THE INFLATION REDUCTION ACT STRATEGIC OPERATING PLAN
Learn how it impacts taxpayers and professionals.
What is the Inflation Reduction Act Strategic Operating Plan?
The Inflation Reduction Act Strategic Operating Plan is a road map orchestrated by the Internal Revenue Service (IRS) that dictates the deployment of $80 billion allocated over a decade through the Inflation Reduction Act of 2022. This spans the fiscal years from 2023 to 2031. The plan was formulated to revamp tax administration and services, aiming to enhance the IRS's service delivery and upgrade its technological capabilities.
Why was this Act introduced?
Introduced in August 2022, this enactment marked a pivotal moment for the IRS. The core objective is to transform the taxpayer experience, equip the IRS with modern tools, and offer extensive training to its personnel for effective tax law enforcement.
What are the expected outcomes of this strategic plan?
The essence of this plan is to boost federal revenue by over $180 billion in the coming ten years. With its comprehensive road map of specific initiatives, projects, and objectives, it promises to deliver transformational change for taxpayers. The IRS, under this blueprint, aims to elevate customer service, target high-dollar noncompliance to minimize deficits, and overall, revolutionize the taxpayer experience.
Can you detail the unveiling of this Strategic Operating Plan?
Certainly! On April 6, 2023, the IRS presented its Strategic Operating Plan, a 150-page document showcasing a layout of the planned expenditure of the allocated funds. It covered 42 specific initiatives, which addressed long-term goals set until 2028. The discourse of this plan emphasized five primary objectives, 190 projects, and a significant focus on operations support, which included areas like enforcement, business system modernization, taxpayer services, and even a study on a potential free-file system.
What signifies the importance of this strategic plan?
The Inflation Reduction Act Strategic Operating Plan marks a significant stride towards transforming the IRS's operations. With its focus on improving the technological infrastructure, enhancing the workforce's skills, and boosting the overall taxpayer experience, this plan is poised to create a ripple effect in tax compliance, revenue collection, and the broader economic landscape. It symbolizes a monumental step towards fostering a more compliant and service-centric tax administration framework.
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