Exactly this.
https://www.gao.gov/products/gao-25-107611
During fiscal year 2024, IRS spent about $1.5 billion to modernize systems that handle some of its most critical taxpayer services and business functions.
...
In March 2025, IRS paused these programs to reevaluate priorities and start new IT modernization efforts.
This pattern has been repeating for decades.
Spend billions. Throw results in trash. Repeat.
Also, lets not forget, 99% of the IRS could be abolished with a simplified tax code and process, and the reason that doesn't happen, is because then 99% of grift would stop as well.
If government is the wizard of oz, the tax code are the levers behind the curtain that get pulled to modify the publics behavior.
If private companies are handling electronic filings, that private sector activity is taxable. Its an asset to the IRS. If the IRS is doing it internally, its a liability and an expense.