The U.S. Internal Revenue Service is taking a “strategic pause” in its technology modernization investments to re-evaluate its operating approach in light of new artificial intelligence technologies, a senior IRS career technology official said on Friday.
The agency will review a number of technology modernization initiatives that have been taken in recent years, including the new Direct File free filing system for tax returns that was launched last year under the Biden administration, the official told reporters.
As the Trump administration prepares a second wave of mass firings at federal government agencies, a person familiar with IRS plans told Reuters that the tax collection agency was planning to eliminate 20% to 25% of its 100,000-strong workforce.
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