Taxpayer Advocate Service – 10 Most Serious Problems Encountered by Taxpayers

Problem #3: Transparency (Part I)

Although the IRS made great strides during the 2023 filing season, some taxpayers and tax
professionals still struggle to access information from the IRS. They have difficulty finding clear
and timely guidance on which they can rely, determining the status of pending issues,
understanding IRS correspondence and whether they must respond to it, and reaching an IRS
employee with the knowledge to answer their questions and the authority to resolve their
problems. These issues stem from the lack of effective two-way communication between the
IRS

and the taxpayers who have to interact with it, creating the potential for confusion, mistrust, and
frustration with the tax system.

To properly set and manage expectations, taxpayers and tax professionals need clear and detailed
information. While the IRS has communicated certain service improvements and objectives to
the public, agency messaging on some issues has portrayed IRS modernization in ways that omit
relevant context or sufficient detail, causing confusion and false expectations. As a result, there
is a risk that overly optimistic messaging may erode trust over time if the taxpayer experience
differs from what the IRS claims to have accomplished. Also, without more specific and measurable
data on the use of funds and future IRS plans, Congress and stakeholders will not have enough
information to provide informed oversight and help guide the IRS in its decision-making.

For more information on this problem, please see the Taxpayers Advocacy Web page
(www.TaxpayerAdvocate.irs.gov)
Next week Tuesday Tax Tip will continue to discuss Problem 3
(www.TaxpayerAdvocate.irs.gov) (TTT 102924)