Annual Report to Congress 2023 87
Most Serious Problem #7
PROBLEM TITLE
Problem Title Subheader
ONLINE ACCOUNT ACCESS FOR TAXPAYERS AND TAX
PROFESSIONALS
Digital Services Remain Inadequate, Impeding Efficient Case Resolution and Forcing
Millions of Taxpayers to Call or Send Correspondence to the IRS
WHY THIS IS A SERIOUS PROBLEM FOR TAXPAYERS
Taxpayers and tax professionals lack a comprehensive online account
1
with integrated digital
communication tools to access tax information and services that are essential for tax administration
and quality service. Taxpayers and tax professionals wanting to interact online need and deserve
quality self-service options and quick responses from the IRS. When taxpayers cannot quickly
communicate with the IRS to resolve issues and receive answers to their questions simply and
securely, it negatively aects the taxpayer experience, which in turn impacts taxpayers’ overall
satisfaction and trust in the IRS. e lack of an intuitive, self-service avenue to interact online with
the IRS forces taxpayers and tax professionals to pursue alternative methods that delay resolution,
such as calling for assistance, seeking in-person assistance at a Taxpayer Assistance Center (TAC),
forgoing assistance, or submitting paper documents. Unfortunately, the COVID-19 pandemic
caused delays and frustration that severely limited these conventional methods.
2
EXPLANATION OF THE PROBLEM
Bringing the IRS into the 21st century by expanding digital functionality is necessary to improve the taxpayer
experience and raise taxpayers’ overall satisfaction and trust in the IRS. Public trust in the IRS is at the core of
our nation’s system of self-assessment and voluntary tax compliance.
3
1 Collectively Individual Online Accounts (IOLAs), Business Tax Accounts (BTAs), and Tax Pro Accounts (Tax Pro). The analysis
reflects online account upgrades through November 30, 2023.
Final Results of the 2023 Filing Season
.
3 Seehttps://www.whitehouse.gov/
https://www.federalregister.
government
Taxpayer Advocate Service88
Most Serious Problem #7: Online Account Access for Taxpayers and Tax Professionals
When taxpayers lack digital service options, such as communicating with the IRS online, accessing tax data
online, or digitally signing documents, the IRS forces them to use more conventional methods (e.g., mailing
or faxing paper documents, calling customer service lines, or visiting in person at a TAC). If a taxpayer has
the option to use self-help methods to answer questions or resolve issues, the conventional assistance channels
have shorter wait times for those taxpayers that need or want in-person or telephone assistance. Providing
multiple service channels would allow the IRS to provide faster service and responses and eliminate delays,
which would improve customer service for all taxpayers. A win-win.
Robust online accounts and digital services would provide taxpayers exibility.
4
A key benet of expanding
online account functionalities and digital services is providing taxpayers and tax professionals faster service
with the convenience of 24/7 availability.
Here are some examples of how the IRS harms taxpayers and tax professionals with its insucient online
account tools:
• e lack of robust functionality forces taxpayers to resort to more conventional forms of
communication, thereby resulting in slower resolution times, increased taxpayer frustration and
confusion, and scarce IRS resources for those that need the personal touch.
• Individual online accounts (IOLAs) still lack comprehensive features, including the ability to track
submissions through the entire lifecycle of a return (ling through the closing of any controversy
issue), submit oers in compromise online, chat with a revenue ocer, and calculate payos for any
balances due.
• Business taxpayers have little access to online services and tools, forcing them to call the IRS or fax or
mail in documents, thus slowing resolution times and increasing taxpayer frustration.
• Tax Pro Accounts (Tax Pro) for tax professionals oer too few functionalities and thus remain
underutilized. Without expanded functionalities, including access to client tax data, the IRS forces
tax professionals to call for assistance or submit paper documents on behalf of taxpayers.
• Reporting agents have little access to online services, forcing them to either call the IRS or fax or mail
in documents, thus slowing resolution times and increasing frustration.
• e Document Upload Tool (DUT) only provides taxpayers and tax professionals with the ability
to electronically upload documents, eliminating the need to mail, fax, or email a document. It does
not provide a backend workow process. Without an ecient DUT backend workow process and
integration with an enterprise case management system, the IRS requires its employees to manually
process DUT submissions, which will cause delays. Until the IRS implements a backend workow
process and case management system integration, the National Taxpayer Advocate is concerned this
will cause the next backlog of submissions. Additionally, failure to manage taxpayer expectations for
DUT will create confusion regarding expected response times.
• e IRS could enhance the taxpayer experience through increased promotion of online account
options for both taxpayers and tax professionals and through IRS employee training on how to use
these resources to better assist taxpayers.
• Taxpayers and tax professionals who struggle with completing the identity verication process
required to set up online accounts are unable to use these vital resources.
5
See alsoDelivering a Digital-First Public Experiencehttps://www.whitehouse.gov/
omb/management/ofcio/delivering-a-digital-first-public-experience/.
Annual Report to Congress 2023 89
Most Serious Problem #7: Online Account Access for Taxpayers and Tax Professionals
ANALYSIS
A 2022 TAS research report compared online accounts and the digital services available for individuals on
IRS.gov to the taxing authorities of 41 U.S. states, the District of Columbia, Puerto Rico, and three foreign
countries.
6
e report identied three areas where the IRS website lacked features commonly found on other
taxing authority websites:
1. Filing options on the taxing authority’s own website;
7
2. e ability to receive and respond to most notices online; and
3. Robust in-person and digital contact options.
In April 2023, the IRS released the IRS Strategic Operating Plan (SOP) outlining how it intends to use the
Ination Reduction Act (IRA) funding.
8
If completed accordingly, many of the objectives have the potential
to transform the modernization of online accounts and digital services through projects, such as improving
self-service options, building status-tracking tools, and expanding digital response options. Additionally, the
objectives would address the examples of taxpayer and tax professional issues listed previously.
9
Many projects
and initiatives are underway; however, the IRS still has much work to complete. As the IRS implements
its SOP, it should continue developing online account functionality with a taxpayer-centric approach that
prioritizes the experience and needs of individual and business taxpayers and tax professionals with input
from stakeholders.
On September 22, 2023, the Oce of Management and Budget (OMB) issued memorandum M-23-22,
Delivering a Digital-First Public Experience, which provides guidance to agencies on how to design and deliver
websites and digital services to the public. It includes and summarizes many best practices for digital services
shared by the National Taxpayer Advocate including:
• Provide services to the public in a manner that maximizes self-service or transaction completion;
• Design and deliver digital options with users at the center of the experience;
• Prioritize customization to help users complete more relevant tasks more quickly;
• Ensure accessibility for people of diverse abilities;
• Provide content that is authoritative and easy to understand;
• Ensure the design of digital services incorporates appropriate privacy safeguards; and
• Build a digital workforce capable of delivering information and services to the public.
10
A Review of Online Accounts and Web
Services Offered by U.S. State and Foreign Country Taxing Authorities), https://www.taxpayeradvocate.irs.gov/wp-content/
. These foreign countries are the United Kingdom, Australia, and Canada.
A Review of Online Accounts and Web Services Offered by U.S. State and Foreign Country Taxing Authorities),
f.
; An Act
https://www.irs.gov/pub/irs-pdf/
.
10 Delivering a Digital-First Public Experience
https://www.whitehouse.gov/omb/management/ofcio/
delivering-a-digital-first-public-experience/.
Taxpayer Advocate Service90
Most Serious Problem #7: Online Account Access for Taxpayers and Tax Professionals
Individual Online Accounts Still Lack Full Functionality
e IRS continued to expand IOLA functionality over the past year and plans to further develop it as part
of its SOP.
11
In 2023, IOLAs allow individual taxpayers to view basic account information, make payments,
enter into payment plans, and view and download certain notices. TAS commends the IRS for continuing
to expand the functionality and capabilities within IOLA. However, the IRS has more work to do before
achieving fully functional accounts that entice taxpayers to select IOLA as their preferred communication
method. We look forward to working with the IRS on continued improvements.
Almost 17 million unique users accessed IOLAs in scal year (FY) 2023. As shown in Figure 2.7.1, taxpayers
made 8.2 million payments worth $39.7 billion through online accounts in FY 2023. Additionally, the IRS
sent approximately 325,000 notices as digital-only because taxpayers opted to go paperless.
12
is is a good
start that benets both taxpayers and the IRS. For many taxpayers and tax professionals, paperless is seen
as more ecient, and it is also more ecient for the IRS. When the IRS does not have to process a paper
submission or paper notice, it saves time and shifts resources to other customer service functions.
FIGURE 2.7.1
13
Actions taken after viewing balance information
8.2M payments worth $39.7B made directly within Online Account
891K payment plans established or revisions made via Online Account
• 273K established within Online Account
• 617K that were directed out of Online Account to complete transaction in
Online Payment Agreement
325K notices generated digital-only and avoided printing because of going paperless
through Online Account Profile preferences
• 19M sessions navigated to Get Transcript
• 15.6M sessions with a download
Online Account Statistics, FY 2023
sessions of users accessed View Your Account Information Page
92.2M
Activity
64.4M authenticated user sessions
unique users have accessed their online account16.8M
As shown in Figure 2.7.2, there are 16 active IRS self-assistance applications, and only four are available
within IOLA. e remaining 12 are only available outside of the IOLA account. And these 12 applications
do not require the same level of authentication so they can only provide very limited information.
14
11 https://www.irs.gov/pub/irs-pdf/
.
12
13 Id.
Id.
Annual Report to Congress 2023 91
Most Serious Problem #7: Online Account Access for Taxpayers and Tax Professionals
FIGURE 2.7.2, IRS Online Self-Assistance Applications
15
Application
Name
Available Tool(s)
Information
From
Application
Reflected in
Online Account
Type of
User
Number of
Transactions
or Sessions,
FY 2023
Online Account
View key information such as balance due
and payment history, make a payment
Agreement, or access tax records via Get
Transcript
N/A Individual
Get Transcripts
Online
view, print, or download
Yes Individual
Get Transcripts by
Mail
through mail
Yes
Individual
and
Business
Where’s My
Learn status of refund No Individual
Where’s My
Verify receipt and processing status for
No Individual
Pay directly from bank account Yes Individual
Online Payment
Agreements
taxpayers
Yes Individual 2,020,102
Identity and Tax
federal income tax return filed with the
taxpayer’s name and Taxpayer Identification
Number
No Individual
IP PIN
Validate identity and retrieve an Identity
Protection Personal Identification Number
online
No Individual
Modernized
Internet Employer
Identification
Number
Apply for and receive an Employer
Identification Number online
No
Individual
and
Business
Transcript
through mail, fax, or online
No
Individual
and
Business
through mail, fax, or online
No
Individual
and
Business
Parties
through mail, fax, or online
No
Individual
and
Business
Income Verification
mailbox to verify income of a borrower
No
Individual
and
Business
Taxpayer Advocate Service92
Most Serious Problem #7: Online Account Access for Taxpayers and Tax Professionals
Application
Name
Available Tool(s)
Information
From
Application
Reflected in
Online Account
Type of
User
Number of
Transactions
or Sessions,
FY 2023
Access tax return information and transfer it
No Individual
Tax Withholding
Estimator
Estimate income tax for current tax year
and compare that estimate with current
withholding
No Individual
Interactive Tax
Assistant
No
Individual
and
Business
In the National Taxpayer Advocate’s 2020 and 2022 Annual Reports to Congress, TAS recommended
making all self-assistance applications available through the IOLA as well as a standalone application.
16
e
IRS declined to adopt these recommendations.
17
TAS’s recommendation was not to make self-assistance
applications available exclusively within IOLA but rather accessible from IOLA. Having a one-stop shop,
in our opinion, will increase usage and improve the customer experience for those who select IOLA as their
preferred method of communication. In 2020, the IRS responded that adopting our recommendation would
add to taxpayer burden because IOLA requires a more thorough authentication process than some of the more
basic self-assistance applications (e.g., Where’s My Refund?, Where’s My Amended Return?, Tax Withholding
Calculator).
18
But the IRS missed the point. ese applications do not provide the necessary information
when taxpayers encounter a problem. In 2022, the IRS responded that even though the recommendation “is
consistent with taxpayer expectations,” it would not commit to a one-click access framework.
19
TAS continues
to recommend that once a user authenticates and logs into a secure online account, they should have one-
click access to all self-assistance applications as well as access to applications outside of IOLA. Additionally,
TAS recommends the IRS provide expanded information through self-assistance applications if the taxpayer
logs into a secure online account. e IRS needs to design IOLA as a mobile-friendly and device-agnostic
service. Taxpayers have a right to be informed about delays, the cause of the delay, and how they can correct
the problem; that information is not available with the lower level of authentication.
20
Online Access for Taxpayers and Tax
Professionals: Inadequate Digital Services Impede Efficient Case Resolution and Force Millions of Taxpayers to Call or Send
Correspondence to the IRS),
Access.pdfOnline Records Access:
Limited Electronic Access to Taxpayer Records Through an Online Account Makes Problem Resolution Difficult for Taxpayers and
Results in Inefficient Tax Administration),
.
https://www.taxpayeradvocate.irs.gov/
https://www.taxpayeradvocate.irs.gov/news/directory-
entry/2020-msp-3-online-records/
https://www.taxpayeradvocate.irs.gov/news/
directory-entry/2020-msp-3-online-records/
https://www.taxpayeradvocate.irs.gov/news/
20 See
Annual Report to Congress 2023 93
Most Serious Problem #7: Online Account Access for Taxpayers and Tax Professionals
To improve the customer experience, we recommend online accounts increase functionality, including the
ability to:
• Verify receipt of submissions and documents;
• Track submissions throughout the entire lifecycle of a tax return (processing, examination, collections,
administrative appeal);
• Determine where their return is in the process, including the assigned employee and manager’s names
and contact information;
• View and import Forms W-2 and 1099 into their tax return software;
• Submit oers in compromise online;
• Calculate payos for any balances due;
• Request penalty relief or abatement;
• View taxpayer-specic disaster relief postponement dates;
• Determine assessment and collection statute expiration dates;
• View a calendar of relevant due dates;
• View all IRS communications;
• Access the online tools for people of diverse abilities;
• Chat with IRS personnel and schedule a follow-up call if necessary; and
• Communicate with personnel from Examination, Appeals, or Counsel or their manager.
Business Tax Accounts Are Only Available to Limited Business Taxpayers
21
In the fall of 2023, the IRS launched an early version of Business Tax Accounts (BTA) that is only available
to sole proprietors. e very limited functionality allows sole proprietors to view their business prole,
manage authorized users, and generate and download Letters 6575, Tax Certicate for Award Use, and 6574,
Business Tax Compliance Report. e IRS SOP describes numerous features, including several TAS has
recommended, that the IRS could make available in the near future (2024-2026).
22
e IRS should continue
deployment of additional features with a taxpayer-centric approach. Unless BTA provides a suite of useful
tools available for all businesses, the IRS should not expect large numbers of business taxpayers to sign up and
use it. TAS recommends the IRS develop a comprehensive online account for business taxpayers by FY 2025,
including features such as document upload, secure messaging, due date reminders for upcoming tax return or
information return lings, payment options, and refund tracking.
Tax Pro Accounts Lack Comprehensive Features
In 2021, the IRS introduced Tax Pro for use by tax professionals who have met certain requirements.
23
Once tax professionals are able to access Tax Pro, they are only able to perform limited functions, such
as electronically ling Forms 2848, Power of Attorney and Declaration of Representative, or 8821, Tax
Information Authorization; viewing a list of their active authorizations for individual taxpayers; withdrawing
authorizations for individual taxpayers; and requesting individual clients' transcripts of account.
24
Even with
proper authorizations, tax professionals cannot view any business taxpayer information in Tax Pro, forcing tax
professionals to call the IRS or submit material on paper.
21
22 .
23
Seehttps://www.irs.gov/businesses/
small-businesses-self-employed/what-is-a-caf-number
of Columbia.
See Erin M. Collins, Attention Tax Professionals: Check Your Tax Pro Account, NATIONAL TAXPAYER ADVOCATE BLOG
https://www.taxpayeradvocate.irs.gov/news/nta-blog-attention-tax-professionals-check-your-tax-pro-account/.
Taxpayer Advocate Service94
Most Serious Problem #7: Online Account Access for Taxpayers and Tax Professionals
Tax professionals play a vital role in the tax system. ey assist with tax administration issues and alleviate
taxpayer barriers to compliance. Improving the functionality and ease of Tax Pro would support tax
professionals and the taxpayers who rely on these professionals. When a representative cannot perform
the necessary functions to service a client’s tax account through Tax Pro, the representative must contact
the IRS. Time-intensive contacts, such as drafting correspondence and making phone calls with lengthy
hold times, inhibits quick resolution of issues and can increase the cost the taxpayer must pay for the
representative’s services.
Since Tax Pro launched in July 2021, tax professionals and their clients have completed only 11,342 power
of attorney authorizations and 3,705 tax information authorizations through Tax Pro, as the system was
clunky.
25
In comparison, during FY 2022, tax professionals submitted 2.3 million authorizations through
e-Fax; 776,595 authorizations through Taxpayer Digital Communication (TDC); and 544,147 authorizations
on paper.
26
FIGURE 2.7.3
27
Power of Attorney and Tax Information Authorizations by Source
Tax Pro* Taxpayer Digital Communication e-FaxPaper
*The Tax Pro statistics include
authorizations approved from
July 2021-September 2023.
2.3 mil
776,595
15,047
544,147
FY 2022
e IRS must enhance its capabilities and add access to self-assistance and digital communication tools
within Tax Pro. Robust functionality will not only make this application more appealing to tax professionals
and help boost usage, but it will provide better customer service and potentially reduce unnecessary client fees
and delays.
See alsoOpportunities Exist to Improve
the Accuracy of Information in the Centralized Authorization File and Increase the Use of the Tax Pro Account System
https://www.tigta.gov/reports/audit/opportunities-exist-improve-accuracy-information-centralized-authorization-file-and.
Opportunities Exist to Improve the Accuracy of Information in the Centralized
Authorization File and Increase the Use of the Tax Pro Account Systemhttps://www.tigta.gov/reports/audit/
opportunities-exist-improve-accuracy-information-centralized-authorization-file-and.
See alsoOpportunities Exist to Improve
the Accuracy of Information in the Centralized Authorization File and Increase the Use of the Tax Pro Account System
https://www.tigta.gov/reports/audit/opportunities-exist-improve-accuracy-information-centralized-authorization-file-and.
Annual Report to Congress 2023 95
Most Serious Problem #7: Online Account Access for Taxpayers and Tax Professionals
TAS held focus groups during the 2022 IRS Nationwide Tax Forums to gather ideas from tax professionals
about taxpayers’ needs and preferences for online services. Participants expressed feeling frustrated,
exasperated, disappointed, and angry with their inability to eectively communicate with the IRS.
28
TAS
recommends the IRS expand Tax Pro’s features to allow authorized representatives access to all their clients’
tax records through the representative’s Tax Pro account to provide and perform the full scope of assistance.
rough Tax Pro and with appropriate authorization, tax professionals should have the ability to perform
actions on behalf of their clients such as:
• View the entirety of their clients’ online account information (to the extent of their authorization);
• Request an installment payment agreement;
• View the status of a tax return;
• View all notices and correspondence;
• Respond to correspondence and notices;
• Request an oer in compromise;
• Verify submissions;
• Track submissions throughout the entire process lifecycle of a tax return (processing, examination,
collections, administrative appeal);
• Calculate payos for any balances due;
• Communicate with the IRS throughout the process;
• Have the ability to schedule a call with an IRS employee;
• Request a Centralized Authorization File number;
• View taxpayer-specic disaster relief postponement dates;
• Determine assessment and collection statute expiration dates;
• Request penalty relief or abatement for their client; and
• Apply for an extension of time to le for their client.
Tax Pro should also expand to include clients who are business taxpayers, not only individual taxpayers.
While the IRS ultimately plans to expand functionality and include business taxpayers, this must be a priority
as the agency moves toward a 21st century digital tax system.
Reporting Agents Lack Online Account Access
Reporting agents (RAs) play a major role in the tax system. When authorized by Form 8655, Reporting
Agent Authorization, RAs may sign and le returns and make tax deposits and payments on behalf of their
clients.
29
Even though RAs le millions of returns and make substantial deposits and payments with the IRS,
they are not eligible for any of the three existing online accounts (i.e., IOLA, BTA, or Tax Pro) and do not
have a version of online accounts that reect the scope of RA authorization.
30
For tax year (TY) 2022, the
IRS authorized RAs to le over 3.4 million Form 940 lings and nearly 3.9 million Form 941 lings.
31
.
30 See
https://www.irs.gov/tax-professionals/tax-pro-account
.
31
Taxpayer Advocate Service96
Most Serious Problem #7: Online Account Access for Taxpayers and Tax Professionals
Because RAs lack an intuitive, self-service avenue to interact online with the IRS, they are forced to call
for assistance, forgo assistance, or submit paper documents. Given the important role RAs play in the tax
system,
32
TAS recommends providing RAs access to online accounts with a set of tools that reect the scope
of RA authorization.
Document Upload Tool Lacks an Efficient Workflow Process
In 2023, the IRS continued to expand the availability of DUT.
33
DUT allows taxpayers or tax professionals to
securely provide documentation online for notices requiring a response.
34
However, TAS has concerns about
the IRS workow to process documents received through DUT. Currently, documents received through
DUT require a manual process after receipt. So once again, the IRS is getting it half right. Although DUT
allows taxpayers and tax professionals to reduce paper submissions, the IRS has not established an ecient
backend workow to process DUT submissions without creating a new type of backlog. As shown in Figure
2.7.4, after receiving a document on DUT, IRS Business Operating Divisions (BODs) must log into the
DUT tool, download the response, and then route the document to the network location designated by
the BOD.
35
32 Seehttps://www.irs.gov/businesses/small-businesses-self-employed/reporting-agents-file-raf
33 Inflation Reduction Act: Assessment of the IRS’s Efforts to Deliver Expected Improvements for the
2023 Filing Seasonhttps://www.tigta.gov/reports/inspection-evaluation/inflation-reduction-act-assessment-irss-efforts-
deliver-expected
https://www.
irs.gov/newsroom/inflation-reduction-act-1-year-report-card-irs-delivers-dramatically-improved-2023-filing-season-service-
modernizes-technology-pursues-high-income-individuals-evading-taxes
.
https://www.irs.gov/help/irs-document-upload-tool
Annual Report to Congress 2023 97
Most Serious Problem #7: Online Account Access for Taxpayers and Tax Professionals
FIGURE 2.7.4
36
Small Business/Self-Employed (SB/SE) Collection
Document Upload Tool for Notice Process Flow
1 3
4
5
6
7
8
9
Taxpayer files a return on
their account
Taxpayer completes response
form using explicit instructions
provided on Notice and provides
supporting documentation to
Document Upload Tool*
The IRS issues Notice requesting
additional information,
supporting documents, or a
balance due etc.
IRS employee logs into Document
Upload Tool Admin UI and
manually downloads responses to
an existing network location
determined by SB/SE Collection
After transferring to an existing
network location determined by
SB/SE Collection; IRS employee
archives responses in Document
Upload Tool Admin UI
Form responses are
received into Document
Upload Tool portal
Tax Examiner looks up taxpayer
from form response notice in case
management system and verifies
information provided
Tax Examiner removes or accepts
condition of the notice response
and marks as done in case
management system
IRS employee assigns and
batches cases for Tax
Examiner to manage
2
START
New Process Step People Impact Technology Impact Process Impact
*Document Upload Tool will request the taxpayer provide specific information to ensure the reply is
classified and routed to appropriate campus and tax examiner
TAS recommends the IRS develop an IRS-wide workow for processing DUT submissions and integrate
submissions with an enterprise case management system to deliver documents quickly and eciently to the
correct IRS employees.
The IRS Fails to Adequately Promote Awareness of Online Accounts
e IRS should improve awareness of online accounts and standalone digital services among taxpayers, tax
professionals, and IRS employees. Not only should the IRS provide education about how to make the most
of the available online accounts and digital services, but it should also timely provide notication to taxpayers,
tax professionals, and IRS employees of upgrades and new features.
Taxpayer Advocate Service98
Most Serious Problem #7: Online Account Access for Taxpayers and Tax Professionals
e IRS oers information to employees monthly during “Digital Day” information sharing events.
However, attendance at the events is optional, and only approximately 2,000 of the IRS’s approximately
91,000 employees attend Digital Day events annually.
37
If IRS employees are not familiar with online account
capabilities, their ability to assist and educate taxpayers and tax professionals about online accounts will be
severely limited. TAS recommends providing mandatory training about online accounts to all taxpayer-
facing employees and IRS-wide updates about new features and upgrades to online accounts and standalone
digital services.
e IRS should continue to promote online accounts and educate taxpayers and tax professionals about the
user benets and data safety within online accounts. All communications with taxpayers and tax professionals
present opportunities to promote and educate. e IRS has undertaken some practices to inform taxpayers
and tax professionals about the availability of online accounts, including through links on the IRS.gov
homepage. Additionally, for example, when the IRS mails paper copies of digitally available notices that are
viewable in online accounts, it includes an additional paper notice in the envelope that informs taxpayers
about online accounts.
38
e IRS conducts a biannual webinar with a step-by-step demonstration of online
accounts for approximately 5,000 tax professionals.
39
However, the IRS should use all communications with
taxpayers and tax professionals as an opportunity to promote online accounts. For example, if a taxpayer
receives a notice with an invitation to use the unauthenticated DUT,
40
the IRS should oer the taxpayer an
opportunity to register for an online account after using the DUT. e annual ling season community
events provide an opportunity to demonstrate online accounts, educate taxpayers about the benets of their
use, and respond to online account questions. Also, TAS recommends that when a taxpayer or practitioner
signs into online accounts, the IRS provide a “What’s New” banner at the top of the screen to highlight recent
upgrades to online accounts.
Taxpayers Need More Options for Identity Proofing
To ensure the security of taxpayer data, taxpayers and tax professionals must create an account using an
identity proong process that conrms the identity of the account creator. e IRS outsources identity
proong and credential management services to a Credential Service Provider (CSP), and the CSP is also
responsible for assisting taxpayers who have diculty completing the process.
41
ere is no government CSP
that meets the security requirements.
42
Taxpayers can have trouble completing the identity proong process for many reasons, including having
unacceptable documents or being former victims of identity theft. Twenty-one percent of would-be users
failed a step in the identity proong process. e most common issues were: (1) failing the nancial records
or telecom verication checks (23 percent of failures) and (2) uploading and verifying identity documents,
typically due to blurry images or failed document security checks (19 percent of failures). Where taxpayers
cannot complete this process, the CSP serves as a “trusted referee” to assist the taxpayer with identity proong.
Fourteen percent of all CSP credentials are completed using a trusted referee.
43
Key Events of the IRS’s Planning Efforts to Implement Login.gov for Taxpayer Identity Verification
.
Annual Report to Congress 2023 99
Most Serious Problem #7: Online Account Access for Taxpayers and Tax Professionals
e IRS should maintain the security of taxpayer information but also strive to improve the taxpayer
experience for those who need or want additional assistance accessing online accounts. Not all taxpayers have
the technological literacy or internet availability to prove their identity without assistance. Some taxpayers
simply prefer to complete identity proong in person. In its SOP, the IRS stated a goal of expanding the
number of CSPs in FY 2023 to give taxpayers and tax professionals choices, but it has not implemented this.
44
In May 2023, the IRS launched an in-person identity proong pilot for those who experience challenges
completing the process online. e IRS sent approximately 24,000 invitations to authenticate in person.
Of those invited, 597 taxpayers scheduled in-person verication appointments, and the IRS veried 189 to
receive credentials.
45
TAS recommends the IRS continue to explore in-person identity proong options and
expanding the number of CSPs so that all taxpayers can create online accounts if they choose.
CONCLUSION AND RECOMMENDATIONS
e IRS has the potential to transform tax administration and bring the IRS into the 21st century with the
modernization of online services for taxpayers and tax professionals using IRA funding and the IRS SOP.
46
is year, the IRS launched BTA and expanded the services available in IOLA and Tax Pro, but it has
more work to do. As the IRS continues to expand the services and functionality available in online
accounts, it should remain focused on improving the taxpayer experience with ecient, understandable
tools. Taxpayers and tax professionals need and deserve reliable, quality customer service using their chosen
communication method.
Administrative Recommendations to the IRS
e National Taxpayer Advocate recommends that the IRS:
1. Add increased capabilities and functionality to IOLA, including the ability to track submissions
through the entire process, submit oers in compromise online, and calculate payos for any
balances due, to provide individuals with robust self-service options available at the convenience of
the taxpayer.
2. Provide individual and business taxpayers with one-click access to all authenticated and
unauthenticated self-assistance applications from an intuitive, centralized location.
3. Deploy a comprehensive online account for business taxpayers by FY 2025, including features such
as due date reminders for upcoming tax return or information return lings, payment options, and
refund tracking.
4. Add increased capabilities and functionality to Tax Pro, such as viewing notices and letters and
uploading requested documents, to provide authorized representatives seamless access to their clients’
online accounts through Tax Pro.
5. Provide RAs with access to online services with the ability to le Form 8655 electronically, access
return transcripts, and verify business name and Employer Identication Numbers electronically.
6. In FY 2024, create an IRS-wide digital backend workow for processing DUT submissions and
integrate submissions with an enterprise case management system to deliver the document quickly
and eciently to the correct IRS employees.
;
Key Events of the IRS’s Planning Efforts to Implement Login.gov for Taxpayer Identity Verification
. See Jonathan Curry, Declared Dead 18
Months Ago, ID.me Is Now Top IRS ID Checker, TAX NOTEShttps://www.taxnotes.com/lr/resolve/
.
.
Taxpayer Advocate Service100
Most Serious Problem #7: Online Account Access for Taxpayers and Tax Professionals
7. Require mandatory annual training for IRS employees on IOLA, Tax Pro, BTA, and digital
communication tools to allow employees to educate taxpayers about the applications.
8. Timely notify taxpayers, tax professionals, and IRS employees of new features and upgrades available
in IOLA, Tax Pro, BTA, and digital communication tools.
9. Expand taxpayer identity proong options, including increasing the number of CSPs and expanding
in-person identity assistance to taxpayers.
10. Provide kiosks in central locations to give taxpayers access to their online account.
11. Incorporate best practices set forth in OMB Memorandum M-23-22, Delivering a Digital-First
Public Experience.
RESPONSIBLE OFFICIALS
Kenneth Corbin, Commissioner, Wage and Investment Division, and Chief Taxpayer Experience Ocer
Amalia Colbert, Commissioner, Small Business/Self-Employed Division
Karen Howard, Director, Oce of Online Services
Kaschit Pandya, Acting Chief Information Ocer
Holly Paz, Commissioner, Large Business and International Division
Harrison Smith, Co-Director, Digitalization, Enterprise Digitalization and Case Management Oce
Kathleen Walters, Chief Privacy Ocer, Privacy, Governmental Liaison and Disclosure
