Can you expect faster tax refunds in the future? Recent customer service improvements and technology upgrades at the IRS suggest that a new “normal” — where people receive their federal tax refunds sooner than they did in the past — is a strong possibility. The funding for the agency’s improvements, some of which have helped the IRS clear a pandemic backlog of over 23 million unprocessed tax returns, comes thanks to the Inflation Reduction Act (IRA). The IRA allocates $80 billion in funding for the IRS over ten years and the agency recently released a report detailing how it plans to use the funds.
According to agency officials, some taxpayers already saw the benefits of IRS service improvements this filing season. In an annual report to Congress, The National Taxpayer Advocate's office points to “quicker refunds for millions of taxpayers.”
