IRS Puts New Tax Account Data Engine Under Trial

The Internal Revenue Service is testing a new processing engine that could replace the legacy system for individual tax account data called the Individual Master File, which has been in use since the 1960s.

The IRS said the ongoing test will help the agency create an informed decision regarding the retirement of the IMF by fiscal year 2028 and the planned transition to the new engine in the next tax season, Nextgov/FCW reported.

According to the IRS watchdog, modernizing the current system has been one of the most challenging programs in over a decade.

The ongoing test follows previous IMF improvements, including the switch from Assembly Language Code and COBOL legacy computer languages to Java, hardware and software modernization and data standardization.

A new version of the IMF is expected to simplify taxpayer account data sharing across the IRS and accelerate the resolution of tax-related issues.

David Hinchman, a director at the Government Accountability Office, said the IMF modernization is critical to the IRS’s goal of becoming a digital government agency.