IRS Announces New Initiatives and Improvements Post Inflation Reduction Act

**IRS Announces New Initiatives and Improvements Post Inflation Reduction Act**

The Internal Revenue Service (IRS) has recently unveiled several new initiatives and improvements, following a successful 2023 filing season bolstered by the Inflation Reduction Act (IRA) investments. These steps are aimed at enhancing enforcement against non-compliance by high-income individuals, large corporations, and complex partnerships, while also improving customer service and modernizing technology.

**Key Developments:**

1. **Enforcement Enhancements:**
– **Large Corporations and High-Income Individuals:** The IRS is intensifying its efforts to ensure that these groups pay their fair share of taxes. This includes a focus on U.S. subsidiaries of foreign companies, large corporate audits using data analytics, and crackdowns on abuse of repealed corporate tax breaks.
– **High-Income Tax Collection:** Special attention is being given to high-income, high-wealth individuals with significant tax debts, leading to substantial recoveries in tax revenue.

2. **Improving Taxpayer Service:**
– The IRS is expanding in-person services, particularly in underserved and rural areas, by opening new Taxpayer Assistance Centers and conducting Community Assistance Visits.
– Online services are being enhanced, including the ability for taxpayers to respond to notices online and submit mobile-friendly forms.

3. **Modernizing Technology:**
– **Business Tax Account:** A new online platform for businesses to manage their tax affairs.
– **Digitalization Efforts:** Significant progress in scanning and e-filing paper returns to improve accuracy and efficiency.

4. **Online Platform Enhancements:**
– **Individual Account:** Enhanced capabilities, such as validating and saving multiple bank accounts.
– **Tax Professional Account:** New features to help practitioners manage client authorizations and access tax information.

The IRS’s actions, funded by the IRA, are a significant move towards modernizing its systems, enhancing taxpayer services, and ensuring tax compliance among wealthy individuals and large corporations. These initiatives represent the agency’s commitment to adapting to the modern tax landscape and providing better service to taxpayers.

For more information, visit the IRS website.

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