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IRS Expands Use of Chatbots to Assist Taxpayers

The IRS has introduced a chatbot to help taxpayers who receive notices about underreporting their taxes, Accounting Today reported.

The chatbot will assist taxpayers who receive notices CP2000, CP2501 and CP3219A, each of which informs a taxpayer that information the IRS received from third parties may differ from what had been reported by the taxpayer.

Voice and chatbots, in English and in Spanish, have used by the IRS since January 2022 to help more than 13 million taxpayers avoid wait times by resolving their tax issues, including setting up roughly $151 million in payment agreements, the IRS said.

The chatbot simulates human interaction with taxpayers through a web or mobile app on a computer or mobile screen by responding to questions or requests in a chat feature. At the end of the conversation, taxpayers can press the "representative" button to speak to a live assistor.

The new IRS chatbot is available to help taxpayers with questions such as: what to do if they received a notice; what to do if they need more time to respond to a notice; and how to find out if the IRS received their response.

"Through our transformation efforts, we are working to expand technologies to help taxpayers and tax professionals interact with us in the ways they prefer, including expanded digital, phone and in-person assistance options," IRS Commissioner Danny Werfel said in a statement. "We understand receiving a notice from the IRS can be concerning, and people frequently have questions. The use of chatbots in call centers has emerged as an effective practice in both the private and public sectors, making it easier for people to quickly get basic information to resolve their issues and avoid wait times on the phone. Deploying chatbots at the IRS call center helps taxpayers get their issues resolved quicker, and it helps free up valuable phone resources for other taxpayers with questions on more complex issues."