A new report from the Treasury Inspector General for Tax Administration (TIGTA) is raising concerns about the accuracy and oversight of the IRS’s chatbot and live chat programs, warning that unreliable responses could lead taxpayers to make filing mistakes or seek additional assistance. 

Accounting Today reports that the audit reviewed 40 live assistors and found that 60% were handling multiple chats simultaneously. TIGTA cautioned that managing several conversations at once could reduce service quality and increase the risk of taxpayer information being disclosed to the wrong person. 

The report also identified issues with the IRS’s automated chatbot system. TIGTA found 29 responses and 44 keywords or questions for which the chatbot either failed to provide sufficient information or could not recognize the taxpayer’s inquiry. According to the report, inaccurate or incomplete responses could cause taxpayers to file incorrect returns or require them to contact the IRS through other channels for clarification. 

The IRS began piloting live chat services in 2017 and expanded its use of automated chatbots in 2021 as part of broader efforts to improve taxpayer service and reduce pressure on toll-free phone lines. However, TIGTA found that the IRS has not established performance measures to evaluate the effectiveness of the chat applications because they are still considered part of a pilot program, despite being used by millions of taxpayers annually. 

TIGTA made nine recommendations aimed at improving oversight, data reliability, and performance monitoring. The IRS agreed with all nine recommendations and said corrective actions are either underway or already implemented. In response to the report, IRS Small Business/Self-Employed Division Commissioner Lia Colbert noted that the chat program now serves millions of taxpayers each year and provides both automated assistance and access to live representatives when more complex support is needed.