Treasury Inspector General audits revealed multiple control and security failures across IRS operations in three separate inspections. The findings identified spending decisions that lacked proper oversight, inadequate security controls on a procurement platform, and gaps in preventing unauthorized access to taxpayer records.
An audit of the Procurement Hub, a $5 million platform acquired in 2025 to track federal contract decisions, found that the IRS bypassed key preventative controls during expedited implementation. The third contract, valued at $4.5 million, lacked clear milestones and deliverables, and the IRS paid the vendor in full at the start of the performance period. The IRS also did not conduct sufficient market research before awarding the contract despite a significant price increase from previous contracts. The platform was discontinued on September 23, 2026, less than a year and a half after it began operation.
A separate audit found that IRS Criminal Investigation spent approximately $40 million supporting three federal task forces between May 2025 and March 2026. Special agents contributed more than 353,000 hours to supporting these efforts, the equivalent of approximately 170 full-time agents, reducing the agency's capacity to conduct tax-related investigations. The audit estimated that those hours represented 113 tax-related investigations that could have been started and completed.
A third audit of the IRS's unauthorized access prevention program found deficiencies in controls designed to protect taxpayer privacy. Investigators identified 86 irregular accesses to taxpayer records involving 30 taxpayers by 52 employees between 2022 and 2025, including records of government officials, business leaders, and entertainers. The IRS failed to notify 175 taxpayers of unauthorized access because employees did not follow required procedures.
IRS officials stated that key controls were bypassed primarily due to the urgency of making the Procurement Hub operational. The agency has announced plans to transition the Procurement Hub's functions to an existing platform by December 31, 2026.