The new IRS Strategic Plan for fiscal years 2022–2026 places a strong emphasis on secure digital transformation and protecting vital data while boosting efficiency for both taxpayers and the agency in light of the agency’s observation and mitigation of more than 1.4 billion cyberattacks annually.
Chuck Rettig, IRS Commissioner, stated at the beginning of the strategic plan, “The IRS remains committed to improving service to taxpayers, preserving the integrity of our tax system, empowering our workforce, supporting our partners, and modernizing our systems.”
Working toward these strategic objectives with reliable multi-year funding “will help us better achieve our mission and our long-term vision and deliver on the promise of a new IRS that will take an innovative approach to the future of tax administration to better serve all taxpayers,” the IRS said in a statement.
In the fiscal year 2021, the IRS processed 269 million federal tax returns and forms, and in fiscal years 2020–2021, it distributed 492 million payments for economic relief.
According to the document, there are four areas where the strategic goals for FY 2022-2026 are concentrated: Service: to deliver high-quality, easily-accessible services to improve the taxpayer experience;
Enforcement: to zealously and effectively enforce tax laws to boost voluntary compliance and close the tax gap; People: to foster an inclusive, diverse, and well-equipped workforce and strengthen partnerships with outside partners;
Transformation: to make IRS operations more resilient, agile, and responsive to enhance the taxpayer experience and close the tax gap.
According to the plan, “Our transformation journey includes organizational redesign, modernization initiatives, technological innovation, and integrated data management capabilities.” “… Improved enforcement efforts, better customer service, and better support for our partners and employees can all be achieved by a more effective, secure, and adaptable organization that is informed by data insights.
Since “a rise in cyber threats and ransomware attacks have plagued both government and commercial entities in recent years, ranging from public infrastructure impairments to personal data loss,” the plan emphasizes the difficulty of strengthening cybersecurity and data protection.
According to the plan, the IRS is required to protect against sophisticated cyberattacks and maintain the security of a collection of personal and financial data.
In addition to denial-of-service attacks, intrusion attempts, probes or scans, and other unauthorized connectivity attempts, the IRS monitors and mitigates more than 1.4 billion cyberattacks each year.
Investments in technology and security help the IRS maintain a reputation for providing a top-notch taxpayer experience while protecting taxpayer data, which can aid in meeting adoption targets for digital self-service.
Adapting to changing expectations and technology is a further challenge mentioned. The IRS must act quickly in a situation that is rapidly changing and in which employee and taxpayer expectations, as well as governmental and regulatory priorities, are changing.
The strategic plan continues, “We have a responsibility as a sizable, high-impact service provider to modernize and operate in response to these changes sustainably and economically.
In comparison to current technology and procedures, “taxpayer-facing and internal digital transformation initiatives help the IRS quickly meet these changing expectations.
To successfully adapt, an organization’s culture must emphasize agility to meet new challenges, like the IRS’s expanding role in the administration of taxpayer benefits. The IRS can respond to ongoing, rapid changes in expectations and deliver services more sustainably with consistent multi-year funding.
To provide an exceptional taxpayer experience by enhancing collaboration and maximizing efficiencies, the plan’s first digital transformation objective is to “reorganize our operational structure.”
To improve collaboration between business units, guarantee consistency of service in every interaction, and streamline operations to truly operate as One IRS, the IRS will redesign its organizational structure, according to the plan.
“This new structure and the implementation of the recommendations within the TFA Report to Congress will enable us to better deliver our mission-critical services, improve the experience for taxpayers and employees, and continue to be cost-conscious stewards of taxpayer funds,” the TFA report to Congress states.
The second goal is to “update technology infrastructure and create safe and long-lasting solutions to enhance tax administration.”
The plan states that new, sustainable investments will be made as legacy systems are retired to enhance service and enforcement efforts.
“The IRS acknowledges that the pace of technological change is quick, and we work to adapt quickly to new developments and emerging threats from bad actors.”
This includes quickening cybersecurity modernization efforts “to protect high-value assets from malicious cyber threats and improve identity and access management for trusted users,” enhancing operational agility by “adopting advanced technologies and leveraging common platforms across business units,” and strengthening organizational resilience by upgrading and decommissioning systems as necessary.
The third goal is to “improve access to digital data, increase digitalization to streamline processes, and lessen our environmental impact.”
According to the IRS, “We aim to modernize sustainably by decreasing paper dependence, investing in technologies that support climate-friendly operations, providing taxpayers with digital access, and training staff on digital tools and procedures.”
“These investments are at the core of our Digitalization Strategy and are a component of government-wide initiatives to modernize services and give priority to initiatives to combat the negative effects of climate change.”
The volume of incoming paper should be reduced, internal paper production should be minimized, paper-based information should be converted to digital form and made more accessible, and staff members should be prepared and trained to manage and use digital data more efficiently.
Improving data management and applying analytical capabilities to drive decision-making based on solid evidence is the agency’s ultimate goal in its transformation plan.
According to the agency, “it is crucial to improve the taxpayer experience by prioritizing data accessibility and analytical skill development to enhance how we evaluate compliance.”
“Our data governance strategy encourages the IRS and its partners to integrate data to make data-driven decisions and respond proactively to service and enforcement challenges.”
To achieve this goal, a secure data management strategy must be created. Additionally, operational data must be understood by all members of the service to promote data literacy.
Training and access to analytical tools must also be increased, and third-party data sharing and internal data utilization must be improved to improve operational decision-making.
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The percentage of IT hardware still in use after its useful life has passed and the proportion of high-volume notices that can be viewed digitally by IRS customers will be used by the IRS to gauge its progress and success in achieving these transformation goals, according to the IRS.
“Where organizational synergies and emerging technologies are not developed, where there is no clear benefit to IRS employees and/or the taxpayer experience, or where costs outweigh benefits,” the IRS said in a statement. We are willing to investigate new ideas that enhance existing procedures and produce safe, long-lasting, and resilient solutions.
