Accenture Federal Services, a unit of Accenture Plc, announced on Wednesday that it has successfully secured a contract worth up to $2.6 billion with the Internal Revenue Service (IRS) to modernize the agency's systems. The contract spans a period of seven years, during which Accenture will be responsible for enhancing the IRS's technological infrastructure.
Under the terms of the agreement, Accenture will also have the opportunity to compete for future orders to support the IRS in developing innovative methods for taxpayers and professionals to engage with the agency. This aligns with the IRS's recent plans to introduce a government-provided direct tax filing option, which aims to provide taxpayers with a free and user-friendly alternative to private tax preparation services like TurboTax, owned by Intuit Inc.
Despite Intuit's concerns about potential competition from the IRS's filing system, the company's CEO, Sasan Goodrazi, dismissed the notion as a threat. Goodrazi highlighted a recent IRS survey that indicated a high level of interest among American taxpayers in using a government tool to electronically file their tax returns.
The partnership between Accenture and the IRS is expected to drive significant advancements in the agency's systems and improve the overall taxpayer experience. As technology continues to play a crucial role in tax administration, this collaboration seeks to streamline processes, enhance efficiency, and provide greater convenience for taxpayers across the country.
With this substantial contract in place, Accenture is poised to leverage its expertise and resources to deliver modernization solutions that will support the IRS's ongoing mission of effective tax collection and administration.