Advisory panel urges sustained IRS funding, expanded AI, tax simplification

The IRS’s outside technology advisory panel recently called on Congress to provide stable, multiyear funding; expand the use of artificial intelligence; and simplify tax administration. It also warned that resource constraints and complexity risk undermining recent modernization gains.

In its 2026 Annual Report to Congress issued June 17, the Electronic Tax Administration Advisory Committee outlined a broad set of recommendations aimed at modernizing the tax system, improving compliance and strengthening taxpayer service.

Central to the report is a warning that sustained funding is critical to maintaining progress on technology upgrades and meeting growing demands on the agency. See the panel’s recommendations.