IRS signs $32M deal for data delivery services

The Internal Revenue Service has awarded a four-year, $32 million contract for data delivery services to Maximus, a government contractor in McLean, Virginia.

The contract, which Maximus announced Thursday, will provide development support to two mission-critical systems at the IRS, helping the IRS identify and develop data delivery service models and improve the technical components and processes already in place at the agency.

Maximus will consult with the IRS on the design, building and deployment of data services to the IRS’s internal and external stakeholders (such as employees, taxpayers and tax professionals) while refining and evolving the IRS Enterprise Data solution. Maximus plans to provide continuous, high-availability services to operate, sustain and manage databases in support of the IRS’s overall DDS Data Strategy.

“Federal agencies are constantly seeking ways to fully leverage the capabilities of today’s technology, and Maximus has been at the forefront of supporting the mission of agencies like the IRS as they modernize,” said Teresa Weipert, general manager of Maximus Federal, in a statement Thursday. “This work, featuring our support of mission-critical systems at the IRS, will enable the agency to meet their technology goals and deliver better services to the American taxpayer, improving their overall experience.”

The IRS has been making efforts to improve its aging technology and received billions of dollars under the Inflation Reduction Act of 2022 to upgrade its systems. Last year the IRS announced an ambitious Strategic Operating Plan and has since announced progress on objectives such as online business tax accounts and tax professional accounts and improving its scanning capabilities. The agency has also begun leveraging technology like data analytics and even artificial intelligence for audits and to help its Criminal Investigation unit uncover tax fraud and financial crimes.