Letter to IRS on Inflation Reduction Act Strategic Operating Plan

Dear Acting Commissioner Paz and Chief Transformation and Strategy Officer Padrino:

The American Bankers Association (ABA) is pleased to have the opportunity to comment on the Internal Revenue Service (IRS) Inflation Reduction Act Strategic Operating Plan (Publication 3744, or the "Strategic Operating Plan").

As financial institutions, ABA members play a key role in tax compliance and IRS enforcement regimes by providing critical information to both taxpayers and the IRS—through the creation and management of a plethora of documents, including Forms 1099, Schedule K-1s, Suspicious Activity Reports, Currency Transaction Reports, FBARs, and many more. ABA members are thus subject to numerous tax and information reporting requirements, with hefty monetary penalties for incorrectly filing (or failing to file) requisite information.

The Strategic Operating Plan provides a useful framework for how the IRS intends to spend the approximately $79.4 billion in supplemental funding allocated to the agency under the Inflation Reduction Act, and generally notes the IRS aims to achieve several overarching objectives with this supplemental funding including:

• Dramatically improving services to help taxpayers meet their obligations and receive the tax incentives for which they are eligible;
• Quickly resolving taxpayer issues when they arise; and
• Delivering cutting-edge technology, data, and analytics to operate more effectively.

Download the letter to read the full text.