GAO: IRS Lags in IT Modernization Despite Funding

The Internal Revenue Service has been slow to finalize its IT modernization plans, despite receiving a substantial funding increase for this purpose, according to a Government Accountability Office report.

The congressional watchdog said the agency risks missing its transformative potential without a clear road map incorporating the new funds, FedScoop reported.

The IRS earmarked $4.8 billion of its $80 billion budget from the Inflation Reduction Act for modernizing business systems and $25.3 billion for support operations, including IT maintenance.

Despite some progress in key technology objectives, the IRS has lagged in updating its plans to reflect the increased funding and adjust milestones accordingly, the GAO report said.

In spite of significant investments in IT, totaling $7.7 billion over fiscal years 2022 and 2023, the IRS faces scrutiny for its failure to articulate clear technology goals in its road map.

The GAO highlighted the importance of a comprehensive road map to ensure successful transformation, avoid cost overruns and prevent project failures.

The office also recommended the IRS complete its road map, finalize its modernization plans and provide quarterly updates to Congress, which the IRS said it is currently working on.