IRS Call Return Rate Rises Above 80 Percent with 4,000 New Employees: Yellen

The IRS has responded to 85-90 percent of calls from taxpayers in the current tax preparation season, an increase of 13 percent a previous year. Treasury Secretary Janet Yellen announced this on March 16.

This is partly due to the hiring of over 4,000 new customer service workers funded by the Inflation Reduction Act of 2022.

The IRS may consider other measures to support taxpayers such as faster refunds and reduced paperwork. It will also make it easier to deposit direct funds into taxpayer bank accounts.

“I believe this money will certainly lead to faster responses to taxpayers,” Yellen testified before the Senate Finance Committee about President Joe Biden’s 2024 budget proposal.

Yellen suggested that paying the IRS to oversee tax preparers paid by taxpayers would make the experience better.

“At present, incompetent and dishonest tax preparers disadvantage taxpayers and undermine confidence in the tax system. I believe the IRS should have the authority to oversee paid preparers.”

Yellen stated that this would increase the accuracy of tax filings as well as help taxpayers avoid penalties and interest if they take bad advice from unqualified preparers.

The current law does not require tax preparers to be licensed or have a minimum level of competency. The IRS repeatedly requested Congress to establish standards for tax preparers.

Despite improvements made in IRS customer support, Republican senators expressed dismay at the fact the IRA authorized billions for the IRS but provided no plan for how that money would be spent.

“Last year the administration pushed through an $80 billion blank check for the IRS without a spending plan. Only in Washington, D.C., would Congress pass an $80 billion appropriation without any plan as to how it’s going to be implemented,” said Sen. John Cornyn (R-Texas).

Sen. John Thune (R-S.D.) Senator John Thune (R.S.D.) said that, in addition the $80 billion given to IRS last fiscal year, the agency seeks an additional 15% increase for 2024 fiscal year. He stated that this amount to $29 billion.

“We still don’t have the plan for the $80 billion in IRS funding,” Thune said.

“So could you speak to when we might see a plan since there’s a request now for additional funding above and beyond what was a massive historic amount of funding in the IRA?”

“The plan is almost complete, and you should have it in the near future,” Yellen clarified, clarifying what he meant. “in a matter of weeks.”