Open Recommendations

The Chief Privacy Officer should ensure that privacy controls for cloud systems are implemented within one year from when updated FedRAMP guidance is approved and released. However, if this is not feasible, the privacy controls should be implemented following the current established continuous monitoring testing plan.

The Commissioner, Wage and Investment Division, and the Commissioner, Small Business/Self-Employed Division, should consider expanding the use of soft notices to address potentially erroneous PTC claims. These notices should provide individuals with information specific to the eligibility or reporting requirements related to the potential error the IRS identified and suggest the filing of an amended return, if an error has occurred.

The Commissioner, Wage and Investment Division, should notify the 317,418 taxpayers we identified, who potentially received less PTC than they were entitled or repaid more APTC than required, that they may qualify for additional PTC or overpaid APTC and encourage them to file an amended Tax Year 2021 return, if applicable.

The Commissioner, Wage and Investment Division, should develop processes, such as the use of courtesy letters to notify individuals of their potential eligibility, to proactively assist taxpayers who, based on available tax return and Exchange data, potentially claimed less PTC than entitled or paid more APTC than required.

Capture and analyze the issues identified in whistleblower claims (for instance, by using relevant SAIN/UIL) and confirm whether the issues were substantiated in an examination using Forms 211 and 11369 and other relevant documentation, whether through modifications to e-Trak or through the replacement for e-Trak.

Create a method to collect the identifying information of authorized individuals as part of the application for a CAF number. For authorized individuals who already have a CAF number assigned, create a method to collect identifying information during subsequent authorization requests.

The Commissioner, Small Business/Self-Employed Division, should continue to identify new tax accounts with a Social Security tax deferral at least through Calendar Year 2024 to ensure that all unpaid deferrals are identified for collection as appropriate.

Create a detailed plan for how each TXS capability will be implemented and develop benchmarks, performance measures, and milestones.

Establish a process to track and regularly report on the performance results of taxpayer experience improvements described in the TXS.

The Chief, FMSS, should update internal guidelines to require follow-up reports of active shooter drills or events (even those that are ultimately determined to have been unfounded) to assess the efficacy of all actions taken responding to the event. The information developed should be used to improve response protocols.

The Commissioner, Wage and Investment, should prioritize funding and implementation of automated processing of Forms 1040-X to increase efficiencies and reduce taxpayer burden.

Coordinate with the Information Technology organization to prevent generating transcripts for manual refunds less than $100 and adjust the frequency that some transcripts are generated to help management get through the inventory more efficiently.

Coordinate with the Information Technology organization to explore adding Taxpayer Relations inventories into the CII, so that all Accounts Management inventory is located in the same inventory management system.

On November 29, 2022, the Treasury Inspector General for Tax Administration recommended that the Director and Deputy Director, Submission Processing, Wage and Investment Division, protect the identity of IRS employees signing manually generated tax processing correspondence by removing their first name and replacing it with the employee’s title, Mr., Ms., or a gender-neutral title, in accordance with Chief Counsel Notice N(30)000-317.

The Commissioner, Wage and Investment Division, should ensure that all tax processing correspondence is revised to remove the signing IRS employee’s first name and replace it with the employee’s title.

Complete a usage study and document a decision regarding if the IRS will mandate that participants use the TFA IVES system.

The Chief, Appeals, should establish a process with the appropriate Business Operating Divisions (BOD) to identify, track, and update forms, letters, publications, notices, websites, and social media that still require the new IRS Independent Office of Appeals name.

Establish a documented annual enterprise-wide examination planning process that aligns with the multiyear, comprehensive Examination Strategic Plan.

Develop a tool to consider risk and other relevant variables to inform examination resource allocation decisions, then expand its use to include Examination workstreams from all divisions.

Ensure that the IRS does not burden taxpayers in existing payment agreements when PCA contracts are ending by developing a solution to continue to service taxpayers in active payment arrangements.

The Director, Collection Policy, Small Business/Self-Employed Division, should monitor the average processing time of CDP hearing requests and, if warranted, outline and make recommendations to revise procedures and/or develop automation tools to ensure the timely input of the transaction code.

Require I.R.C. §§ 6103(e)(7) and (e)(8) refresher training for all appeals officers and settlement officers in Appeals regarding employee requirements to disclose collection activity on jointly filed returns when requested from individuals who are no longer married or no longer reside in the same household, whether or not they have mirrored accounts, and the nondisclosure of prohibited taxpayer information.

On June 15, 2021, we alerted IRS management of our concerns with the systemic calculation of the allowable RRC amount. We recommended that IRS management review the returns we identified and provide us with any corrective actions they intended to take.

The Chief Privacy Officer should establish a process that complies with Office of Management and Budget requirements regarding the selection, implementation, assessment, and continuous monitoring of privacy controls.

The Commissioner, Wage and Investment Division, should ensure that programming is updated to systemically reject electronic submissions of Forms 2848 and 8821 when missing one of the five essential elements (name, address, signature, etc.) without manually mailing a rejection letter.