The Internal Revenue Service is boasting improved customer services and lesser backlogs thanks to its new tax filing portal, Direct File.
Although the new IRS portal's pilot program is limited to 12 states, the agency reported providing service to more than 50,000 people just two weeks after it first launched, NPR reported.
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Albeit having considerably fewer users than more popular tax filing platforms like TurboTax, H&R Block, TaxSlayer, and Cash App Taxes, the agency is confident that
Efforts towards the Direct File portal are made in addition to customer services on its other platforms like adding a call-back function to its 1-800 contact hotline, "ending the era of taxpayers being required to stay on hold listening to elevator music," IRS Commissioner Danny Werfel said.
IRS Tax Return Processing Records Positive Growth for Online, Physical Services
As of March 15, the IRS has already processed over 70 million tax returns ahead of the April 15 tax deadline, just 1.2% shy of its record from last year.
On the other hand, web usage of IRS-affiliated websites increased by 19.3% to over 411 million visits from 345 million last year.
The IRS is reported to be pouring billions of dollars to mainstream its customer service and operations from its $11.92 billion budget from last year.
Also Read: IRS to Open New, Free Online Tax Filing Portal on March
Biden Admin Agress to Proceed with IRS Budget Cut
Despite promises of big tax returns to the government, the White House is reportedly moving to cut the IRS's budget after agreeing to raise the country's debt ceiling.
Congress announced last Thursday plans to cut $20 billion in funds the agency received from the Inflation Reduction Act despite the agency reporting to be $60 billion short for its modernization program.
As of writing, the administration seems to be looking to keep the agency's budget for both 2024 and 2025 flat at a $12.3 billion annual budget as it moves the finances toward national defense and border patrol.
The IRS was among the departments impacted by the budget cuts sweeping in the Federal government after Republicans accused the administration of "wasteful spending."
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