IRS modernization progresses with Inflation Reduction Act funds

TL/DR –

President Biden’s Inflation Reduction Act signed in August 2022 has significantly impacted the IRS, primarily through its establishment of multi-year, obligated funds for the agency. The Act has prompted modernization and restructuring efforts within the IRS, including “tiger teams” that encourage cross-disciplinary interaction to drive better requirement writing and smarter procurements. The Act also demands improved user experience and has resulted in opportunities for industry to support the IRS mission through procurement documents and initiatives backed by Inflation Reduction Act funding.

President Biden’s Inflation Reduction Act (IRA) Affects the IRS

In August 2022, President Biden enacted the Inflation Reduction Act (IRA), a law having substantial influence on the Internal Revenue Service (IRS) two years post-implementation. The effects of this law were discussed at a recent Washington Technology event featuring Guy Torres, deputy chief procurement officer at the Treasury Department and IRS procurement lead, and Brandon Szabo, IRS chief of user experience and design.

Notable Remarks from the Treasury Event

The IRA is groundbreaking as it introduces multi-year obligated funds for the IRS, assisting the agency in modernization efforts and restructuring. The procurement office is forming ‘tiger teams’ to enhance requirement writing and procurement efficiency. Torres emphasized the need for coordination between IT and mission-focused teams.

Importance of Improved User Experience

The law also mandates improved user experience, leading to elevated discussions around new capabilities. Szabo highlighted the importance of cross-discipline communication for success. He suggested that industry players should consider how to facilitate a ‘yes’ from their IRS customers.

Advice for the Industry

Torres proposes early conversations and transparency to avoid rejection. GovTribe’s co-founder, Nate Nash, suggested that while there’s no checkbox for IRA-related procurements, referencing the law in procurement documents may be beneficial.

IRA-backed Contracts

Using GovTribe’s tool, several contracts backed by IRA funding were discovered. For instance, the IRA demands modernization of the IRS Business Master File system, with a solicitation expected later this month. Additionally, a special notice for revenue agency and economist training and consulting services was issued.

Tracking IRA-related Opportunities

Torres and Szabo encouraged tracking IRA-related opportunities, emphasizing that while funding is available, these initiatives also uphold the IRS’s mission.

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