WRITTEN TESTIMONY OF
DANIEL WERFEL
COMMISSIONER
INTERNAL REVENUE SERVICE
BEFORE THE
HOUSE WAYS AND MEANS COMMITTEE
ON THE FILING SEASON AND THE IRS BUDGET
APRIL 27, 2023

INTRODUCTION
Chairman Smith, Ranking Member Neal and members of the Committee, thank
you for the opportunity to discuss the 2023 filing season and the IRS budget.
I am honored to serve as the 50th IRS Commissioner and have the chance to
lead a group of extremely dedicated and talented public servants at a pivotal
moment in IRS history. My first few weeks as Commissioner have reinforced my
belief in the importance of the IRS to the nation, as I have witnessed the ongoing
efforts of our workforce to fulfill the critical mission of administering the nation’s
tax system. This includes administering the tax filing season, which has gone
smoothly in terms of processing tax returns, the operation of our information
technology systems and improvements in taxpayer service.

As I begin my new role, I have a unique opportunity coming into the agency to
bring a fresh perspective on our operations, examining them to determine where
improvements can be made and what processes and controls need to be
strengthened to better fulfill our mission. Ensuring a high-performing IRS is
critical for our nation, as the agency collects more than $4 trillion in revenues
each year, generating about 96 percent of the funding that supports the federal
government’s operations – everything from roads and other infrastructure to
education and the nation’s military.

We greatly appreciate the funding provided by Congress in the Inflation
Reduction Act of 2022 (IRA), which has already allowed us to make
improvements in many areas, including our levels of service on the phones and
in person during the 2023 filing season. In tandem with the IRS’ annual
discretionary budget, this critical, sustained multi-year funding will allow the
agency to transform its operations– through improved taxpayer service, smarter
enforcement, upgraded technology, and better data security.

We must be transparent about our work, be responsible stewards of the taxpayer
dollars we receive, and collaborate with Congress and other oversight entities. A
good example of how we are striving for better transparency is the IRA Strategic
Operating Plan we issued earlier this month. This plan lays out our objectives,
initiatives and milestones for transformation of the agency, and will be described
in more detail later in this testimony. In all of our efforts, our ultimate goals are to
provide all taxpayers with world-class customer service and implement the tax
code in a way that safeguards the rights of taxpayers and promotes tax fairness.
UPDATE ON THE 2023 FILING SEASON.

I am pleased to report the 2023 tax filing season, which began on time on
January 23, has gone well. Through April 14, the IRS received more than 117
million individual federal tax returns and issued more than 75 million refunds
totaling more than $215 billion. It is important to note that, although we are now
past the April 18 filing deadline, the work of the filing season continues, as IRS
employees continue to process tax returns, including amended returns and
returns for which taxpayers have requested an extension through mid-October.
This filing season, following the infusion of IRA funding, the IRS has been able to
provide taxpayers with a substantially better experience than they have seen for
several years. Notably, we have answered more calls from taxpayers seeking our
help than in 2022, and we have significantly reduced their wait time on the
phones, provided more in-person assistance at our Taxpayer Assistance Centers
(TACs) around the country, and provided more online services for taxpayers who
prefer using this service channel.

Examples of the improvements seen this filing season include:
Access 10 Page Report