy customer needs

and agency priorities. We will draft multi-year

roadmaps and execute more frequent, less

constrained release schedules instead of start-stop

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