Staff Reports
The Internal Revenue Service (IRS) has long been a symbol of government inefficiency, and its modernization efforts have become a cautionary tale of bureaucratic mismanagement. Now, under the direction of President Donald Trump’s Department of Government Efficiency (DOGE), led by Treasury Secretary Scott Bessent and tech entrepreneur Sam Corcos, the IRS is undergoing a long-overdue overhaul. The initiative aims to replace the agency’s outdated infrastructure—some of which dates back to the 1960s—with modern technology. However, the project is already 30 years behind schedule and $15 billion over budget, highlighting the entrenched inefficiencies plaguing federal agencies.
The IRS relies on antiquated systems running on programming languages like COBOL and Assembly, making it a technological dinosaur in an era of rapid innovation. While private-sector banks have successfully modernized similar systems within a few years and for a fraction of the cost, the IRS has struggled to make meaningful progress. Corcos, who was brought in to spearhead this effort, has described the situation as “a massive project that’s still five years away”—a refrain that has remained unchanged since 1990. Despite these challenges, Corcos remains optimistic, emphasizing the need to empower talented staff and cut through layers of costly consultants who have profited from inefficiency.
A significant portion of the IRS’s $3.5 billion operations and maintenance budget is allocated to contractors and licenses—an arrangement that critics argue has done little to improve outcomes. Bessent likened these consulting firms to “boa constrictors,” tightening their grip on taxpayer dollars while delivering minimal results. This reliance on outside contractors reflects a broader issue within federal agencies: a culture that prioritizes maintaining the status quo over achieving real reform. For conservatives, this underscores the need for smaller government and greater accountability.
The Trump administration’s efforts to modernize the IRS are part of a broader push to streamline federal operations and eliminate wasteful spending. By leveraging private-sector expertise and emerging technologies like artificial intelligence, DOGE aims to transform the IRS into an efficient entity capable of serving taxpayers effectively. However, these reforms face resistance from entrenched interests within Washington, including consultants who benefit from inefficiency and Democrats who oppose cuts to federal programs.
Ultimately, this modernization effort represents more than just an attempt to fix outdated technology—it’s a battle over the role of government itself. Conservatives see this as an opportunity to demonstrate how private-sector principles can be applied to public institutions, reducing costs while improving performance. If successful, this initiative could serve as a blueprint for reforming other bloated federal agencies. For now, all eyes are on Corcos and his team as they navigate the bureaucratic swamp in their quest to bring the IRS into the 21st century.
