”

34 34

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4.1 STRATEGY OVERVIEW

To transform how we operate, we reimagined the taxpayer experience across six areas of focus:

Expanded Digital Services to improve online experience for all taxpayers and authorized tax professionals. This includes enhancing the IRS’s online accounts for individual taxpayers and expanding this service to tax professionals and businesses. Research shows that promoting the use of self-service channels along with the use of plain language has increased voluntary compliance and decreased phone calls.

Seamless Experience to provide taxpayers with their preferred channel of service (website, telephone, in person, etc.) and integrate those channels to seamlessly guide them to the help they need throughout the taxpayer lifecycle. IRS employees should be trained and empowered to resolve issues in a timely manner and will guide taxpayers to resources or to another IRS employee as appropriate. By increasing organizational awareness, integrating channels, reducing wait times and streamlining taxpayer service we increase the likelihood of taxpayer’s issues being resolved, which research shows improves compliance. ⁸

Proactive Outreach and Education to improve how and when we provide information to taxpayers by using new technology, applying behavioral insights, expanding our social media strategy and making use of our trusted partnerships. We should communicate with (and be open to receiving communication from) taxpayers at times that are convenient to them, in a multitude of languages, and by the method they prefer. Educating taxpayers will serve to increase taxpayer confidence in meeting their tax obligations and decrease the likelihood that they will encounter compliance issues or need to contact the IRS. Accelerated outreach allows taxpayers to resolve issues and balances before the penalties and interest make these balances too large for taxpayers to effectively manage.

We heard from external

stakeholders – and our own

employees – that it is hard to navigate

the IRS. Tax administration is too

broad and complex for us to ever train

our employees to handle every issue

that could come up, so we must focus

on increasing their organizational

awareness and equipping them with

the tools to shepherd taxpayers

to resolution.

• James Clifford, TFAO Executive

8 The 2019 Comprehensive Taxpayer Attitude Survey found, on average, that taxpayers are willing to wait approximately 15 minutes on hold when using the phone.

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4.1 STRATEGY OVERVIEW

Community of Partners to build on our existing relationships and develop new partnerships to create an integrated delivery network of trusted partners across the tax community. Trusted partnerships will encourage the sharing of perspectives and best practices and provide a forum to discuss innovative ideas and approaches for working with a diverse range of customer segments. The Community of Partners will support the Focused Strategies for Reaching Underserved Communities. Leveraging partnerships with those who already have established relationships and networks in hard to reach communities can amplify our messaging by providing IRS content via a trusted voice in communities. This approach already delivers benefits. For example, each year the IRS leverages partnerships with Volunteer Income Tax Assistance organizations whose programs and volunteers prepare 3.6 million returns for taxpayers with the support of only about 400 IRS employees.

Focused Strategies for Reaching Underserved Communities to build on existing successes and establish specific strategies to engage with underserved communities to address issues of communication, education, transparency, trust, and access to quality products and services. We understand that some segments of the taxpayer population face unique obstacles to getting access to the information and services needed to comply with their tax obligations. To address the needs of these communities, the IRS should provide customized education and outreach in the languages spoken by specific taxpayer groups. As shown by the Earned Income Tax Credit (EITC) Underserved Outreach Project, ⁹ developing specific strategies for underserved communities is crucial to increasing their participation. This project identified individuals who were likely eligible to claim the EITC but did not file returns. The 2014 study showed that individuals who received outreach through the mail increased filing rates for current and prioryear returns by roughly 0.5% to 1%. The study resulted in 53,000 additional filers with $180 million in additional refunds.

9 Inattention and Tax Benefits: Third-Party Reporting and IRS Outreach to Low-Income Nonfilers Research Project – conducted by Research, Analysis & Statistics Division in IRS Office of Research.

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4.1 STRATEGY OVERVIEW

Enterprise Data Management and Advanced Analytics to develop a secure data management strategy that includes an agency-wide understanding of administrative data, the ability to integrate operational, employee, and customer feedback data, and analyze that data to pinpoint specific improvements to reduce costs and improve the taxpayer experience. In addition, new technology applied in a responsible and ethical manner, such as chat bot tools powered by artificial intelligence (AI), can enable ongoing, real-time learning from taxpayer needs and ultimate compliance actions, further improving both the taxpayer experience and delivery of our mission. Applying advanced analytics will help us better understand taxpayer behavior to determine the most meaningful offerings to support the taxpayer experience.

This strategy is not a series of discrete approaches, but rather integrated strategies that build on each other to create the best holistic

Every IRS employee is a

experience for the greatest number of taxpayers.

customer service officer. When woven together, and supported by the

Training and Organizational Redesign Strategies,

Every interaction is important.

the Taxpayer Experience Strategy creates a

• Charles Rettig, Commissioner comprehensive taxpayer experience in which

interactions with the IRS are efficient, informative, personalized and convenient. The results of this strategy will ensure our stakeholders know that their feedback was heard and valued, increasing trust between the IRS and taxpayers. The five-year cost of the Taxpayer Experience Strategy is estimated at approximately $1.2B. Details can be found in Section 9.5.2.1.

Every IRS employee is a

customer service officer.

Every interaction is important.

• Charles Rettig, Commissioner

The following Sections describe each component of the strategy in detail. For each, we present the capabilities that will provide value to taxpayers, high-level costs, measures of success and an estimated timeline for phased implementation over one to two, three to five and ten years. Where applicable, we also share examples of how we are already using some capabilities to improve the taxpayer experience. For instance, IRS efforts to adapt to and address the COVID-19 emergency provide a real-time opportunity to test and evaluate some aspects of our Taxpayer Experience Strategy.

See the Appendix 9.6, for more information about the strategic goals and underlying objectives that provide the framework for our Taxpayer Experience Strategy, including alignment with other IRS strategies, such as the Integrated Modernization Business Plan.

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4.2 MEASURING SUCCESS

To measure the success of the Taxpayer Experience Strategy, we developed a tiered framework. By gathering and analyzing data associated with these measures, the IRS will be able to evaluate the progress of this strategy and assess the degree of success in offering new or enhanced capabilities. We also identified three measures that collectively assess the degree of success of implementing the Taxpayer Experience Strategy as a whole.

The Taxpayer Experience Strategy measures are built on a tiered step framework in Figure 3, which includes “Access” measures, “Adoption” measures, and “Impact” measures.

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4.2 MEASURING SUCCESS

At its highest level, this framework will help assess how the Taxpayer Experience Strategy impacts voluntary compliance. However, given the time it takes to accurately measure voluntary compliance, the framework relies on intermediary outcome measures like trust and confidence and taxpayer satisfaction as a proxy for improving voluntary compliance. Measures will be reported annually and will include baselines, targets (as appropriate) ¹⁰ - or projections, and sources, for a given fiscal year. Some of these measures are new to the IRS, and for those we lay out a timetable for designing, testing and baselining them.

This framework will allow us to track the effectiveness of the strategy in real-time – are we having the intended impact? Are taxpayers adopting the options we invest in? What drivers are most important to our taxpayers’ experiences? Does the way we’re implementing our strategy need to be adjusted? This robust suite of measures will inform our decision-making, and the Sections that follow each include measures to help us answer these questions. While we have aligned measures to each component of the strategy, we also developed three measures (see below) that will help us determine the success of the Taxpayer Experience Strategy as a whole.

The IRS is an investment that

will pay back. Investing in better

customer service will result in

better compliance.

• John Koskinen, Former IRS Commissioner

10 In some cases, it is more effective to simply monitor a measure rather than set targets that could encourage unintentional behaviors or results. For example, while it is useful to track the usage of a call back feature, we would not want to set a target to increase the use of that feature since that would be a direct result from increased wait times.

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4.2 MEASURING SUCCESS

The 2018 President’s Management Agenda lays out a long-term vision for modernizing the Federal Government in key areas that will improve the ability to deliver mission outcomes, provide excellent service, and effectively steward taxpayer dollars on behalf of the American people. The Taxpayer Experience Strategy aims to align to the recent Presidential Management Agenda by enhancing customer service, establishing new relationships with our diverse set of partners, expanding existing digital capabilities, and developing new taxpayer experience tools and technology that compares to or exceed that of other Federal agencies and private industry.

The suite of taxpayer experience measures will continue to evolve as the Taxpayer Experience Strategy progresses and our performance management process matures. We will continue to refine these measures and identify new measures that will best inform our efforts to continually improve and enhance the taxpayer experience. To a significant degree, our future work on measuring the taxpayer experience will be informed by repeating the listening and learning campaigns employed as part of our work to develop the Taxpayer Experience Strategy and through, the Continuous Feedback Loops and Community of Partners we deploy as part of this strategy.

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4.3 EXPANDED DIGITAL SERVICES

We will expand digital services through secure online accounts and other paperless initiatives. Our goal is to empower taxpayers to resolve certain issues themselves before contacting the IRS. To do this, we must make sure taxpayers have the digital tools they need. Many taxpayers will be familiar and comfortable with this type of interaction due to similar services provided by banks and other private sector organizations. However, we continue to recognize the need to have some non-digital options, such as phone and paper, to be available for accessibility.

IRS online accounts are a digital portal for taxpayers to securely access their tax information, make changes to their personal information, and communicate with the IRS online. As part of our Taxpayer Experience Strategy, we will improve the secure online accounts currently available for individual taxpayers and make similar online accounts available for businesses and tax professionals. The IRS will continue to apply the highest security standards to online accounts to protect taxpayer information, but we will also continue to make some self-service digital tools, such as online payments, available to taxpayers unable to meet identification verification and authentication requirements. Whether through a computer, tablet, or mobile phone, access to online accounts and digital self-service tools will provide a more convenient and efficient taxpayer experience. Customer feedback data across government has already showed increased satisfaction rates with Federal online services when users are logged into a personalized account.

The following key capabilities form the basis of Expanded Digital Services—

• Secure Two-Way Messaging: Give taxpayers the ability to communicate with IRS employees through their online accounts.

• Taxpayer View History: Allow taxpayers to see information about their tax histories (such as refunds, payments received, amounts owed, returns filed, etc.) through their online accounts to ensure transparency and accessibility of records.

• Change Account Information (“Self-Correct Entity”): Allow taxpayers to update contact information and other key details.

• Digital Notifications: Generate customized taxpayer notices and letters accessible through online accounts. Taxpayers will be able to opt in to receive personalized notifications about changes to their tax situation, payment reminders and status updates on refunds or audits. This capability also supports Proactive Outreach and Education.

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4.3 EXPANDED DIGITAL SERVICES

• Business Online Account: Provide online accounts and services for businesses.

• Tax Professional Online Accounts: Provide online accounts for tax professionals, which

allows eligible representatives to access client information and services.

• Expand Payment Options: Provide taxpayers, businesses and tax professionals the ability to make payments through all channels including telephone, online accounts, mobile apps and walk-in assistance. Electronic funds transfer (EFT) and credit and debit cards interactions will remain available as well.

• Secure Document Exchange: Allow taxpayers, businesses, tax professionals and IRS employees to securely upload and access documents in a centralized repository.

• Digital Signatures: Allow authenticated individual taxpayers and representatives to submit electronic signatures via online accounts.

The IRS has already implemented several electronic tools and paperless initiatives. For example, when the IRS began to scale back operations in March 2020 due to the COVID-19 pandemic, critical work could not continue without a way to securely and virtually communicate with taxpayers. The IRS Information Technology Division quickly provided secure email capabilities with an attachment feature that enabled taxpayer services and compliance case activities to continue. By the first week of April, the IRS procured and expanded licenses to support up to 6,000 IRS users, while simultaneously implementing enhanced security and operational requirements. In addition, the IRS Non-Filers’ online tool, developed to support taxpayers during the COVID-19 pandemic, remains available to help taxpayers sign up for Economic Impact Payments (EIP).

Image of Free Tax Help page on

IRS2Go app

While we work to enhance existing tools and take additional steps toward an electronic environment, we understand that security must remain the foundation of our efforts. The IRS established an integrated Enterprise Case Management (ECM) and Digitalization function to take steps toward integrating these tools. Through the Secure Access Digital Identity Initiative, ¹¹ we continue to improve identity verification and authentication to reduce fraud and identity theft. In our efforts to ensure taxpayer information is protected, we must employ stringent security standards. However, data shows that not all taxpayers can pass these stringent standards and this may limit access to IRS online accounts for some taxpayers.

11 The IRS established the Secure Access Digital Identity initiative to satisfy digital identity guidelines released by the National Institute of Standards and Technology. These guidelines apply to all federal agencies implementing digital identity services.

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EXPANDED DIGITAL SERVICES

The following page outlines the goals, objectives, taxpayer benefits, tax professional benefits, timeline, costs and measures associated with Expanded Digital Services.

GOALS VALUE FOR THE TAXPAYER

Understand, Inform and Educate Taxpayers; Provide a Seamless Experience

OBJECTIVES

Provide Clear and Timely Communications

Increase Access and Promote Transparency

Simplify the Tax Process

Convenient, simple and secure way to access tax information, make changes to accounts, make payments from any device and communicate with the IRS that will significantly increase the functionality of existing self-service channels

Personalized notifications about changes to tax situation, refund status and reminders, audit status and payments through Online Account

Secure upload and sharing of files with the IRS

Enhancements to existing IRS online accounts for individual taxpayers

New online accounts for tax professionals and businesses

VALUE FOR TAX PROFESSIONALS

Establish and maintain authorized relationships with clients through the Online Account

Secure access to clients account information and notices and perform other account services and representational duties through their Online Account

Less time establishing the taxpayer’s authorization to act on their behalf

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Expanded Digital Services Timeline and Measures

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Expanded Digital Services Timeline and Measures

12 Baselines are as of the beginning FY2019 unless otherwise noted.

13 IRS Integrated Modernization Business Plan FY2019 Key Insights Report.

14 Source: IRS Integrated Modernization Business Plan FY2019 Key Insights Report.

15 Source: IRS Integrated Modernization Business Plan FY2019 Key Insights Report.

16 Source: Enterprise Self Assistance Participation Rate.

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4.4 SEAMLESS EXPERIENCE

To augment expanded digital services, we will create a seamless experience that helps taxpayers solve problems and comply with their tax obligations. We will integrate digital tools with other service channels (e.g., toll-free telephone assistance and walk-in assistance) into a seamless experience to resolve issues efficiently and further improve the taxpayer experience. Taxpayers expect and routinely encounter similar “omni-channel” ¹⁷ approaches with services like online banking and shopping. Using our omni-channel model, taxpayers will have the flexibility to communicate with the IRS and resolve issues via their preferred method and transition seamlessly to another resource or channel. The seamless experience will reduce telephone wait times and help resolve issues more quickly and efficiently. As part of the Seamless Experience, we will equip IRS employees across service and compliance functions to better navigate the IRS and to identify resources to solve taxpayer issues outside the scope of their training and expertise.

The following key capabilities are the foundation of our Seamless Experience—

an IRS employee to call them back instead of waiting on hold.

whether to remain on hold, opt for a call back or seek information on IRS.gov.

taxpayers with the information they need or personally connect them with a subject matter expert who can assist. Each employee will receive calls and handle contacts based on the nature of the issue identified in the web chat, through topic-based routing on the phone or during casework contacts. The employee will resolve all issues within the scope of their training and expertise. If the initial employee cannot provide the assistance the taxpayer is looking for, the employee will smoothly transition the taxpayer to a subject matter expert with the knowledge and authority to handle the type of taxpayer assistance required.

taxpayer account and gives them access to taxpayer records in real-time, including interaction history, appointment schedules, etc. This will be available through an ECM system.

17 Omni-channel can be defined as providing a set of seamlessly integrated channels that cater to customer preferences and actively steers them toward the most efficient resolution.

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4.4 SEAMLESS EXPERIENCE

• Artificial Intelligence (AI)-Powered Informational Web Chat (Virtual Assistance):

Allows for an AI-powered chat bot to attempt to answer questions or direct the taxpayer to helpful information on IRS.gov or to their online account based on a taxpayer’s browsing preferences on IRS.gov. Chat bots will also be able to connect taxpayers to an IRS assistor for a web chat or voice call. The chatbot will improve over time as the knowledge base expands and more taxpayer experience feedback becomes available. If the chatbot cannot resolve a taxpayer’s issue, contact routing will guide the taxpayer to live support from an IRS employee.

• AI-Powered Digital Appointments: Allows taxpayers to speak with an assistor or schedule

an appointment if the chatbot is unable to resolve a taxpayer’s issue. Taxpayers will also be able to schedule AI-Powered appointments with employees in other IRS organizations, like exam and collection. The chatbot will be able to determine if an assistor is needed and either “introduce” the caller to an assistor or schedule an appointment with an employee for a later time. The appointment could be with a service or compliance employee and can be in-person, telephonic, or via secure video chat.

• AI-Powered Employee Assistant: Supports IRS employees when answering taxpayers’

questions with an AI-powered knowledge base that will make suggestions based on a taxpayer’s experience, questions or pages visited on IRS.gov.

These capabilities integrate ongoing work within the IRS by creating a stronger, more strategic approach to putting taxpayers first. The IRS is already testing assistor-based chat and AIpowered chatbots, and we are improving our callback services. What began as a customer callback solution to support the internally facing service desk has been expanded to include a taxpayer-facing solution. Both callback deployments have met with considerable success with the service being used more than 700,000 times by taxpayers and 85,000 times by IRS employees. We estimate, in the first calendar quarter of 2020, taxpayers saved 77,000 hours per month waiting in queue. Additionally, the IRS recently integrated personalized payment plan messaging into online accounts.

Once a taxpayer’s identity has been authenticated, that authentication will carry with them through the next steps in the process, saving time for both the taxpayer and the IRS. Notably, when transferring, the assistor will remain engaged with the taxpayer until assured the subject matter expert has picked up the inquiry. Handoffs between employees will be collaborative, and information will carry forward with the taxpayer. If a subject matter expert is unavailable, the IRS assistor will schedule a callback or an appointment, so taxpayers get the help they need.

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4.4 SEAMLESS EXPERIENCE

We will train employees to answer questions, resolve issues, and identify additional resources within this omni-channel approach. ¹⁸ In most instances, IRS assistors will provide initial live support through web chat with the ability to offer audio or video calls if preferred. As part of our Training Strategy, employees’ skills will increase over time enabling them to resolve more issues at the first point of contact. The strategy will be implemented incrementally over time as funding, staff and technology become available.

To facilitate a more seamless experience for the taxpayer, the IRS will modernize the employee experience through Knowledge Bases, an organized source of information to assist employees with taxpayer inquires. In addition, a database of frequently asked questions and automated tools will further improve and streamline the employee experience. All employees who have contact with taxpayers will have access to an AI-powered Assistant that will be trained to aid them in meeting the needs of the taxpayer. If the taxpayer issue is complex in nature, the employee - as part of our new concierge navigation model - will be equipped with navigational support tools and organizational awareness training to identify a subject matter expert who can resolve the issue.

We recognize that to fully implement the Seamless Experience we must invest in new technology. For example, the IRS needs an Enterprise Case Management system to give employees a single source for real-time access to a 360-degree view of a taxpayer’s history. Our current case management environment is comprised of multiple systems that often cannot communicate with each other. ECM will allow authorized IRS employees to see a taxpayer’s full account, filing history, relevant case data and prior communications to resolve cases more quickly allowing employees to resolve more inquiries in a single contact and better facilitate handoffs. For instance, a revenue agent working with a taxpayer on a compliance issue will be able to guide the taxpayer to another function for support on an account issue.

18 See Section 5.0 for additional details on the Training Strategy.

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4.4 SEAMLESS EXPERIENCE

The current structure confines

work within specific BODs and limits

inter-BOD interactions of employees that

would more efficiently address problems to

improve taxpayer experience.

• National Treasury Employees Union

The IRS receives more than seven million pieces of paper correspondence per year. There is significant opportunity to increase efficiencies and improve the taxpayer experience by increasing the ability for taxpayers to submit that correspondence digitally and enabling the IRS to convert incoming paper to digital format. The IRS vision is to create new and enhance existing digital-first channels for taxpayers to correspond with the IRS, alongside enhanced digitalization capabilities to convert residual paper into a digital format. This approach will meet taxpayers in their preferred domain, which is increasingly online and on their

phones. We will still provide paper options for those who may need them as well as enable the use of advanced technologies such as robotics process automation and AI to speed back office functions, promote self-service and improve the taxpayer experience. Getting paper into digital format will also enhance the employees’ 360-degree view discussed above.

In sum, the Seamless Experience is key to our holistic approach to the taxpayer experience across both service and compliance interactions. IRS employees will be empowered and equipped with innovative tools to efficiently navigate across IRS operations and access Knowledge Bases to deliver seamless experience meeting the needs of taxpayers. This enhanced experience will lead to greater transparency, reduced burden and foster voluntary compliance.

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SEAMLESS EXPERIENCE

The following page outlines the goals, objectives, taxpayer benefits, timeline, costs and measures associated with Seamless Experience.

GOALS VALUE FOR THE TAXPAYER

Provide a Seamless Taxpayer Experience; Empower, Equip and Enable Workforce

OBJECTIVES

Increase Access and Promote Transparency

Simplify the Tax Process

Equip Employees with Tools Necessary to Provide Excellent Taxpayer Service

Issues resolved swiftly, easily and conveniently

Efficient and definitive interactions with the IRS making journey for assistance as painless as possible

Information from the very first engagement with the IRS will be transferred seamlessly to the next assistor, negating the need for the taxpayer to repeat information

A well-trained and better equipped IRS staff able to listen to concerns and be more responsive to any taxpayer issue raised

Less time waiting on the phone with the expanded use of appointment and call back technology

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Seamless Experience Timeline and Measures

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Seamless Experience Timeline and Measures

• Currently the enterprise LOS measure does not include all telephone lines, additional lines will be added in FY2021

19 Baselines are as of the beginning FY19 unless otherwise noted.

20 2019 Internal Revenue Service: Data Book.

21 2019 Internal Revenue Service: Data Book.

22 This question is not currently asked on all telephone lines.

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4.5 PROACTIVE OUTREACH AND EDUCATION

Improving outreach is critical to our Taxpayer Experience Strategy. We want all taxpayers to understand how to comply with their tax obligations and access our services. With Proactive Outreach and Education, the IRS will use various means to reach taxpayers at the right time through the right format. We will deliver information and personalized messages to taxpayers using social media, simplified correspondence translated into multiple languages, customized digital options and community outreach through trusted partners. Information may be generated based on issue campaigns, errors the IRS identifies, emerging trends, and other insights gathered from our continuous feedback loop. Our success depends, in part, on expanding trusted partnerships with external stakeholders (Community of Partners) as well as amplifying efforts to reach underserved communities (Focused Strategies for Underserved Communities), which we discuss more in the next two Sections of this report. Community outreach, virtual seminars, partnerships, and engagements with schools, can assist the IRS in helping taxpayers to access services and resolve issues. Ultimately, educating taxpayers will increase taxpayer confidence in our organization, enable them to meet their tax obligations, and enable us to better anticipate and respond to taxpayer needs.

The following capabilities are key to Proactive Outreach and Education—

personalized notifications about changes to their tax situation, filing reminders or status updates for refunds, audits, and payments. Further developing online accounts, increasing digital correspondence and providing more electronic reminders and notices will help ensure taxpayers have up-to-date information to comply with their tax obligations.

educational updates that are customized based on demographics and other taxpayer behavioral information. Social media will be used to engage taxpayers, guide them to the appropriate channel for service and communicate in a voice and style consistent with the respective platform. As our social media strategy evolves, we plan to incorporate two-way communication to resolve inquires.

language translations for our notices and correspondence. Use data to improve the effectiveness of our communications in various taxpayer segments.

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4.5 PROACTIVE OUTREACH AND EDUCATION

• Plain Language Communications: Redesign notices and standardize correspondence

across the agency to simplify the format, educate and provide information to taxpayers in a manner that is easy to read and eliminate unnecessary legal language. Provide clear information and plain instructions to the taxpayers about why they are receiving the communication from us, and what actions they need to take. This may also include instructions for using online accounts for more detailed account information.

Currently, the IRS has an extensive, multipronged communications strategy focused on print and social media, stakeholder relationships, virtual communications and

the IRS has developed Twitter, Facebook, and YouTube accounts entirely in Spanish and additionally, select posts on Twitter, Facebook,

into five additional languages (Vietnamese, Korean, Russian, Chinese ²³ and Haitian Creole). Furthermore, there is also a YouTube channel in American Sign Language. We will build on these efforts and use continuous feedback and analytics to monitor the effectiveness of our communications and services and to determine the best methods, messengers, and forums to communicate and resolve taxpayer issues early and efficiently. The IRS will develop a Social Media Strategy to share content, updates, and respond in a voice and style consistent with the respective platforms and will use technology proactively to collaborate with different organizations.

Through social media, we can facilitate early issue resolution, including increasing awareness of IRS service options and promoting convenient self-service digital tools. The IRS demonstrated this approach with expanded social media work during delivery of the Economic Impact Payments. Expanding our social media presence will also allow our external partners, such as other government agencies, members of the Congress, and Low-Income Tax Clinics to better serve their constituents by easily linking to critical IRS messages. Later in this report, as part of our Focused Strategies for Reaching Underserved Communities, we further explain how we will use social media and other outreach practices to communicate with underserved taxpayers and address specific community needs.

23 Traditional and Simplified.

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4.5 PROACTIVE OUTREACH AND EDUCATION

Historically, communicating tax information effectively through standardized correspondence and notices has presented challenges. With the passage of the Plain Writing Act in 2010, the IRS began reviewing and streamlining our correspondence process to restyle and coordinate notices, expedite approvals, simplify language and improve taxpayer responses. We have already taken steps to improve taxpayer correspondence by convening a Correspondence Summit and developing a Taxpayer Correspondence Strategy to define challenges and identify opportunities for improvement. Our research suggests that placement of information, color, font, type and spatial design affects the readers’ ability to understand and respond to key information in notices and letters. Using evidenced-based approaches, we will design easy-to-understand correspondence to help taxpayers meet their tax obligations.

With Proactive Outreach and Education, the IRS can get the right information to the right taxpayer at the time they need it.

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PROACTIVE OUTREACH AND EDUCATION The following page outlines the goals, objectives, taxpayer benefits, timeline, costs and measures associated with Proactive Outreach and Education.

GOALS VALUE FOR THE TAXPAYER

Understand, Inform and Educate Taxpayers; Provide a Seamless Experience

OBJECTIVES

Provide Clear and Timely Communications

Understand Taxpayer Needs

Build Trusting Relationships and Partnerships

Simplify the Tax Process

Efficient and effective communications

Quicker access to information and

resolution of issues

Plain language information and

communications through a variety

of channels and methods in a variety of

languages

Better understanding of tax obligations for

communities and underserved populations

Increased availability and accessibility

for underserved taxpayers and

community members

Personalized notifications about changes

to tax situations to assist them in meeting

their tax obligations and goals

More trusting relationship with IRS

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Proactive Outreach and Education Timeline and Measures

24 Baselines are as of the beginning of FY19 unless otherwise noted.

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4.6 COMMUNITY OF PARTNERS

The IRS has many longstanding and successful partnerships with external stakeholders including tax professional associations, community-based organizations, other government agencies, and advisory and industry groups in addition to our cross-functional collaboration supporting bureaus across Treasury. As we build upon existing relationships and seek new partners, we are creating a sustainable Community of Partners to explore innovative ways to improve service and lessen taxpayer burden. Expanding our partnerships will help us reach underserved communities, which is discussed further in the next Section of this report.

Our Community of Partners will focus on the following key capabilities—

develop new ones to improve information-sharing between organizations and collaborate on solving common problems.

their experience in developing community partnerships, such as joining with other agencies to learn how they access hard-to-reach communities.

the IRS to provide co-located services (for example, post offices, U.S. embassies, etc.). These partnerships could apply to both service and compliance interactions.

community centers, cultural and faith communities and organizations and chambers of commerce to help us provide outreach, education and other services. This collaboration will also help us better reach populations that may be underserved or under-represented.

federal and state agencies, Security Summit ²⁵ participants, and other third parties within the boundaries of the established law to allow us to incorporate new sources of information from a secure network to drive enforcement decisions, combat identify theft and improve the taxpayer experience.

25 Our Security Summit Initiative is a unique partnership between the IRS, state revenue departments and private-sector tax industry leaders. It is the first public-private partnership of its kind with the goal of putting new and innovative safeguards in place to protect taxpayer information and the integrity of the Federal and state tax systems.

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4.6 COMMUNITY OF PARTNERS

This approach to partnerships proved effective during the implementation of recent legislation, including the Tax Cuts and Jobs Act, Public Law No. 115-97. In these instances, the IRS facilitated forums with external groups to obtain valuable input from a cross-section of stakeholders. These helpful sessions demonstrated the benefits of institutionalizing the concept of a Community of Partners.

This past spring and summer, the IRS conducted a sweeping outreach and education campaign. In April 2020, the IRS met with 175 representatives from 25 government agencies about Economic Impact Payments established by the Coronavirus Aid, Relief and Economic Security (CARES) Act, Public Law No. 116-136. During this meeting, the IRS discussed payment procedures and how to reach specific audiences in need. Stakeholder participants included the Treasury Financial Literacy and Education Commission, the Department of Health and Human Services, and the Department of Housing and Urban Development. The Consumer Financial Protection Bureau shared information about scams and identity theft. The IRS also shared information about Economic Impact Payments with an additional 34 federal agencies, 35 state governments, 27 local governments and with over 200 public service

agencies, including 324 Indian tribal leaders from around the country. These efforts continued throughout 2020, with IRS outreach efforts expanding, building on a network of thousands of partners across the country, inside and outside of the tax community. Agency efforts included working with state and local governments, Congressional offices, as well as many local nonprofit groups and social service agencies. Many citizens with no tax filing requirement were eligible to receive an Economic Impact Payment by using the IRS.gov Non-Filers’ tool and we engaged our partnership network to assist us with reaching these individuals. For example, the IRS worked with more than 350 local and national organizations to share information about Economic Impact Payments specifically focused on those experiencing homelessness as well as seniors and veterans. These efforts were supplemented with proactive campaigns in traditional and social media as well as specially designed toolkits for use by IRS partners. The CARES Act passed on March 27. Within 14 days taxpayers started seeing Economic Impact Payments in their bank accounts. By the end of July, IRS delivered approximately 160 million payments totaling nearly $270 billion.

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4.6 COMMUNITY OF PARTNERS

Following are a few additional examples of this approach:

• Co-location with Social Security Administration (SSA) offices: Since January 2017, the

IRS and the SSA have worked together to jointly provide taxpayers access to information and assistance. The co-location of IRS employees in SSA offices began with four SSA locations hosting IRS employees. IRS currently has Taxpayer Assistance Centers (TAC) employees in six SSA offices. IRS employees provide TAC services from SSA sites, including face-to-face meetings with taxpayers using the appointment system. The IRS and SSA also collaborate on anti-fraud initiatives. SSA and IRS held multiple meetings in the past year to discuss anti-fraud best practices. Leaders from both agencies partnered to devise a plan to determine the best way to exchange data and best practices. The IRS will continue to expand this service channel as part of our Taxpayer Experience Strategy.

• Community outreach best practices with the Department of Education (ED): The IRS

partnered with the ED White House Initiative on Historically Black Colleges and Universities (HBCUs) to expand our Volunteer Income Tax Assistance program on HBCU campuses and in some cases, the surrounding communities. Through this program, volunteers prepare thousands of tax returns each year.

• Expanded community presence through the Department of Veterans Affairs (VA): The

IRS has partnered with the VA since 2002 to provide outreach and free tax preparation at VA centers. Our shared goal is to ensure all veterans can easily access our services. The IRS currently has six sites at VA locations.

• Security Summit with States and Private Sector: The Security Summit is an

unprecedented partnership that includes the IRS, states and the private sector. Between 2015 and 2019, the number of taxpayers reporting they were victims of identity theft fell 80%. The IRS protected a combined $26 billion in fraudulent refunds by stopping confirmed identity theft returns. As we got better at blocking returns from entering our systems, the number of confirmed identity theft returns declined to the point where in 2019 it was 68% below 2015.

These amplified efforts will bring together partners from across the tax community and the Federal Government to improve access to our services, reach diverse communities and drive innovative ways to improve the taxpayer experience.

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COMMUNITY OF PARTNERS

The following page outlines the goals, objectives, taxpayer benefits, timeline, costs and measures associated with Community of Partners.

GOALS VALUE FOR THE TAXPAYER

Understand, Inform and Educate Taxpayers; Provide a Seamless Taxpayer Experience

OBJECTIVES

Build Trusting Relationships and Partnerships

Provide Clear and �imely �ommunication�

Simplify the Tax Process

Understand Taxpayer Needs

Improved relationship between agency, partners, stakeholders and taxpayers

Expanded access to information

Enhanced and improved filing experience

Increased ability to voluntarily comply with tax laws

Increased ability to file complete and accurate return

Expanded service channels and partners

Customized interaction assistance

Decreased taxpayer burden

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Community of Partners Timeline and Measures

26 Our Baselines are as of the beginning of the FY2019 unless otherwise noted.

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4.0 | TAXPAYER EXPERIENCE STRATEGY

4.7 FOCUSED STRATEGIES FOR REACHING UNDERSERVED COMMUNITIES

Our focused program for underserved communities will unify existing IRS efforts and involve our Community of Partners to further address issues of communication, education, transparency, trust, and limited access to high-quality products and services, including lack of access to digital resources. We need a focused approach as some segments of the taxpayer population face unique challenges in getting access to the information and services needed to comply with their tax obligations. These traditionally underserved communities are not limited to, but include:

• Taxpayers with limited English proficiency

• Native American communities

• Members of the armed forces

• Taxpayers with disabilities, including taxpaying populations needing special assistance due to sight, hearing, dexterity, limited mobility, and cognitive challenges

• Elderly taxpayers

• Low-income taxpayers

• Taxpayers living in rural communities

• International taxpayers

In addition to the IRS’s existing initiatives, we will develop an agency-wide strategy for underserved communities to enhance existing programs, products and services. Working with our partners such as the Taxpayer Advocate Service, Low Income Tax Clinics, Taxpayer Advocacy Panel, Equity, Diversity and Inclusion, and Customer Assistance, Relationships and Education, we will learn more about the unique needs of these segments. We will identify best practices to customize our approach to meet the specific needs of each underserved segment and provide personalized education and outreach through the service channels and in the languages preferred by these taxpayers. Additionally, we will design our underserved strategies to help us identify and develop accessible products and services. We can use our Community of Partners and co-located services to amplify our efforts.

Through these efforts, we will build trust and confidence in the IRS among underserved populations, increase our emphasis on fairness, expand access to information and services and increase voluntary compliance. Creating a single, agency-wide program will ensure the IRS meets underserved communities where they are and that IRS messages reach intended

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4.7 FOCUSED STRATEGIES FOR REACHING UNDERSERVED COMMUNITIES

recipients in the languages they need. Additionally, expanding existing partnerships will allow us to efficiently identify best practices, while benefiting from economies of scale.

To illustrate our approach, we outline key aspects of our strategies for two specific underserved communities below.

Multilingual Strategy More than 20% of U.S. residents speak a language other than English at home. Of these approximately 66.6 million people, 26 million describe themselves as speaking English “less than very well” and are considered individuals with limited English proficiency. ²⁷

The key capabilities for our Multilingual Strategy are—

• Translate Forms, Publications and Notices: Increase the languages available for most widely used forms, publications and notices.

• Digitally Aided Translation and Interpretation: Translate documents and phone conversations to other languages.

• Recruitment: Increase incentives for prospective bilingual / multilingual employee and specify the languages we are looking for during hiring.

• Leverage Employee Multi-lingual Skills: Incentivize employees to be certified as multilingual and recruit these employees to provide multi-lingual assistance and services.

• Translation App: Enable better communication between field employees and taxpayers in their preferred language using a new translation application for mobile devices.

• Translation App:

This strategy will

guide the direction, mission

alignment, investments, and

accountability of the IRS community

in providing meaningful access

for multilingual taxpayers to IRS