Irs Strategic Plan

Final Strategic Plan:

The Internal Revenue Service

Nicola C Baltimore

Strategy Formation and Implementation -- MGT 578

Robert Powers

January 12, 2005

University of Phoenix

Table of Contents

TABLE OF CONTENTS 2

EXECUTIVE SUMMARY 4

VISION STATEMENT 4

MISSION STATEMENT 5

VALUES STATEMENT 5

ENVIRONMENTAL ANALYSIS 5

INTERNAL ANALYSIS 5

EXTERNAL ANALYSIS 6

SWOT ANALYSIS LIMITATIONS 6

GOAL 1: IMPROVE TAXPAYER SERVICE 6

GOAL 2 - ENHANCE ENFORCEMENT OF THE TAX LAW 7

GOAL 3: MODERNIZE THE IRS THROUGH ITS PEOPLE, PROCESSES AND TECHNOLOGY 7

CRITICAL SUCCESS FACTORS 8

VISION STATEMENT 12

MISSION STATEMENT 13

VALUES STATEMENT 14

ENVIRONMENTAL ANALYSIS 16

INTERNAL ANALYSIS 17

EXTERNAL ANALYSIS 17

SWOT ANALYSIS LIMITATIONS 19

LONG TERM OBJECTIVES 19

GOAL 1: IMPROVE TAXPAYER SERVICE 20

GOAL 2 - ENHANCE ENFORCEMENT OF THE TAX LAW 20

GOAL 3: MODERNIZE THE IRS THROUGH ITS PEOPLE, PROCESSES AND TECHNOLOGY 21

MEANS AND STRATEGIES 22

FINANCIAL PROJECTIONS AND ANALYSIS 26

CRITICAL SUCCESS FACTORS 27

CONTROLS AND EVALUATION 29

REFERENCES 30

Executive Summary

The Internal Revenue Service (IRS) has a long history. The Agency is currently divided into 4 Divisions:

* The Wage and Investment Division, serving approximately 116 million taxpayers who file individual and joint tax returns.

* The Small Business/Self-Employed Division, serving approximately 45 million small businesses and self-employed taxpayers (This writer is employed within the SB/SE Division).

* The Large and Mid-Size Business Division, serving corporations with assets of more than $10 million.

* The Tax-Exempt and Government Entities Division, serving employee benefit plans, tax-exempt organizations, such as charities and social welfare groups, and governmental entities (IRS History and Structure, ¶ 4).

Vision Statement

The IRS should reinvent their internal business model across all operating divisions to one that embraces standardized electronic interactions. "The IRS in 2009 is a 21st Century agency with the human capital and technology capabilities to effectively and efficiently collect the taxes owes with the least disruption and burden to taxpayers" (Internal Revenue Service Strategic Plan 2005-2009, p. 4).

Mission Statement

The Internal Revenue Service is a service organization whose fair and efficient operation is essential to fund the federal government. The IRS exists to help people understand and meet their tax responsibilities and to administer the tax laws in a courteous and consistent manner and with the utmost integrity (IRS Mission Statement, 1998, ¶ 4).

Values Statement

As the Internal Revenue Service works to improve the image of the agency among the public and the employees of the agency, while meeting the needs of the public, values are a primary factor.

Environmental Analysis

SWOT stands for Strengths, Weaknesses, Opportunities, and Threats.

Situation Analysis

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Internal Analysis External Analysis

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Strengths Weaknesses Opportunities Threats

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SWOT Profile

Internal Analysis

Internal factors are:

Changes in Workforce (Internal Revenue Service Strategic Plan 2005-2009, p. 8)

The SWOT analysis summarizes the internal factors of the agency as a list of strengths and weaknesses.

External Analysis

External factors are:

Legislative changes

Abusive tax avoidance transactions

Terrorism (Internal Revenue Service Strategic Plan 2005-2009, p. 8)

Interviews were held with a spectrum of stakeholders such as employees, taxpayers, customers, technology resources and strategic partners to determine the SWOT profile for the Internal Revenue Service.

SWOT Analysis Limitations

Technological changes, on which the Internal Revenue Service wishes to concentrate, may be viewed as opportunities or threats. The Internal Revenue Service is committed to helping people understand the tax obligations and to making it easier for them to participate in the tax system. "The Internal Revenue Service has steadily improved their customer satisfaction rating since the enactment of the Restructuring and Reform Act of 1998" (Internal Revenue Service Strategic Plan 2005-2009, p. 12).

Goal 1: Improve Taxpayer Service

Objectives

Improve service options