Status: Open
Expected Completion Date: TBD

Quarterly Update:
1st Quarter: During the first quarter, TAS participated on teams addressing the proposed initiatives in the Strategic Operating Plan. Initiative teams are in various stages of development ranging from early planning and coordination efforts to pilot program development. TAS has laid groundwork for these efforts and has led two Human Capital Transformation teams which examined private and public sectors to see how learning solutions were being implemented and used to train and support their respective workforce’s, then worked with the IRS to determine the viability of the learning solutions for the Service. TAS is participating in planning the first-ever text messaging pilots for taxpayers, tax professionals and other stakeholders and is working across the IRS to evaluate cases where text messaging may enhance existing communication efforts. Finally, TAS has communicated this quarter’s announcement of a Direct File pilot program for taxpayers living in eligible states.

2nd Quarter: During the second quarter, TAS identified best practices and key challenges associated with implementing the standalone Walk in Your Shoes and Creating Connections in a Hybrid Workforce Programs. Also, TAS led an internal assessment of available technological tools presently being utilized by the IRS that potentially could be leveraged to automate each of these programs and completed Veteran’s Administration scammers outreach. Further, TAS provided resources to stand up the Customer Support Team within the Direct File initiative including finding innovative ways to create secure messaging live chat and virtual assistant.

During the third quarter, we plan to develop a Servicewide Scams and Schemes Strategy and continue to lead two Human Capital Transformation teams to identify best practices, benefits, risks, recommendations and next steps for immersive learning, coaching and mentoring. Further, TAS will continue to partner with the Human Capital Office to achieve the FY 2024 milestones, including launching the IRS University and implementing the Leadership Competency Framework across the IRS.

3rd Quarter: During the third quarter, TAS participated in meetings regarding Standard Operating Procedures (SOP). Through the end of the third quarter, the IRS spent about 40 percent of its Inflation Reduction Act (IRA) funding for Taxpayer Services including proposals for centralized scanning operations to cover new and historical document preservation. These are being finalized and sent to senior leadership for review.

Also during the quarter, the Deputy National Taxpayer Advocate’s (DNTA) office completed a proposal regarding the future of Taxpayer Bill of Rights (TBOR) in a digitalized environment. Lastly, TAS employees partnered with IRS Engagement and Retention Office and Servicewide Mental Health and Wellness Team to explore current engagement initiatives.

4th Quarter: During the fourth quarter, TAS continued to participate in the Standard Operating Procedure meetings and held discussions with various Business Operating Divisions about initiatives to increase taxpayers’ knowledge of the tax system and IRS procedures. Additionally, we monitored initiatives being promoted in the use of AI and Chatbots within the IRS to ensure that the use of these systems does not come at the expense of taxpayers. Internal progress has been reported by the Transformation and Strategy Office. TAS will continue working this objective in Fiscal Year 2025.

Status: Open
Expected Completion Date: TBD

Quarterly Update:
1st Quarter: TAS anticipates beginning work on this objective in February 2024.

2nd Quarter: During the second quarter, TAS conducted research regarding the possibility of eliminating arbitration clauses and waivers contained in the agreements signed during the use of e-File software. Also, we participated in the testing of e-filing software to ensure taxpayer information is protected and to determine what consent taxpayers sign when using these software programs.

During the third quarter, additional legislative recommendation related to eliminating arbitration clauses will be explored.

3rd Quarter: During the third quarter, TAS has continued evaluating how the IRS is protecting the taxpayer’s right to confidentiality and preventing unlawful uses and disclosures of their tax return information. We continue to advocate to ensure waivers follow IRS rules and regulations; are clear, concise, and written in plain language; and provide taxpayers an avenue by which they can hold parties accountable if their return information is disclosed to a third party without their consent. We are participating in the testing of e-filing software and ensuring the taxpayers’ information is protected. Also we researched the possibility of eliminating arbitration clauses and waivers contained n the agreements signed during taxpayers’ use of e-File software. We will continue to explore if legislative recommendations are necessary to protect the taxpayers’ rights.

4th Quarter: During the fourth quarter, TAS continued to participate in the Standard Operating Procedure meetings and held discussions with various Business Operating Divisions about initiatives to increase taxpayers’ knowledge of the tax system and IRS procedures. Additionally, TAS monitored initiatives being promoted in the use of AI and Chatbots within the IRS to ensure that the use of these systems does not come at the expense of taxpayers. Internal progress has been reported by the Transformation and Strategy Office. Further, TAS conducted research on the possibility of eliminating arbitration clauses and waivers contained in the agreements signed during the use of e-File software. Additional legislative recommendations will continue to be explored by TAS. Also, we are participating in testing of e-filing software to determine what consent taxpayers sign when using the software programs. TAS will continue working this objective in Fiscal Year 2025.

Status: Closed
Completion Date: 06/31/2024

Quarterly Update:
1st Quarter: During the first quarter, TAS continued proposing legislative and administrative changes to reduce taxpayer compliance burdens by making the process of preparing and filing tax returns less complicated. We developed a Most Serious Problem (MSP #7- Online Account Access for Taxpayers and Tax Professionals) for inclusion in the Fiscal Year 2023 Annual Report to Congress and recommended the IRS improve the customer experience by increasing online accounts functionality with the ability to “view and import Forms W-2 and 1099 into their tax return software.” Also, TAS completed the 2024 Purple Book, which presents a concise summary of 66 legislative recommendations the National Taxpayer Advocate believes will strengthen taxpayer rights and improve tax administration, including through simplification of the Internal Revenue Code. Further, the National Taxpayer Advocate proposed four legislative recommendations to increase taxpayer compliance and reduce burden.

Lastly, TAS monitored the guidance and information provided by the IRS of the Forms 1099-K information. TAS recommended an Internal Revenue Manual update and change to the Form 1040, Schedule D instructions to include information on how to report a personal loss reported on a form 1099-K. This will aid examiners when verifying Form 1099-K income and help avoid unnecessary taxpayer burden. The IRS accepted both recommendations and implemented the changes.

2nd Quarter: Continue to propose legislative and administrative changes to reduce taxpayer compliance burdens by making the process of preparing and filing tax returns less complicated

3rd Quarter:

During the third quarter, TAS and the NTA developed and published an objective in the FY 2025 Objectives Report to Congress (TAS will work with the IRS to incorporate the digital-first public experience best practices for online accounts available to individuals, businesses, and tax professionals). Also, during the quarter, IRS announced a delay in Form 1099-K’s reporting threshold for third-party platform payments for the 2023 tax year and plans for a threshold of $5,000 for tax year 2024 to phase-in for implementation. The IRS hopes the legislation will be enacted to increase the threshold during this period and TAS will continue to monitor the information provided to the public.

All actions related to this objective are completed. This objective is closed.

Status: Open
Expected Completion Date: TBD

Quarterly Update:
1st Quarter: TAS will meet with IRS in the second quarter to discuss and formulate a plan to implement systemic First-Time Abatement in conjunction with re-characterized reasonable cause relief. Also, TAS met with the Office of Servicewide Penalties during the first quarter and will continue to advocate for reasonable cause relief.

2nd Quarter: During the second quarter, TAS continued to advocate with IRS for systemic implementation of first-time administrative abatement of penalties. Also, we met with the Office of Servicewide Penalties (OSP) in March 2024 and will continue to advocate for reasonable cause relief.

3rd Quarter: During the third quarter, TAS continued to advocated for taxpayers for the implementation of a first time administrative abatement of penalties. We met with the Office of Servicewide Penalties during June, 2024 and will continue to encourage IRS to implement reasonable cause relief.

4th Quarter: During the fourth quarter, the IRS agreed to implement first-time abatement of penalties while providing taxpayers the ability to change first-time abatement to a reasonable cause defense when reasonable cause criteria are met. The IRS is actively working to program their information technology systems to systematically apply first-time abatement to all eligible taxpayers by January 1, 2026. This objective is closed.

Status: Open
Expected Completion Date: TBD

Quarterly Update:
1st Quarter: During the first quarter, TAS advocated to end systemic assessment of international information return penalties and to develop a First-Time Abatement (FTA) waiver specific to these penalties. We met with the Office of Servicewide Penalties and continues to advocate for FTA waiver for International Information Return penalties. Also, we included “International” as one of the top 10 Most Serious Problems facing taxpayers. Further, we recommended IRS stop automatic assessment and collection of Chapter 61 International Information Return penalties prior to considering the taxpayer’s specific facts and circumstances. Also during the first quarter, we continued monitoring the effect of the United States Tax Court decision of Farhy v. Commissioner, 160 T.C. Number 6.

2nd Quarter: During the second quarter, TAS continued monitoring the effect of the U.S. Tax Court decision of Farhy v. Commissioner as IRS filed notice of its intention to appeal the Tax Court’s ruling. Counsel advised IRS to continue as normal with assessing the Form 5471 penalties, Information Return of U.S. Persons With Respect to Certain Foreign Corporations. Also, we continued to advocate with the Office of Servicewide Penalties (OSP) for the First-Time Abatement (FTA) waiver for International Information Return (IIR) penalties and noted the National Taxpayer Advocate included in the 2023 Annual Report to Congress, recommendations that the IRS stop automatic assessment and collection of Chapter 61 IIR penalties prior to considering the taxpayer’s specific facts and circumstances, including providing the taxpayer their appeal rights. Lastly, TAS met with the OSP in March 2024 to advocate for a civil penalty-free version of the Delinquent International Information Return Submission Procedures.

3rd Quarter: During the third quarter, TAS continued to advocate to end systemic assessment of international information return penalties and to develop a First-Time Abatement waiver specific to these penalties. In June, the Supreme Court ruled in favor of the Internal Revenue Service (IRS) in Farhy v. Commissioner, 160 T.C. No. 6. We will monitor and determine if any legislative actions will be taken due to the ruling and we will propose administrative reviews in lieu of systemic assessment of International Information Return Penalties.

Also, in June, TAS met with the Office of Servicewide Penalties to advocate for both the First-Time Abatement (FTA) waiver for International Information Return (IIR) penalties and for a civil penalty-free version of the Delinquent International Information Return.

4th Quarter: During the fourth quarter, the cross-Business Operating Division (BOD) team, including TAS, shared a final presentation deck this quarter that included next steps for the group including building upon the enterprise model for authenticated chat. Taxpayer Digital Communication (TDC) recommended transitioning its role from project facilitation to product management support. TDC will partner with Contact Center Support Division and BODs to establish a regular process of evaluating active and planned use cases for consistency with the enterprise model. In addition, TDC will facilitate an enterprise-perspective forum for de-conflicting or optimizing authenticated chat business requirements from use cases across BODs.

Also, we continued to monitor and provide feedback to the IRS on continued improvements including a recommendation regarding Spanish-language usage of Direct File and the data that showed usage was not commensurate with the census population. TAS asked for, and confirmed implementation of, a more visible Spanish language sign-in for the Direct File and Online Account programs during their expansion. TAS will continue working on this objective in Fiscal Year 2025 and we will continue to monitor recommended changes.

Status: Open
Expected Completion Date: TBD

Quarterly Update:
1st Quarter: During the first quarter, TAS identified the Free-File program owner and arranged an introductory meeting to get behind the numbers and brainstorm potential options for increased taxpayer use.  TAS learned the Free-File upper limit for Adjusted Gross Income is actually revised annually to ensure 70 percent of the individual taxpayers can qualify for the service.  However, the actual number of Free File returns through December 15, 2023, was down 11 percent.  The number of Free File returns (2,852 million) processed in Fiscal Year 2023 is only 1.7 percent of the overall Individual Master File figure for returns filed (161,869 million)—far below the 70 percent of taxpayers who could use the free option.  The program’s Research function reviews data to see where people migrate each year when choosing a filing option (E-file, Free File, Direct File, paper, etc.)  TAS will begin communications with the Direct File program owners in the second quarter.

2nd Quarter: During the second quarter, TAS created a project to monitor IRS actions to combat bad actor’s Artificial Intelligence techniques directed against IRS authentication. Additionally, we reviewed congressional concerns surrounding legal use of Artificial Intelligence to detect tax fraud that actively monitors millions of Americans’ private transactions, bank accounts, and related financial information without any legal process.

Also, TAS collaborated with an IRS Online Services team to develop recommendations for “Authenticated Chat” whose objective is to ensure a standard process that can also encompass existing non-authenticated chatbots or voicebots. We plan to recommend all approved recommendations serve as another option for taxpayers, along with e-File and the Direct File Pilot. Further, we assisted in spreading the word and encouraging the use of the electronic filing option through a National Taxpayer Advocate blog titled, “Multiple Free Filing Options Available for Taxpayers in 2024.” Lastly, we provided recommendations to enhance the IRS’s primary website regarding the following initiatives: Direct File, Free-File, Free tax preparation, and face-to-face help offerings on Saturdays at Taxpayer Assistance Center offices.

3rd Quarter: During the third quarter, TAS continued to collaborate with the IRS offices of E-file Services and Online Services to identify and implement strategies for increasing e-file rates for individual and business taxpayers. TAS will negotiate with Free File Alliance and obtain Executive approvals for any additional content or programming changes. Due to the timing of when previously requested changes went into effect, and the programming changes involved, we agreed the software companies would at a minimum validate either the cell phone or email used to register for Multi-Factor Authentication. Further, following a successful filing season pilot, IRS announced it will make Direct File a permanent option for filing federal tax returns starting in the 2025 tax season. TAS will work with IRS to expand Direct File to make more taxpayers eligible by examining options to broaden Direct File’s availability across the nation.

4th Quarter: During the fourth quarter, TAS attended the quarterly TAS Appeals Advisory Board meeting and mentioned the benefits of providing written Alternative Dispute Resolution denials would be similar to sharing the Appeals Case Memorandums with taxpayers. The issue was addressed again in a technical meeting with Appeals representative and IRS Appeals reiterated they remain aware of TAS’s concerns and are still considering the issue. This is an ongoing issue and TAS has addressed with the IRS Appeals Technical group. TAS will continue working this objective in Fiscal Year 2025.

Status: Open
Expected Completion Date: TBD

Quarterly Update:
1st Quarter: TAS held the TAS/Appeals Advisory Board meeting with Appeals on August 1, 2023. TAS offered to review the Appeals Internal Revenue Manuals (IRMs) and training materials to make recommendations for improving Appeals’ independence. The Operating Division was appreciative of the offer. During the first quarter of Fiscal Year 2024, TAS continues to look for ways to improve Appeals’ independence.

2nd Quarter: During the second quarter, TAS attended the TAS Appeals Advisory Board meeting. We advocated for Alternative Dispute Resolution (ADR) denials to provide specific explanation of decisions in writing and discussed the benefits of providing written ADR denials which would be similar to sharing the Appeals Case Memorandums with taxpayers to which Appeals agreed. Also, during the meeting, Appeals agreed that publicly sharing Alternative Dispute Resolution (ADR) data results, successful resolutions, and cycle-time on the IRS.gov website is something they would support and will consider implementing as a pilot recommendation. Appeals also mentioned they track cycle-time workstream and this can also be considered for publication. Separately, TAS discussed our access to the Electronic Case Receipt (ECR) system and Appeals Centralized Database System (ACDS) and noted access would enhance service to TAS taxpayers and reduce unnecessary delays.

3rd Quarter: During the third quarter, TAS continued to advocate for improvements and increased independence within the Independent Office of Appeals. We continue to collaborate with Appeals and endorse the benefits of providing written Alternative Dispute Resolution (ADR) denials as it would be similar to sharing the Appeals Case Memorandums (ACM) with taxpayers. Appeals reiterated they remain aware of TAS’s concerns and are still considering the issue. Also, Appeals agreed that publicly sharing Alternative Dispute Resolution (ADR) data results, successful resolutions, cycle time, etc., on IRS.gov website is something they would support and will consider implementing as a pilot recommendation. Appeals will provide a report to TAS for review to determine what information is currently available and being tracked.

Further, TAS offered to review Internal Revenue Manual (IRM) and training materials and collaborate in implementation of ADR pilots. The ADR Director stated he has reached out to the Small Business-Self Employed (SBSE) ADR representative to discuss if there were any policy issues that would prevent them from accepting certain cases such as Employee Retention Credit (ERC) from Fast Track Settlement (FTS). Lastly, TAS identified a need to access the Electronic Case Receipt (ECR) system and Appeals Centralized Database System (ACDS) case history system. Appeals will consider the issue and we followed up on request for access in subsequent meetings; however, Appeals reiterated ACDS access is under consideration but unsure about ECR access.

Status: Closed
Completion Date: 06/30/2024

Quarterly Update:
1st Quarter: During the first quarter, TAS identified compliance barriers for overseas taxpayers and made administrative recommendations to minimize the burdens imposed on this population. The National Taxpayer Advocate (NTA) included in the 2023 Annual Report to Congress “Compliance Challenges for Taxpayers Abroad” as one of the top 10 Most Serious Problems facing taxpayers. Further, the NTA recommended the IRS translate the most common international tax forms and instructions, starting with Publication 54, into multiple languages other than English and provide greater accessibility to online accounts for taxpayers abroad who cannot authenticate through the current credential service provider. Also, during the composition the 2023 Annual Report to Congress, we met with representatives and stakeholders for international taxpayers to better understand the challenges they faced in complying with their U.S. tax obligations and will continue to meet with them throughout Fiscal Year 2024.

2nd Quarter: During the second quarter, the National Taxpayer Advocate included in her 2023 Annual Report to Congress “Compliance Challenges for Taxpayers Abroad” as one of the top 10 Most Serious Problems (MSP) facing taxpayers. It noted that TAS reviewed procedures and correspondence products for Automated Under Reporter (AUR) and correspondence exam identifying circumstances where international taxpayers need additional time to respond. We also recommended that IRS allow taxpayers located outside the United States an additional 60 days to respond to all IRS correspondence that requires a response or other action from the taxpayer. Separately, TAS met with representatives and stakeholders of international taxpayers to better understand the challenges they faced in complying with their U.S. tax obligations.

3rd Quarter: All actions on this objective are complete. This objective is closed.

Status: Closed
Completion Date: 06/30/2024

Quarterly Update:
1st Quarter: During the first quarter, TAS and the National Taxpayer Advocate developed a study report, entitled, “Study of the Two-Year Bans on the Earned Income Tax Credit, Additional Child Tax Credit, and American Opportunity Tax Credit”, which addressed this objective.

2nd Quarter: On January 31, 2024, the National Taxpayer Advocate published a study report, entitled, “Study of the Two-Year Bans on the Earned Income Tax Credit, Additional Child Tax Credit, and American Opportunity Tax Credit”, which addressed this objective.

We continue to report findings through testimonies and blogs regularly.

3rd Quarter: All actions on this objective are complete. This objective is closed.

Status: Open
Expected Completion Date: TBD

Quarterly Update:
1st Quarter: During the first quarter, TAS actively worked on these activities by continuing to compile data and develop new analyses and drafting a report.

2nd Quarter: During the second quarter, the analysis and report were completed and is currently under review by National Taxpayer Advocate prior to its release.

3rd Quarter: The National Taxpayer Advocate is reviewing the preliminary findings.

4th Quarter: The National Taxpayer Advocate is continuing to review the preliminary findings. TAS will continue working this objective in Fiscal Year 2025.

Status: Closed
Completion Date: 06/30/2024

Quarterly Update:
1st Quarter: During the first quarter, TAS actively worked on these activities by monitoring interviews conducted by our contractors.

2nd Quarter: During the second quarter, TAS actively worked with vendors to complete focus group questionnaires on the non-response of audit notices.

3rd Quarter: The focus group report on the high non-response rates to audit correspondence notices by taxpayers has been completed and shared with the IRS. This objective is closed.

Status: Closed
Expected Completion Date: 09/30/2024

Quarterly Update:
1st Quarter: During the first quarter, TAS continued to work with Appeals to review the Notice Computer Paragraph (CP) 15, Civil Penalty Notice, and Notice CP215, Civil Penalty Assessment. Appeals committed to assisting with this issue by assigning an employee to review the paragraph information for each notice to determine which paragraphs or penalties in the Internal Revenue Code are considered a prior opportunity. The owners of the CP15 and CP215 are also considering additional language that can be added when it is their only opportunity to dispute the liability.

Further, the National Taxpayer Advocate continued to advocate for the IRS to allow taxpayers whose Installment Agreement (IA) payment is less than the user fee to pay the user fee over the life of the IA rather than with the initial payment. This issue impacts nearly 15 percent of all installment agreements and talks will continue at the executive level in the second quarter.

2nd Quarter: During the second quarter, TAS worked with Appeals and IRS Operational Support to review the Notice Computer Paragraph (CP) 15, Civil Penalty Notice and Notice CP215, Civil Penalty Assessment, to determine which paragraphs or penalties in the Internal Revenue Code are considered a prior opportunity.  Once determined, the owners of the two notices committed to adding language to inform taxpayers when it is their only opportunity to dispute the liability.

Also, the National Taxpayer Advocate advocated for the IRS to allow taxpayers whose Installment Agreement payment is less than the user fee to be treated equitably by allowing the fee to be taken from their agreed upon payments rather than required with the initial payment.

3rd Quarter: TAS continues to work with IRS Appeals and IRS Operational Support to review Notice CP15 (Civil Penalty Notice) and Notice CP215 (Civil Penalty Assessment) to determine which paragraphs and/or penalties in the Internal Revenue Code are considered a prior opportunity.  Once determined, the owners of the CP15 and CP215 have committed to adding language to inform taxpayers when it is their only opportunity to dispute the liability. Also, IRS has declined to implement the recommendation to allow use of the taxpayer’s current circumstances when determining the applicable Installment Agreement (IA) user fee due to the Bipartisan Budget Act of 2018. The Act specifies that the adjusted gross income of the most recent, last filed return is the deciding factor. The IRS does not agree to allow the IA user fee to be taken from the monthly payment through the IDRS “sweep” when the IA fee is more than the agreed upon monthly payment because the issue does not impact the majority of taxpayers.

4th Quarter: All actions around this objective have been completed and this objective is now closed.

Status: Closed
Completion Date: 10/01/2023

Quarterly Update:
1st Quarter: All actions in this objective were complete during Fiscal Year (FY) 2023 and the first quarter of FY 2024. This objective is closed.

Status: Closed
Completion Date: 10/01/2023

Quarterly Update:
1st Quarter: All actions in this objective were complete during Fiscal Year (FY) 2023 and the first quarter of FY 2024. This objective is closed.

Status: Open
Expected Completion Date: TBD

Quarterly Update:
1st Quarter: TAS continued identifying case process efficiencies and requesting expansion of our delegated authorities. Also, we are partnering with Enterprise Case Management to modernize processes by implementing two “challenge weeks” with Account Management System (AMS) where intakes are solely dedicated to AMS intake to help ensure inquiries are processed timely. During the first quarter, we started a Lean Six Sigma process to identify process improvements to reduce the number of days between case receipt and case assignment to a Case Advocate. This allows us to explore new ways to address our AMS inventory and make certain taxpayer cases are loaded on to the Taxpayer Advocate Management Information System (TAMIS) quickly.

Further, our Technical Analysis and Guidance function worked with IRS to discuss possible expansion of delegations of authority and determined the lack of integration between the various systems used by these functions was a significant barrier to the proposed expansion of TAS delegated authorities. Lastly, our Business Assessment function received executive approval and stood up a new program for risk management, made certain TAS executives understood the new process, and worked on developing training for additional levels of TAS leadership. We will continue developing our risk program during the second quarter.

2nd Quarter: During the second quarter, TAS continued identifying case process efficiencies including testing a new Integrated Automation Technologies Collection Statute Expiration Date calculator tool, holding weekly meetings for Account Management Systems (AMS) focused work, working with IRS’s Chief Counsel on the draft of this Servicewide Delegation Order, and developing and delivering two targeted training guides, Taxpayer Advocate Service Risk Management and Risk Acceptance Form and Tool (RAFT) Guidance and Understanding a Risk Register, to the TAS Change Management Team Leads and TAS Leaders.

3rd Quarter: TAS continues identifying case process efficiencies, including requesting expansion of our delegated authorities and partnering with Enterprise Case Management (ECM) to modernize processes. During the third quarter, internal testing of the new Integrated Automation Technologies (IAT) Collection Statute Expiration Date (CSED) Calculator tool continued as test findings are remediated. Due to the complexity of the CSED calculation, internal testing and programming updates are expected to continue through the fourth quarter to ensure the tool’s integrity. Also, TAS’ Centralized Case Intake (CCI) continues to hold a regular weekly all-hands on deck day for Account Management System focused work.

4th Quarter: During the fourth quarter, the Integrated Automation Technologies Collection Statute Expiration Date Calculator project team continued internal testing and revising programming to address defects in the tool. Pending change request approvals, pilot testing is currently scheduled for the second quarter of Fiscal Year 2025. Also, TAS continues to hold a regular weekly all-hands on deck day for AMS focused work. TAS will continue to work on this objective in Fiscal Year 2025.