The IRS is taking a second look at its taxpayer service overhaul after recent staffing and funding cuts disrupted its original plans. According to a new Government Accountability Office (GAO) report released Jul. 17, more than 150 improvement projects launched with Inflation Reduction Act funding are now under review. 

These projects aimed to modernize core services: things like better phone support, more digital tools, and clearer communication. But with offices disbanded and funding uncertain, the IRS is now figuring out which efforts to prioritize. The report points out that while the agency made plans, it didn’t fully establish how to measure whether those plans actually improved the taxpayer experience. 

Accounting Today reported that IRS Commissioner Billy Long responded by stressing the agency’s focus on removing friction for taxpayers, especially by moving away from paper-based systems. But as the GAO notes, the IRS is still missing a full evidence-based framework for evaluating its service initiatives. A framework that includes clear goals, meaningful data, and input from outside stakeholders. 

This comes at a time when taxpayers are increasingly expecting smoother, more intuitive interactions with government agencies. GAO’s recommendation is simple: use data to show what’s working and what isn’t. 

The IRS agreed with the recommendation and says it’s working on it. But with fewer staff and tighter resources, it remans to be seen how quickly and effectively those changes will happen.