Message From the Chief Executive Offcer

On behalf of the dedicated employees of the Internal Revenue Service, I am pleased to present the IRS Fiscal Year (FY) 2027 Congressional Justification. This request describes how the IRS will responsibly steward taxpayer resources to administer the nation’s tax laws with integrity, efficiency, and a strong commitment to service, while supporting the Administration’s pro-growth economic agenda.

The tax relief enacted through the One Big Beautiful Bill Act remains a cornerstone of that agenda. The IRS plays a central role in ensuring that its historic benefits—including No Tax on Tips, No Tax on Overtime, the new deduction for car loan interest, and expanded deductions for seniors and families—are delivered in a timely manner and as intended. Our workforce continues to implement these provisions while maintaining reliable taxpayer service and safeguarding federal revenue.

The changes made by the One Big Beautiful Bill Act set the stage for an historic filing season for taxpayers in 2026, with an estimated tax benefit for individuals of $220 billion. An important part of this benefit will be an increase in refunds for individual taxpayers—we expect the highest refunds in recent history—which means real money landing in the pockets of working families.

As we look toward FY 2027, the IRS is focused on three strategic priorities:

• Data-Driven Enforcement The IRS is modernizing enforcement through expanded use of artificial intelligence, advanced analytics, and improved data integration. These tools allow us to more precisely identify high-risk noncompliance and fraud, deter identity theft, and focus enforcement resources on higher-value cases, improving fairness while minimizing burden on compliant taxpayers.

• Simplified, Digital-First Taxpayer Experience We are transforming how taxpayers interact with the IRS by expanding secure online services that allow taxpayers to manage their affairs with greater ease and transparency. At the same time, we remain committed to ensuring taxpayers receive high-quality assistance by phone and in person for those who need or prefer it. Our FY 2027 investments balance digital innovation with accessible, personalized service.

• A Renewed Commitment to Taxpayer Privacy and Security Protecting taxpayer information is fundamental to public trust. The IRS continues to strengthen cybersecurity defenses, modernize security infrastructure, and enforce rigorous data protection protocols to ensure taxpayer data remains secure.

ii Message From the Chief Executive Officer