TAS Testing Virtual Face-to-Face Audit Process

National Taxpayer Advocate, Nina E. Olson, of the Taxpayer Advocate Service, evaluated the current correspondence and examination process in great detail. She found a number of problems for taxpayers, and suggests a solution.

Olson notes that the IRS instituted the correspondence exams to conserve resources and reduce taxpayer burden. But, the correspondence method leaves over 70% of those who have been through the process wishing they had alternatives.

The problems Olson finds start with the correspondence. Notices are often confusing and taxpayers have no single "caseworker" or "agent" or anyone else they can talk to for clarification. The goal of the process is to assure that people get their tax returns right, that taxes owed are the taxes paid, and that both the IRS and taxpayers can work through the process without undue hardship or use of resources.

In practice, the correspondence process often leaves the taxpayer without an understanding of what the IRS needs to understand the taxpayer's position. In addition, there is no one listening when taxpayers have unique circumstances and are in need of guidance more than a list of required documents.

Olson, who had the opportunity to see the Swedish "virtual service delivery" process first hand, believes the IRS could do better. The Swedish approach is to get the taxpayer into an office for virtual face-to-face meetings where the taxpayer and the agent can converse in real time. Problems iwth understanding directions, requirements, unique circumstances and more can be addressed in real time.

The TAS has launched a pilot program to test the effectiveness of virtual face-to-face support and so far the results are looking good, with higher response and greement rates and higher customer satisfaction. You can read Olson's take on this topic on the TAS web site here: http://www.taxpayeradvocate.irs.gov/Blog/virtual-face-to-face-audits