SOI-496 Refund Timing Future State Focus Groups

SMALL
BUSINESS
Taxpayer Experience of the Future
BACKGROUND
Bennett is the sole proprietor (Schedule-C) of Method
Learning, an education software company. Bennett has
a good understanding of what he needs to provide to the tax
representative he uses for his return preparation. He is,
however, uncertain of the details of some tax laws, and
is not up-to-date on recent additions to the tax code.

Bennett
Owner, METHOD Learning

Experience Expectations
Secure
Easily Accessible

Consistent
Fast

Transparent

Taxpayer Journey
PRE-FILING

Bennett attends
a small business
conference and
learns that he
is able to set
up an online
account with
the IRS.

FILING

Bennett sets up
his IRS account,
and designates
his tax
representative
to receive 3rd
party access.

Bennett and his
tax representative receive
a notification
on his online
account that
he has missed
an employment
tax payment.

Bennett makes
the employment
tax payment
electronically
using the IRS
app on his
mobile device.

Taxpayer EXPERIENCE
Logged as User123

Settings

WHERE’S
MY REFUND?

FREEFILE

eFILE

Later in the year,
Bennett is
unsure of the tax
implications of a
recent legislative
change, and calls
his tax
representative
for guidance.

Having already
received
tailored digital
communication
from the IRS, the
tax representative
clarifies Bennett’s
tax law questions
regarding the
emerging issue.

POST-FILING

The tax
representative
electronically
files Bennett’s
return and both
are notified of
the receipt of
submission.

Later, Bennett and
his tax
representative
receive a digital
notification that he
has a higher
likelihood of being
examined due to
an unusually high
increase in his
other expenses.

Bennett reviews
his expenses,
makes no changes
and receives
his refund. In a
couple of months,
Bennett and his
representative
are notified that
Bennett will
undergo a
limited-issue
examination
based on
his business
expenses.

An agent from
across the country
conducts the
examination
virtually. Using his
online account,
Bennett is able
to provide and
receive the
necessary
information
electronically.
Ultimately, the
agent proposes
a tax adjustment
based on changes
to Bennett’s
expenses.

Bennett and his
preparer agree
with the
proposed
changes and
make the
payment
electronically.

Log out

My Apps

MY
TAXES

+8.4

%

40.1

0
+2.1

I access my information
centrally through my
secure online account.

I am confident that digital
interactions with the IRS
are easy and secure.

4%

I receive communications
from the IRS via e-mail,
mobile application, or
text message.

I easily find answers to my
tax questions online or
with the help of informed
3rd parties.

Examinations are
efficient and lead to
understandable changes
to my tax obligation.

TAXPAYER-FACING CAPABILITIES

e-Authentication

3rd Party
Authorization

Verification of
a taxpayer
or third party’s
identity
across digital
channels

Preparer rights
to act on
behalf of
taxpayer
clients and
access client
online
accounts

Digital
Taxpayer Account
Management

Digital Content
Management

Stakeholder
Outreach &
Education

Taxpayer
Self-Correction

Privacy & Security
Management

Online accounts
that allow
taxpayers
to manage their
tax compliance
responsibilities

Secure, online
resources and
tools that allow
taxpayers to
easily access
relevant
information
and interact
with the IRS

Tailored
communications
with stakeholders
aimed at
improving the
reach, timeliness,
and impact
of IRS
communications
through 1:many
channels

Ability for a
taxpayer or
preparer to
correct errors
identified during
error detection
through online
account access

Systems, software,
and governance
that support secure
transactions, data
security, and
privacy protection