How Blockchain Technology Can Save The IRS
June 13th, 2018
Here’s another Forbes article from Adam Bergman about how blockchains can help save the IRS –
According to a previously undisclosed Internal Revenue Service (“IRS”) document, the IRS plans to spend $291 million updating 140 computer systems to help it implement the new tax law. Those information-technology costs and other back-office operations will consume more than 90% of the money Congress is giving the IRS for implementation. Overall, the IRS budget is estimated to be $11.4 billion in the next fiscal year.
For the IRS, keeping up with changes in the tax law and new technology can be quite expensive. The internet has created many positive changes for the IRS, including reducing costs for many services, such as tax return filing, data analysis and the exchange of information. However, it seems that once again a new technology revolution is upon us; blockchain.
Blockchain technology is based on the ideals of trust, security, speed, and cost efficiency. A blockchain is a digital ledger and can be designed to record any type of public or private transaction in real time. The most widely used public blockchains involve cryptocurrencies, such as Bitcoin, however, blockchain technology can be employed without the involvement of cryptocurrency.