DOGE Exposes IRS’s 30 Years Modernization Delay and $15 Billion Overrun

For the first time, a member of the DOGE team has spoken publicly about their mission to overhaul the IRS’ outdated infrastructure.

Sam Corcos, a special adviser to the U.S. Treasury Department, revealed the agency’s staggering challenges, including a $3.7 billion modernization effort 30 years behind schedule and $15 billion over budget.

Corcos, brought in to assess the IRS’ modernization program, described the agency’s systems as “legacy infrastructure” running on outdated mainframes using COBOL and assembly language. “Virtually every bank has already modernized their systems, but we’re still using a lot of the same old technology,” he said.

MORE – DOGE Staffer Drops Bombshell After Bombshell About Inner Workings of IRS/Treasury Dept.

DOGE insider Sam Corcos, special adviser to the U.S. Treasury Department, just unloaded a jaw-dropping exposé on the IRS and Treasury’s chaotic operations.

He’s pulling the mask off,… pic.twitter.com/GEG0jmtlQO

— Overton (@overton_news) March 21, 2025

The goal is to migrate these systems to modern platforms, a process that typically takes a few years and a few hundred million dollars in the private sector. However, the IRS’ modernization program is now 35 years in the making, with no end.

Key Issues Highlighted by Corcos

1. Massive IT Department:
   The IRS’ IT department is 175 times larger in budget and 40 times larger in staff than a typical midsize bank. “We have 8,000 people in IT and a $3.5 billion operations and maintenance budget,” Corcos revealed.
2. Contractor Dependency:
   80% of the IRS’ operations budget goes to contractors and licenses. “We cannot perform basic tax collection functions without paying a toll to these contractors,” Corcos explained.
3. Modernization Costs:
   The IRS’ $3.7 billion modernization effort is far beyond what would be considered reasonable for a private company. “It’s a lot of budget for what you’d expect,” Corcos noted.
4. Ghost Contracts:
   Millions are wasted on contracts with no accountability. “You find contracts worth $10, $20, or $50 million, and no one knows why they exist. When you cancel them, nothing happens,” Corcos said.

Corcos emphasized his commitment to fixing the IRS’ systems, stating, “I really care a lot about this country, and this is a huge program that’s 30 years behind schedule.” His revelations highlight the urgent need for reform to bring the IRS into the modern era.