“Modernized systems are the key component to delivering quality service to taxpayers, providing efficient and robust enforcement activities and keeping taxpayer data secure,” said IRS Commissioner Chuck Rettig. “Our modernization plan includes multiple milestones and levels of accountability to ensure it is implemented efficiently and effectively. The integrity of our nation’s tax system depends on modernizing IRS operations and the supporting technical pieces. We look forward to working with Congress to implement this plan.”

The six-year plan, called the IRS Integrated Modernization Business Plan, is expected to cost between $2.3 billion and $2.7 billion over six years through fiscal year 2024, although the IRS pointed out that the administration’s budget proposal for fiscal year 2020 includes $290 million in funding for the plan. It calls for, by the end of six years, the IRS to:  

• * Significantly improve the taxpayer experience by standardizing customer workflows and by expanding access to information.
• * Reduce call wait and case resolution times with customer callback technology, online notices and live online customer support.
• * Simplify identity verification to expand access to online services while protecting data.
• * Increase systems availability for taxpayers and tax practitioners.
• * Make implementation of new tax provisions more straightforward.

The plan rests on what the IRS refers to as four "modernization pillars"—taxpayer experience; core taxpayer services and enforcement; modernized IRS operations; and cybersecurity and data protection—each with its own sets of goals and initiatives. 

For the taxpayer experience pillar, the IRS plans to deploy a new Web Content Management System, which will help taxpayers navigate to the "most efficient service channel that meets their needs," with the intention of allowing them to resolve the majority of support requests through self-service tools. It will also deploy a Taxpayer Digital Communication Outbound Notification program, which will provide a web-based platform for taxpayers to get online notifications on matters such as balance due to tax credit qualifications, enabling them to address compliance questions preemptively through IRS communications. Beyond that, the IRS plan also calls for increased communications channels, including customer call-back, live text chat and video chat assistance. 

The core taxpayer services and enforcement pillar rests on a plan to deploy an Individual Tax Processing Engine Project that will "convert approximately 200,000 lines of legacy assembly language code to modern software language," as a major step towards retiring the Individual Master File. It will also allow for providing the IRS with the capacity to access account details on a near real-time basis, which it says will improve traceability of financial data. The IRS will also implement a fully digitized Enterprise Case Management System, which will automate work selection and improve resource alignment. This will be paired with both a Return Review Program which "seamlessly integrates taxpayer data from multiple sources and provides taxpayer data and systemic anomaly detection results for fraud and civil noncompliance detection using a service-oriented approach and modern user interface technologies," and a Real-Time Tax Processing program, which "will deliver independent and near real-time data processing, allowing the IRS to move away from batch processing, view returns dynamically, and understand the status of a return as it is processed." Beyond that, it also includes improvements to the database system that will allow for improved document matching and improved intake consistency. 

For the modernized IRS operations pillar, the plan will implement an Application Programming Interface (API) initiative that will, among other things, allow authorized third parties easier access and streamlined IRS data so they can better work on behalf of their clients. It will also increase cloud computing integration and integrate scanned data and content management systems in order to aid data digitization efforts. The initiative also includes a Next Generation Infrastructure initiative that encompasses "transformation of compute[r], network, and storage activities" to automate software delivery and infrastructure changes. In a similar vein, the plan also calls for Robotics Process Automation for high-volume, repeatable tasks, a Universal Data Hub/Analytics Tools/Platform meant to "support foundational architecture and technology elements that enable business capabilities like real-time processing, error correction, expanded online tools and data analytics capabilities, improved fraud detection, and other anomaly detection capabilities." It will also increase its virtual desktop capacities. 

The cybersecurity and data protection pillar contains three main initiatives. One, identity and access management, will have a continuous diagnostic and mitigation process, convert 49 facilities for physical access compliance, and upgrade 57 facilities to multifactor access capability. The second, security operations and management, entails technologies such as malware email and web sandboxing, a cybercloud strategy and migration plan, endpoint detection response, network segmentation for high-value assets, cyber-GPU-based machine learning analytics, a cyberthreat sharing intelligence platform, and a next- generation secure operations center. The final one, vulnerability and threat management, involves completing an IT asset management use case, implement Data at Rest Encryption implementation, enhancing security testing and process automation, creating a next generation enterprise security audit trail, improving cyber user behavior and fraud analysis, and creating a cyber-analytics dashboard. 

"Delivering on our modernization plan will enable the IRS to provide enhanced services to taxpayers and deliver long-term budget and personnel efficiencies," said the report in its  conclusion. "Efficiencies are the results of decommissioning legacy applications, using robotics to automate manual processes, and expanding advanced analytics programs to more effectively serve 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. In the end, this holistic approach will accelerate our modernization journey by putting taxpayer needs first, supported by innovative technologies and sound operational processes."