$190 Million Spent on 54 Different Systems, and Still No Progress: The IRS Attempts to Modernize

Sep 23

The Treasury Inspector General for Tax Administration (TIGTA) just released a report that's totally frustrating and yet totally predictable: the IRS uses 54 DIFFERENT legacy computer systems concurrently, many of which date back decades, despite a decade of promises and nearly $190 million spent on modernization.

In 2015, the IRS promised to fix this with the Enterprise Case Management (ECM) project. We were supposed to get one modern, unified system. All would be well in the world of tax administration.

Fast forward to today, and TIGTA has to say this: money Isn’t the problem—execution Is. Nearly $200 million has been poured into modernization efforts. Yet no system has been fully retired.

Why?

Leadership turnover, shifting priorities, and endless bureaucracy. Meanwhile, they still shelled out $39 million in 2024 to maintain the current systems.

Why It Matters

This isn’t just about modernizing technology—it’s about your clients. When IRS workers juggle multiple outdated systems, they miss details, request documents twice, or flat-out lose track of case information.

The result? Delays in resolving debts, confusion for taxpayers, and nothing getting done.

Four Things Professionals Need to Understand

The IRS Moves at the Pace of Its Systems Clients wonder why their case isn’t moving faster. The truth? It’s not the revenue officer dragging their feet. It’s the software. IRS employees spend more time wrestling with fragmented systems than reviewing case facts.
Delays Multiply Risk Every extra week or month a case drags on increases the risk of enforcement—liens, levies, and garnishments. Carefully tracking every communication is critical. One missed deadline, and the system and an automated levy may be coming down the pike.
Expect “Groundhog Day” Requests “Please send the same financials again.” Clients get frustrated. But it’s not personal. The document might live in one system while the employee only has access to another. Repetition is created by the structure.
Your Clients' Burden Unfortunately, taxpayers cannot get anything done themselves. They need someone who can decode the mess, explain why things stall, and keep pushing for resolution.