Yellen warns of damaging consequences from Republican cuts to IRS funding

U.S. Treasury Secretary Janet Yellen outlined the IRS's plans to improve taxpayer service, including reducing phone wait times, improving online tools, and providing more in-person assistance. The agency aims to achieve an 85% level of service and reduce call wait times to five minutes or less. Yellen also highlighted the IRS's paperless processing initiative, which will allow taxpayers to electronically upload and respond to notices, reducing errors and storage costs. Additionally, the IRS will pilot a limited Direct File program for certain taxpayers in 13 states to file federal returns for free, with the goal of learning and potentially scaling the program to more users.