In surprise announcement, IRS says it will stop unannounced tax visits

investmentnews.com:

In a move that has significant implications for tax practitioners, the Internal Revenue Service declared Monday, in a drastic shift in its longstanding policy, that it will stop making unexpected home and business visits. The IRS has traditionally used these surprise visits as a strategy to recover unpaid taxes but faced growing criticism and safety threats to its employees.

This strategic alteration takes place in tandem with the agency’s substantial technology modernization project, representing a financial investment in the billions. The project focuses on tax code enforcement, customer service enhancement, and technological advancement. Concurrently, the IRS faces intensifying scrutiny due to accusations of political prejudice from Republicans and allegations of overly harsh tactics from taxpayers.

IRS Commissioner Daniel Werfel characterized the initiative as a “common-sense step” and a fresh perspective on improving the IRS’ operations. In a statement, Werfel argued that transforming the public perception of the IRS — viewed as a door-to-door tax collector — would both amplify taxpayers’ trust in tax administration and ensure safety for all parties involved.

This shift aligns with the agency’s effort to promote a more customer-oriented approach. Amid partisan rhetoric insinuating a colossal IRS recruitment drive aimed at small businesses and the middle class, the agency is striving to navigate increasing taxpayer hostility. This deteriorating environment has heightened the risk for IRS agents, culminating in a comprehensive security review as a result of targeted threats spurred by misinformation and false social media posts.

Going forward, the IRS plans to replace unanticipated visits with mailed notifications to