1699472425 The IRS is simplifying next years tax filing with long awaited

The IRS is simplifying next year’s tax filing with long-awaited improvements – Yahoo Finance

Americans may have a slightly easier filing season in 2024 after the IRS rolled out more resources for taxpayers.

The tax authority announced this week that taxpayers can now upload all correspondence, responses to notices and documents electronically to the tax authority’s website, which also features an improved Where’s My Refund tracker. When it comes to customer service, the Internal Revenue Service is answering the phone more frequently and offering in-person tax advice centers with extended hours.

The measures – funded by the Inflation Reduction Act – aim to build a better relationship with taxpayers through more user-friendly services, after several reports in the past criticized the lack of customer service. There is more to come, the agency promised, although its track record of technical improvements is tenuous at best.

“Taxpayers will save time and effort,” Treasury Secretary Janet Yellen said Tuesday. “The IRS will reduce errors and storage costs. And we will speed up processing times for the system as a whole.”

Changes for the 2024 tax filing season

    The IRS estimates that the new change will convert 125 million paper documents to a digital format and will eliminate the need for 94% of American taxpayers to send emails to the IRS.

The IRS estimates that the new change will convert 125 million paper documents to a digital format and will eliminate the need for 94% of American taxpayers to send emails to the IRS. (Spencer Platt via Getty Images)

Digital correspondence

Taxpayers can now submit all correspondence, nontax forms, and notice responses electronically using the Documentation Upload tool on the IRS website.

When uploading mail, you first enter the access code for your correspondence or select the type of letter in the drop-down field. They can then upload photos or digital copies of the documents to the tax office and receive confirmation that the documents have been submitted.

At the beginning of February, taxpayers could only respond digitally to the nine most common correspondences. Previously, taxpayers had to respond to all replies, returns and correspondence by mail, resulting in significant delays in processing and refunds.

Read more: Do you have To a personal loan for tax purposes?

The new electronic settlement system improves the tax system in two ways. It reduces the time taxpayers spend responding to notices and receiving their refunds and allows IRS agents to record information digitally rather than manually. The IRS estimates that the new change will convert 125 million paper documents to a digital format and will eliminate the need for 94% of American taxpayers to send emails to the IRS.

The story goes on

Treasury Secretary Janet Yellen speaks about the upcoming tax filing season at IRS headquarters in Washington on Tuesday, Nov. 7, 2023.  (AP Photo/Jacquelyn Martin)

Treasury Secretary Janet Yellen speaks about the upcoming tax filing season at IRS headquarters in Washington on Tuesday. (AP Photo/Jacquelyn Martin) (ASSOCIATED PRESS)

Refund tracker

The agency’s most popular online tool, “Where’s My Refund,” will also get a boost for the upcoming tax season.

Previously, the tool often gave a standard message that the return was being processed. For more information, see the Frequently Asked Questions section. Taxpayers often had to call the IRS to get more detailed information about the status of the tax return.

The tool now provides more precise and accurate answers when users check the status of their refund, including whether they need to respond to an IRS letter requesting additional information. The update also ensures the tool works “seamlessly” on mobile devices, the IRS said.

In 2022, the tool generated 550 million hits and around 54 million taxpayers used it. The IRS estimates taxpayers will view the new version 70 million times in the upcoming filing season.

Telephone service

The IRS will keep up with its new and improved phone service in 2024. The agency expanded its customer service department last year, after a hellish filing season during the pandemic and years before.

Thanks to a fleet of newly hired agents, the IRS achieved an 87% response rate during the 2023 filing season. The agency said it aims to achieve the same success in the 2024 sign-up season, with the goal of maintaining an average wait time of 5 minutes for all callers.

While the IRS has achieved a shorter wait time so far this year, Yahoo Finance previously reported that tax telephone agents are not always able to answer questions correctly or even consistently. The answer to a tax question can vary depending on who picks up the phone at the other end.

“Will [the IRS] give the right answers? Until [the IRS] “We have reason to be skeptical,” said Scott Hodge, president emeritus and senior policy adviser at the Tax Foundation. “At least you didn’t have to wait long to get the wrong answer.”

Read more: Do I have to pay taxes on student loan forgiveness?

After a hellish filing season during the pandemic and years before, the agency expanded its customer service department last year.

After a hellish filing season during the pandemic and years before, the agency expanded its customer service department last year. (Chip Somodevilla via Getty Images)

Personal tax advice

The IRS will also increase in-person tax assistance at Taxpayer Assistance Centers nationwide by more than 8,500 hours. The agency recently opened or reopened 50 tax assistance centers across the country. Additional pop-up shops and community service events will be offered in hard-to-reach communities.

“I think these changes are good news. Any time the taxpayer experience can be improved, I think it’s always a win for everyone involved,” Grant Dougherty, registered agent and founder of Dougherty Tax Solutions, told Yahoo Finance. “I believe that [2024 filing season] will be a little more liquid.

Rebecca Chen is a reporter for Yahoo Finance and previously worked as an investment tax auditor (CPA).

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