The National Taxpayer Advocate, Erin M. Collins, warned in a posting on her official blog (9/3/20) that the IRS desperately needs upgrades to its computer systems and infrastructure. “Tax administration is at risk, and the country and the IRS need a solution now more than ever.” The IRS is reliant on legacy information technology systems. 231 IT systems used by the IRS are at least 25 years old. A substantial overhaul of IT systems is needed to provide first-rate taxpayer service. “Core IT upgrades . . . are required to reduce the chances of a catastrophic breakdown. Imagine the panic and pandemonium that would ensue if the IRS’s IT systems crashed and could not be recovered quickly.” In 2018, on the tax filing deadline, some systems crashed and the IRS gave taxpayers an extra day to file their returns. In 2020 IRS operations have been severely impacted by COVID-19. The IRS says it needs $2.5 billion for system modernization over the next six years.
I’ve been telling clients for years that the IRS is broken and Congress doesn’t want to fix it. Hopefully our next Congress takes these problems seriously.
- Mark S Gleason CPA