Do you use a fax machine? I do. The IRS insists.

There’s a lot of talk about the IRS recently. I’ve been a tax professional for awhile, so I get it.

It’s no secret that I’m not the IRS’ biggest fan, but I DO support increased funding as per the Inflation Reduction Act. Why? Here’s an example of a recent IRS interaction that I had on behalf of a client:

Client: The IRS sent me a letter saying I owe $XXX!!! Ummm….??
Me: Your extension payment wasn’t posted to your tax account. Once that’s fixed, you’ll actually show as overpaid. I’ll reach out to them to resolve.
Client: Whew! Sure.

Me: <Calls IRS to discuss. On hold for 1.5 hrs> Hi! Can you help me with this issue?
IRS: No. You don’t have proper authority on the taxpayer’s account for me to talk with you.
Me: I prepared this taxpayer’s tax return. I’m listed as third-party designee. You’re allowed to talk with me.
IRS: No. You need to obtain tax power of attorney to talk with us about this particular issue.
Me: Okay…

Me: Sorry, client. I’ll need a special form before the IRS will speak with me. I’ll send it to you electronically, but when you sign it can you make it look messy, but still legible? The IRS will reject e-signatures even when allowed, but if it’s TOO messy, they’ll say they can’t read it.
Client: <Baffled, but hopeful> Sure. No problem.

Me: <Calls IRS again. Waits on hold for 1.0 hrs> Hi! Can you help me with this issue?
IRS: No. You don’t have proper authority on the taxpayer’s account for me to talk with you.
Me: Aha! I do now!
IRS: Okay, fax it over to us.
Me: <Logs into online fax machine. Faxes forms to IRS. Waits 15 minutes to go through.>
IRS: There’s no payment on this account. Looks like it may have posted to another taxpayer’s account. But we can’t talk to you about THAT account because you’re not authorized. You’ll need to write us a letter to get someone assigned to work this matter.
Me: <sigh> Okay.

Me: We have to write and mail the IRS a letter. I have no idea how long this will take for them to resolve. They will continue to send you additional letters in the mail until this is resolved. Keep me posted of any correspondence they send you…which will come in the mail.
Client: <thoroughly confused> Okay.

Can you take a guess at the amount of resources - mine, my client’s, our government’s - wasted because the IRS is working with technology that had its heyday DECADES ago? At multiple steps along this path, this matter could have been quickly resolved or even avoided. More accurate payment systems, online help requests, online delivery of IRS letters to taxpayers, etc.

Issues like my client's are now the norm for taxpayers across the country. More IRS system breakdowns >> more taxpayers calling and writing the IRS >> less IRS capacity to handle taxpayer interactions = race to the bottom.

Do I love the IRS? Nope. Do they need funding to catch up with the times? Absolutely.