IRS May Restrict Use of Additional ‘Modernization’ Funds

Article Summary –

The Inflation Reduction Act allocated billions to the IRS for modernizing its information technology. However, the Government Accountability Office (GAO) found that the IRS has yet to complete its strategic operating plan, which lacks a roadmap for achieving their five strategic objectives, especially the one involving technology. The GAO has recommended three steps for the IRS: to complete the enterprise roadmap, finish the modernization program plans, and improve their reporting to Congress about changes to projects.


The Inflation Reduction Act and IRS IT Modernization

The Inflation Reduction Act allocated billions to the IRS to modernize its information technology systems. However, according to the Government Accountability Office (GAO), the IRS needs to refine its plans further. Listen to the Federal Drive with Tom Temin, who speaks with GAO’s Director of Information Technology and Cybersecurity, Dave Hinchman.

IRS Modernization Plan and Funding

While the IRS has been on a modernization drive for 30 years, it needs to better utilize the funding from the Inflation Reduction Act. Of the nearly $5 billion dedicated to the business systems modernization, the IRS has yet to provide a comprehensive roadmap for its strategic objectives, including actionable information to monitor progress.

IRS’s Five Objectives

The IRS has listed five primary objectives that are standard for most agencies. These include better taxpayer service, issue resolution, enforcement, workforce improvement, and technology enhancement. However, the specific plans for each area, especially for technological improvements, need further refinement.

Challenges in Modernization

The modernization challenges for the IRS include the need to replace legacy systems and upgrade to modern technology platforms. This requires not only disposing of old equipment but also retiring outdated code while ensuring it doesn’t interfere with new systems. Several of these plans are still in progress.

Recommendations for IRS

The GAO issued three key recommendations. These include the completion of an enterprise roadmap for technology enhancement, modernization program plans, and improved reporting to Congress. A clear and detailed roadmap can strengthen the agency’s relationship with appropriators, facilitate better contracting, and ensure efficient use of the Inflation Reduction Act funds. Dave Hinchman highlights the importance of clear communication and transparency, especially when encountering roadblocks or delays.

Content sourced from © 2024 Federal News Network.


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