IRS Tech Revamp Faces Cuts Amidst Controversy

Sam Corcos, a tech startup executive, has canceled $1.5 billion in contracts from the IRS's technology modernization program. The move is part of a broader effort to address outdated systems, though it faces legal challenges. Modernization aims to improve taxpayer services and auditing capabilities.

The IRS's technology modernization program has come under scrutiny after tech executive Sam Corcos announced the cancellation of $1.5 billion in contracts. Corcos, a member of the Trump administration's Department of Government Efficiency, cited legacy contracts as a financial burden in the long-delayed systems upgrade.

The pause in modernization investments follows a broader reevaluation of technological approaches, especially with the advent of new artificial intelligence systems. This shift reflects a step back from the originally planned $80 billion investment outlined in the 2022 Inflation Reduction Act under former president Joe Biden.

While the cuts have sparked controversy and legal challenges, Corcos praised the IRS's IT staff for their cooperation and highlighted the discrepancy between the agency's costs and those of private-sector companies handling similar data volumes.

(With inputs from agencies.)