# IRS Expands AI-Enabled Tax Processing

The IRS is positioning artificial intelligence and automation to increase workforce productivity, improve taxpayer service, and raise tax compliance while its workforce remains roughly flat at 74,000, despite more than 4,000 hires this year. The agency reports using AI and automation to accelerate amended-return processing: IRS Chief Information Officer Kaschit Pandya said average processing time that could run 12 to 16 weeks has fallen to under three days. Added complexity in filing season 2027 points to potential demand for AI, automation, digital-service, and systems-integration capabilities, but the signal identifies no specific solicitation or contract.

- Companies with tax-administration, AI, automation, and systems-integration capabilities can use the amended-return processing example to understand the IRS’s stated operational priorities.
- The reported processing-time reduction and workforce-productivity focus indicate areas where the IRS may seek technology support; the signal does not confirm a procurement action or funding opportunity.
- Contractors should distinguish this strategic direction from an active bid: no solicitation, contract value, or submission deadline is identified.

**Jurisdictions:** federal
**Industries:** Information Technology
**Topics:** Artificial Intelligence
**Published:** October 01, 2026

### Government Entities
- Internal Revenue Service (IRS)

### Key Quotes
> Five years from now, I mean, if you look at the speed of change, what I see is an IRS that has a mid-90s compliance rate,
> — Frank Bisignano, IRS Chief Executive Officer

> [The] average time can be 12, 14, 16 weeks. Through AI and automation, we have seen that go down to under three days.
> — Kaschit Pandya, IRS Chief Information Officer

### Sources
- [Tax chief pushes 'AI-first IRS' to get more out of agency's workforce  - Government Executive](https://www.govexec.com/technology/2026/10/tax-chief-pushes-ai-first-irs-get-more-out-agencys-workforce/416377) - GovExec.com