IRS Customer Service and Transformation Act of 2022
This bill requires the Internal Revenue Service (IRS) to submit an initial plan to Congress to address how it intends to meet customer service and technology modernization and related objectives. The IRS must submit semiannual updates to the plan, indicate progress made in implementing the plan, and any changes or challenges in implementing the plan.
The bill requires the Government Accountability Office in each calendar year after 2022 and before 2032, to report to specified congressional committees on various matters relating to the IRS, including the progress of the IRS in meeting its objectives and on technology modernization.
The bill sets forth customer service objectives that the IRS must accomplish not later than January 1, 2025. It must make available to the public not later than January 1, 2026, certain electronic forms and filing procedures.
Finally, the National Taxpayer Advocate is authorized to appoint counsel in the Office of the Taxpayer Advocate to report directly to the National Taxpayer Advocate.
[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 5311 Introduced in Senate (IS)]
<DOC>
117th CONGRESS
2d Session
S. 5311
To reform the resources available to the Internal Revenue Service, and
for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
December 20, 2022
Mr. Portman (for himself and Mr. Cardin) introduced the following bill;
which was read twice and referred to the Committee on Foreign Relations
_______________________________________________________________________
A BILL
To reform the resources available to the Internal Revenue Service, and
for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``IRS Customer Service and
Transformation Act of 2022''.
SEC. 2. PURPOSE.
The purpose of this Act is to address processing backlogs with
respect to income tax returns and improve taxpayer services, including
by--
(1) establishing customer service and technology
modernization objectives, allowing for hiring flexibility, and
providing taxpayer support;
(2) modernizing information technology to effectively
upgrade and integrate Internal Revenue Service systems, provide
additional electronic forms and filing, and enhance digital
taxpayer services; and
(3) conducting research on how the Internal Revenue Service
can support taxpayers, increase compliance, and increase the
efficiency of Internal Revenue Service activities through the
use of improved methods and technology.
SEC. 3. IMPROVING CUSTOMER SERVICE AND TECHNOLOGY AT THE INTERNAL
REVENUE SERVICE.
(a) Multi-Year Operational Plan.--
(1) Initial plan.--Not later than 6 months after the date
of the enactment of this Act, the Commissioner of Internal
Revenue shall submit to Congress a plan detailing how the
Commissioner intends to meet customer service and technology
modernization objectives, modernize information technology, and
implement improved methods and technology to support taxpayers
and increase the efficiency of Internal Revenue Service tax
return and correspondence processing, including a specific
timeline and detailed description of which elements of the
Taxpayer First Act Report (as submitted to Congress on January
1, 2021) would be implemented and the amount and source of any
funding required.
(2) Semiannual updates.--Not later than the date that is 18
months after the date of the enactment of this Act, and
semiannually for the next 10 years thereafter, the Commissioner
of Internal Revenue shall submit to Congress a report on the
plan established under paragraph (1), including--
(A) any updates to the plan;
(B) progress made in implementing the plan; and
(C) any changes in circumstances or challenges in
implementing the plan.
(3) Reports by government accountability office.--For each
calendar year after 2022 and before 2032, the Comptroller
General shall report to the Committees on Finance,
Appropriations, and Governmental Affairs of the Senate, and to
the Committees on Ways and Means, Appropriations, and
Government Reform and Oversight of the House of
Representatives, with respect to--
(A) strategic and business plans for the Internal
Revenue Service;
(B) progress of the Internal Revenue Service in
meeting its objectives;
(C) the budget for the Internal Revenue Service and
whether it supports its objectives;
(D) progress of the Internal Revenue Service in
improving taxpayer service and compliance;
(E) progress of the Internal Revenue Service on
technology modernization;
(F) the status and progress of processing backlogs
for taxpayer returns and correspondence; and
(G) the status and progress of plan described in
paragraph (1).
(b) Customer Service and Electronic Filing Requirements.--
(1) Customer service.--
(A) In general.--Not later than January 1, 2025,
the Internal Revenue Service shall, to the extent
possible--
(i) with respect to level-of-service
measures (including all communication channels,
such as phones and secure messaging) for wait-
and-response times (as determined based on data
for the most recently completed 3-year period),
attain not less than 90 percent level-of-
service;
(ii) employ callback service on not less
than 95 percent of telephone calls made by
taxpayers which are not answered within 3
minutes;
(iii) process all taxpayer correspondence
not later than 45 days following the date of
receipt; and
(iv) develop and deploy technology for
secure communication with taxpayers through e-
mail, secure messaging, text messages, video
teleconferencing, or other similar
technologies.
(B) Adjustment.--
(i) In general.--The requirements described
in clauses (i) and (ii) of subparagraph (A) may
be adjusted, as appropriate, for aberrations
affecting call volume, regulatory and
procedural accuracy, professionalism,
timeliness, and customer service satisfaction.
(ii) Report.--In the case of any adjustment
described in clause (i), the Commissioner of
Internal Revenue shall submit a report to the
Committee on Finance of the Senate and the
Committee on Ways and Means of the House of
Representatives with respect to--
(I) the reason that the requirement
described in clause (i) or (ii) of
subparagraph (A) was adjusted; and
(II) the relevant aberration
requiring such adjustment.
(2) Electronic forms and filing.--
(A) Forms.--Not later than January 1, 2026, any
forms used by the Internal Revenue Service which are
made available to the public shall--
(i) bear a code that, when scanned,
converts such form to electronic format (or
which is functionally similar or applies more
up-to-date technology);
(ii) allow for optical character
recognition software (or functionally similar
technology) to transcribe all paper returns
which do not contain the technology described
in clause (i); and
(iii) be permitted to be filed
electronically within 90 days of release,
including--
(I) automated translation of such
forms into other languages; and
(II) establishment of secure
digital signature technology.
(B) Digitization of forms.--Not later than January
1, 2026, Internal Revenue Service Forms 941, 1040,
1040X, 1065, 1120, and any other such form which is
identified by the Secretary of the Treasury or the
Secretary's delegate (including any successor form),
shall contain the most up-to-date technology which
allows for the conversion of paper-filed returns to an
electronic format.
SEC. 4. COUNSEL IN THE OFFICE OF THE TAXPAYER ADVOCATE.
(a) In General.--Section 7803(c)(2)(D)(i) of the Internal Revenue
Code of 1986 is amended--
(1) in subclause (I), by striking ``and'' at the end,
(2) in subclause (II), by striking the period at the end
and inserting ``; and'', and
(3) by adding at the end the following:
``(III) appoint counsel in the
Office of the Taxpayer Advocate to
report directly to the National
Taxpayer Advocate.''.
(b) Purpose.--The purpose of this section is to conform to the
intent of the Internal Revenue Service Restructuring and Reform Act of
1998 (Public Law 105-206), as set forth in the joint explanatory
statement of the committee of conference accompanying Conference Report
105-599, that the National Taxpayer Advocate be able to hire and
consult counsel as appropriate.
<all>
Introduced in Senate
Read twice and referred to the Committee on Foreign Relations.
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