The Treasury Department has outlined new steps in its ongoing effort to modernize IRS systems, announcing a set of agreements with technology contractors. The work is part of a broader attempt to update taxpayer-facing services, improve data infrastructure, and reduce reliance on paper processes that have slowed operations. 

Accounting Today reports that the contracts were awarded through Blanket Purchase Agreements with vendors whose tools are approved under the Federal Risk and Authorization Management Program, which sets a uniform standard for cloud security across federal agencies. Earlier this year, the Treasury has announced a pause in modernization due to IRS budget and staffing constraints, making this round of agreements an important signal of renewed progress. 

Salesforce will continue its role in upgrading IRS online service, including accounts for individuals, businesses, and tax professionals, as well as contact centers that support taxpayer interactions. For tax processing, the Zero Paper Initiative is moving forward, with contracts awarded to Iron Mountain, GovCIO, VASTEC, and 22nd Century. This work is closely tied to the IRS decision to phase out paper refund checks by September 30, under an executive order signed earlier this year. 

Another contract has gone to Palantir to create a common API layer, a piece of infrastructure intended to connect developer platforms, automate workflows, and strengthen data analytics. Treasury has said this work is focused on improving efficiency for federal employees, though Palantir’s broader role in federal data projects, including with Homeland Security, has drawn attention in recent months. 

The Treasury said it will continue working with industry partners to expand modernization efforts and expects to share more updates as milestones are met and additional agreements are finalized.