(LibertySociety.com) – The IRS faces growing scrutiny over technology spending on contractors, sparking concerns over the use of foreign H-1B workers.
At a Glance
- The IRS spends billions on tech contractors with minimal outcomes
- H-1B employees are widely used, prompting criticism over efficiency and opportunity loss for US workers
- Treasury Secretary Bessent criticizes contractor influence as detrimental to government resources
- IRS modernization is delayed, pushing for reduced external dependency and enhanced internal skills
IRS Expenditure Concerns
A consultant hired by the Department of Government Efficiency (DOGE) reports that the IRS is allocating billions to technology contractors, yielding little return. These contractors extensively employ H-1B visa holders, who remain silent about workplace issues due to their immigration status. The agency’s data processing scale resembles a mid-sized bank, yet its budget and workforce surpass such institutions, highlighting a disparity between spending and output. Treasury Secretary Scott Bessent criticized these practices as wasteful and likened the contractor influence to “pythons” constricting government operations.
Most of the IRS’s budget goes towards contractors and licenses, with limited supervision or accountability. The technology upgrade, originally due in 1996, only began six years prior and remains incomplete. Instead of prioritizing internal talent, the IRS’s outsourcing policies have been questioned, particularly the employment of H-1B workers. These employees are utilized to maximize contractor profits through so-called “featherbedding,” alongside allegations of bribery and corruption within management.
New Leadership, New Strategy
IRS’s new leadership is motivated to slash costs and foster in-house expertise. Approximately $1.5 billion has been cut from the modernization budget, with the objective of simplifying operations and improving overall government efficiency amid vast national debt. Critics, like Kevin Lynn of USTechWorkers, argue for the exclusion of H-1Bs from government projects to restore meritocracy and professionalism. Such measures aim to limit dependency on external contractors and empower the agency’s tech professionals.
“We should not have any H-1Bs working on federal, state, or local projects” – Kevin Lynn
Despite criticism, both domestic and international, the IRS remains confident in its commitment to rebuilding its infrastructure. The hope is that reduced reliance on external contractors and building a competent internal workforce will lead to a more sustainable and efficient organization. By embracing cost-cutting initiatives and enhancing in-house skills, the IRS is poised to enhance service delivery and restore faith in its operational efficiency.
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The Path Forward
IRS leadership acknowledges that revamping internal capacities requires determination and steadfast commitment to reducing complexities in their processes. By effectively managing technology spending and emphasizing the cultivation of skills within its workforce, the IRS aims to combat inefficiencies. The path forward includes addressing fiscal challenges, renewing public trust, and ensuring a focused approach on government efficiency over private profit-making at taxpayers’ expense.
“I’ve been here eight weeks [and] one of the biggest surprises for me is just seeing how these entrenched interests just keep constricting themselves around the power, around the money, around the systems, and nobody cares. I said to [Corcas] today, the IRS [technology upgrade] system was supposed to be delivered in 1996 and he said it was started in 1990 so that’s how far behind they are and nobody cares. And the other thing we’re seeing too is, as Sam said, some of the employees, many of the employees, are fantastic. It’s this consultant group … they’re like a boa constrictor, they’re like a Python … they constricted themselves around our government, and the costs are unbelievable that are being passed on to the taxpayer.” – Scott Bessent
The hope for change within the IRS lies in reframing its technological framework, fostering internal talents, and safeguarding its integrity against potential external exploitation.
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