The American tax system uses IT systems created back in the 1960s. $1.9 billion allocated for their replacement

At the end of November 2023, the United States Internal Revenue Agency (IRS) announced industry tenders as part of a large-scale project to update its IT infrastructure. $1.9 billion is allocated for relevant needs, and the work is designed for a seven-year period.

It is noted that the main information systems of the IRS and databases were created back in the 1960s. Over the past decades, these services have become obsolete and do not meet the requirements, which creates various problems and impairs the effectiveness of operations. Therefore, the agency initiates a comprehensive modernization program aimed, among other things, at the active use of big data and analytics tools. The IRS expects to "keep up with technological advances" that include artificial intelligence and machine learning-based tools.

IRS announces industry tenders as part of massive project to upgrade its IT infrastructure

The IRS Infrastructure Upgrade Project covers corporate IT platforms and related professional support services. The work will be carried out against the background of the department's desire to completely rebuild its technological environment. For these needs, $80 billion was allocated under the Inflation Reduction Act, which US President Biden signed on August 16, 2022. The document, among other things, provides for tax reform, the task of which is to improve control over income, combat fraud and tax evasion.

The tax department is looking for contractors who can provide the necessary technical services, organizational resources, etc. As of the end of December 2023, IRS IT services are provided by companies such as Booz Allen Hamilton, Accenture Federal Services, Deloitte Consulting, Leidos, IBM, Human Touch, Chevo Consulting, e-Telligent and Paragon Technology Group.^[1]

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