WASHINGTON — The IRS has processed tens of millions of tax returns faster this year compared with past years while getting through to customer service on the phone is slowly improving, according to a report to Congress released Wednesday.
“Overall, the difference between the 2022 filing season and the 2023 filing season was like night and day,” Collins said. “It marks a return to pre-pandemic levels.” signed into law by President Joe Biden last year, the IRS received $80 billion for tax collection efforts. Agency leaders started using that money immediately to add employees to the IRS workforce, which had dwindled to 1970s levels through retirements, attrition and low pay that has not caught up with inflation.
Collins’ report said the IRS has tried to make do with the workers it has to achieve the Treasury Department’s goals for customer service, and that has led to other problems. For instance, now it takes an average of 15 months for the number of identity theft victim assistance cases to be closed. There are other nontax issues caused by identity theft that may take even longer to resolve, the report said. “The pandemic undoubtedly played a big role in delays, but policy decisions have also contributed to the problem,” it said. released details on how it planned to use its influx of money for improved operations, pledging to invest in new technology, hire more customer service representatives and expand its ability to audit high-wealth taxpayers.