In its 2022 report to Congress, the Electronic Tax Administration Advisory Committee (ETAAC) said that the IRS demonstrated its skill at executing appropriately funded technology and process modernization projects but warned it will need more support to reach its true potential.
The report praises the agency’s improvements to its e-filing system by allowing taxpayers to electronically amend personal income tax returns. The IRS has electronically received nearly 3.5 million amended returns since the e-filing’s inception last May.
But taxpayers need more, the ETAAC urged. The report specifically states that Congress needs to not only give more funding to the IRS, it needs to change how that funding operates.
The committee noted that, over the past few years, much of the service's funding has come from late appropriations in the form of continuing resolutions, which are often restricted to specific purposes.
Oftentimes the agency is only left with choices that the report said do not promote and facilitate optimal tax administration practices. See the ETAAC’s recommendations.