With tax season fully launched, the Internal Revenue Service is stressing improving communications, customer service and encouraging online access. It is also expanding service to individuals via Chatbox and Voicebox additions.
“Its focus for 2022 is to help the taxpayer and the industry while ensuring the safety of its employees,” according to Stephen Mankowski, the tax chair of the National Conference of CPA Practitioners.
“They are urging taxpayers to file early, but they need to ensure that all information, including the Additional Child Tax Credit and Economic Impact Payments, is received,” he said. “Taxpayers will need the ACTC and EIP letters to accurately file their returns.”
The initial round of advance Child Tax Credit letters were sent in December 2021, with the balance of the letters mailed in January 2022 — though the IRS said that
“The IRS is encouraging e-filing with direct deposit for refunds,” he said. “This is the fastest way for taxpayers to receive their refunds. If taxes are due, the IRS recommends paying the balance electronically to avoid the processing issues that occurred last filing season. If possible, taxpayers should start by accessing their online accounts. Where’s My Refund continues to be the best way to track the status of a tax refund.”
Letter 6475, for the third Economic Impact Payment, will be sent to verify the payment amount. “Incorrect amounts could result in additional processing of tax returns and refunds,” Mankowski noted. “For 2022, there are five new error resolution codes that will allow the cases to be resolved much more quickly. They cover child care credits and Economic Impact Payments.”
Meanwhile, Mankowski observed, the service is shifting new seasonal employees between administration and processing of returns. “Phone volumes are expected to remain at record levels, with 57% having used automated callback when offered,” he added.
Advanced Child Tax Credit payments
Letter 6419, the reconciliation statement for ACTC payments, is available in both English and Spanish. Letters should have already been mailed, according to Mankowski.
“Taxpayers can also log into their online account to perform the reconciliation, as it will have the most up to date information necessary to file their taxes,” he said. “The service may require Form 8867, “Paid Preparer’s Due Diligence Checklist,” to be attached even if there is no amount on Line 12.”
“There is currently legislation proposed in Congress to extend ACTC payments into 2022,” he indicated. “Nothing has passed yet, but the IRS is poised to issue payments quickly if that occurs.”
Taxpayer Experience Office update
The Taxpayer First Act requires the IRS to develop a thorough strategy for customer service, and submit the plan to Congress. Taxpayer experience encompasses all interactions between taxpayers and the IRS.
“The IRS has already begun expanding online accounts for taxpayers, tax professionals and business accounts,” said Mankowski. “Taxpayer education is also a component of the act. The ability to get and share information is key — and easier access is a main goal. For the IRS, this could mean two-way messaging, live assistance, AI Chatbots, and other means that can be offered in a secure environment.”
Text chat and Chatbot updates
Text chat, which enables taxpayers to interact with the IRS without holding online, had a volume of 1.2 million in November 2021, Mankowski said, with an average time on the chat of 6 minutes and 21 seconds for an unauthenticated line. “The resolution rate is 74% when the taxpayer is able to provide needed documents,” he said.
“To further improve service levels, Chatbot was introduced on Dec. 21, 2021, and Voicebot on Jan. 7, 2022,” he said. “The bots allow the taxpayer to make a one-time payment by following the provided links — the payment is not made on the bot itself.”
Beginning in 2022, the Chatbot will be able to set up an installment arrangement once the phone line is authenticated, and taxpayers will be able to request transcript, payments, and balances. Both Voicebot and Chatbot have the ability to transfer a taxpayer back to an IRS assister, if needed. These bot features will only be available for individuals, not for businesses or tax professionals, Mankowski reported.
