Due to the repeated call from the members of tax community which also includes the National TaxPayer Advocate, finally, IRS has now released its six-year plan to modernize its infrastructure. This plan of modernization includes various proposals for improving the services for tax payers and practitioners while ensuring the security of their sensitive financial data.
The IRS Commissioner said that “Modernized systems are the key component to delivering quality service to taxpayers, providing efficient and robust enforcement activities and keeping taxpayer data secure,” He further added “Our modernization plan includes multiple milestones and levels of accountability to ensure it is implemented efficiently and effectively. The integrity of our nation’s tax system depends on modernizing IRS operations and the supporting technical pieces. We look forward to working with Congress to implement this plan.”
The current plan of modernization by IRS looks very fruitful but one thing is for sure that such modernization won’t be very cheap. According to IRS, their current six-year plan will cost between $2.3 billion to $2.7 billion but it will be a great step in easing the efforts of both taxpayers and tax practitioners. Some parts of the six year plan have already been started in 2019 and till 2024, the IRS will completely modernize its infrastructure.
The six-year plan showed by IRS includes various plans to enhance the tax system and it includes the following things:-
Similarly, IRS has planned its six years modernization process by identifying the following four pillars of modification:-
Enhancing tax payer’s experience
The first pillar of IRS modernization includes enhancing the experience of the tax-payers by widening digital options, enhancing traditional channels and offer seamless and easy service for taxpayers.
Core taxpayer service and enforcement
Although tax experience relies upon multiple things but a major part of it is made up of only three things; integrated case management, account management, and real-time tax processing. This will help the taxpayers and tax practitioners to get an in-depth view of their interaction and history, regardless of the chosen channel.
Modified IRS operations
The third pillar of modification adopted by IRS will include modernizing the operation of IRS through various innovative technologies like cloud, Agile, DevOps, Application programming interfaces, robotic process automation, and next-generation infrastructure. This will help the IRS to minimize cost while diminishing manual effort.
The fourth and the last pillar of modernization include the protection of the sensitive data of the taxpayer by implementing various advanced measures. Through this pillar of modernization, IRS will start using advanced analytics and tools in order to make the tax payment platform 360 degree secure from each and every type of scams and cyber threats.
But you should know that the six-year planned proposed by IRS in order to modernize its operation isn’t the work of IRS alone. It is a mutual work of IRS, outside experts and other stakeholders and partners in the community.
So, with the world moving towards modernization, IRS has also stepped into the game of evolution with its solid and fruitful looking 6 years plan. There is no doubt that this plan will consume a hefty amount of money but the end, it will make the tax platform better for everybody.