A September 2025 report from the Treasury Inspector General for Tax Administration (TIGTA) found that the IRS has failed to decommission any of its outdated hardware and applications, known as legacy systems, which are used to perform critical day-to-day operations. Most of these systems are more than 25 years old and cannot meet the demands of modern-day tax administration.  

This is particularly troubling given that, in January 2022, the IRS established new strategies and policies to help the agency identify and retire dated systems as a part of a broader modernization effort. However, TIGTA found that 63% of the systems met the IRS’s definition of a legacy system at the time of review, and that the agency spent $39 million—funded by American taxpayers—in Fiscal Year 2024 to maintain and operate them. The IRS intends to continue funding these systems indefinitely, with no clear timeline for retirement.  

The Alliance for IRS Accountability is deeply concerned by these findings established in this report. Legacy systems are inefficient and highly prone to errors, which increases taxpayer risk for wrongful penalties, prolonged disputes, and administrative chaos. AIA calls on the IRS to reform these dated systems to ensure that they are treating taxpayers fairly and in a manner that protects their rights. 

Read the full report here. 

If you, or someone you know, has experienced a specific IRS abuse and wish to flag the instance for potential inclusion in future Abuses of the Week, contact us with the details at: info@irsaccountability.org.