IRS Tells Taxpayers: Look Online for Answers, Expect Long Wait Times to Speak with IRS

From our tax software company comes even more information about how IRS is turning into the motor vehicle department.  We call the IRS regularly. Sometimes daily.  Our experience?  Hour to hour and half waits.  Just in time for the Obamacare taxes to kick in.

IRS Commissioner John Koskinen said on January 15 that taxpayers should seek help from the Service’s telephone assistors only as a last resort during filing season because budget cuts will result in lengthy wait times. Rather, taxpayers should first use online tools to get answers. Koskinen, speaking at a news conference in Washington, D.C., also repeated his recent warning that the Service may furlough employees to save money (TAXDAY, 2015/01/14, I.3).

Customer Service

The IRS will begin accepting and processing returns on January 20 (IR-2015-3; TAXDAY, 2015/01/16, I.2). "For taxpayers who have questions, or need forms, my advice is to take advantage of all the help we’re offering online," Koskinen said. Other customer service functions will be curtailed because of the budget cuts. "We expect our phones to be extremely busy with wait times of 30 minutes or more. I would caution taxpayers to use our phone lines only as a last resort." On January 14, IRS National Taxpayer Advocate Nina E. Olson predicted that the Service is unlikely to answer even half of the telephone calls it receives, and service levels may average as low as 43 percent this filing season (TAXDAY, 2015/01/15, I.1).

Shutdown

Under the Consolidated and Further Continuing Appropriations Act, 2015 (P.L. 113-235), the IRS’s fiscal year (FY) 2015 budget was cut by approximately $346 million (TAXDAY, 2014/12/16, C.1). To absorb the funding cut, Koskinen has indicated that the Service may need to furlough employees.

"We are working very hard not to have a shutdown," Koskinen said. "We have tried to allocate resources to have the least impact on services and enforcement." The Service has also been in discussions with the National Treasury Employees Union (NTEU), which represents IRS employees.

Previously, Koskinen said that two furlough days could be necessary. "We may end up, if things go badly for one reason or another, with more than two days of shutdown possible," he noted. "If we take shut down days they will probably have to be taken in the Fall," he added.

PPACA

Koskinen acknowledged that many taxpayers will have questions about the Patient Protection and Affordable Care Act (PPACA) (P.L. 111-148). The PPACA generally requires individuals to carry minimum essential health coverage, unless exempt, or make a shared responsibility payment. "Our treatment of ACA returns will be the same as any other returns…over 80 percent of taxpayers will merely check a box on their return (indicating they have minimum essential coverage)," Koskinen said. "We have no indication that people will be less compliant with ACA than other areas. I do not expect an upswing of compliance problems," he predicted.

Refunds

The IRS expects to issue refunds within 21 days, Koskinen said. However, individuals who file paper returns may have to wait longer for their refunds. Typically, refunds for paper filers can take four-to-six weeks to process. "This year, refunds for paper filers may take an extra week because of budget cuts," according to Koskinen.