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GAO-19-108R 1 (2018-10-03)

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G      A               U.S. GOVERNMENT ACCOUNTABILITY OFFICE
441 G St. N.W.
Washington, DC 20548



October 3, 2018


The Honorable Orrin Hatch
Chairman
The Honorable Ron Wyden
Ranking Member
Committee on Finance
United States Senate

The Honorable Kevin Brady
Chairman
Committee on Ways and Means
House of Representatives

Tax Administration: Status of IRS Future State Vision

Funding the federal government depends largely upon the Internal Revenue Service's (IRS)
ability to collect taxes. This includes providing taxpayer services that make voluntary
compliance easier, and enforcing tax laws to ensure compliance with tax responsibilities. For
several years, we have recommended that IRS develop strategies to improve taxpayer services
such as a long-term strategy for providing web-based services to taxpayers.1 In 2014, during a
period of budget reductions and aging information technology (IT) systems at IRS, IRS officials
began discussing a new longer-term vision of tax administration that came to be known as the
IRS Future State. Prior to the Future State, IRS had launched other initiatives to transform
taxpayer services and IRS operations.2
You asked us to describe the changes that IRS plans under the Future State. In this report, we
describe (1) the Future State, its objectives, and its history, and (2) the current status of the
Future State. To answer these objectives, we reviewed IRS internal documents such as
documents on the development of the Future State vision, and its relation to IRS's strategic
planning process. We also reviewed IRS public documents about the Future State as well as
IRS officials' speeches and congressional testimony. Additionally, we reviewed cost estimates
and timeframes for implementing the Future State. Further, we interviewed IRS officials from the


1GAO, 2015 Tax Filing Season: Deteriorating Taxpayer Service Underscores Need for a Comprehensive Strategy
and Process Efficiencies, GAOo1 6-151 (Washington, D.C.: Dec. 16, 2015), IRS Website: Long-Term Strategy
Needed to Improve Interactive Services, GAO-i 3-435 (Washington, D.C.: Apr. 16, 2013), and 2011 Tax Filing:
Processing Gains, but Taxpayer Assistance Could Be Enhanced by More Self-Service Tools, GAO-12-176
(Washington, D.C.: Dec. 15, 2011).
21n 2006, IRS developed the Taxpayer Assistance Blueprint (TAB) and added, in the following year, a 5-year plan for
improving services. In a 2013 report to Congress, IRS reported that under the TAB, it had developed some online
tools and other options for taxpayer self-service. In November 2013, IRS launched Service on Demand, which was an
initiative to prioritize IRS efforts to better meet taxpayers' needs and preferences for interacting with IRS. In a fiscal
year 2015 update to Congress on the TAB, IRS reported that the Service on Demand initiative had been folded into
the IRS Concept of Operations Initiative, which evolved into the IRS Future State.


GAO-19-108R IRS Future State


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