Department of the Treasury

Internal Revenue Service

FY 2021

Capital Investment Plan
2

Note to Reviewers ............................................................................................................... 4

Major IT Investments .......................................................................................................... 5

Account Management Services (AMS) ....................................................................................... 5

Affordable Care Act Administration ........................................................................................... 6

Business Services......................................................................................................................... 7

Customer Account Data Engine 2 (CADE 2).............................................................................. 7

e-A3 (Authentication, Authorization, Access)............................................................................. 9

e-Services (e-SVS)..................................................................................................................... 10

Enterprise Case Management (ECM)........................................................................................ 11

Foreign Account Tax Compliance Act (FATCA) ..................................................................... 12

Individual Master File (IMF)..................................................................................................... 14

Integrated Customer Communication Environment (ICCE) ..................................................... 15

Integrated Data Retrieval System (IDRS).................................................................................. 17

Integrated Financial System/CORE Financial System (IFS)..................................................... 19

Integrated Submission and Remittance Processing System (ISRP) .......................................... 20

IRS End User Systems and Services (EUSS) ............................................................................ 21

IRS Main Frames and Servers Services and Support (MSSS) .................................................. 23

IRS Telecommunications Systems and Support (TSS) ............................................................. 25

IRS.GOV - Portal Environment................................................................................................. 26

Modernized e-File (MeF)........................................................................................................... 28

Modernized IRS Operations ...................................................................................................... 29

Return Review Program (RRP) ................................................................................................. 31

Service Center Recognition/Image Processing System (SCRIPS)............................................ 32
3

Web Applications....................................................................................................................... 33

Major Non-IT Investments................................................................................................ 34

Criminal Investigation Owned Vehicles.................................................................................... 34

Criminal Investigations Capital Assets...................................................................................... 35

Leasehold Improvements........................................................................................................... 35

Security Equipment.................................................................................................................... 36
4

Note to Reviewers 

The Office of Management and Budget (OMB) Capital Planning Guidance changed how certain IT 

Investments are categorized. The Agency IT portfolio summary consists of Part 1: IT Investments for 

Mission Delivery; Part 2: IT investment for Administrative Services and Support Systems, and Part 3: IT 

Investments for IT infrastructure, IT Security, and IT Management (so called “standard investments”). 

The guidance no longer requires Part 3 investments to be reported as major or non-major investments. 

However, the Department of the Treasury’s Capital Investment Plan will continue to report these 

investments. Consistent with the corresponding Summary of Capital Investments table, the columns 

included in the investment tables below are defined as: 

• FY 2019: Obligations of budgetary resources, which may include annual funding, prior year 

balances, user fees, and other sources; 

• FY 2020: Estimated obligations based on the enacted funding level for FY 2020 as reflected in 

the FY 2021 President’s Budget. Figures may include annual funding, prior year balances, user 

fees, and other sources; and 

• FY 2021: Estimated obligations based on the funding requested in the FY 2021 President’s 

Budget. Figures may include annual funding, prior year balances, user fees, and other sources.

The amount of new budget authority requested for a given investment can be found in the 

accompanying “Summary of Capital Investments” table (see “FY 2021 Budget Authority 

Request” column). 

The IRS Integrated Modernization Business Plan and the annual Key Insights report describe annual 

milestones as well as long-term performance metrics for each of the modernization projects, including 

CADE 2. Additional information about Treasury’s IT capital investments is available at the link below:

https://itdashboard.gov/drupal/summary/015
5

Major IT Investments

Account Management Services (AMS)

Description:

AMS is a major strategic investment that delivers improved customer service to over 34,000 end-users 

by providing the tools necessary to access tax information quickly and accurately.

Investment Obligations:

Type FY 2019 FY 2020 FY 2021 $ Change % Change

Sub -Total DME Obligations (Including Internal 

labor (Govt. FTE)) 1.03 0.00 0.00 0.00 0.00%

Sub -Total O&M Obligations (Including Internal 

Labor (Govt. FTE)) 12.44 15.79 16.41 0.62 3.94%

Total Obligations 13.47 15.79 16.41 0.62 3.94%

Purpose, Accomplishments, Future Objectives:

AMS is a strategic program that delivers improved customer support for managing taxpayer accounts 

for over 34,000 end users across:

• 7 Small Business Self Employed (SBSE) business units

• 4 Wage and Investment (W&I) business units 

• 1 Large Business and International (LB&I) business unit 

• Criminal Investigation (CI)

• Tax Exempt and Government Entities (TEGE) by leveraging existing Internal Revenue 

Service (IRS) applications.

AMS consolidates information from multiple IRS systems into a single user interface, allowing IRS 

employees the ability to access, research and update taxpayer accounts quickly. AMS provides data 

presentation services to display and validate changes/updates for taxpayer accounts, facilitates 

management actions/activities and makes case information readily available for decision making and 

reporting. In addition, AMS provides end users with the ability to work specific case workload, 

through nine case management and referral inventories.

2019 Accomplishments & Future Objectives

• Delivered modifications in support of legislative and filing season tax year changes.

• Delivered modifications to move the investment closer to industry standards. 

• Maintain investment to keep asset functioning as designed and maintain high performance 

record.

• Upgrade AMS infrastructure, including hardware and Commercial Off The Shelf (COTS) 

product software upgrades.
6

Affordable Care Act Administration

Description:

The ACA investment encompasses the planning, development, and implementation of IT systems 

needed to support IRS' tax administration responsibilities associated with key provisions of the ACA 

legislation.

Investment Obligations:

Type FY 2019 FY 2020 FY 2021 $ Change % 

Change

Sub -Total DME Obligations (Including Internal labor 

(Govt. FTE)) 0.54 0.00 0.00 0.00 0.00%

Sub -Total O&M Obligations (Including Internal Labor 

(Govt. FTE)) 145.86 108.68 109.97 1.29 1.18%

Total Obligations 146.40 108.68 109.97 1.29 1.18%

Purpose, Accomplishments, Future Objectives:

The ACA Administration investment supports IRS tax administration responsibilities associated with 

the key provisions of the ACA legislation. These responsibilities include:

• The maintenance of the necessary systems to support the Health Insurance Marketplace;

• Validation of health care coverage retained by individuals and provided by employers, along 

with assessment of required penalties;

• Administration of a variety of industry-specific credits, fees, and taxes (including, but not 

limited to, branded prescription drug companies, health insurance companies, high-cost 

health insurance plans, taxes on medical devices and services); sharing of information 

across governmental entities and additions or changes to individual and business tax 

administration (such as new credits or payments, or changes to return processing).

Releases ACA 1.0 through 7.1, already in production, included the design and deployment of new 

systems, along with changes to existing IRS IT infrastructure. These releases:

• Supported implementation of new taxes, credits, and fees, such as the Small Business 

Health Care Tax Credit, Branded Prescription Drug Industry Fee, Excise Tax on Medical 

Device Manufacturers, Hospital Insurance Tax, and Insurance Provider Fee. 

• Provided the technical solution to support Health Insurance Marketplace open enrollment in 

the fall of 2013 and thereafter on an annual basis, along with IRS pre-filing and post-filing 

compliance activities.

• Expanded information return processing and capabilities needed for compliance processing.

The ACA investment includes the following systems: the ACA Coverage Data Repository, Income and 

Family Size Determination, Information Sharing and Reporting, Premium Tax Credit (PTC), ACA 

Information Returns, ACA Verification Service, ACA Compliance Validation, and acceptance and 

validation of ACA Information Return 1094/1095 A/B/Cs.

For fiscal years 2020 and 2021, IRS will focus on operations and maintenance of the systems in ACA 

1.0 through 7.1 in the Current Production Environment (CPE) to support Filing Seasons and Open 

Enrollments and CPE updates to existing non-ACA systems that support ACA.
7

Business Services

Description:

This investment will provide a simple and secure manner for small businesses to file critical tax 

information returns electronically through an online business services platform. This platform will 

enable businesses to prepare and file information returns online while preparing payee statements and 

creating the necessary business records. This investment will support improved compliance of small 

business taxpayers while reducing administrative burden.

Investment Obligations: 

Type FY 2019 F Y 2020 F Y 2021 $ Change % Change

Sub -Total DME Obligations (Including Internal 

labor (Govt. FTE)) 0.00 15.00 16.08 1.08 7.17%

Sub -Total O&M Obligations (Including Internal 

Labor (Govt. FTE)) 0.00 0.00 0.00 0.00 0.00%

Total Obligations 0.00 15.00 16.08 1.08 7.17%

Purpose, Accomplishments, Future Objectives:

Business Services will enable taxpayers to prepare and file Forms 1099s, prepare Forms 1099 for 

distribution to recipients other than the Internal Revenue Service, and maintain a record of completed 

and submitted Forms 1099 via an online service. This capability will provide a simple and secure 

manner for small businesses to prepare, file and distribute critical tax information returns 

electronically, while maintaining a record of completed and submitted Forms 1099. Providing an 

online platform for submitting information returns is expected to improve compliance of small 

business taxpayers while reducing their administrative burden.

The Taxpayer First Act (TFA) was signed into law in July 2019. IRS has started gathering business 

requirements to satisfy the provision. In FY 2020, the IRS will complete planning, requirements 

elicitation, engineering and architecture; and begin the development work necessary to meet the 

requirements of TFA Provision 2102. Future Objectives: The IRS anticipates completing all IT 

lifecycle activities over the next three years (i.e., Planning, Requirements Elicitation, Engineering and 

Architecture, Design, Development, Integration, Testing, Data Access/Migration, Cyber Security, and 

Deployment); the agency is required to meet the requirements of this provision by January 1, 2023.

Customer Account Data Engine 2 (CADE 2)

Description:

CADE 2 is IRS's modernized core tax processing system. It leverages modern-day database 

technology, programming languages and principles to determine refunds, penalty and interest, monitor 

compliance, and track historical data about individual taxpayer accounts. CADE 2 is a data-centric 

solution that provides daily processing of taxpayer accounts.
8

Investment Obligations: 

Type FY 2019 F Y 2020 F Y 2021 $ Change % Change

Sub -Total DME Obligations (Including Internal 

labor (Govt. FTE)) 81.67 100.00 100.00 0.00 0.00%

Sub -Total O&M Obligations (Including Internal 

Labor (Govt. FTE)) 18.00 19.15 19.72 0.58 3.01%

Total Obligations 99.67 119.15 119.72 0.58 0.48%

Purpose, Accomplishments, Future Objectives:

CADE 2 implements a single, data-centric solution to provide daily processing of taxpayer accounts 

and address financial material weaknesses (FMW) and maintain IRS's clean audit opinion. CADE 2 

was chartered in 2009 to provide 21st century technology and digital services to the taxpayer and to 

IRS employees. The CADE 2 solution includes an authoritative database for individual taxpayer data 

that is transforming the way the IRS approaches tax administration. In addition, CADE 2 is improving 

the rates by which we process data by reducing the latency associated with antiquated technology. 

CADE 2 goals are to 1) establish one authoritative source for taxpayer data by leveraging a relational 

database and daily processing capability; 2) continue IT modernization efforts so business processes 

can be realigned to enable better taxpayer service and more timely compliance; 3) address the Unpaid 

Assessment FMW (downgraded to a Significant Deficiency in 2018), demonstrate compliance with 

Federal Financial Management System Requirements, maintain a clean audit opinion; and 4) improve 

security and privacy posture. CADE 2 is progressing through the largest, most critical part of the 

program, Transition State (TS2). Two initial goals of TS2 (establishing the CADE 2 database as the 

authoritative data source for financial and legal purposes and addressing the Unpaid Assessment 

FMW) were moved to the Target State due to recent program planning decisions and budget 

prioritization. All available resources are now directed to the most critical goal of reengineering the 

Individual Master File (IMF) core components, which is prioritized due to its complexity and reliance 

on dwindling subject matter experts. In the Target State environment, the current individual taxpayer 

account system core components will be retired. Completing CADE 2 is not synonymous with "retiring 

IMF" - future capabilities will enable visibility and access to taxpayer account detail on a near realtime basis for internal and external consumers of individual taxpayer data.Transition State 1 (TS1) and 

TS1.5 built and initialized the CADE 2 database in production. In doing so, the IRS accelerated the 

return processing cycle from weekly to daily and moved the management of individual taxpayer 

account data from 1960s sequential flat-files to state-of-the-art relational database technology. This 

accomplishment was the first key technological advancement of the program and was implemented by 

updating individual tax accounts daily. CADE leverages relational formats dictated by a data model 

that maintains historical values never before retained on account transactions, with instant viewing of 

taxpayer account data by IRS customer service. TS1 delivers faster refunds and notices, faster payment 

postings, and improved service for taxpayers. CADE 2 is progressing through TS2. Starting in FY

2018, CADE 2 resources focused on reengineering the IMF's core components (IMF Runs 12 and 15)

through delivery of the Individual Tax Processing Engine (ITPE) project. This included the completion 

of development activities for the 1st eight 10-week Product Increments. The project has converted over 

30% of the code for ITPE. 15 Future Objectives: The IRS IT Modernization Plan sets goals for 

modernization efforts and will be updated periodically to reflect progress. FY20 and FY21 milestone 

targets have been established based on a refined development velocity model, which reflects updated 

productivity projections. IRS will complete the modernization of core tax processing through ITPE, 

establish CADE 2 as the authoritative data source and make that data available for multiple uses, and 

provide enhanced financial information to improve financial reporting. 
9

e-A3 (Authentication, Authorization, Access)

Description:

e-A3 provides Secure Access to IRS Web based applications and data to protect taxpayers from 

identity theft and make the IRS’s applications more accessible, secure, and intuitive for customers. eA3 is a program that combines the eAuthentication (in Production), eAuthorization (in Production & 

O&M), and eAccess (in conceptual phase) projects. It will manage secure access, application and data 

analytics.

Investment Obligations:

Type FY 2019 F Y 2020 F Y 2021 $ Change % Change

Sub -Total DME Obligations (Including Internal 

labor (Govt. FTE)) 35.96 54.30 23.82 - 30.47 - 56.12%

Sub -Total O&M Obligations (Including Internal 

Labor (Govt. FTE)) 31.21 22.60 27.63 5.03 22.28%

Total Obligations 67.18 76.90 51.46 - 25.44 - 33.08%

Purpose, Accomplishments, Future Objectives:

Secure Access is the enterprise identity proofing, authentication, registration and single-sign-on 

application for taxpayers to access IRS public facing online services and is a critical cyber defense that 

prevents unauthorized access to taxpayer data. This program enables taxpayers to create a digital 

identity and register for a Secure Access profile. This investment will modernize the log-in process, 

improve the taxpayer experience, and comply with new federal identity and security standards. New 

authorization capabilities will manage permissions to access customer data and information. Reporting 

capabilities will provide the tools and infrastructure to manage response and recovery capabilities, 

track real time business performance metrics, fraud analytics, system performance results, and 

application usage information. Specific capabilities include: Digital ID proofing and authentication 

technology that will utilize federated credential service providers, third party trusted sources, and riskbased authentication. Goals of the program are to integrate Secure Access data with other channels 

such as phones and in person contacts, to improve omnichannel authentication and analytics on the 

customer experience and fraud detection, and to provide for authorization capabilities to perform 

attribute-based access controls for third parties and tax professionals and an e-Signature solution for 

authenticated taxpayers to electronically sign and submit IRS documents online.

Accomplishments: 

eAuthentication (eAuth) is in Production. Deployed Taxpayer notification. Added Voice OTP for more 

user coverage. Implemented changes for Filing Season (FS) 19 that resulted in 99 percent availability.

Supported over 15.6 million registered users (43 percent higher than FS 2018). Infrastructure updates 

to improve efficiency and performance. Implemented Device ID/Fraud Net with Vendor Adapter that 

translates taxpayer requests during ID proofing\financial account\phone verification. Enhanced 

taxpayer usability and resolved bugs/defects. Infrastructure upgrades (including implementing 

SiteMinder behind load balancers and upgrading Identity Manger to version 14.2 and JDK 1.8) to 
10

improve stability and performance. Addressed TIGTA finding for audit logging and improved

performance efficiency for OPA/EPSS. Secure Access Digital Identity (SADI) is in planning and 

design. Completed Vision, Scope and Architecture (VSA) and Implementation Strategy, and aligned 

with Enterprise Services, Cyber Security, and Identity Assurance stakeholders. Elaborated on the highlevel backlog by decomposing epics to user stories; allocated to eAuth Upgrade or SADI workstream; 

performed SADI program increment and sprint planning. Completed draft of the SADI Implementation 

Schedule to submit to GAO/TIGTA. Continue to access external facing applications with Digital 

Identity Risk Assessment (DIRA) process. 

eAuthorization (eAz) in Design Phase. Began Transition of Az Framework from ES, including 

transition plan. Integrated AD test team members in Solutions Engineering Az Framework efforts. 

Gained alignment on MVP for eSignature. Planning for Tax Pros, Centralized Authorization File, 

eSignature integration. Create infrastructure for eSignature and started development sprints for 

eSignature. 

2020 and 2021 Future Objectives include: 

Improve usability, fraud protection, and analytics for the existing Secure Access eAuth platform, to 

comply with new NIST SP 800-63-3, Digital Identity Guidelines. Support “security first” directive, 

maintain existing rigorous risk assessment process, and continually increase security posture for public 

application to protect taxpayer data. Increase adoption of Secure Access Digital Identity solution across 

the enterprise. Enhance IRS’s position in the Digital Identity space by leveraging new technologies and 

looking beyond compliance. Increase security based on new security threats. Application integration of 

multiple identity proofing vendors supporting Secure Access registration to enhance security and 

increase user coverage.

e-Services (e-SVS)

Description:

e-Services is a suite of web-based, self-assisted services that consist of two parallel multi-tiered access 

portals, one for registered third-party users and one for IRS employees. Internal Revenue Service 

reinforced the importance of leveraging the indirect channel of third-party relationships to 

meet its strategic goals of service to all taxpayers, and productivity.

Investment Obligations:

Type FY 2019 F Y 2020 F Y 2021 $ Change % Change

Sub -Total DME Obligations (Including Internal labor 

(Govt. FTE)) 0.04 0.00 0.00 0.00 0.00%

Sub -Total O&M Obligations (Including Internal Labor 

(Govt. FTE)) 9.64 10.02 10.40 0.38 3.77%

Total Obligations 9.68 10.02 10.40 0.38 3.77%
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Purpose, Accomplishments, Future Objectives:

FY 2019 Objectives: 

• Deliver FY 2019 Operations and Maintenance changes for e-Services. 

• Deliver Transcript Delivery System (TDS) Late Legislative and Wage and Income 2019 

Updates. 

FY 2020 Goals: 

• Upgrade e-Services infrastructure, including hardware and Commercial Off The Shelf (COTS) 

product software upgrades to adhere to the N-1 enterprise standard. 

• Deliver Bot/Shape through the implementation of Application Programmers Interface (API). 

• Deliver modifications in support of legislative and filing season tax year changes.

Enterprise Case Management (ECM)

Description:

Enterprise Case Management (ECM) will address the need to modernize, upgrade, and consolidate 

many current IRS case management solutions. ECM will provide an enterprise solution for performing 

case management functions utilizing a common infrastructure platform, thus reducing long-term costs. 

The current systems provide limited visibility into case management practices between programs, 

introduce process redundancies, and require multiple handoffs that can lead to bottlenecks and 

increased risk. The case management functions will be developed as common services for multiple 

systems to share. Implementation of the solution will provide a consistent approach to case 

management across business units.

Investment Obligations:

Type FY 2019 F Y 2020 F Y 2021 $ Change % Change

Sub -Total DME Obligations (Including Internal 

labor (Govt. FTE)) 59.54 66.20 64.00 - 2.20 - 3.32%

Sub -Total O&M Obligations (Including Internal 

Labor (Govt. FTE)) 0.01 0.00 0.00 0.00 0.00%

Total Obligations 59.56 66.20 64.00 - 2.20 - 3.32%

Purpose, Accomplishments, Future Objectives:

Enterprise Case Management (ECM) provides an enterprise solution for performing case management 

functions using a COTS platform and common services to improve customer service, automate manual 

processes, increase efficiencies and simplify case management systems operations. ECM will 

implement a COTS solution to improve case creation, management, closure, and reporting. ECM will 

help drive modernization efforts across the IRS, leading to increased business and IT efficiencies and 

improved customer service while eventually enabling the retirement of legacy case management 

systems. 

The IRS envisions modernizing and standardizing enterprise-wide case management processes and 

systems to provide top quality service to taxpayers. ECM will empower employees to rapidly resolve 
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cases in a simplified technical environment, designed to drive efficiency and collaboration. By the end 

of FY2022, the ECM Program should be on a sustainable path towards achieving organizational 

transformation: 

• ECM’s target platform and core capabilities will be in use for case management, with most 

major business organizations having an operational footprint on the target platform and 

demonstrating value to the taxpayer.

• ECM adoption and evolution will be part of the normal course of IRS business, enabling 

incremental retirement of legacy case management components.

After the ECM Program discovered significant technical limitations with the previous COTS product 

being used for case management at the IRS in early 2017, the program defined and launched a product 

assessment and acquisition strategy to identify and evaluate products/solutions to meet IRS business 

and technical needs. These products/solutions must be scalable to serve as the foundation for an 

enterprise case management platform. The strategy includes: 

• Information exchanges with other agencies to learn about their experiences in implementing 

enterprise case management.

• Information exchanges with industry via requests for information (RFI).

• RFI vendor demonstrations to learn about capabilities and features available in the case 

management marketplace.

• Analysis of applicable audit findings and recommendations across multiple agencies.

• A draft and final request for quotations (RFQ) informed by the above information.

The IRS published the final RFQ in May 2018, evaluated responses over the summer, and issued 

awards to begin execution of the ECM Physical Assessment and Analysis (EPAA) with two selected 

vendors in November 2018. The EPAA includes challenge-based scenarios completed by vendors over 

several months to ensure that their products met all mandatory minimum requirements and function 

well in the IRS IT environment. The IRS selected a solution in August 2019. However, a GAO protest 

by the non-selected vendor and subsequent corrective actions have delayed this acquisition, which is 

now planned to occur in spring 2020. 

The IRS started work on ECM Release 1 in October 2018 and is performing activities that can be 

worked concurrently with product assessment and selection. For 2020, the investment anticipates 

delivering initial case management capabilities through ECM Release 1, with subsequent releases in 

2021 and beyond providing additional case management functionality across business units.

Foreign Account Tax Compliance Act (FATCA)

Description:

FATCA requires foreign financial institutions to report to the IRS information about financial accounts 

held by U.S. taxpayers, or foreign entities in which U.S. taxpayers hold a substantial ownership 

interest. This investment is essential to the IRS fulfilling its international commitments and to the IRS 

fully utilizing the information directed by Congress to promote compliance for U.S. taxpayers using 

foreign accounts.
13

Investment Obligations: 

Type FY 2019 F Y 2020 FY2021 $ Change % Change

Sub -Total DME Obligations (Including Internal 

labor (Govt. FTE)) 0.00 1.00 0.00 - 1.00 - 100.00%

Sub -Total O&M Obligations (Including Internal 

Labor (Govt. FTE)) 39.31 34.16 34.96 0.80 2.34%

Total Obligations 39.31 35.16 34.96 - 0.20 - 0.57%

Purpose, Accomplishments, Future Objectives:

The purpose and goal of FATCA is to promote disclosure of foreign accounts held by U.S. taxpayers 

and to integrate this information into current IRS compliance activities. FATCA introduces new 

reporting requirements for U.S. taxpayers and Foreign Financial Institutions (FFIs). The legislation 

requires U.S. taxpayers holding foreign financial assets, with aggregate values exceeding certain 

thresholds, to annually report information to the IRS; and for FFIs with U.S. taxpayer accounts to 

register, report annually to the IRS, and withhold/pay 30 percent of selected U.S. source income to the 

IRS. These complementary provisions create a web of international tax accountability, allowing the 

IRS to gather and analyze information from multiple sources, bolstering the compliance of U.S. 

taxpayers with assets overseas. 

Treasury has worked with foreign governments to negotiate Intergovernmental Agreements (IGAs) 

that address specific legal impediments surrounding privacy laws and the disclosure of accountholder 

information. In addition to foreign account and asset data submitted by taxpayers and entities, the IRS 

will assemble and transmit Bank Deposit and Interest (BDI) data on accounts held by foreign nationals 

from U.S. financial institutions (FIs) to foreign government Host Country Tax Authorities (HCTAs), 

under agreements intended to facilitate FATCA adoption. 

The FATCA investment encompasses planning, development, and implementation of key IT systems 

needed to support IRS tax administration response to FATCA provisions. Work is organized into 

Releases that deploy functionality to meet key legislative dates. Major application components of the 

FATCA Program are: Financial Institution (FI) Registration, International Data Exchange Service 

(IDES), International Compliance Management Model (ICMM), Withholding and Refund (W&R) and 

Qualified Intermediary (QI) Application. Release details are explained in further detail below. 

In FY 2018, IRS implemented legislative requirements that allowed for maintenance of the Qualified 

Intermediary (QI), Financial Institution Registration System (FI), and International Compliance 

Management Model (ICMM) releases, as well as creation of reciprocal reports, submitted QI periodic 

certifications and pre-existing FI certifications, and resolved outstanding issues. FATCA moved to 

normal operation in October of 2018.

The IRS has delivered all legislative mandated functionality ahead of schedule and under budget that 

was approved under FATCA governance. 

• Deployed state-of-the-art FATCA Registration solution for Financial Institutions (FIs) 

worldwide, establishing a streamlined environment to register, ensuring data security; 367,754 

FIs have registered as of March 02, 2020. 

• Developed Global Intermediary Information Number (GIIN), issued to FIs that register with 

the IRS that allows the U.S. and IGA partners to identify FIs with associated filing data 

• Deployed an electronically searchable/downloadable FI List 
14

• Developed uniform standards for data collection/transmission from FIs via the FATCA XML 

schema, with cooperation of foreign governments; information sharing pursuant to IGAs will 

takes place in accordance with these standards 

• Released new FATCA forms and deployed a global platform, International Data Exchange 

Service (IDES); successfully enabling reporting and electronic information exchange 

• Launched ICMM to receive, process, store, and manage FATCA data received from various 

sources, making it available for future compliance activities 

• Implemented significant communication/ outreach activities to streamline processes and 

provide FATCA guidance (e.g., issues escalated from IRS.gov, eHelp Desk, and Comments 

Application) 

• Established IGAs with over 100 governments worldwide, on behalf of the Department of the 

Treasury 

• Implemented Reciprocal Data Exchanges to include Form 1042S-Withholding Agent changes; 

application submission, QI Agreements; and Renewal of FI Agreements. 

FATCA's long-term goals will be achieved through the FATCA Program Release Plan, which outlines 

a prioritized approach to: address required legislative mandates, deliver new/enhanced business 

capabilities, reduce/mitigate risks, evaluate deficiencies in current system capabilities, reduce manual 

workarounds for the Business and IT, improve FATCA compliance practices, and establish IT 

capabilities that can support other IRS initiatives. 

Individual Master File (IMF)

Description:

IMF is the authoritative data source for individual tax account data. All other IRS information system 

applications that process IMF data depend on output from this source. IMF is a critical component of 

IRS' ability to process tax returns. IMF is one of Treasury’s high value assets (HVAs) for its critical 

role in tax administration. The Office of Management and Budget defines HVAs are “those assets, 

systems, facilities, data, and datasets that are of particular interest to potential adversaries”.

Investment Obligations: 

Type FY 2019 F Y 2020 F Y 2021 $ Change % Change

Sub -Total DME Obligations (Including Internal 

labor (Govt. FTE)) 4.21 0.00 0.00 0.00 0.00%

Sub -Total O&M Obligations (Including Internal 

Labor (Govt. FTE)) 14.27 13.73 14.08 0.35 2.53%

Total Obligations 18.48 13.73 14.08 0.35 2.53%

Purpose, Accomplishments, Future Objectives:

IRS is responsible for collecting revenue from individuals to fund the operations of the federal 

government. In order to effectively accomplish this goal, it must maintain authoritative data on 

individual taxpayers. The IMF is the authoritative data store for individual taxpayers’ accounts. Within 

the IMF, accounts are updated, taxes are assessed, and refunds are generated as required each tax filing 
15

period. Virtually all IRS information system applications and processes depend on output, directly or 

indirectly, from this data source.

Currently, the IMF continues to fill the functional needs of the individual taxpayer account processing 

and to perform Operations & Maintenance for tax law changes. Future endeavors include a translating

key IMF runs from Assembly Language Coding (ALC) to JAVA in conjunction with the CADE2 

project . The IMF team will continue interacting with programs that impact IMF and continue 

performing Operations & Maintenance for tax law and maintenance changes.

Integrated Customer Communication Environment (ICCE)

Description:

ICCE provides problem-solving information through software and connections to legacy databases for 

both the phone and web. These applications use voice response, Internet, and other computer 

technology to provide service to taxpayers 24 hrs a day.

Investment Obligations: 

Type FY 2019 F Y 2020 F Y 2021 $ Change % Change

Sub -Total DME Obligations (Including Internal 

labor (Govt. FTE)) 0.18 0.00 0.00 0.00 0.00%

Sub -Total O&M Obligations (Including Internal 

Labor (Govt. FTE)) 10.59 9.84 10.21 0.36 3.68%

Total Obligations 10.76 9.84 10.21 0.36 3.68%

Purpose, Accomplishments, Future Objectives:

Integrated Customer Communication Environment (ICCE) directly supports the IRS Strategic Goal of 

enabling all taxpayers to meet their tax obligations while protecting the integrity of tax system. ICCE 

supports and maintains the following taxpayer-facing web and telephone applications:

• Get Transcript allows authenticated taxpayers to securely view copies of their account online.

• Order a transcript allows taxpayers to order transcripts online. Online Payment Agreement 

(OPA) allows the taxpayer or Power of Attorney and qualified businesses to apply for and 

receive on-line approval for a short-term extension to pay or set up a monthly installment 

agreement.

• Identity Protection PIN (IPPIN) provides a pin to taxpayers that are victims of identity theft or 

potential victims.

• Internet Refund Fact of Filing (IRFOF) - Where's My Refund (WMR) - provides tax refund 

status information via the web to Form 1040 (individual) series filers.

• Where's My Amended Return (WMAR) allows taxpayers to check the status of their amended 

returns via web or smartphone. 

• Internet Refund Trace allows taxpayers who have not received paper refunds after a specific 

amount of time to initiate a refund trace.

• Modernized Internet Employer Identification Number (MOD IEIN) allows the general public 

to apply for an Employer ID number (EIN) online.
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• ICCE provides a set of telephone applications allowing individual taxpayers to interact directly 

with their accounts.

• ICCE Online Services (OLS) Web services & mobile applications is designed to be used via 

smartphone technology. Applications include Foreign Account Tax Compliance Act Foreign 

Financial Institution (FATCA FFI) Look-up Tool, Offer In Compromise (OIC) Calculator, 

Return Preparer Look-Up Tool, IRS2Go, Volunteer Income Tax Assistance (VITA).

• FIS (Federal Investigation Standards) Tax Check application, required by Executive Order 

(EO) 13476, will conduct an automated tax compliance look up and disclose limited tax return 

information. 

• Federal Student Aid - Datashare (FSA-D) - web based application providing taxpayers 

completing the Free Application for Student Aid (FAFSA) through the Department of 

Education's FAFSA On The Web (FOTW) with access to relevant tax data from their filed 

individual Federal tax return.

• Private Debt Collection Data Transfer Component (PDTC) - a legislative mandated initiative 

for Private Collection Agencies (PCAs) to collect certain categories of past due taxes for 

individual taxpayers and businesses.

FY 2019 Accomplishments 

• Developed more compensating controls around web applications to enhance security 

completed in May (WMR), MOD Internet Employer Identification Number (IEIN), Where's 

My Amended Refund web & telephone 

• Allowed taxpayers of selected states to obtain IPPINs voluntarily. 

• Created IRFOF & Refund Inquiry 

• Updated document and math error codes due to Tax Reform, as well as updating thumbnails to 

WMR 

• Created and updated Spanish thumbnails and help page and entry page text for current filing 

season

MODIEIN 

• Updated Technical System Requirements in Help testing 508 changes 

• Reinstated Google Analytics 

• Increasing EIN 2-digit prefix from 83 to 84

OPA IMF, Voice Balance Due (VBD) 

• Fixed 40 KISAM tickets related to OPA & VBD applications to further prepare for OPA to 

move to the WebApps platform in the future 

• Confirmation Letters 2273C, 5976C and 5977C updated to correspond to format changes 

to Correspondence Letter System (CRX) due to Legislative/Bipartisan Budget Act, 

beginning in January 2019 

• 508 testing for URL link and amount changes 

• Mandatory security changes moved OPA from eAuthentication Level of Assurance 

(LOA)2C to LOA2 

• Work Request (WR) 212561 CLM 296711 Installment agreement adjustment for low 

income earners to $0 fee waiver from $31

PTDC – Private Debt Collection 

• Added BMF and BMF Reports for PTDC Release 4.0 BMF per legislation FAST ACT 

P.L. 114-94 (H.R. 22) 

FOTW & IDR 

• Verified new header in PIE (environment where DOE does their usability testing) 

• More responsive design, deployed Sept 2019 

TRA, GetTrans, OAT, TDS, 508 Compliance 
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• WR 203857 Redacted PII on IMF TDS Transcripts - added customer file no. on Form 

4506T 

• Fixed to Google Analytics for switch test location

• Forms 1040A and 1040EZ elimination per Tax Reform 

• CR 3564 - English, CR 3576 – Spanish CP521 Notice Realignment, 1040EZ Update. 

CSS Routing 

• CCSD/UNS - 7388 Routing Change 

• Topic based Routing as requested by SB/SE for tax reform phase 2, October 2019 

IRS2Go API 

• Terms of service added to header 

• Add Digital Signature verification using secret key.

Future Goals - FS21 

• Continual maintenance of all telephone, web, cloud and mobile applications as requested 

by our business partners throughout the agency.

Integrated Data Retrieval System (IDRS)

Description:

Since 1973, IDRS has been a mission-critical system. Used by 60,000 IRS employees, it provides for 

systemic review, consistency in case control, alleviates staffing needs, issues notices to taxpayers and 

allows taxpayers to see status of refunds. IDRS is one of Treasury’s high value assets (HVAs) for its 

critical role in tax administration. It manages data retrieved from the Tax Master Files allowing IRS 

employees to take specific actions on taxpayer account issues, track status and post updates back to the 

Master Files. It provides for systemic review of case status, alleviating staffing needs and providing 

consistency in case control. Actions taken via IDRS include notice issuance, installment agreement 

processing, offers in compromise, adjustment processing, penalty and interest computations and 

explanations, credit and debit transfers within an account or other related accounts and research of 

taxpayer accounts for problem resolution of taxpayer inquiries.

Investment Obligations: 

Type FY 2019 F Y 2020 F Y 2021 $ Change % Change

Sub -Total DME Obligations (Including Internal 

labor (Govt. FTE)) 0.76 1.28 1.03 - 0.25 - 19.44%

Sub -Total O&M Obligations (Including Internal 

Labor (Govt. FTE)) 15.45 19.91 20.81 0.90 4.50%

Total Obligations 16.21 21.19 21.84 0.65 3.05%

Purpose, Accomplishments, Future Objectives:

IDRS is a secure, reliable, flexible and mission-critical system consisting of databases and programs 

supporting IRS employees who are working active tax cases. 

• IDRS manages data retrieved from the Tax Master Files allowing over 60,000 IRS employees 

who use it daily to take actions on specific taxpayer account issues, track status and post 

updates back to the Master Files. 
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• IDRS provides for systemic review of case status, reducing staffing needs and providing 

consistency in case control. For example, each time a taxpayer phones IRS, the representative 

answering the phone uses IDRS to log the call and answer any questions. 

• Actions taken via IDRS include but are not limited to: notice issuance; taxpayer 

correspondence; installment agreement processing; offers in compromise; adjustment 

processing; penalty and interest computations and explanations; credit and debit transfers 

among accounts; research of taxpayer accounts for problem resolution of taxpayer inquiries 

• Using data analytics, IDRS enables IRS to efficiently evaluate taxpayer data to inform 

enforcement and secure legal compliance, both domestically and internationally. 

• IRS internet applications access IDRS to provide services, information and assistance to 

taxpayers. For example: Annually, over 355 million taxpayers ask Where's-my-refund at 

www.irs.gov. Annually, over four million business taxpayers obtain Employer Identification 

Numbers (EINs) through www.irs.gov instead of paper correspondence. 

IDRS enables businesses providing payroll services to submit tax data on behalf of millions of 

taxpayers and collaborates with registered tax practitioners to reduce the burden of filing Powers of 

Attorney and Taxpayer Information Authorizations, allowing them to request access to other EServices. A variety of tax information is produced by IDRS that facilitates collaboration with various 

internal and external partners including: Social Security Administration (SSA); Bureau of the Fiscal 

Service; State and local governments; Tax practitioners 

IDRS is continuously monitored for cost, schedule, and project performance. IDRS serves the 

taxpayers in many ways and helps address various performance gaps. IDRS' taxpayer-centered services 

promote intangible goodwill to citizen's perception of IRS and the Federal Government as well as 

ensuring consistent, efficient service.

Other Accomplishments: 

• Implemented as part of the Tax Reform Sec. 14401 of P.L. 115-97 (Tax Cuts and Jobs Act), 

Rate Change for Penalties Assessed Under IRC 6038A(d) 

• Implemented Inflation Adjustments for FS2019 under P.L. 113-295 Provision 208 

• Update CC FRM77 to process transactions for tax reform section 965 indicating the interest 

due or an underpayment of first installment. 

• Add acceptance and validity checking to Standardized IDRS Access (SIA) Tier 2 processing 

for TC 520/521 transactions. 

• Annual Allocated Tips project Maintenance – BMF Form 8027 – Form - 8027 - Employer's 

Annual Information Return of Tip Income and Allocated Tips (2019) 

• Update TRS processing for fields related to Automated IA Confirmation Letters 

• TRS updates related to SP Consolidation - Move Automated Non-Masterfile Processing from 

Cincinnati Submission Processing (SP) Center to Kansas City SP Center 

• RCC changes related to Private Debt Collection 

• Updated Credit Transfers processing for new Designated Payment Codes 

• Updated RCC processing for Form 3520-A Form Updates TY2018 

• Updated TRS and RCC processing for PY2019 FATCA Form 1042, Form Update 

• Updated TRS and RCC processing for RRE -Tax Reform-2019-p-13504 and P.L. 114-74 

Section 1101 - Form 1065 

• Updated TRS processing for Part 3 - Waiver/Reimbursement of Low-income Installment 

Agreement User Fees 

• Implemented project changes to allow Identity Theft command codes to be expanded to 

Business Master File. 
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• Implemented changes for the Bipartisan Budget Act, to allow new designated payment codes 

to be valid for Area Office Payment Processing. 

• Implemented annual changes for the Earned Income Credit Computation for Tax Year 2019. 

• Implemented a temporary change related to UWR 228436 that will be completed with 

permanent programming changes for Mid-Year 2020 that keeps IRS in compliance with the 

Taxpayer First Act legislation as it relates to the suppression of the TC971 AC611 when the 

CP523 is issued. The temporary change was placed into production on 9/21/2019.

Future development efforts are limited primarily to: 

• Legislatively mandated tax law changes. 

• Implement customer-approved work requests that enable IRS employees and systems that 

depend on IDRS, to ensure compliance with current tax law while providing quick and 

accurate service to taxpayers. 

Integrated Financial System/CORE Financial System (IFS)

Description:

IFS is the IRS's core financial system used for budget, payroll, accounts payable/receivable, general 

ledger functions and financial reporting. IRS uses IFS to report on the cost of operations and manage 

budgets by fiscal year.

Investment Obligations: 

Type FY 2019 F Y 2020 F Y 2021 $ Change % Change

Sub -Total DME Obligations (Including Internal 

labor (Govt. FTE)) 0.88 1.85 1.89 0.04 2.02%

Sub -Total O&M Obligations (Including Internal 

Labor (Govt. FTE)) 14.38 12.66 13.04 0.38 3.03%

Total Obligations 15.25 14.51 14.93 0.42 2.90%

Purpose, Accomplishments, Future Objectives:

Integrated Financial System (IFS) is the core financial system for IRS. By leveraging a Federal version of 

SAP COTS software. The system provides a reliable, standardized and auditable platform for 

administrative accounting, budget formulation/labor forecasting and execution (funds management) of the 

IRS annual budget. Other financial functions include: 

• General ledger, managerial cost accounting, accounts payable, accounts receivable, purchase card 

transaction processing and payments, asset accounting, all financial reporting, and budgetary and 

management reporting. 

• In addition, it provides functionality supporting the management and administration of the federal 

acquisition/ procurement processes. 
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• The IFS system provides the ability to accountants, budget, and financial management analysts to 

effectively manage U.S. Government finances for the Internal Revenue Service and respond.to 

audit requests in support of a clean audit opinion. 

• IFS allows the IRS to pay its bills on time while meeting Federal financial regulatory 

requirements.

FY 2019: 

• The SAP ERP Central Component (ECC) component was migrated from the Solaris platform to 

Linux. All components of the application are now on Linux. 

• All application databases have been upgraded to Oracle version 12.

• The ECC component was upgraded to the latest Enhancement Patch (EP7) level. 

• IFS will complete standard maintenance patches, year-end close, and support the GAO audit 

responding to audit findings (if any). 

FY 2020/2021/2022: 

IFS will also make changes as necessary to support ongoing Federal Financial System mandates. IFS is a 

Federal version of SAP COTS software which includes Procurement for Public Sector (PPS). IFS will 

perform the following: 

• IFS will complete standard maintenance patches, year-end close, and address any GAO findings. 

• Deploy monthly releases for defect corrections and service requests as requested and prioritized 

by the customer (CFO/Procurement). 

• Legislatively mandated interface with Treasury’s G-Invoicing system. Required implementation 

date is June 2021. IFS will develop a new interface for this effort. 

• The IFS application currently runs on a COTS based SAP Enterprise Resource Planning (ERP) 

solution, which will reach end of life in FY2027. The current SAP ERP solution provides 

modules covering a full range of industry applications, including Finance, Procurement, 

Logistics, HR, Product Planning and Customer Service, that are linked together into a single, 

customizable system running on an Oracle database. Before we commit to any upgrade, we will 

conduct a due diligence Alternatives of Analysis as any new solution for IFS will require a 

significant investment by the IRS, multi-year implementation effort and introduce new risks. 

Therefore, the IRS is evaluating alternatives via an independent review in FY2020 to ensure it has 

enough information to make the best decision for the Service going forward. 

• Develop an Integrated Reporting Solution for the Procurement component of the application.

Integrated Submission and Remittance Processing System (ISRP)

Description:

ISRP is the legacy frontline tax processing system that processes paper tax returns from individuals and 

businesses. It also updates tax forms to comply with tax law changes.

Investment Obligations: 

Type FY 2019 F Y 2020 F Y 2021 $ Change % Change

Sub -Total DME Obligations (Including Internal 

labor (Govt. FTE)) 0.31 0.00 0.00 0.00 0.00%
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Type FY 2019 F Y 2020 F Y 2021 $ Change % Change

Sub -Total O&M Obligations (Including Internal 

Labor (Govt. FTE)) 11.33 11.06 11.36 0.30 2.70%

Total Obligations 11.64 11.06 11.36 0.30 2.70%

Purpose, Accomplishments, Future Objectives:

The Integrated Submission and Remittance Processing (ISRP) system is an integrated suite of hardware, 

software and network components that provides the interfaces for data entry perfection and transmission 

of data to IRS Corporate data storage. ISRP Data Entry Operators enter the information from various 

paper documents, which are then converted into electronic data used by downstream operations such as 

Financial Information Systems. ISRP also updates tax forms to comply with legislative changes in tax 

laws. There is a system dependence on various IRS applications such as Generalized Mainline 

Framework (GMF), Enhanced Entity Index File (EEIF), Integrated Data Retrieval System (IDRS), and 

Enterprise File Transfer Utility (EFTU).

Accomplishments and Future Objectives: 

FY 2020: 

• Deliver legislatively mandated Taxpayer First Act Changes to keep ISRP up-to-date. 

• Deliver updates to the ISRP system for completing the cleanup from the Tax Reform Changes.

• Continue to send Foreign Account Tax Compliance Act (FATCA) information (Forms 8938, 

8966 and 1042-S (Recipient Copy) to the International Compliance Management Model (ICMM) 

system. 

• Continue to migrate of the ISRP Program Requirements Package (PRP) documents currently in 

Microsoft Word format to the Rational Requirements Composer (RRC) system. 

• The refresh of the remittance transport infrastructure including the implementation of Electronic 

Check handling. 

• Deploy security patches, maintenance and firmware updates. 

• Submission Processing Consolidation: Prepare for the closing of the Fresno site in 2021. 

• Complete the refresh of ISRP server infrastructure. 

• Continue to support both Individual Master File (IMF) and Business Master File (BMF). 

FY 2021: 

• Deliver legislatively mandated Taxpayer First Act Changes to keep ISRP up-to-date.

• Consider proposals and options to leverage functionality between the ISRP and Service Center 

Recognition/Image Processing System (SCRIPS) systems to improve efficiency and continue to 

reduce costs. 

• Continue migration of the ISRP Program Requirements Package (PRP) documents currently in 

Microsoft Word format to the Rational Requirements Composer (RRC) system. 

• Continue the effort to keep the ISRP server infrastructure current.

IRS End User Systems and Services (EUSS)

Description:

The EUSS standard investment provides user-centered information technology (IT) products and services 

for 80,000 IRS employees at headquarters and field offices (including international locations). The EUSS 

investment funds the provisioning of end user hardware and software as well as the day-to-day operations, 
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maintenance, services and support of all end user technologies at the IRS. As such, this investment is 

essential to the IRS providing reliable, quality services to millions of taxpayers.

Investment Obligations: 

Type FY 2019 F Y 2020 F Y 2021 $ Change % Change

Sub -Total DME Obligations (Including Internal 

labor (Govt. FTE)) 11.56 20.90 9.06 - 11.84 - 56.66%

Sub -Total O&M Obligations (Including Internal 

Labor (Govt. FTE)) 175.88 204.95 200.33 - 4.62 - 2.26%

Total Obligations 187.44 225.85 209.39 - 16.47 - 7.29%

Purpose, Accomplishments, Future Objectives:

The EUSS investment provides end user focused Information Technology (IT) products and services for 

80,000+ IRS employees at headquarters and field offices (including international locations). The EUSS 

investment includes annual funding for the provisioning of end user hardware and software as well as the 

day-to-day operations, maintenance, services and support of all end user technologies at the IRS. 

The purpose of the EUSS investment is to provide secure, reliable, innovative and cost-effective IT 

computer hardware, software, services and support for IRS employees in delivering the IRS’ Tax 

Administration mission. The goal of the EUSS investment is to ensure that the IRS maintains a secure, 

stable and innovative workplace computing environment that provides employees with state-of-theindustry computing devices, applications, security defenses, business tools and associated end user 

services to maximize their uptime and productivity. Additionally, the EUSS investment facilitates 

delivery of user focused IT projects and initiatives that enable communication, collaboration and business 

capabilities in alignment with the IRS’ Integrated Modernization Plan and the IRS Strategic Plan. 

Accomplishments:

• Implemented digital technology such as robotic process automation & digital service agent using 

natural language processing. The IRS Chatbot “Winnie” which answers Win 10 questions has 

been finalized and created with developed code to run the Chatbot and tailored to our needs as a 

proof of concept. 

• Live Assistance (LA) Customer Callback and Omnichannel. 

• Successfully implemented two phases of customer callback within the Toll-free environment. 

One being “IRS IT Help Desk application” and the other being “Balance Due application”. 

• Planned and secured contract award for the 3rd phase of Customer Callback. 

• Administered upgrading of the Toll-free environment infrastructure by implementing upgrades to 

the CC-VRU, ICM, UCCE, and expanding CVP Ports. 

• Implemented Assistive Technology (AT) Process Improvement plan to enhance the user 

experience for Adaptive Users. UNS has been tasked to lead the AT Service Delivery 

Enhancement Project in partnership with the Section 508 IRAP office and the Employee, 

Diversity and Inclusion office to identify and implement process improvements that will enhance 

end-to-end service delivery support and heighten customer experience 

• Implemented Local Inventory Project for improved workstation break/fix customer experience. 

This initiative targets to refresh workstation hardware within 24 hours in all major IRS locations

• Continue reduction of aged infrastructure percentage. 

• Implemented capability to deploy workstation operating system upgrades remotely through 

Upgrade-In-Place which reduces overall cost to perform these upgrades 
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• Completed independent evaluation of process to which validated proper electronic data 

preservation of user created data on workstation hard drives until National Archives and Records 

Administration (NARA) 2019 requirements for e-records retention & eDiscovery are 

implemented. 

• Initiated transition to a Manage Print Services (MPS) contract providing end-to-end managed 

services and support for network printers and multi-function devices enterprise wide; will update 

all devices & deliver enhanced user functionality with cost savings. 

• Completed evaluation of Windows 10 Enterprise edition and its inherent security tools to 

determine future workstation possibilities. 

• Implemented Asset Inventory Automation AssetTrack barcode scanning solution and integrated 

the solution with IRS’ asset and inventory tool to automate hardware asset inventory transactions 

in near real-time.

IRS Main Frames and Servers Services and Support (MSSS)

Description:

Provides for the development and deployment of server, middleware and large systems and enterprise 

storage infrastructures, including systems software products, databases and operating systems for these 

platforms.

Investment Obligations: 

Type FY 2019 F Y 2020 F Y 2021 $ Change % Change

Sub -Total DME Obligations (Including Internal 

labor (Govt. FTE)) 66.44 33.42 21.06 - 12.37 - 37.00%

Sub -Total O&M Obligations (Including Internal 

Labor (Govt. FTE)) 492.96 549.32 609.78 60.46 11.01%

Total Obligations 559.40 582.74 630.84 48.09 8.25%

Purpose, Accomplishments, Future Objectives:

The Mainframe and Servers, Services and Support (MSSS) investment represents the operational 

investment for the deployment of server, middleware and large systems as well as enterprise storage 

infrastructure, including systems software products, databases and operating systems for these platforms. 

MSSS resources are primarily used to support the operations & maintenance of the vast array of 

infrastructure necessary to support tax administration. MSSS represents roughly 25% of the IRS's total IT 

budget. The primary objective of the MSSS investment is to ensure the 24x7 IT operations, support and 

maintenance for all Tier I (Enterprise Servers) and Tier II (Servers, Middleware, Storage, Databases) 

production systems responsible for the daily operations of IRS batch and online processing. In addition, 

all supporting environments that make up application development and deployment pipelines must be 

maintained, patched, secured and available for over 400 processing applications. This investment shall 

ensure timely tax processing and refund issuance to over 300 million taxpayers and businesses. MSSS 

TIER I Infrastructure costs supports submission processing and the upgrading of Enterprise mainframes 

to handle over 10,000 MIPS (Millions of Instructions Per Second) thus increasing capacity to handle peak 

transactions. MSSS TIER II Infrastructure costs also support submission processing and critical IRS 

processes such as: collections, criminal investigations, processing individual tax returns and, processing 

paper and electronic taxpayer payments as well as many various internal IRS business applications. The 

MSSS non-tier specific costs support critical IRS processes and infrastructure. This cost is required to 
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ensure all infrastructure related to supporting filing season and submission processing is available for the 

tax customer without disruption.

Projects such as Enterprise Discovery (eDiscovery), Enterprise Exchange Upgrade Solution, Enterprise 

Records Management (eRM), and other efforts have been deferred, due to increases in O&M which leads 

to reduced availability of DME resources. 

Accomplishments:

The MSSS investment continues to deliver a successful filing season through the efficient management 

and maintenance of infrastructure operations. Here are examples of past key Filing Season improvements 

and upgrades: 

• Upgrade of IBM mainframes, 

• Upgrade of Unisys hardware for Enterprise Storage, 

• Upgrade of the virtual infrastructure, 

• Upgrade to Linux-based hardware for MeF, 

• Deployed stable, scalable and supportable monitoring environment and trained over 500 MeF 

monitoring staff and stakeholders, 

• Implemented monitoring to support MeF migration from Solaris-based hardware to zLinux 

hosted database solutions, 

• Collaborated with Stakeholders to drive replacement of all virtual infrastructure generation 8 HP 

blades with Cisco Hyperflex 240M5, 

• High Service Availability (HAS) Resiliency and Strategy- Measurably improved stability of the 

infrastructure environment, 

• Replaced the 20+ year old Computer Assisted Publishing System (CAPS), IBM Automatic Tape 

Library (ATL) with IBM 7760 Virtual Tape System (VTS), 

• Exceeded Enterprise Operations target of Aged Assets Reduction - reduced aged assets by 2,028 

assets total, 

• Remediated Operations Security issues on ~6,200 servers per DHS Directive 20-02. 

• Enterprise Storage Service continues to provide a private storage cloud at the two IRS Enterprise 

Computing Centers and 4 service centers. This “Pay only for what you use” personifies the 

teaming of government and contractor partnership to provide superior service and transparency. 

The IRS leverages all aspects of private storage cloud, allowing to meet dynamic storage demands within 

minutes while meeting stringent service level objectives. 

Future objectives:

• Increased focus on enterprise strategic goals, introduction of new technologies, increased 

capabilities and service models to improve overall performance and support. 

• WinOS Refresh will update all Wintel systems to WIN OS 2012R2, to align with enterprise 

strategic goals and ensure N-1 compliance while preparing for and planning upgrade to the next 

OS levels. 

• Linux Lifecycle Program will focus on support for our Applications Developers partners, to 

migrate existing programs to a level of SW compliance supporting the newer infrastructure. 

• Solaris Stabilization effort provides an interim solution to the aged Solaris hardware which has 

reliability and supportability issues and for which vendor support runs out in Jan 2021. 

• RHEL 6 to RHEL7.
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IRS Telecommunications Systems and Support (TSS)

Description:

The Telecommunications Systems and Support (TSS) investment supports network (data and voice) 

services to provide secure taxpayer and employee access to IRS services. This includes the ability to 

provide access, phone, video, wireless and data services to 580 locations, 42,000 remote users, 80,000 

employees and over 162 million taxpayer calls annually.

Investment Obligations: 

Type FY 2019 F Y 2020 F Y 2021 $ Change % Change

Sub -Total DME Obligations (Including Internal 

labor (Govt. FTE)) 44.55 37.29 54.77 17.48 46.87%

Sub -Total O&M Obligations (Including Internal 

Labor (Govt. FTE)) 280.81 299.01 329.66 30.65 10.25%

Total Obligations 325.36 336.30 384.43 48.12 14.31%

Purpose, Accomplishments, Future Objectives:

The Telecommunications Systems and Support (TSS) investment supports network (data and voice) 

services to provide secure taxpayer and employee access to IRS services. This includes the ability to 

provide access, phone, video, wireless and data services to 580 locations, 42,000 remote users, 80,000 

employees and over 162 million taxpayer calls annually. The TSS investment provides a reliable, secure, 

innovative and cost-effective telecommunications systems and services that enable communication, 

collaboration and business capabilities in support of the IRS' Tax Administration mission. Specifically, 

the TSS investment ensures that IRS maintains a secure, stable and innovative network environment by 

providing and managing secure state-of-the-industry telecommunication systems to enable system, 

employee and taxpayer communication. Also, User and Network Services (UNS) provides initiatives that 

are IT modernization centric and support the IRS IT Modernization plan. 

The Strategic Objectives of the investment are: 

• Operational Excellence – Secure, efficient and effective service through on-time delivery, lower 

costs and capacity gains. 

• Workforce Excellence – A satisfied, engaged and well-trained workforce equipped to provide 

outstanding service. 

• Innovation and Business Value (Technology) – Increased business value, expanded capabilities, 

increased operational and resource capacity to support changing business priorities. 

The modernization of the IRS network and operations ensures a secure highway supporting tax 

administration and is the critical base for the IRS digitalization strategy which supports the IRS mission 

of helping taxpayers understand and meet their tax responsibilities and enforce the law with integrity and 

fairness.

Accomplishments and Future Objectives:

• Delivered AT&T NetBond for cloud security zone secure path with guaranteed bandwidth to the 

Cloud Service Providers in the Trusted Internet Connection (TIC) / Common Communications 

Gateway (CCG). 
26

• Continued implementing WAN Acceleration technology across the network to optimize 

bandwidth, slow bandwidth growth, & reduce latency. An additional 90 sites have WANx 

installations in progress which will improve network performance for 70% of the IRS workforce. 

• Implemented native IPv6, and IKEv2 WAN capabilities over TNet. 

• Continued deployment of next-gen Common Communications Gateway (CCG) to increase 

capacity, improve performance/monitoring/automation, virtualize and increase security. 

Implemented 10G High Availability network access for Proxy Servers. 

• Engineered/designed and implemented successfully a scalable CCGv2 network-based logging 

solution. 

• Delivered secure & robust network connectivity for off-premise Cloud initiatives. Netbond 

connection for Advanced Intelligent Network Services (AINS) has been successfully tested and 

operational. 

• Deployed a Firewall Management Suite Security Manager which defines/analyzes policy and 

adds context/validates in real-time. Next step is to configure Policy Planner and Optimizer that 

will standardize the Firewall Change Request (FCR) process and automate workflows. 

• Deployed Unified Access Phase 2-Enforcement Mode to 90% of IRS POD sites; this exceeds the 

FY19 commitment to deploy to 70% of IRS POD sites. 

• Completed proof of solution to ensure that the design for Network Segmentation meets the 

requirements of the project prior to full production deployment; develop design and architecture 

for Network Segmentation Deployment 

• With IPv6 deployed to over 92,000 workstations and available to all servers with a full 

cybersecurity defense in depth architecture in place 

• External e-Learning and Collaboration technology demonstration 150 test users successfully 

validated the service provided by AT&T as a Managed Services under TNET/ERAP. IRS 

specified sessions were created on the vendor platform, with IRS managing the session 

characteristics. Users confirmed they could successfully obtain a session, send emails from user 

IRS workstations to the service & then access external websites via the URL in the email. The 

deployed solution met all requirements 

• Deliver Desktop Virtualization Infrastructure initiative to greatly enhance the flexibility and 

agility in delivery of computing services to the IRS workforce.

IRS.GOV - Portal Environment

Description:

IRS portal provides seamless one-stop web-based services to internal and external users, such as 

taxpayers, business partners and IRS employees. The portal environment is rapidly becoming the virtual 

tax assistance center for most internal and external users by providing top quality service and promoting 

voluntary tax compliance in a rapidly changing digital business environment. The portal environment has 

supported over 646.8 million, Page Views: 3.16 billion in tax year 2019.

Investment Obligations: 

Type FY 2019 F Y 2020 F Y 2021 $ Change % Change

Sub -Total DME Obligations (Including Internal 

labor (Govt. FTE)) 21.27 8.58 7.82 - 0.76 - 8.81%

Sub -Total O&M Obligations (Including Internal 

Labor (Govt. FTE)) 68.29 56.48 58.21 1.73 3.06%

Total Obligations 89.56 65.06 66.04 0.97 1.50%
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Purpose, Accomplishments, Future Objectives:

IRS portal provides seamless one-stop web-based services to internal and external users, such as 

taxpayers, business partners and IRS employees. The IRS portal environment supports the IRS mission by 

providing a virtual tax assistance center for internal and external users. IRS.GOV remains a cost-efficient 

platform to rapidly deploy standardized customer facing solutions like FAST, and BOT Manager, and to 

support rapid deployment of applications compliant with recent tax law modifications. IRS.GOV supports 

rapid deployment solutions, more robust user interfaces, faster communications and improved security 

measures that comply with the latest NIST standards to better meet our customer’s needs.

Accomplishments 

• Software Defined - Wide Area Network technologies to improve performance and reliability of 

WAN connectivity between IEP and IRS. 

• Tax Withholding Estimator tool (WCMS). 

• PEAR/IEP 2.0 -Completed Portal Ecosystem Application Reengineering (PEAR) Phase 3 –

Requirements Elaboration/Standards Development. 

• 20 PUP applications residing on the IEP were transitioned successfully to the Amazon Web 

Services environment (Cloud based). 

• Withholding Estimator Tool designed to support 2020 Tax Reform legislation changes. 

• Reservation model to provide a broader base of our customers access to the Performance testing 

environments. 

• WCMS operations and content updates for current filing season and second year tax reform 

changes. 

• Annual filing season preparation activities for all portals. (Public User Portal (IRS.gov), 

Registered User Portal, Employee User Portal, and the Transactional Processing Environment. 

• Completed ACA activities in preparation for Open Enrollment. 

• IEP Health Monitor Release 1 build-out complete. 

• Provide on-going support to Web Apps releases. 

• Supported the required activities for the following IRS Initiatives: 

• Martinsburg Failover to Memphis. 

• Memorial Day Martinsburg Power Down/Up. -Memphis Failback to Martinsburg. 

• Continued support of Political Organization Filing & Disclosure POFD B/E. 

• Increased capacity, performance testing, and integration support to accommodate expected tax 

reform demand. 

• Support application updates and identify any needed infrastructure upgrades. 

• Plan for FS 2020 activities across all portals. 

• Portal Ecosystem Application Re-engineering effort to modernize the legacy applications that 

reside in the IEP. 

• Support on going Tax Reform updates for content and applications. 

Future objectives: 

• EOPs Portal Accounts Replacement Tool investment will replace non-compliant software and 

reduce single point of failure for our portal account management. The Enterprise Informatica 

Platform within the tool will consolidate and refresh to ensure continued operability. 

• Support expected increases in portal activity based on historical activity growth trends and the 

public’s increased reliance on digital transactions. 

• Support of the cloud-based Field Assistance Scheduling Tool. 

• Expand support of the ongoing effort to implement Bot Manager Premier BMP (Active 

Protection) across all public facing apps. 
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• Support Affordable Care Act through the Transactional Portal Environment.

Modernized e-File (MeF)

Description:

MeF is a critical component of the tax filing system. It provides service to institutional taxpayers by 

delivering a web-based system that allows electronic filing of corporate, individual, partnership, exempt 

organization and excise tax returns through the Internet. MeF is one of Treasury’s high value assets 

(HVAs) for its critical role in tax administration. The Office of Management and Budget defines HVAs as 

“those assets, systems, facilities, data, and datasets that are of particular interest to potential adversaries”.

Investment Obligations: 

Type FY 2019 F Y 2020 F Y 2021 $ Change % Change

Sub -Total DME Obligations (Including Internal 

labor (Govt. FTE)) 7.39 5.50 11.42 5.92 107.72%

Sub -Total O&M Obligations (Including Internal 

Labor (Govt. FTE)) 49.62 39.66 40.70 1.04 2.62%

Total Obligations 57.01 45.16 52.13 6.96 15.42%

Purpose, Accomplishments, Future Objectives:

The Modernized e-file (MeF) Program provides a secure, web platform for electronically filing tax and 

information returns by registered Electronic Return Originators (EROs). This system uses a browserbased and application-to-application solution to provide ERO end users with optimized return filing. MeF 

is becoming the primary system for electronic filing of business and individual tax returns and forms. 

The MeF program supports the Treasury and IRS strategic goals by effectively and efficiently using 

resources to optimize return filing, expand e-Government, and reduce taxpayer burden.

Beneficiaries include the tax preparation community and the taxpayers they represent. MeF also benefits 

large corporations and tax-exempt organizations that are required at a specific asset threshold to 

electronically file their tax returns or annual information returns by reducing the handling/mailing of 

voluminous paper returns which sometimes exceed 700 attachments/schedules. 

MeF has dependencies with: 

• IRS.GOV - Portal Environment 

• Information Return and Document Matching (IRDM) 

• Individual Master File (IMF) 

• Business Master File (BMF) 

• Tax Return Data Base (TRDB) 

• Electronic Fraud Detection System (EFDS).

The MeF program supports the Treasury and IRS strategic goals by effectively and efficiently using 

resources to optimize return filing, expand e-Government, and reduce taxpayer burden. Beneficiaries 

include the tax preparation community and the taxpayers they represent. MeF also benefits large 

corporations and tax-exempt organizations that are required at a specific asset threshold to electronically 

file their tax returns or annual information returns by reducing the handling/mailing of voluminous paper 
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returns which sometimes exceed 700 attachments/schedules. MeF has dependencies with the following 

investments: 

• IRS.GOV - Portal Environment 

• Information Return and Document Matching (IRDM) 

• Individual Master File (IMF) 

• Business Master File (BMF) 

• Tax Return Data Base (TRDB) 

• Electronic Fraud Detection System (EFDS). 

FY 2019 Accomplishments and Future Objectives: 

• Deploy MeF Release 10.2 which will allow changes due to ACA, FATCA, RRP and maintenance 

of MeF including hardware, software, security, helpdesk, training, etc. 

• Develop MeF Release 10.3 which will allow maintenance of MeF including hardware, software, 

security, helpdesk, training, etc. 

• Migrate the application to a Linux Platform and improve hardware/software resiliency. 

FY 2020 Future Objectives: 

• Deploy MeF Release 10.3 which will allow maintenance of MeF including hardware, software, 

security, helpdesk, training, etc. 

• Develop MeF Release 10.4 which will allow maintenance of MeF including hardware, software, 

security, helpdesk, training, etc.

Modernized IRS Operations

Description:

The IRS will use innovative technologies and processes, such as Cloud, Agile, DevOps, Application 

Programming Interfaces, robotic process automation, and next generation infrastructure to reduce costs 

and manual effort.

Investment Obligations: 

Type FY 2019 F Y 2020 F Y 2021 $ Change % Change

Sub -Total DME Obligations (Including Internal 

labor (Govt. FTE)) 20.34 3.80 50.00 46.20 1,215.79%

Sub -Total O&M Obligations (Including Internal 

Labor (Govt. FTE)) 0.00 0.00 0.00 0.00 0.00%

Total Obligations 20.34 3.80 50.00 46.20 1,215.79%

Purpose, Accomplishments, Future Objectives:

Modernizing IRS Operations supports technology efforts that will provide continuous operations and 

systems availability to support taxpayer application access, analytics-based decision-making enabled by 

reliable and accessible data, efficient process execution through increased automation of transactional 

repeatable activities, increase speed of delivery of new capabilities, and safeguard taxpayer data. 

This investment will enable modernized capabilities across IRS operations including: 
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• Automate manual processes using artificial intelligence and other advanced techniques 

freeing up IRS staff for more value-added work 

• Quicker software deployment through automating delivery and infrastructure provisioning 

• Create standard, reusable services and common application programming interface (API) 

code, reducing duplicative/ "recreate" work for IRS employees, operational efficiency, 

reduced licensed cost, shared services platform 

• More efficient, scalable, resilient and secure infrastructure. 

• This investment is for supporting activities for an objective of the current IRS Strategic Plan

to Modernize and integrate technologies and systems that support secure, flexible and 

accurate work across IRS functions: 

• Invest in the enhancement and integration of systems. 

• Adopt iterative and flexible approaches to technology development and system updates. 

• Maintain currency of hardware and software. 

• Invest in innovative technologies and enable the delivery of secure, agile and efficient service 

offerings through cloud services. 

• The IRS has made significant investments in the Massive Parallel Processing (MPP) 

(Greenplum, A purpose-built appliance integrates database, compute, storage, and network 

for MPP) Data Computing Appliance (DCA) that provide cutting edge technologies 

supporting IRS critical filing season systems such as Return Review Program (RRP), 

Integrated Production Model (IPM), CADE2, and ACA. 

The IRS is moving toward the Target State architecture by modernizing its business applications and 

adopting emerging technologies such as cloud, data analytics, DevOps automation, and leveraging 

Application Programming Interfaces (APIs) for reusable enterprise-wide services. These initiatives and 

ongoing development efforts as described in the Enterprise Transition Plan (ETP) will help IRS to 

progressively deliver new capabilities and enhancements to the taxpayer and improved operations across 

all major business and technical areas.

FY 2019 Accomplishments: 

Robotics Process Automation 

• Implemented solution for one Procurement process 

Application Programming Interface (API) Strategy Implementation 

• Completed API Initial Operating Capability (IOC) 

Cloud Execution 

• Established Cloud Management Office and Cloud Governance 

• Completed Request For Information (RFI) for the Enterprise Cloud ecosystem 

• Built out sample Cloud Target-State Reference Model on the Treasury Cloud 

Next Generation Infrastructure 

• DevOps: Continuous Integration/Continuous Delivery (CI/CD) Onboarded (40) projects 

• DevOps: Centralized code repository (onboarded 10 projects) 

• DevOps/Standard Stack: Developed and validated 3 to 5 stack components 

• DevOps/Standard Stack: Deployed 3 to 5 standard stack components via automation 

• DevOps: Developed containerization solution architecture 

Future Objectives: 

Robotics Process Automation 
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• Implement technologies addressing Small Business/Self-Employed (SB/SE) Monitoring Offer in 

Compromise and IT Help Desk Self-Service Natural Language Processing, and TE/GE Referrals 

Batch Process identification processes 

Cloud Execution 

• Deploy Cyber Continuous Diagnostics & Mitigation (CDM) Phase 2 on Treasury Cloud 

Next Generation Infrastructure 

• DevOps: CI/CD Onboard additional projects (onboard 51 projects) 

• DevOps: Centralized code repository (onboard 15 projects). 

Compute Hosting Platform for Massive Parallel Processing (MPP) Database - The current DCAs, version 

3 (V3), reach end of standard support (EOSS) in December 2022. To mitigate risk of losing vendor

support for DCAs, IRS must identify the alternate hosting for Greenplum to maintain business continuity 

for critical filing season processing. Key Drivers are: (1) upcoming end of standard support for DCA v3: 

Vendor’s EOSS for DCA v3 will be reached by December 31, 2022; (2) Hosting alternative must be 

operational to support FS 2023 processing.

Return Review Program (RRP)

Description:

In late 2016 after the IRS retired the core functionality of the Electronic Fraud Detection System (EFDS), 

the Return Review Program (RRP) became the primary system used for anomaly and fraud detection for 

individual tax returns claiming refunds, including the identity theft and fraud detection components

Investment Obligations: 

Type FY 2019 FY2020 FY2021 $ Change % Change

Sub -Total DME Obligations (Including Internal 

labor (Govt. FTE)) 53.98 3.24 0.00 - 3.24 - 100.00%

Sub -Total O&M Obligations (Including Internal 

Labor (Govt. FTE)) 51.39 54.74 56.94 2.20 4.02%

Total Obligations 105.37 57.98 56.94 - 1.04 - 1.80%

Purpose, Accomplishments, Future Objectives:

Return Review Program (RRP) uses leading-edge machine learning technologies to detect, resolve, and 

prevent criminal and civil tax refund fraud and non-compliance, maximize fraud detection in real-time, 

and protect taxpayer revenue from the risks of increasing global fraud sophistication. RRP is missioncritical for the IRS to combat the ever-evolving tax fraud in a sophisticated, scalable, and adaptable 

manner. It is the anomaly detection platform for the enterprise for fraud and non-compliance. RRP 

correlates data across multiple data sources and enables the IRS to create predictive models for fraud and 

non-compliance.

RRP has been operational since 2015 and continues to perform today as the primary line of defense 

against the perpetration of individual tax return identity theft, fraud, and non-compliance after retiring the 

legacy fraud detection system in fall 2016. Since 2015, RRP prevented the issuance of over $15 billion in 

fraudulent refunds. RRP's return on investment is over 1700 percent since 2015.
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RRP's primary customers are Wage and Investment (W&I), and Criminal Investigation (CI). As of fiscal 

year, 2019 RRP initiated some initial filters for Large Business and International (LB&I) to explore 

foreign accounts utilizing the 1042S. 

2019 Accomplishments: 

• Completed procurement and design of Palantir solution to replace the end-of-life legacy manual 

data analytics tool (Oracle Discoverer), and began establishing network connections between IRS 

and Amazon Web Services (AWS) GovCloud 

• Delivered foundational analytics and reporting capabilities which enable the IRS to detect 

withholding agent noncompliance on Form 1042-S (Foreign Person's U.S. Source Income Subject 

to Withholding) 

• Enhanced RRP's analytical capabilities to identify potential identity theft and fraudulent return 

submissions of individual tax returns by creating new models and filters, thus increasing 

efficiency of return reprocessing and furthering the retirement of RRP's Legacy Component 

• Continued implementation of a dedicated final integration testing environment to support Filing 

Season 2020 integration testing activities 

• Enhanced data integrity between the production and alternate site processing (ASP) environments 

by implementing a data synchronization solution 

• Implemented Filing Season 2019 updates based on legislative changes with a primary focus on 

Tax Reform, Core Record Layout changes, and increased frequency of W-2 data transmission 

which allowed for the IRS to identify and flag non-compliance issues more efficiently and 

effectively in the process. 

2020 Objectives:

Complete deployment activities for the Palantir solution to replace the end-of-life legacy manual data 

analytics tool (Oracle Discoverer) 

Service Center Recognition/Image Processing System (SCRIPS)

Description:

SCRIPS is a data capture, management and image storage system that uses high speed scanning and 

digital imaging to process the 940, 941, 943, K-1, IRP, and ACA-IRP paper returns and converts data to 

electronic format for processing downstream.

Investment Obligations: 

Type FY 2019 F Y 2020 F Y 2021 $ Change % Change

Sub -Total DME Obligations (Including Internal 

labor (Govt. FTE)) 0.11 0.00 0.00 0.00 0.00%

Sub -Total O&M Obligations (Including Internal 

Labor (Govt. FTE)) 9.50 9.62 9.86 0.24 2.48%

Total Obligations 9.61 9.62 9.86 0.24 2.48%

Purpose, Accomplishments, Future Objectives:

The Service Center Recognition/Image Processing System (SCRIPS) is a major paper input processing 

system specifically designed to automate the processing of Information Return Processing (IRP) forms, 
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Schedule K-1's (Forms 1041 K-1, 1065 K-1, and 1120 K-1), Form 941 (and associated Schedules B and 

Schedule R), Form 940 (and associated Schedule A and Schedule R) and Form 943 Stand-alone Schedule 

R. SCRIPS processes Affordable Care Act (ACA)-IRP Forms 1094-x and 1095-x. SCRIPS scans and 

stores images of all tax documents processed, saving time by converting the scanned images and data to 

computer-readable code and providing hardcopy images when requested. This is accomplished using the 

Optical Character Recognition/Intelligent Character Recognition (OCR/ICR) engine in addition to 

utilizing 2-Dimensional (2D) bar code recognition which optimizes and automates data entry of the 

taxpayer data. SCRIPS is one of the front-end input systems that operates at three IRS Service Centers 

where forms are received, sorted, and then sent to the scanning areas. SCRIPS sends the electronic 

taxpayer data to the IRS downstream tax processing systems, including Generalized Mainline Framework 

(GMF) and Master File for posting to the IRS database, as well as Service-Wide Employment Tax 

Research System (SWETRS) and Statistics Of Income (SOI) for compliance. SCRIPS sends data to ACA 

Information Returns (AIR) database for Master Files. Images are archived and retained on the Enterprise 

Shared Storage platform. IRS Customer Service Representatives can request hard copies of images 

through the Integrated Data Retrieval System (IDRS). SCRIPS will deliver legislatively mandated Tax 

Year Changes to keep SCRIPS up-to-date. SCRIPS processed more than 60 million tax forms in 2019 and 

expects to process equivalent volume in 2020. SCRIPS provides taxpayers fair and uniform application of 

the law, and increases efficiency for tax processing by converting paper forms to electronic images.

Accomplishments and Future Objectives: 

FY 2020: 

• Deliver legislatively mandated tax changes to keep SCRIPS up-to-date. 

• The refresh of SCRIPS server infrastructure is being planned. Considering proposals and options 

to leverage functionality between the Integrated Submission and Remittance Processing System 

(ISRP) and SCRIPS systems to improve efficiency and continue to reduce costs. 

• Continue to support both Individual Master File (IMF) and Business Master File (BMF). 

• Continue migration of the SCRIPS Technical Requirements Documents (TRDs) currently in 

Microsoft Word format to the CLM system. 

FY 2021: 

• Expand Schedules K-1 core record layout to accommodate expanded fields. 

• Continue migration of the SCRIPS Technical Requirements Documents (TRDs) currently in 

Microsoft Word format to the Rational Requirements Composer (RRC) system. 

• The refresh of SCRIPS server infrastructure 

• Continue to support both Individual Master File (IMF) and Business Master File (BMF).

Web Applications

Description:

The Web Applications (Web Apps) investment is focused on providing easy access to taxpayer 

information via digital channels. Funding will drive the IRS transition to digital government and supports 

the long-term vision of migrating services from expensive traditional channels to the internet. To keep 

pace with the ever-changing state of web technology and increasing taxpayer demand for IRS service, the 

IRS must create and enhance online self-service capabilities.
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Investment Obligations: 

Type FY 2019 F Y 2020 F Y 2021 $ Change % Change

Sub -Total DME Obligations (Including Internal 

labor (Govt. FTE)) 24.24 25.00 25.00 0.00 0.00%

Sub -Total O&M Obligations (Including Internal 

Labor (Govt. FTE)) 7.19 7.11 7.31 0.20 2.88%

Total Obligations 31.43 32.11 32.31 0.20 0.64%

Purpose, Accomplishments, Future Objectives:

This investment provides access to taxpayer information via digital channels. Funding will drive the IRS 

transition to digital government and supports the long-term vision of migrating services from expensive 

traditional channels to the internet. To keep pace with the ever-changing state of web technology and 

increasing taxpayer demand for IRS service, the IRS must create and enhance online self-service 

capabilities.

In FY 2019 Web Applications deployed new capabilities including Taxpayer Protection Program Identity 

Verification Service (TPP ID Verify). ID Verify will allow taxpayers who receive a 5071C (Potential 

Identity Theft) letter to verify their information online and determine whether they are a victim of identity 

theft. This new capability eliminates the requirement for in-person visits. Additionally, Web Applications 

began the development work to make online tax payments easier by submitting installment agreements 

online. The Online Account operational hours were expanded allowing the taxpayer increased availability 

to access their account. In addition, implemented continuous security integration monitoring resulting in 

no high or medium security findings in production and automated tested has resulted in less defect 

outages; thereby protecting taxpayer data with little disruption. 

For FY 2020, per the IRS Modernization Plan, the Web Applications program will deliver initial 

capabilities for online Installment Agreements which would improve the online experience of establishing 

installment agreements and determining eligibility by adding functionality to the IRS Online Account and 

Taxpayer Payment API with Fiscal Services which directly supports the IRS mission of collecting 

revenue and increasing voluntary compliance. Initial planning for Power of Attorney for Tax Pro Account 

will begin, which will provide taxpayers the ability to submit and file Power of Attorney documentation 

using a secure online method. 

For FY2021, per the IRS Modernization Plan, the Web Apps will begin initial capabilities for Tax 

Professional Account (Tax Pro Account) leading to the deployment of new features that modernize 

certain paper-based processes to help third parties resolve issues with the IRS on behalf of their clients.

Major Non-IT Investments

Criminal Investigation Owned Vehicles

Description:

These 53 vehicles are owned by Criminal Investigation and are used for surveillance and for the 

Commissioner's protective detail.
35

Investment Obligations: 

Type FY 2019 FY2020 FY2021 $ Change % Change

Sub -Total DME Obligations (Including Internal 

labor (Govt. FTE)) 0.00 0.00 0.00 0.00 0.00%

Sub -Total O&M Obligations (Including Internal 

Labor (Govt. FTE)) 0.99 1.18 1.18 0 . 0 0 0 .00%

Total Obligations 0 . 9 9 1 . 1 8 1 . 1 8 0 . 0 0 0 .00%

Purpose, Accomplishments, Future Objectives:

These 53 vehicles are owned by Criminal Investigation and are used for surveillance and for the 

Commissioner's protective detail.

Criminal Investigations Capital Assets

Description:

This investment is managed by Criminal Investigation.

Investment Obligations: 

Type FY 2019 FY2020 FY2021 $ Change % Change

Sub -Total DME Obligations (Including Internal 

labor (Govt. FTE)) 0.00 0.00 0.00 0.00 0.00%

Sub -Total O&M Obligations (Including Internal 

Labor (Govt. FTE)) 5 . 7 9 5.58 5.00 - 0 . 5 7 - 1 0 .00%

Total Obligations 5.79 5.58 5 .00 - 0 . 5 7 - 1 0.00%

Purpose, Accomplishments, Future Objectives:

This investment is managed by Criminal Investigation. These assets are used to protect CI special 

agents from threats and bodily injury while performing their law enforcement duties including 

conducting investigations concerning alleged criminal tax fraud violations, financial crimes, and other

related offenses.

Leasehold Improvements

Description:

Leasehold Improvements managed in AWSS.
36

Investment Obligations: 

Type FY 2019 FY2020 FY2021 $ Change % Change

Sub -Total DME Obligations (Including Internal 

labor (Govt. FTE)) 0.00 0.00 0.00 0.00 0.00%

Sub -Total O&M Obligations (Including Internal 

Labor (Govt. FTE)) 26.97 29.50 26.25 - 3 . 2 5 - 1 1 .00%

Total Obligations 26.97 29.50 26.25 - 3 . 2 5 - 1 1 .00%

Purpose, Accomplishments, Future Objectives:

Many projects undertaken by IRS entail the design, alteration, and furnishing of space either upon 

acquisition, at lease renewal, or for other purposes, such as supporting space consolidation or 

reduction. The portion of the project that is captured as a capital asset is reflected in OMB Object Class 

3200, Land and Structures, and includes alterations to buildings; fixtures such as elevators, plumbing, 

power-plant boilers, fire-alarm systems, lighting, heating systems, air-conditioning systems, flooring, 

and carpeting. The total figure is a sum of the expenditures in that object class for all IRS projects in 

that particular year.

Security Equipment

Description:

Security Equipment is managed in Facilities Management and Security Services (FMSS).

Investment Obligations: 

Type FY 2019 FY2020 FY2021 $ Change % Change

Sub -Total DME Obligations (Including Internal 

labor (Govt. FTE)) 0.00 0.00 0.00 0.00 0.00%

Sub -Total O&M Obligations (Including Internal 

Labor (Govt. FTE)) 5.52 5.77 5.25 - 0.52 - 9.01%

Total Obligations 5.52 5.77 5.25 - 0.52 - 9.01%

Purpose, Accomplishments, Future Objectives:

The IRS purchases security equipment such as cameras, digital video recorder system (DVRs), access 

control panels, and card readers. The IRS uses facility-specific security assessments to prioritize asset 

needs and develop criteria for replacing equipment in a given facility. Additionally, emergency needs 

arise over the course of the year. These needs are ranked and funded according to the effect the 

equipment has on the overall security posture. The need for equipment can arise at any time, such as 

when employees are moved into a new building, during internal moves, or intermittently when 

equipment needs to be replaced. The benefit of this capital asset investment is that it supports the IRS 

priority to provide a safe and secure environment for its employees, equipment, and facilities.