The Internal Revenue Service's Future State initiative and its impact on the tax dispute resolution system of the United States: a dispute systems design perspective

摘要

The United States (US) Internal Revenue Service (IRS) is currently undertaking a Future State initiative which aims to improve taxpayer service, enforcement and operations through the use of technology. The purpose of this article is to provide a Dispute Systems Design (DSD) evaluation of the tax dispute resolution system in the US in the context of the IRS's Future State initiative. Following a DSD evaluation of the US tax dispute resolution system, this article discusses the impact of various aspects of the IRS's Future State initiative on the tax dispute resolution system and their potential implications on voluntary compliance. This includes concerns surrounding the reduction in the availability of face-to-face interaction between IRS employees and taxpayers in resolving tax disputes as a consequence of the introduction of online and digital alternatives. This article also provides possible lessons for tax administrations undertaking similar modernisation or digitalisation programs in other jurisdictions.