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If you get a tax bill and want help from the IRS to set up a payment plan, the new expanded voice bot can make for faster phone service, according to agency, But some tax professionals are skeptical about the new plan to reduce waiting times.
Artificial Intelligence-powered IRS voice bots can now help taxpayers set up or modify their phones payment plan,
“For the first time in 160 years, this agency is able to successfully interact with a taxpayer using artificial intelligence and, in some situations, without waiting, access their account and able to solve it.” Call.
However, callers can still speak to an agent if needed.
Doing so is easier said than done.
Officially, the average phone wait time in 2021 was 23 minutes, according to National Taxpayer Advocate, But the agency is struggling with staffing and increased call volumes. In his 2021 report to Congress, the National Taxpayer Advocate touted phone service as one of the most important issuesGiven that the agency answered only 11% of the calls during the financial year 2021.
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How voice bots can solve some taxpayer problems
Here’s how a voice bot works: When you get a bill from the IRS, you can call the agency and follow the voice-prompted steps to verify your identity. By providing caller ID from your IRS letter, bots can share payment plan options and help set one up.
According to agency officials, you may be eligible to use the service with a tax balance of $25,000 or less, which is the majority of IRS payment plans.
The IRS has used phone-answering voice bots since January to reduce long wait times to answer basic payment or notice questions. However, the latest upgrade is the first opportunity for voice bots to solve the taxpayer’s problem.
Of course, complex problems, such as punitive relief or hardship, may still require a living agent, the IRS said.
Agency plans to expand voice bot capability to allow authenticated callers to receive tax transcriptPayment history and current dues.
Tax professionals remain ‘skeptical’ about voice bots
While the IRS expects the newly expanded features to be fully deployed this week, some tax professionals are still concerned about voice bots.
Dan Heron, a certified financial planner and CPA with Elemental Wealth Advisors in San Luis Obispo, Calif., said the Voice bot is a good idea for “very simple things,” such as balance questions. But he is “very skeptical” about bots setting up a payment plan with many moving parts.
Does anyone really get anything fixed by AI voice bots for any company, let alone the Internal Revenue Service?
Adam Markowitz
Howard L Markowitz PA, Vice President at CPA
What’s more, unanswered voice bots can trigger further frustration among callers, said Adam Markowitz, an enrolled agent and vice president at Howard L. Markowitz PA, CPA, in Leesburg, Florida.
“Does anyone really get anything fixed by AI voice bots for any company, let alone the Internal Revenue Service?” He added.
Phyllis Joe Kube, a New York-based enrolled agent and president of the New York State Society of Enrolled Agents, is optimistic about the expanded Voice Bots and commends the agency for “more sophisticated automated taxpayer assistance.”
However, he worries that taxpayers may “bite off more than they can chew” and agree to unrealistic monthly payments when setting up a plan through the automated system.
“I expect the IRS to have AI set up to inquire with the taxpayer whether they can make the monthly payment they agreed to,” she said.
CNBC has reached out to the IRS for comment.