WASHINGTON, D.C. – While Democrats focused on squeezing working families with more audits funded by tens of billions of taxpayer dollars, Republicans are helping taxpayers with a more modernized and responsive Internal Revenue Service (IRS). The Trump Administration announced on Monday major advances in taxpayer services, tax processing, and efficiency, which align with recommendations made during a Ways and Means Oversight Subcommittee hearing in February on modernizing the agency.

Chairman Jason Smith (MO-08) issued the following statement:

“Democrats failed to deliver on the improvements they promised when they gave the IRS a $80 billion windfall. In the last year of the Biden Administration, the IRS answered less than a third of phone calls. That’s why the Ways and Means Committee held its first oversight hearing this year examining how to help taxpayers and improve services – and now President Trump is delivering. This announcement will ensure that working American families will be able to get the service they need in order to benefit from the tax cuts Republicans designed to help them keep more of their money, including no tax on tips, no tax on overtime, and no tax on Social Security.”

Read: Four Key Moments: Hearing on the Lack of Return on Investment from IRS Funding and the Need for Agency Modernization

Background from U.S. Treasury:

On Monday, the U.S. Department of the Treasury announced significant progress across its IT modernization agenda within the IRS, underscoring its commitment to improving taxpayer services, enhancing cybersecurity, strengthening compliance, and streamlining filing season operations. To enable delivery of these objectives, Treasury has entered into a series of Blanket Purchase Agreements (BPAs) with leading technology providers. All commercial tools below are already FedRAMPed.

Key Initiatives and Partnerships

• Taxpayer Services and Online Accounts: To modernize taxpayer-facing services, Treasury has extended its contract with Salesforce. This agreement will support improvements to individual and business online accounts, the Tax Pro Online Account, and authenticated online services, including customer contact centers.
• Tax Processing: Treasury continues to advance its Zero Paper Initiative, reducing paper-based filings and accelerating digital adoption. To support this work, Treasury has executed contracts with Iron Mountain and three additional industry partners: GovCIO, VASTEC, and 22nd Century.
• Unified API Layer and Data Integrity: To continue improving data integrity and technical infrastructure, Treasury has awarded a contract to Palantir. This partnership will enable a common API layer that supports developer platforms, workflow automation, and data analytics. This work supports federal employees, increasing efficiency for their professional duties.