IRS Tech Is So ‘archaic The Agency Struggles To Find People To Work It

© Erin Scott/Reuters The Internal Revenue Service is battling outdated software that has hurt the agency's customer service.

The Internal Revenue Service, which covers almost everything the federal government does, uses outdated computer technology. The federal regulator has complained that some computer systems are so old that it's hard to find people who know how to operate them.

In one example, a Government Accountability Office report released this month noted that the IRS uses an "outdated programming language" called COBOL, saying it "can be difficult to find employees with this skill set." Securing a critical system poses a significant threat to the agency's mission.

However, the report continues, "the IRS faces many challenges as it continues to rely on systems with programs written in primitive languages."

The GAO considers 33% of IRS applications, 23% of software, and 8% of hardware to be "obsolete but still critical to day-to-day operations." This includes apps 25 to 64 years old and software with up to 15 versions. "These aging assets continue to contribute to security challenges, unmet mission needs, staffing issues and rising costs," the GAO noted.

"A private company with tens of millions of customers will go under if their computer technology outstrips the CEO's parents," said Tony Reardon, president of the National Treasury Employees Union, which represents IRS employees. "But it's something the IRS looks at every day."

He said the use of antiquated systems "prevents people who are computer literate from working at the IRS."

This aging drama complicates the suspension of the IRS's latest six modernization projects, which the GAO described as an "authoritative source of information" that includes "actions necessary to replace the 60-year-old Individual Master File (IMF)." Individual tax accounts. The IRS has been trying to replace the original file for more than a decade, but decided to name its own staff.

"As a result, the timeline for these initiatives has not been determined at this time," GAO said. The intended completion date, announced last year as 2030, is "now unknown". This makes it difficult to continue to rely on critical software systems written in ancient languages ​​that require specialized skills.

All of this creates problems for taxpayers who paid $4.1 trillion in taxes and received a $1.1 trillion refund in fiscal year 2021.

The IRS's Where's My Refund app is in high demand, but in a GAO podcast accompanying the report, the department's director of IT and cybersecurity, David B. The "status of tax refunds" has left many in despair. The problem is compounded by the fact that taxpayers now call the IRS toll-free numbers, which, due to the IRS being understaffed, can result in long waits to speak to someone at best, and no answer at worst.

Money is not a problem for modernization. The GAO reports that the IRS will spend about $7 billion on IT in the combined 2021 and 2022 budgets. The nearly $80 billion inflation-reduction act passed in August includes about $4.8 billion to upgrade IRS business systems and more than $25.3 billion in operational support. , including IT systems management and maintenance.

The IRS has long been a target of Republicans, and last month the party voted to repeal an $80 billion tax hike along party lines in one of the first moves since taking control of the House of Representatives. The House Ways and Means Committee said in a statement that Democrats have "outsmarted" the IRS and "for too long have used the IRS and the tax code as a policy tool." A committee member said the repeal would not affect the modernization of corporate systems and taxpayer services. The House bill has little chance of passing the Senate.

Deputy Gerald E. Connolly (D-Virginia), who questioned the GAO report, complained that Republicans have previously vilified the agency, "leaving it understaffed and under-resourced." It deals with old computer problems.

Still, the IRS had 21 IT modernization initiatives by August 2022, the GAO reported, but more than a quarter missed the deadline to phase out aging systems. Without it, "the IRS is not responsible for compliance with this key element," the GAO said.

"After all, the IRS relies heavily on information technology to perform critical functions," Hinchman said. "THIS is literally our tax machine. However, this important technology relies on heavy use of outdated and expensive legacy systems.

Erin M. Collins, the IRS's National Taxpayer Advocate, said: "The service provided to taxpayers over the last few years has been appalling." "Historically, the IRS has lagged behind private financial institutions in terms of technology and services." Millions of paper tax returns "are still going digital through IRS systems," he said, because the agency doesn't scan the documents.

But despite a long start to this tax season with millions in refunds, Collins said the IRS, which recently hired 5,000 more customer service representatives, is now "in better shape" than it was two years ago.

The IRS's response, included in the report, acknowledges that the GAO audit is a "generally accurate description of the agency's operating environment" and agrees with the auditor's nine recommendations, including establishing a timeline for the completion of the audit, modernization plans. He said the IRS recognizes that maintaining legacy systems "contributes to increased O&M costs." This approach still carries a high risk...".

"We have taken a number of steps to address these critical issues," the IRS said, adding that "legacy systems that use older programming languages ​​are also secure and stable."

For Connolly, a full resolution to these problems may not come quickly.

"We all know that the customer experience is a top priority for an agency with a widespread public footprint," he said. "Our tax system is quite complex, the tax service should solve the problem, not contribute to it.

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