This paper examines the Internal Revenue Service (IRS) as an organization in need of meaningful human resources reform, focusing specifically on improving the quality and frequency of positive customer interactions. Drawing on the landmark Internal Revenue Service Restructuring and Reform Act of 1998, the paper identifies systemic failures in IRS employee conduct and proposes a multi-pronged HR strategy. Recommendations include revising staff training content, recording and monitoring customer calls, broadening recruitment to include candidates with strong interpersonal skills, and implementing structured performance appraisal systems. The paper argues that proactive internal reform is preferable to federally mandated change and that a motivated, well-trained workforce will produce better outcomes for both the organization and the millions of Americans it serves annually.
Tax season is upon Americans every year, and every working American knows that interactions with the Internal Revenue Service (IRS) are inevitable and often profoundly displeasing. Citizens may feel powerless against the institution of the IRS because it is a part of the federal government — as if they must accept poor treatment and that the organization will not be held accountable. That assumption is untrue. In 1998, a piece of legislation was passed in response to charges brought against the IRS by a Senate Finance Committee. This paper identifies the IRS as an organization ripe for change with regard to human resources. It proposes a specific change in the IRS and hypothesizes both the implications and the implementation of that change.
The change that needs to be made is improved quality and frequency of positive customer interactions. This change is necessary because the IRS is an organization with which millions of Americans interact annually. Participation in taxation is mandatory in America, with severe penalties for tax fraud and tax evasion. As an organization that serves millions of Americans from all walks of life, it is critical that interactions remain as professional and civil as possible, since taxation is a delicate issue for many. It is furthermore important that the IRS make this improvement proactively rather than waiting for federal mandate — as occurred in 1998, when the IRS was required to make significant changes to its human resources departments and procedures (Henning, 1999, p. 405). Representatives of the IRS admitted before a Senate hearing committee to gross violations of human resources codes regarding ethics and morality, both internally and in dealings with customers (Henning, 1999).
The IRS is responsible for the acquisition and management of every American's tax returns each year, as well as significant quantities of funds and other financial collateral. It is therefore critical that an organization bearing such enormous responsibility — and in direct contact with most of the domestic population — be consistently courteous, ethical, and professional in conducting its business. The IRS is part of the federal government and is, by definition, an institution of civil service. Antagonism and civil service are counterintuitive to one another. It is illogical for civil servants to be hostile; those who cannot conduct themselves appropriately should consider a different field.
If improvements are not made in customer relations, the consequences could be severe. Staff could be dismissed; there could be significant restructuring of the organizational hierarchy; and the public could revolt. Americans have a well-documented history of rebelling over taxation issues. The stakes for meaningful reform are, therefore, both institutional and political.
The IRS has clear options when addressing this issue. First and foremost, the IRS needs to modify the training content and procedures for its workforce. Educating the workforce makes employees at least partially responsible for the change in service culture. When all staff members have been trained under the same standards, no individual can claim ignorance of the policies, procedures, or penalties associated with inappropriate customer relations.
Many federal agencies claim or imply that calls between customers and staff are recorded, but verification is often unclear. These calls should not only be recorded — they should be actively monitored by the IRS's human resources department. When exemplary customer interactions occur, staff should be informed and recognized. When patterns of inappropriate behavior emerge, employees should be notified, retrained, and, where necessary, penalized. This kind of systematic oversight creates accountability and reinforces the behavioral standards the organization seeks to promote.
The IRS could also seek different character traits in newly hired staff — traits that stand in contrast to the behaviors exhibited by employees who have struggled with customer relations. The IRS could expand its conception of the ideal employee and open positions to applicants from backgrounds not typically represented in its current or former workforce. Historically, IRS employees have come from fields such as finance, administration, accounting, and information technology — disciplines that are not inherently people-centered or interaction-heavy.
Perhaps if the IRS recruited actors, educators, salespeople, film producers, nonprofit leaders, event planners, and others whose professions require exemplary communication and social skills, customer service would improve dramatically. Overall efficiency and productivity could improve as well. Broadening the talent pool is not a departure from organizational competence — it is an enhancement of it.
"Hiring candidates with stronger interpersonal skills"
"Performance appraisal, retention, and employee motivation"
Thompson, J. R. (2006). The federal civil service: The demise of an institution. Public Administration Review, 66(4), 496–503.
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