Taxpayer First Act Overview Richard Furlong, Jr. Senior - - PowerPoint PPT Presentation

Communications & Liaison STAKEHOLDER LIAISON

Taxpayer First Act Overview

Richard Furlong, Jr. Senior Stakeholder Liaison

October 29, 2020 South Jersey Working Together Virtual Conference

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Presentation Summary

TFA Update 2

This presentation contains a high-level summary of the key recommendations that will be incorporated in the Taxpayer First Act (TFA) Report to Congress (RTC) scheduled for finalization in December 2020. Summary of Contents

• TFA Office Mission, Vision, Priorities, Guiding Principles
• High-Level Timeline for the Report to Congress
• What We’ve Heard: Collecting and analyzing input and feedback from IRS

personnel and external stakeholders

• Taxpayer Experience Strategy: includes foundational “Six Big Ideas”
• Training Strategy: includes foundational “Four Key Components”
• Organization Redesign Strategy: includes foundational “Structure Follows

Strategy”

• Next Steps
• Appendix

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Taxpayer First Act Office(TFAO)

Mission Statement: T

• instill pride and confidence in our nation’s tax system by developing a strategy for

continuously improving the taxpayer experience and, an organizational structure that enables seamless taxpayer interactions. Vision Statement: Working collaboratively, the Taxpayer First Act Office will reimagine our organization to enable a Servicewide focus on providing a high-quality taxpayer experience for all. Guiding Principles: As we pursue our mission and vision with honesty and integrity, we will:

• Coordinate and integrate
• Listen, learn and thendesign
• Build excitement through regular and transparent communications
• Embrace accountability through results

The TFAOffice is responsible for implementing certain TFA provisions while coordinatingServicewide implementation efforts for the remaining provisions.

41 Other provisions

• wned by business

units Integration TFAO-Owned High Degree of Integration Comprehensive Modernization of Comprehensive Customer Service IRS Organizational Training Strategy Strategy Structure (TFA §2402) (TFA §1101) (TFA §1302) Management of IRS Information Technology (TFA §2101) CIO Owned Communications & Outreach & Change Management Feedback & Engagement Program Management, Governance & Integration 3

High-Level Timeline for the Report to Congress

Continue research and information gathering. Analyze research and begin drafting comprehensive taxpayer experience strategy, training strategy, and reorganization plans. Capture feedback from impacted stakeholders. Refine plans based on input and recommendations and begin draft

• Report. Begin

costing and measures and metrics discussion. Continue to socialize and review feedback

• n the

strategies. Finalize costing, measures and metrics forthe draft Report. Plan FY 2021 implementation. Complete review process of draft Report and submit to Treasury and OMB for clearance. Submit final Report to Congress.

FY21 Q1

CLEARANCE AND SUBMIT

FY20 Q4

SOCIALIZE, REVIEW AND PLAN

FY20 Q3

INCORPORATE FEEDBACK

FY20 Q2

ANALYZE & DEVELOP

FY19 Q4

PLAN

Develop an approach for implementing select TFA provisions and engage internal leaders.

FY20 Q1

RESEARCH& INFORMATION GATHERING

Research industry best practices and capture lessons learned from previous restructuring or customer service efforts. Consult with subject matter experts and engage internal employees.

PROGRAM MANAGEMENT, GOVERNANCE &INTEGRATION

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FEEDBACK & ENGAGEMENT INTERNAL & EXTERNAL COMMUNICATIONS CHANGE MANAGEMENT

What We’ve Heard: Input and Feedback

The TFA Office has used the TFAO Guiding Principle “Listen, Learn, and then Design,” which informsTFA implementation and the Report to Congress.

Stakeholder Groups:

• Taxpayers
• Practitioners & Special

Industry Groups

• Employees
• Private Sector Best

Practices

• Oversight Entities
• IRS Leadership

Sources:

• Listening Sessions
• Placemats
• Site Visits
• Taxpayer Surveys
• Leadership Discussions
• Industry Best Practices
• IRS/Treasury Strategic Plan
• State/Fed/Global Tax

Agencies

• Customer Experience

Cap Goal Insights:

• Taxpayer Key

Insights

• Taxpayer “I want”

Statements

• Taxpayer First

Opportunity Areas Outputs:

• Comprehensive

Taxpayer Experience Strategy & Big Ideas

• Training Strategy
• Organization

Redesign Strategy Report to Congress

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The TFA Office continues to collect feedback from several sources. At this point, we’ve collected thousands of pieces of feedback. It’s spanned a wide variety of topics; however, the five categories below represent the majority of the feedback received.

What We’ve Heard: Collecting Ongoing Feedback

What We’ve Been Hearing

Taxpayer Experience

• Aligning the IRS

taxpayer service with the experience expected from modernized companies Training

• Updating Internal

Revenue Manual, training delivery, soft skills, cross training, and professional

• pportunities

Organizational Redesign

• Recommendations for

the consolidation of business units or reduced or expanded Modernization

• Recommendations to

upgrade the IT infrastructure or equipment General

• Requests for TFAO

support and/or feedback not specific toTFA

Feedback Categories

“The IRS needs to improve the response time on the practitioner priority phoneline.” “Consider publishing tax forms and publications in more languages and providing more services person- to-person in other languages.” “Could the IRS provide an online portal fortax practitioners?”

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Through multi-day workshops, TFA Office identified thousands of different insights and recommendations to incorporate into the three strategies.

What We Heard: Internal Feedback Analysis

SUPPORTING FOUNDATIONS

• Technology Infrastructure
• Policies and Procedures

T AXP A YER WANTS

• Access to

Human Help

• Expanding and

Improving Digital Services

• Seamless

Experience HUMAN CAPITAL OPPORTUNITIES

• Training Content
• Training Delivery
• HR/

Workforce

• Silos
• Internal

Communication

• Org Redesign

Suggestions UNDERSTANDING THE TAXPAYER

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• Education and

Outreach

• Taxpayer

Service Gaps

• Understanding

Taxpayer Needs

• Multilanguage

Needs

Through multi-day workshops, TFAO identified thousands of different insights and recommendations to incorporate into the three strategies.

What We Heard: External Feedback Analysis

• Seamless

Experience

• Expanding and

Improving Digital Services

• Org Redesign

Suggestions

• Training Content
• Training Delivery
• Workforce/HR
• Silos
• External

Communications: Outreach & Education

• External

Communications: Notices

• Multilanguage

Needs T AXP A YER WANTS HUMAN CAPITAL OPPORTUNITIES UNDERSTANDING THE TAXPAYER SUPPORTING FOUNDATIONS

• Continuous Improvement/FeedbackLoop
• Policies and Procedures

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TAXPAYER EXPERIENCE STRATEGY

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Taxpayer Experience: Developing a Strategy

Strategic Goals Objectives Capabilities and Enablers

Taxpayer Experience Strategy Big Ideas

The long-term strategy will enable a taxpayer experience where interactions with the IRS are informative, convenient, personalized, efficient and effective. It addresses the needs of all taxpayer segments and other stakeholders and considers the entire taxpayer experience across all aspects of tax administration.

T

• define the Taxpayer Experience Strategy, the team listened to taxpayers and other stakeholders,researched

private sector and government best practices and reviewed previous reports from IRS and oversight bodies. Taxpayers and stakeholders askedfor:

• Easily accessible, plain language tax information
• Fairness and Transparency
• Swift issue resolution at the earliest point in the process possible
• Professionalism and Respect

Based on feedback, the team defined a set of strategic goals, underlying objectives, capabilities and enablers. This framework formed the building blocks for our big ideas.

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Taxpayer Experience Strategy: Recommended Big Ideas (1 of 2)

The taxpayer experience has been reimagined based on the following six big ideas, which represent the long- term goals we hope to achieve over the next 10 years:

#1: Proactive Outreach and Education

Summary: The IRS will educate the taxpayer community by proactively providing information in the language, timing, and method taxpayers need or prefer.

• Leverage multiple means including

social media, trusted partnerships, customized digital options, and new technology to deliver information and personalized messages.

• Educating taxpayers will serve to

increase taxpayer confidence in meeting their tax obligations. Key Capabilities: Personalized Tax Updates, Social Media Strategy, Simplify and Improve Notices and Correspondence, Plain Language Communications

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#2: Expanded Digital Services

Summary: The IRS will expand access to information and assistance, offering an improved experience for those who prefer self-service through digital channels.

• Enhance the IRS’ Online Accountfor

individual taxpayers and expanding this service to Tax Professionals and Businesses.

• Enhance authenticated online self-

services to include account updates, full interaction history and issue status, increase electronic receipt of filings and scanning/data capture for paper filings, secure document exchange andmore. Key Capabilities: Expand Online Account, Tax Professional Online Account, Business Online Account, Expand Payment Options, Secure Document Upload

#3: Seamless Experience

Summary: The IRS will offer personalized online experience for all taxpayers and their authorized tax professionals.

• Enable taxpayers to seekservice

and information through the channel

• f their choice.
• Taxpayer information from one

interaction is passed on to the next employee or channel, streamlining the process and expediting resolution.

• All live web chat and telephone

employees will be trained to provide IRS concierge navigation support. Key Capabilities: Concierge Navigation Support, AI-Powered Digital Appointments, 360 Degree View of Taxpayer Account by Assistor, AI- Powered Informational Web Chat, AI Powered Employee Assistant, Wait Time Transparency, Expand Automated Callback

#6: Enterprise Data Mgmt. & Advanced Analytics

Summary: IRS will develop an Enterprise Data Management strategy that includes a cross-enterprise understanding of the customer experience, emerging needs and expectations and operational data.

• Assist in understanding customer

profile, behavioral and transactional data, and the services that support the customer.

• Supported by a central repository of

integrated data from IRS systems that stores current and historical data.

• Improve compliance efforts,

resolving cases faster and focusing

• n impactful issues.

Key Capabilities: Capturing Comprehensive Set Of Data For Analytic Purposes, Automated Feedback Loop, Employing Advanced Analytics For Compliance Purposes, Sharing Data with other state, federal agencies, and third parties

Taxpayer Experience Strategy: Recommended Big Ideas (2 of 2)

#4: Focused Strategies for Reaching Underserved Communities

Summary: The IRS will establish a consolidated program to engage with historically underserved communities to address issues of communication, education, transparency, trust, and of the limited access to quality products and services.

• Develop custom strategies for each

underserved segment based on focused research, bestpractices, and learning from partners on ways to better interact within these communities.

• Provide personalized education and
• utreach to ensure taxpayers are

engaged, heard, informed and clearly understand what is expected

• f them.

Key Capabilities: Multi-Language, International

#5: Ecosystem of Partnerships

Summary: IRS will establish, shepherd and facilitate a collaborative and interactive network of partnerships across the entire tax ecosystem and bring together existingefforts.

• Bring innovative ideas and

approaches to our stakeholder and trusted partner collaborations.

• Collaboratively explore new ways to

better serve the needs of all taxpayer segments and provide appropriate assistance.

• Seek new partnerships to better

reach and interact with our taxpayers. Key Capabilities: Co-located Federal Government Services, Build and Expand Trusted Stakeholder Networks, Leverage Community Outreach Best Practices, Expand Community Presence, Sharing Data with other state, federal agencies, and third parties*

The taxpayer experience has been reimagined based on the following six big ideas, which represent the long- term goals we hope to achieve over the next 10 years:

12 *Also a Key Capability for Big Idea #6 12

TRAINING STRATEGY

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The TFA Training Strategy will include input from listening sessions with IRS employees and stakeholders to identify opportunities for improvement. Training Insights

Training: Developing a strategy

There is a lack of funding Create an environment that promotes continuous learning Embrace a more collaborative, unified, integrated learning approach Ensure that training is interactive Provide basic foundational knowledge training to all IRS new hires Training needs to be consistent and current Request process needs to be digitized Instructors need to be better equipped / prepared Audit trainings to ensure trainings are effective Consolidate training software and improve its usability

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Training Strategy: Focusing on Taxpayer Experience

In order to improve the taxpayer experience, we will need to equip employees to provide top-quality service. Training will position the workforce to put the taxpayers first.

Improving The Taxpayer Experience By Putting Taxpayers First Enabled by A ComprehensiveTraining Strategy

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Empower Employees to Solve Taxpayer Issues Increase Employee Knowledge Expertise Equip Employees With Tools To Provide Excellent Customer Support

• Increased organizational

awareness

• Communities of practice to

share knowledge and problem-solve

• Create a Learning

Organization that drives efficiency effectiveness and agility

• Employee development

along well-defined career paths

• Comprehensive leadership

development programs

• Expand our capability to

deliver learning and training utilizing technology

• Create acontinuous

learning environment

• Universal People First

(customer service) training

• Strategic alignment of

training with IRS mission, goals, andobjectives

• Implement governance

measures to continually improve employee training experience

The Taxpayer First Act Training Strategy will aim to empower the workforce of the future by equipping our employees with the skills and tools needed to advance their careers, provide high-quality service to taxpayers and ultimately enhance the taxpayer experience.

Training Strategy: Recommended Key Components (1 of 2)

IRS University We will establish a unified learning

• rganization that is modern, innovative

and leverages technology to provide enhanced training experiences for employees.

• Within the university, we will develop

academies to organize training curriculums and developmental activities around established career paths.

• Strategic use of skills and competency

assessments will improve our workforce planning and hiring efforts.

Key Capabilities: Learning Management System, Virtual Delivery Platform(s), Strategic Hiring, Knowledge Transfer / SuccessionPlanning

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Taxpayer-Focused Training We will equip all IRS employees with a working knowledge of our Taxpayer Experience Strategy and organizational awareness.

• This will be accomplish through a

standardized curriculum, while also encouraging professionalism, effective communication, and empathy.

• The IRS will also emphasize training on

civility and unconscious bias.

Key Capabilities: People First and Organizational Awareness Foundational Training, Leadership Programs, Core Curriculum, Portable Skills

The Taxpayer First Act Training Strategy will aim to empower the workforce of the future by equipping our employees with the skills and tools needed to advance their careers, provide high-quality service to taxpayers and ultimately enhance the taxpayer experience.

Training: Recommended Key Components (2 of 2)

Continuous Learning for All Employees We will establish and promote a continuous learning environment that will include education and developmental activities.

• This will equip employees to

perform their current role, develop higher levels of technical expertise along a career path, and support the development of portable skills that allow individuals to change roles within the IRS.

Key Capabilities: Career Pathing, Communities of Practice, Knowledge Management, Information Learning

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Leveraging Technology We will improve technology to create accessible, high-quality and effective training programs. We will implement new technology to accommodate the administration, delivery and tracking

• f the training lifecycle.
• Improved systems will create a

single access point for employees and training personnel.

Key Capabilities: Single Access Point, Learning Management System, Virtual Training Tools

Measuring Effectiveness We will apply the New World Kirkpatrick Model – the industry leader in training evaluation - to

• btain relevant feedback from

employees, taxpayers and key stakeholders.

• The IRS will use this feedback to

make necessary training adjustments and continuously improve our training capabilities.

Key Capabilities: Training Surveys, Federal Employee Viewpoint Survey, Pulse Survey, Assessments

ORGANIZATIONAL REDESIGN STRATEGY

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Organization Redesign Strategy: “Structure Follows Strategy”

Big Ideas:

• Proactive Outreach andEducation
• Expand Digital Services
• Seamless Experience
• Ecosystem ofPartnerships
• UnderservedStrategies
• Enterprise Data Management and AdvancedAnalytics

The Organizational Redesign Strategy will aim to provide a structure to enable the IRS to execute both the Taxpayer Experience Strategy and the Training Strategy.

Taxpayer Experience Strategy Focus on creating a proactive, convenient, seamless, personalized and effective taxpayer experience strategy that addresses feedback provided by taxpayers and other stakeholders. Training Strategy Focus on equipping employees with the ability to: (1) deliver the Taxpayer Experience Strategy, (2) understand, prepare for, and support anychanges to a new IRS organizational structure, and (3) use new technology to meet customer needs.

CriticalComponents:

• Customer ServiceFocused
• Ongoing Training
• Learning Organization
• Success Measures

Org Redesign Strategy Focus on improving / modernizing theexisting IRS organizational structure to: (1) deliver the Taxpayer Experience Strategy, (2) enable more efficient internal operations, (3) reduce organizational redundancies, and (4) improve the overall employee / internal customer experience.

19 Components:

• Organizational Design
• Organizational structure

recommendations

Organization Redesign Strategy: Basis for Change

There are a series of factors that are driving the IRS to reconsider a new organizational structure

Internal & External Stakeholder Feedback Legislative Mandate-§1302

The Taxpayer First Act requires a comprehensive plan to reorganize the Service. IRS executives view this as an opportunity to re-examine the current structure to better meet the IRS mission and serve taxpayers without the restrictions defined by RRA98. Feedback from internal stakeholders (e.g., executive interviews, IRS Source) and external stakeholders (e.g., TFA forums, listening sessions) have highlighted

• pportunity areas for a future organizational structure.

Congressional Expectations

Recent discussions with members of Congress and Treasury have provided additional clarity on their expectations for future restructuring.

Industry Trends and Best Practices

In recent years, industry and peer revenue agencies have adopted new organizational models to address evolving customer expectations and improve the efficiency and effectiveness of their internal operations. The IRS can act on these best practices and lessons learned.

Enable the Training Strategy

The organizational structure must enable and support the vision defined in the Training Strategy.

Enable the Taxpayer Experience Strategy

The organizational structure must enable and support the vision defined in the Taxpayer Experience Strategy. 20

Organization Redesign Strategy: Document Research Methodology

The TFAO Organizational Redesign team researched documents to identify industry best practices that became the foundation for IRS organizational design solutioning.

Form Research Questions

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Research questions related to organizational design were consolidated to form initial research approach

• What does an
• rganizational redesign

approach look like?

• IRS-specific: How has

the IRS restructured in the past?

• Private Industry: What

are industry best practices as it relates to

• rganizational redesign?
• International Agency:

What models / current structures do other revenue agencies utilize? Establish Initial Repository

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A grouping of documentation was identified that would help identify TFA-relevant insights

• Internal IRSartifacts
• Business Unit studies /

reports related to

• rganizational redesign
• Government wide

guidance

• Articles (e.g., Harvard

Business Review, Forrester) for private sector research and industry best practices Select Documentation

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Research materials were selected after meeting a set criteria

• Included information

related to organizational redesign

• Provided insight on how

similar work had been performed in the past at the IRS (e.g., RRA ‘98)

• Provided industry

insights (e.g., best practices, recommendations) on

• rganizational redesign
• Provided insights on

how customer experience will impact

• rganizational redesign

Analyze Documentation & Record Insights

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Research materials were analyzed to identify and document

• rganizational redesign

insight

• Private sector insights

into organizational structures / design, customer experience, and operational efficiencies

• Synthesis of 18 TIGTA

reports, including TIGTA’s “management challenges” from FY2018-FY2020

• Summary takeaways of

23 GAO reports

• Organizational models

from peer-revenue agencies (e.g., HMRC, ATO)

Organization Redesign Strategy: Stakeholder Insights to Inform Structure

A comprehensive analysis of stakeholder feedback has indicated that there are 11 key insights that should be taken into consideration as part of an enterprise-wide redesign.

Includes organizational design implications

Expand Data Analytics

More effectively leverage data analytic capabilities across the Service to have greater insights into taxpayer behaviors and potential processes inefficiencies

Enhance Taxpayer Experience

Create an organizational design that enhances the taxpayer experience and increases taxpayer’s access to information or direct IRS assistance

Streamline Compliance Functions

Develop a uniform approach to compliance processes to ensure efficient operations and consistent outcomes for resolving taxpayer compliance issues

Encourage Innovation

Encourage innovative ideas for supporting tax administration and the identification of new policies or procedures (e.g., centers of excellence)

Remove Operational Silos

Optimize business unit collaboration by prioritizing learning or best practice sharing opportunities

Streamline Executive Decision Making

Identify a reporting structure that streamlines decision making, holistically addresses organizational issues, and effectively weighs organizational priorities

Improve Training, Hiring & Onboarding

Streamline the process for hiring and onboarding resources. Identify opportunities to effectively align employees with

• rganizational needs

Funding

Re-examine how funding is allocated across the Service to ensure efficient and effective use of resources

Does not necessarily include

• rganizational designimplications

Culture

Address organizational culture challenges so that leaders and employees feel empowered to take action and are open to change and innovation

Governance

Enable efficient and transparent decision-making processes in senior executive governance and decision-making forums

Accountability

Encourage and clearly define accountable parties for

• rganizational priorities and ownership of strategic initiatives

22 TFA Update 22

Next Steps

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• Hold sessions to share IRS recommendations with IRS

personnel and external stakeholders & collect feedback

• Finalize the Report to Congress
• Formal submission of the Report to Congress in

December 2020

APPENDIX

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The TFA Office committed to inclusive and transparent implementation of the T axpayer First Act. This commitment includes multiple “listening sessions” with tax professionals, industry leaders and other stakeholders. IRS.gov hosts TFA information and an email address to contact the IRS with input and feedback.

• Congress
• IRS advisory councils
• Tax professionals and practitioners
• Tax software providers
• Reporting agents, accountants
• Council for Electronic Revenue Communication

Advancement, American Institute of Certified Public Accountants, American Bank Association

• Security Summitpartners
• Diverse interest groups: American Association of Retired

Persons (AARP), Latino Tax Professionals, American Citizens Abroad, Indian Tribal Governments, Low Income Tax Clinics (LITC)

• Small Business Forum
• Diverse groups of taxpayers through the Taxpayer

Advocacy Panel in coordination with the National Taxpayer Advocate

Outreach

IRS has connected with external audiences through listening sessions held by:

• TFA Office
• National PublicLiaison
• Stakeholder Liaison
• Various outreach sessions through IRS offices

Online

IRS.gov hosts current updates on TFA provisions and a direct email address for external audiences:

• https://www.irs.gov/taxpayer-first-act
• Social Media directs users to IRS.gov
• TFAO@irs.gov

Communications and Outreach: External

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The TFA Office collaborates with various IRS offices to ensure employees understand the legislative changes and impacts of the Act, and have opportunities to contribute to implementation. A critical part of the implementation includes gathering input f rom employees and managers on the taxpayer experience, training and organizational redesign strategies.

IRS Source TFA Site

• Feedback portal
• Frequently Asked Questionspage
• Provision summaries and highlightarticles
• Latest TFA news section
• Resources and other information
• “TFA in Action page” highlighting town halls, site visits and feedback

sessions

• *TFA Request mailbox

Manager Resources

iManage TFA Manager toolkit includes:

• Talking points
• Discussion Placemat exercise
• Frequently Asked questions
• Fact Sheets
• External toolkit
• Speaker request form

“Listening Sessions”

• Town halls, interactive meetings and feedback brainstorms
• TFA Innovation Lab
• Five major IRS site visits
• New Carrollton Federal Building pop-up session
• Discussion Placemat exercise

Engaging in two-way dialogue with employees and managers, gathering input on proposals and ensuring they understand that they are the cornerstone of our efforts. Collaborating with internal stakeholders to educate and engage across the agency:

• NTEU
• Office of Change Management
• Geographic Leadership Councils
• Employee Organizations
• PMA/FMA

Focusing on creating interactive sessions for employees to learn about TFA, share their ideas and engage with the TFA Office. Providing managers the tools they need to keep their employees informed, encouraging two-way feedback and serving as champions of TFA. 26

Communications and Outreach: Internal

Communications & Liaison STAKEHOLDER LIAISON

Richard Furlong, Jr. Senior Stakeholder Liaison 267-941-6343 richard.g.furlong@irs.gov

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