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Accountancy Slice
North America
Despite chronic, and pandemic-specific, challenges, the IRS is making strides in improving its service levels, according to the recently released National Taxpayer Advocate Annual Report to Congress. The report highlights the agency's successes in eliminating most of its tax return backlog, improving tax refunds, and enhancing customer service availability and responsiveness. While obstacles remain, such as staffing and tax avoidance schemes, the IRS sees tremendous opportunities in data, analytics, and artificial intelligence (AI). The report also identifies seven prevailing trends impacting tax agency operations, including the explosion in data sharing, the use of AI and generative AI against tax agencies, and the need to crack down on unexplained wealth. The IRS is tapping into AI to investigate tax evasion and is adopting real-time risk scoring to improve compliance. The agency is also focusing on sharing innovation with developing countries, addressing the skills shortage, and gaining citizen trust while embracing modernization.
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