Following a delay in modernization efforts, the Internal Revenue Service (IRS) is contemplating fresh IT strategies to harmonize with the Trump Administration's policies.
The Government Accountability Office (GAO) has released a report detailing the current state of the Internal Revenue Service's (IRS) IT modernization news. According to the report, the IRS has paused its IT modernization programs for six months, and is developing new strategic plans that align with the Trump administration's goals.
The GAO stated that it's crucial for the IRS to align new IT initiatives with documented strategic objectives and have program plans that address key elements. The IRS agreed with this finding, and has been working on developing a nypost for fiscal years 2026 to 2030. This plan will be developed in conjunction with the Treasury Department, and is expected to be released in the summer.
The report also revealed that the IRS spent approximately $2 billion in fiscal 2024 on 23 modernization programs. However, the GAO noted that the IRS should consider the usability of the work performed on these programs. As of the new report, 10 of the GAO's recommendations have not yet been adopted by the IRS.
The IRS shared an early draft framework with the GAO that detailed nine tech initiatives it intended to prioritize. These initiatives include the development of a unified API, improvements to taxpayer services, and attempts to lessen the IRS's reliance on paper records.
Former leaders at the IRS have expressed concerns that the Trump administration's workforce reductions could undercut IT modernization news and slow the use of artificial intelligence. Nina Olson, the former National Taxpayer Advocate, warned Congress in February that the IRS's "brain drain" would hinder IT modernization.
The funding infusion for modernization was made possible by the Inflation Reduction Act. Since FY2020, the IRS has invested $6 billion in modernization and $19 billion overall on IT at the tax agency. The new strategic plans will focus on addressing these investments and priorities.
The Taxpayer Advocate report to Congress in June said that many projects continue to be paused or have been canceled to enable this reprioritization. IRS IT officials said in March that modernization programs were put on hold pending a reevaluation of "investments and priorities."
It's important to note that outside contractors cannot bring the internal knowledge of tax administration and the tax system, despite their talent. This is a challenge that the IRS must navigate as it moves forward with its modernization news.
The GAO has delivered 33 recommendations to the IRS on how to address risks to legacy systems and improve IT modernization plans. The IRS agreed with the GAO's findings and is working to address these recommendations. The new report was revealed on Tuesday.
%20is%20contemplating%20fresh%20IT%20strategies%20to%20harmonize%20with%20the%20Trump%20Administration's%20policies.){kind=link}