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IRS Releases Six-Year IT Modernization Plan

A recently released Internal Revenue Service report estimates that operations and maintenance costs for IRS information technology systems will reach $3 billion by fiscal 2026, Nextgov reported Monday

The six-year Integrated Business Modernization Plan released on Thursday states that the IRS spends over $2.2 billion to operate and maintain its systems every year. The agency expects to see costs of around $2.3 to $2.7 billion over a six-year period, along with an increased risk of a systemwide crash.

According to the report, the IRS seeks to implement emerging capabilities such as automated technology and advanced analytics in line with industry standards to modernize operations and facilitate taxpayer compliance.

"Deploying these capabilities, while simplifying our legacy applications and infrastructure, is necessary for stabilizing the rising cost associated with maintaining our IT ecosystem," the report noted. The plan cites four modernization pillars that cover issues under taxpayer experience, core services, updated agency operations and cybersecurity.

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