The report also centered on the need for more funding and for the IRS to work with Congress, at a time in which conservative legislators have cut the agency's funds and insisted it can do better with what it has.

The report notes that in the 2015 filing system, the IRS provided those participating in the limited pilot program the ability to see their refund status within their tax software via an Application Programming interface. The IRS is considering expansion of these capabilities by working with third parties.

"ETAAC recommends this approach, and recommends that the IRS accelerate activities in this direction to provide taxpayers with better access to their information and to improve and streamline IRS taxpayer service," the report says.

The committee listed a number of services that might be provided via this method. These include the following capabilities for taxpayers:

*Review their prior-year tax return
*Pay by IRS Direct Pay
*Set up an installment agreement
*View current Forms W-2/1099 on file with IRS
*See whether they owe a balance
*See whether they have other tax issues on their account
*Enable a third party to help after filing by e-filing disclosure authorizations (Forms 2848 and/or 8821)
*Look up additional information (for example, in prior years, the IRS created specific look-up tools for information related to the first-time homebuyer credit and advance child tax credit payments)

The committee repeated last year's recommendation that, working with software companies, the IRS encourage taxpayers to set up an online, secure IRS taxpayer account when preparing returns electronically.

It said the IRS should also "develop a comprehensive online account for tax professionals, in conjunction with the taxpayer online account" and make it easier to authorize professional to help with compliance.

These steps, part of moving forward with a digital-first strategy, should also include the agency's providing tax software companies "with secure and timely access to certain taxpayer information within tax software" and encourage taxpayers to set up their accounts during the return preparation process and provide access through tax preparation software.