IRS Deploys Chatbots for Underreporting Detection

To improve taxpayer assistance and expedite issue resolution, the Internal Revenue Service (IRS) has introduced a chatbot tool to aid individuals receiving notices related to possible underreporting. 

This innovative technology aims to streamline the process of addressing discrepancies between taxpayer information and data obtained from third parties. 

The IRS’s move toward chatbot assistance reflects a broader trend in both the private and public sectors, where chatbots are increasingly used to enhance customer service and minimize wait times.

Taxpayers who receive notices CP2000, CP2501, or CP3219A may now turn to the IRS chatbot for assistance. 

These notices are typically sent when taxpayer information aligns differently from data acquired from external sources. The chatbot serves as an interactive virtual assistant accessible through web or mobile applications, providing answers to common taxpayer inquiries.

IRS Commissioner Danny Werfel emphasized the advantages of employing chatbots in customer service, stating, “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.”

Read Next: 3 Ways Inflation Affects Social Security Benefits and Taxes

IRS Chatbot Revolution

The chatbot offers valuable assistance by addressing various taxpayer concerns, including guidance on responding to a notice, requesting additional time to reply, and verifying whether the IRS has received its response. 

To further enhance the user experience, the chatbot provides an option for direct contact with a live representative after the interaction.

This technological advancement has been made possible through funding provided by the Inflation Reduction Act, which received approval from lawmakers last year. Since its launch in January 2022, the IRS chatbot has assisted taxpayers, with over 13 million individuals benefiting from its services. 

These interactions have led to the resolution of tax-related issues and facilitated the establishment of payment agreements totaling approximately $151 million.

The IRS’s commitment to leveraging chatbot technology for the benefit of taxpayers extends beyond its current capabilities. 

The agency has plans to introduce additional features and enhancements to its chatbot in the future. 

This ongoing development aligns with the broader trend of government agencies adopting innovative technologies to provide efficient and user-friendly services.

In conclusion, the IRS’s introduction of a chatbot tool to assist taxpayers facing underreporting notices represents a significant step toward modernizing and improving its services. 

This initiative has not only reduced wait times and expedited issue resolution but also demonstrates the IRS’s commitment to leveraging technology for the benefit of the public. 

As chatbot technology continues to evolve, taxpayers can expect further enhancements and features to simplify interactions with the IRS and ensure compliance with tax regulations.

Read Next: Enhanced Social Security Benefits: Get Ready for $59 Extra Per Month

Source: Accounting Today

About the author

Author description olor sit amet, consectetur adipiscing elit. Sed pulvinar ligula augue, quis bibendum tellus scelerisque venenatis. Pellentesque porta nisi mi. In hac habitasse platea dictumst. Etiam risus elit, molestie