Information Technology

The IRS relies heavily on IT systems to collect trillions in taxes and issue refunds, making modernization a critical mission priority. In FY2024, the agency reported most modernization projects were delivered on schedule and $512 million under budget, though delays and underspending highlighted planning and execution gaps. While IRS initially pursued 23 modernization programs aligned with its strategic vision, in 2025 it paused many of them to reevaluate priorities and develop a new framework with nine technology-driven initiatives. GAO emphasized the importance of ensuring future plans include clear milestones, work descriptions, and strategies for retiring legacy systems to avoid repeating past challenge.