In a bold move, tech startup executive Sam Corcos, appointed by the Trump administration, has canceled contracts worth $1.5 billion from the Internal Revenue Service’s technology modernization program. Corcos, the founder and CEO of health technology firm Levels, discovered legacy contracts with outside technology consultants worth tens of billions of dollars, contributing to a decades-long delay in the system’s modernization effort. The annual modernization budget was $3.7 billion, in addition to a $3.5 billion information technology systems budget.
The IRS recently announced a pause in technology modernization investments to reassess its operating approach in light of new artificial intelligence technologies. This move marks a departure from the original $80 billion investment funding over a decade included in former President Joe Biden’s 2022 Inflation Reduction Act. The modernization effort aims to revamp outdated 1960s-era computer architecture, improve taxpayer services, and enhance the IRS’s ability to increase tax collections through advanced audits.
Corcos commended the dedication of the IRS’ 8,000 career information technology employees. However, he noted that the agency’s IT costs far exceed those of private-sector banks processing similar amounts of data. Republicans in Congress have long targeted the supplemental funding, arguing that it was intended to harass taxpayers. The $80 billion funding has been reduced by as much as half through subsequent stopgap government funding measures.
Corcos remains committed to streamlining the IRS technology modernization program and cutting unnecessary costs to ensure efficient and effective service to taxpayers.
Note: The image is for illustrative purposes only and is not the original image associated with the presented article. Due to copyright reasons, we are unable to use the original images. However, you can still enjoy the accurate and up-to-date content and information provided.
