The IRS recently published the Strategic Operating Plan (Plan) for the fiscal years 2023 to 2031 on April 6. This plan outlines how the IRS intends to use the additional $79.4 billion provided by the Inflation Reduction Act (Act) in order to improve services for taxpayers and tax professionals and make significant changes to tax administration.

The Act will provide the IRS with additional resources over the following ten years to improve taxpayer service, modernize technological capabilities, equip staff with new tools and skills, and encourage high-income individuals, complex partnerships, and big businesses to file their taxes.

The Plan focuses on the IRS’s highest priority chances to change the game for taxpayers. It incorporates cutting-edge suggestions for best practices and available technology, builds upon prior planning initiatives like the Taxpayer First Act Report to Congress, and takes feedback from various stakeholders in tax administration.

The Plan, which serves as a high-level roadmap, describes how the IRS intends to distribute investments made pursuant to the Act in order to enhance services to taxpayers, tax professionals, and the larger tax ecosystem. It establishes benchmarks and acts as a guide for IRS leadership, initiative managers, and project managers when making decisions.

It’s important to note that even though the Plan lists 42 initiatives and five transformation objectives, it is vague about hiring goals, audit rates, and funding distribution after the first two years. With Congress and other interested parties, the IRS has pledged transparency and promised to provide more information as the Plan develops. These claims, though met with skepticism by some Congressmen, could have an impact on the ongoing discussion about IRS funding.

It is wise to be ready for any potential inquiries and to act appropriately in light of the IRS’s indication of increased audits, particularly in the area of large partnerships. More precise information is anticipated to become available in the upcoming months, even though the current plan only serves as a broad road map.