March 21, 2025 | News and Knees Substack
A System in Crisis: The IRS’s 30-Year Tech Nightmare
In a bombshell interview on The Ingraham Angle, Sam Korkos, Special Advisor to the U.S. Treasury Department and CEO of health-tech firm Levels, alongside Treasury Secretary Scott Bessent, pulled back the curtain on one of the federal government’s most staggering failures: the IRS’s decades-old, crumbling IT infrastructure.
“We’re 30 years behind schedule and $15 billion over budget,” Korkos revealed, his tone equal parts frustration and resolve. The agency’s systems, he explained, still rely on COBOL and assembly language—coding relics from the 1960s—while private-sector banks completed similar modernizations years ago.
“Like a Python Constricting the Government”: The Consultant Quagmire
Secretary Bessent didn’t mince words about the root cause: entrenched contractors. “They’re like a boa constrictor,” he said, describing consulting firms that have “embedded themselves” around taxpayer dollars. A jaw-dropping 80% of the IRS’s $3.5 billion annual IT budget flows to these contractors, leaving minimal resources for actual innovation.
Korkos, a software developer-turned-CEO, emphasized the absurdity: “A mid-sized bank handles similar data with 200 IT staff. The IRS has 8,000.” Yet productivity remains glacial, with timelines stuck in a loop. “It’s been ‘five years away’ since 1990,” he quipped.
The Human Cost: “Nobody Cares”
Bessent, a Washington newcomer, expressed shock at the bureaucratic apathy. “Nobody cares,” he said bluntly, citing how critical priorities—tax collection, privacy, and customer service—are sidelined by systemic inertia. Meanwhile, outdated systems delay refunds, expose data, and frustrate millions of Americans.
A Silicon Valley Fixer Steps In
Korkos, tasked by Bessent to audit the mess, brings a startup mindset to the mammoth agency. His approach? Empower the IRS’s own talent. “The developers on the ground know the solutions,” he insisted. “They just haven’t been allowed to lead.”
His optimism is cautious but clear: Modernizing the IRS isn’t rocket science—it’s about cutting red tape and redirecting funds. “This isn’t a technical problem,” Korkos stressed. “It’s a management problem.”
Doge in the Machine: A Media Distraction?
The interview briefly touched on media narratives framing Doge—the cryptocurrency championed by Elon Musk—as a “dark, mysterious organization.” Korkos dismissed the hype, redirecting focus to the IRS’s tangible crisis. “The real story isn’t Doge. It’s whether our government can function in the 21st century.”
The Visionaries Behind DOGE
The interview featured two prominent figures from the DOGE team: Sam Korkos, a special advisor within the U.S. Treasury Department and CEO/co-founder of Levels, a health and wellness software company; and Scott Bessent, the U.S. Treasury Secretary.
Sam Korkos: Bridging Technology and Governance
Korkos spoke passionately about his dual roles in government and technology, describing his journey from leading engineering teams to tackling systemic inefficiencies at the Treasury Department.
"I'm a software developer by background, and I'm here to help modernize systems that are decades behind schedule," he explained. "This isn't about dismantling anything—it's about building something better."
Korkos highlighted his team's focus on migrating legacy systems—some running on COBOL and assembly code—to modern infrastructure. He likened the challenge to transformations already achieved by private sector banks but noted that government systems remain far behind.
Scott Bessent: A Call for Accountability
Treasury Secretary Scott Bessent shared his perspective on why systemic inefficiencies persist in government operations. He pointed out entrenched interests and outdated processes as significant barriers.
"One of the biggest surprises for me was seeing how deeply entrenched interests constrict progress," Bessent remarked. "It's like a boa constrictor around our systems—and nobody seems to care."
Bessent expressed optimism about leveraging talent like Korkos to address these challenges but acknowledged that change requires breaking through long-standing bureaucratic inertia.
A Mission of Modernization
The discussion also delved into specific initiatives led by the DOGE team. One major focus is modernizing IRS infrastructure—a program that has been delayed for over 30 years and exceeded its budget by $15 billion.
Korkos described the scale of this challenge: "The IRS processes as much data as a mid-sized bank but operates with outdated mainframes running COBOL. This isn't sustainable."
Despite these obstacles, Korkos remains optimistic: "We actually have quite a lot of software talent on the ground—people writing code who know what needs to be done."
Dispelling Myths About DOGE's Intentions
Toward the end of the interview, Laura Ingraham asked Korkos to address concerns from viewers who fear that DOGE's efforts might "dismantle government systems" or harm public services.
"This is definitely not on my bingo card for this year," Korkos quipped. "I was planning to focus on my company, but when I saw how serious these issues were, I knew I had to step in."
He emphasized that DOGE's mission is not about destruction but about building resilient systems that serve people better.
Support Independent Journalism
News and Knees relies on reader support to bring you unfiltered investigations into government accountability. If you value fearless reporting, consider subscribing. Together, we can keep the truth accessible to all.
“When you’ve got 8,000 people in IT and still can’t deliver, it’s not a tech problem—it’s a leadership problem.” —Sam Korkos
Share this post