FY 2027 Congressional Budget Justification & Annual Performance Plan and Report

The IRS supports the U.S. economy by collecting revenues that fund essential government programs, including national defense, infrastructure, healthcare, Social Security, and other critical services, while at the same time ensuring improper and fraudulent tax payments and abusive tax practices are reduced and mitigated. In recent years, the IRS has also served as a key partner in advancing a more efficient, responsive, and accountable federal government.

Our recent performance demonstrates the results of disciplined management and strategic investment. In FY 2025, the IRS collected more than $5.3 trillion in revenue, processed over 271 million returns, and issued approximately 113 million refunds totaling nearly $358 billion. We delivered one of the most successful filing seasons in years, with telephone assistors answering 87 percent of calls received on our main telephone lines with an average wait time of just three minutes.

The IRS achieved these gains by spending smarter and through operational discipline. In FY 2025, the IRS eliminated approximately $2 billion in planned information technology spending primarily through contract renegotiations and reprioritizing end-user license agreements. We are also reducing costly paper-based processes through automation, policy changes, and process redesign.

The FY 2027 budget request and IRS’ supplemental funding builds on this progress by supporting targeted technology modernization, operational efficiency, and workforce investments. In addition to discretionary funding, the IRS depends on supplementary funding sources to sustain key tax law enforcement activities and maintain service to taxpayers. Continued collaboration with Congress will be essential to ensure IRS operations evolve in ways that taxpayers deserve. The IRS is at a pivotal moment—transforming operations, embracing innovation, and strengthening accountability. With the support of Congress, we will continue to build an IRS that works better for taxpayers, supports economic growth, and ensures the trust of the American people.

Sincerely,

Frank J. Bisignano Chief Executive Officer of Internal Revenue

Message From the Chief Executive Officer iii

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