Providing Innovative Solutions To
Complex Tax Problems

Statistics point to the IRS using a lot of outdated IT

Latest News

IT systems play a role in many of the Internal Revenue Service’s actions, functions and processes. However, data suggests that a good portion of the IT systems the agency relies on are out of date.

The IRS’s goal is to have obsolete hardware and infrastructure make up no more than a quarter of its overall IT systems. Statistics from a Treasury Inspector General for Tax Administration report indicate that the IRS is currently quite a ways off from this goal.

According to estimates from the report, at 2017’s start, of all the IRS’s IT infrastructure and hardware, nearly two-thirds (64 percent) was obsolete.

This estimate indicates that the obsolete IT system percentage of the IRS has been on the rise in recent years. It is estimated that the percentage was only at 40 percent in 2013.

The recent tightness of the IRS budget raises questions as to how likely the IRS is to make much headway in bringing this percentage down to their goal in the near future. One wonders what the IRS’s technology situation will be in the next few years.

An important thing to think about when it comes to circumstances in the IRS, such as the technology situation of the agency, is what impacts it could have on taxpayers. One thing having a lot of obsolete tech could raise questions about is whether the outdated tech is causing the likelihood of errors to increase. How much of an impact do you think the tech situation in the IRS is having on the chances of the agency committing errors in its dealings with taxpayers?

An IRS error can have major ramifications for a taxpayer. So, when a taxpayer suspects that the IRS committed an error, it can be important for them to be aware of what actions they can take to try to help prevent the mistake from negatively impacting them. Tax attorneys can assist taxpayers with responding to IRS errors and other issues with the IRS.

Source: FCW, “IRS relies on obsolete hardware, IG finds,” Derek B. Johnson, Sept. 19, 2017

Related Articles