The Internal Revenue Service
Nicola C Baltimore
Strategy Formation and Implementation -- MGT 578
January 12, 2005
University of Phoenix
Table of Contents
TABLE OF CONTENTS2
SWOT ANALYSIS LIMITATIONS6
GOAL 1: IMPROVE TAXPAYER SERVICE6
GOAL 2 - ENHANCE ENFORCEMENT OF THE TAX LAW7
GOAL 3: MODERNIZE THE IRS THROUGH ITS PEOPLE, PROCESSES AND TECHNOLOGY7 CRITICAL SUCCESS FACTORS8
SWOT ANALYSIS LIMITATIONS19
LONG TERM OBJECTIVES19
GOAL 1: IMPROVE TAXPAYER SERVICE20
GOAL 2 - ENHANCE ENFORCEMENT OF THE TAX LAW20
GOAL 3: MODERNIZE THE IRS THROUGH ITS PEOPLE, PROCESSES AND TECHNOLOGY21 MEANS AND STRATEGIES22
FINANCIAL PROJECTIONS AND ANALYSIS26
CRITICAL SUCCESS FACTORS27
CONTROLS AND EVALUATION29
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).
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).
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).
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.
Internal Analysis External Analysis
/ \ / \
Strengths Weaknesses Opportunities Threats
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:
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...