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|| email | Register for Newsletter*** ** * ** ***Stay Connected [](https://x.com/NextgovFCW)[](https://www.facebook.com/NextgovFCW/)[](https://www.linkedin.com/company/nextgovfcw/)[](/rss/all/) Featured eBooks  [Identity in Government](/assets/identity/portal/) [Read Now](/assets/identity/portal/)  ### [Health Tech](/assets/health-tech-q424/portal/)[Read Now](/assets/health-tech-q424/portal/)  ### [Next-Generation Computing](/assets/next-generation-computing/portal/)[Read Now](/assets/next-generation-computing/portal/) Insights -& Reports  [White Paper: Zero Trust Architecture Starts with Modern ICAM](/assets/white-paper-zero-trust-architecture-starts-modern-.png?oref=ng-sidebar-insights-reports) [Presented By Ping Identity](/assets/white-paper-zero-trust-architecture-starts-modern-.png?oref=ng-sidebar-insights-reports) [Download Now](/assets/white-paper-zero-trust-architecture-starts-modern-.png?oref=ng-sidebar-insights-reports)  [From Legacy to Leading: Delivering Innovation Through 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[](http://www.linkedin.com/shareArticle?url=https%3A%2F%2Fwww.nextgov.com%2Fmodernization%2F2025%2F03%2Firs-evaluating-its-tech-investments-and-modernization%2F403773%2F&mini=true&summary=The+agency+has+been+trying+to+update+a+tax+processing+system+that+uses+an+outdated+programming+code+for+over+a+decade.&source=Nextgov.com&title=IRS+is+evaluating+its+tech+investments+and+modernization)* [](https://www.facebook.com/dialog/feed?picture=https%3A%2F%2Fcdn.nextgov.com%2Fmedia%2Fimg%2Fcd%2F2025%2F03%2F14%2FGettyImages_2199450201%2F860x394.jpg&name=IRS+is+evaluating+its+tech+investments+and+modernization&app_id=622609557824468&redirect_uri=https%3A%2F%2Fwww.nextgov.com&link=https%3A%2F%2Fwww.nextgov.com%2Fmodernization%2F2025%2F03%2Firs-evaluating-its-tech-investments-and-modernization%2F403773%2F&display=popup&description=The+agency+has+been+trying+to+update+a+tax+processing+system+that+uses+an+outdated+programming+code+for+over+a+decade.)* [](mailto:?body=The%20agency%20has%20been%20trying%20to%20update%20a%20tax%20processing%20system%20that%20uses%20an%20outdated%20programming%20code%20for%20over%20a%20decade.%0A%0Ahttps%3A//www.nextgov.com/modernization/2025/03/irs-evaluating-its-tech-investments-and-modernization/403773/&subject=Nextgov.com%3A%20IRS%20is%20evaluating%20its%20tech%20investments%20and%20modernization) By [Natalie Alms](/voices/natalie-alms/18881/?oref=ng-post-author?oref=rf-post-author)-| March 14, 2025 03:19 PM ETThe agency has been trying to update a tax processing system that uses an outdated programming code for over a decade.———————————————————————————————————————-* [IRS](/topic/irs/?oref=ng-article-topics)* [IT Modernization](/topic/it-modernization/?oref=ng-article-topics)* [](https://x.com/share?url=https%3A%2F%2Fwww.nextgov.com%2Fmodernization%2F2025%2F03%2Firs-evaluating-its-tech-investments-and-modernization%2F403773%2F&text=IRS+is+evaluating+its+tech+investments+and+modernization&via=Nextgov)* [](http://www.linkedin.com/shareArticle?url=https%3A%2F%2Fwww.nextgov.com%2Fmodernization%2F2025%2F03%2Firs-evaluating-its-tech-investments-and-modernization%2F403773%2F&mini=true&summary=The+agency+has+been+trying+to+update+a+tax+processing+system+that+uses+an+outdated+programming+code+for+over+a+decade.&source=Nextgov.com&title=IRS+is+evaluating+its+tech+investments+and+modernization)* [](https://www.facebook.com/dialog/feed?picture=https%3A%2F%2Fcdn.nextgov.com%2Fmedia%2Fimg%2Fcd%2F2025%2F03%2F14%2FGettyImages_2199450201%2F860x394.jpg&name=IRS+is+evaluating+its+tech+investments+and+modernization&app_id=622609557824468&redirect_uri=https%3A%2F%2Fwww.nextgov.com&link=https%3A%2F%2Fwww.nextgov.com%2Fmodernization%2F2025%2F03%2Firs-evaluating-its-tech-investments-and-modernization%2F403773%2F&display=popup&description=The+agency+has+been+trying+to+update+a+tax+processing+system+that+uses+an+outdated+programming+code+for+over+a+decade.)* [](mailto:?body=The%20agency%20has%20been%20trying%20to%20update%20a%20tax%20processing%20system%20that%20uses%20an%20outdated%20programming%20code%20for%20over%20a%20decade.%0A%0Ahttps%3A//www.nextgov.com/modernization/2025/03/irs-evaluating-its-tech-investments-and-modernization/403773/&subject=Nextgov.com%3A%20IRS%20is%20evaluating%20its%20tech%20investments%20and%20modernization)The IRS is undertaking a ‘strategic re-assessment’ of its modernization strategy, projects and investments — including the free tax filing website stood up under the Biden administration, [Direct File](https://www.nextgov.com/digital-government/2025/01/trumps-treasury-pick-pledges-keep-irs-direct-file-open-tax-season/402250/?oref=ng-author-river) — a senior career technology executive at the IRS, whom the Treasury Department declined to identify, told reporters Friday.They cited a changing technological environment as a reason for the reevaluation, saying that the agency started trying to move away from legacy coding languages a decade ago as the number of people proficient in them dwindled as a ‘risk mitigation strategy.”However, the landscape has changed today, especially with the advances in -[generative artificial intelligence-]. We’re now able to apply gen AI to extract that logic from the legacy code, and therefore our approach had to also change from risk mitigation to true modernization,’ they said.The tax agency still uses some outdated technology. It has been [trying to update](https://www.nextgov.com/modernization/2024/09/irs-will-stick-legacy-processing-system-upcoming-tax-season/399419/?oref=ng-author-river) a 1960s-era core tax processing system for individual tax account administration, written in legacy code like COBOL, for over a decade.The tech executive also cited a goal to ‘untangle from multiple integrator solutions,’ which could potentially affect the agency’s contracts. Billionaire Elon Musk’s Department of Government Efficiency effort has [targeted](https://www.washingtontechnology.com/contracts/2025/02/doge-slashes-reported-value-cancelled-leidos-contract/403291/) contracts across the government already.’We have heavily relied on outsourcing to third-party solution integrators to help us achieve the intended outcomes. But that comes with its own cost and drastically drives up the financial cost of modernizing,’ the official said. ‘The one that appears most prevalent is how many integrators are involved and how many hand-offs occur in just delivering and deploying a program.’Under the Biden administration, the IRS was spending some of its roughly $60 billion from the 2022 Inflation Reduction Act to [modernize](https://www.nextgov.com/modernization/2024/09/inside-irs-push-digital-transformation/399438/?oref=ng-author-river) its tech. Republicans on Capitol Hill have attempted to take back that funding several times.Treasury didn’t immediately respond to requests for additional details from *Nextgov/FCW* . Share This:* [](https://x.com/share?url=https%3A%2F%2Fwww.nextgov.com%2Fmodernization%2F2025%2F03%2Firs-evaluating-its-tech-investments-and-modernization%2F403773%2F&text=IRS+is+evaluating+its+tech+investments+and+modernization&via=Nextgov)* [](http://www.linkedin.com/shareArticle?url=https%3A%2F%2Fwww.nextgov.com%2Fmodernization%2F2025%2F03%2Firs-evaluating-its-tech-investments-and-modernization%2F403773%2F&mini=true&summary=The+agency+has+been+trying+to+update+a+tax+processing+system+that+uses+an+outdated+programming+code+for+over+a+decade.&source=Nextgov.com&title=IRS+is+evaluating+its+tech+investments+and+modernization)* [](https://www.facebook.com/dialog/feed?picture=https%3A%2F%2Fcdn.nextgov.com%2Fmedia%2Fimg%2Fcd%2F2025%2F03%2F14%2FGettyImages_2199450201%2F860x394.jpg&name=IRS+is+evaluating+its+tech+investments+and+modernization&app_id=622609557824468&redirect_uri=https%3A%2F%2Fwww.nextgov.com&link=https%3A%2F%2Fwww.nextgov.com%2Fmodernization%2F2025%2F03%2Firs-evaluating-its-tech-investments-and-modernization%2F403773%2F&display=popup&description=The+agency+has+been+trying+to+update+a+tax+processing+system+that+uses+an+outdated+programming+code+for+over+a+decade.)* [](mailto:?body=The%20agency%20has%20been%20trying%20to%20update%20a%20tax%20processing%20system%20that%20uses%20an%20outdated%20programming%20code%20for%20over%20a%20decade.%0A%0Ahttps%3A//www.nextgov.com/modernization/2025/03/irs-evaluating-its-tech-investments-and-modernization/403773/&subject=Nextgov.com%3A%20IRS%20is%20evaluating%20its%20tech%20investments%20and%20modernization)**NEXT STORY:** [SSA weighs axing payments to 170,000 beneficiaries](/modernization/2025/03/ssa-weighs-axing-payments-170000-beneficiaries/403744/?oref=ng-next-story) | [Human operators must be held accountable for AI’s use in conflicts, Air Force secretary says](/artificial-intelligence/2023/12/human-operators-must-be-held-accountable-ais-use-conflicts-air-force-secretary-says/392457/?oref=ng-earthbox-post) | [Why NIST is prioritizing creating a dictionary of AI development](/artificial-intelligence/2023/12/why-nist-prioritizing-creating-dictionary-ai-development/392427/?oref=ng-earthbox-post) | [SSA restructures tech shop to center on the CIO](/modernization/2023/11/ssa-restructures-tech-shop-center-cio/392377/?oref=ng-earthbox-post) | [How a push to the cloud helped a Ukrainian bank keep faith with customers amid war](/modernization/2023/11/how-push-cloud-helped-ukrainian-bank-keep-faith-customers-amid-war/392375/?oref=ng-earthbox-post) | [The people problem behind the government’s AI ambitions](/artificial-intelligence/2023/11/people-problem-behind-governments-ai-ambitions/392212/?oref=ng-earthbox-post) | [sponsor content| Public Sector AI Governance with SAS](https://www.govexec.com/assets/public-sector-ai-governance-sas/portal/) | [Human operators must be held accountable for AI’s use in conflicts, Air Force secretary says](/artificial-intelligence/2023/12/human-operators-must-be-held-accountable-ais-use-conflicts-air-force-secretary-says/392457/?oref=ng-earthbox-post) | [Why NIST is prioritizing creating a dictionary of AI development](/artificial-intelligence/2023/12/why-nist-prioritizing-creating-dictionary-ai-development/392427/?oref=ng-earthbox-post) | [SSA restructures tech shop to center on the CIO](/modernization/2023/11/ssa-restructures-tech-shop-center-cio/392377/?oref=ng-earthbox-post) | [How a push to the cloud helped a Ukrainian bank keep faith with customers amid war](/modernization/2023/11/how-push-cloud-helped-ukrainian-bank-keep-faith-customers-amid-war/392375/?oref=ng-earthbox-post) | [The people problem behind the government’s AI ambitions](/artificial-intelligence/2023/11/people-problem-behind-governments-ai-ambitions/392212/?oref=ng-earthbox-post) | [sponsor content| | Public Sector AI Governance with SAS](https://www.govexec.com/assets/public-sector-ai-governance-sas/portal/)
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Create or Modify System Process: Windows Service
Create or Modify System Process
Ingress Tool Transfer
File and Directory Discovery
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