Treasury - IRS Tax Model Builder - MRAS

The Department of the Treasury, through the General Services Administration (GSA), is conducting market research to support the Internal Revenue Service (IRS) in modernizing its paper tax return processing systems. The IRS currently processes approximately 76 million paper tax and information returns annually, which has been identified as a critical issue due to processing delays. This initiative is part of a broader effort to digitalize 100% of these returns, addressing inefficiencies associated with manual handling and outdated technologies. The goal is to transition to a digital-first approach that leverages advanced Optical Character Recognition (OCR) and Intelligent Document Processing (IDP) solutions.

The project, known as SCRIPS Mod, aims to replace legacy systems such as SCRIPS and Integrated Submission and Remittance Processing (ISRP) with modernized solutions that automate data ingestion, classification, extraction, validation, and storage processes. By utilizing Artificial Intelligence (AI), the project seeks to enhance efficiency by reducing manual intervention in paper tax return processing. This will not only streamline operations but also enable more comprehensive data mining and analytics capabilities crucial for fulfilling the IRS's compliance mission.

SCRIPS Mod will be developed following the IRS Enterprise Life Cycle Agile path. Initially focusing on Release 1, the project will implement Google Document AI within a Treasury Cloud (TCloud) environment hosted on Google Cloud Platform (GCP). This stage will concentrate on digitizing scanned documents for integration with the IRS Modernized e-File system for further processing. The initiative represents a significant step toward achieving the IRS's objective of digitizing 95% of paper-filed tax returns by calendar year 2026.