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The IRS released its $80 billion funding plan. Here’s what it means for taxpayers



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IRS Commissioner Daniel Werfel testifies before a Senate Finance Committee hearing on Feb. 15, 2023.Kevin Lamarque | ReutersThe IRS on Thursday released a plan for the nearly $80 billion in agency funding enacted through the Inflation Reduction Act in August — including expected boosts for customer service, technology and enforcement.”Now that we have long-term funding, the IRS has an opportunity to transform our operations and provide the service that people deserve,” IRS Commissioner Danny Werfel told reporters on a press call.Aligned with priorities outlined by Treasury Secretary Janet Yellen in August, the plan aims to improve several areas of taxpayer service, including a five-year timeline to digitize the filing process and the ability to respond to all IRS notices online. More from Smart Tax Planning:Here’s a look at more tax-planning news.The IRS has already started to deploy part of the funds earmarked for customer service by hiring 5,000 phone assistors before the 2023 filing season, and taxpayers have been able to respond to certain IRS notices online since February.Currently, the agency is answering 80% to 90% of calls, compared with only 17% during the fiscal year 2022, according to Werfel.Similarly, phone wait times have dropped to an average of four minutes compared with 27 minutes at the same point last year. “This additional staffing made an immediate difference,” he said.Plans to boost tech …

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