# IRS Implements Controls on Bridge Contracts

The Treasury Inspector General for Tax Administration (TIGTA) reported that the Internal Revenue Service (IRS) spent approximately **$192 million** on 19 noncompetitive IT bridge contracts during Fiscal Year 2025, with several contracts exceeding the Treasury Department's 12-month duration limit and lacking required approvals. In response, the IRS has agreed to implement TIGTA's five recommendations aimed at improving tracking, compliance, and internal controls over bridge contracts to reduce risks of overpayment and ensure adherence to Treasury policies.

- The IRS's commitment to enhanced oversight signals increased scrutiny on temporary IT contract management and compliance with federal acquisition regulations.
- Procurement professionals should anticipate tighter controls and documentation requirements for bridge contracts within IRS and potentially other Treasury agencies.
- Contractors providing short-term IT services to the IRS may face more rigorous contract duration limits and approval processes.
- This development underscores the importance of transparent contract tracking and adherence to policy limits to avoid audit findings and financial risks.

**Jurisdictions:** federal
**Industries:** Information Technology
**Topics:** Regulatory Compliance
**Published:** September 22, 2026

### Government Entities
- Internal Revenue Service (IRS)
- Treasury Inspector General for Tax Administration (TIGTA)
- U.S. Department of the Treasury (Treasury Department)

### Key Quotes
> The IRS recognizes the importance of tracking bridge contracts and maintaining effective controls to identify them and enforce Treasury policies governing their use. We are committed to ensuring accountability and policy compliance when acquiring information technology assets and services.
> — Todd Newnam, Chief Financial Officer, Internal Revenue Service

### Sources
- [IRS overpays for noncompetitive bridge contracts | Accounting Today](https://www.accountingtoday.com/news/irs-overpays-for-noncompetitive-bridge-contracts) - Accounting Today