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Why Identity Will Make or Break the Digital Taxpayer Experience

Every tax season, millions of Americans log in to IRS digital services to check records, upload documents, resolve notices, or get answers. Each of those interactions depends on one invisible but mission critical function. Before a taxpayer can do anything online, the system must confidently determine who they are and what they are allowed to do.

When identity works, taxpayers breeze through tasks that once required phone calls, mailed forms, or office visits. When it does not, frustration rises quickly. Fraud risk increases. Confidence in the system erodes.

In today’s digital government environment, identity is no longer just a security concern. It is the backbone of trust, accessibility, and service delivery at scale.

The IRS has increasingly recognized this shift. The agency’s Identity, Credential, and Access Management (ICAM) efforts are not just about compliance or technical controls. They enable the agency to scale digital services, maintain reliability during peak demand, strengthen fraud prevention, and deliver a more consistent experience for taxpayers and tax professionals alike.

The Core Truth: Identity Is Mission Infrastructure

Modern ICAM brings identity proofing, authentication, authorization, and monitoring directly into how services operate. When identity is embedded into service delivery, both security and usability improve. The right users reach the right services at the right time, without unnecessary friction.

At IRS scale, identity behaves less like a background security feature and more like core infrastructure. Every login request and access decision contributes to system load. Minor latency becomes visible to large numbers of users. Small failures can cascade quickly during high demand periods.

Treating identity as mission infrastructure changes how it is designed and operated. Systems are engineered for surge, not average use. Access rules are applied consistently across services. Monitoring focuses on operational health as much as security signals. The goal is reliability and a consistent digital front door across services.

When Identity Works, Everyone Feels It

When identity foundations are strong, the benefits extend well beyond security.

Seamless access means clearer login paths, fewer disruptions, and faster time to task completion.

Operational resilience allows systems to stay responsive during filing season spikes and unexpected surges. Modernization accelerates when new services can rely on a shared identity layer instead of rebuilding access controls each time.

Cost efficiency improves as more users successfully self-serve online rather than turning to phone based or in person support. These outcomes reinforce trust in digital channels and reduce strain on agency operations at the same time.

When Identity Falters, the Costs Compound

The taxpayer experience is only as strong as the identity layer beneath it. Weak proofing increases the risk of account takeover and fraudulent claims. Inconsistent authorization creates confusion and inequity across services. Each point of friction pushes users back to higher cost channels, undercutting modernization goals and public confidence.

At scale, these failures are not abstract. They show up as longer wait times, higher operational costs, and declining trust in digital government services.

What the IRS Is Signaling

The IRS is elevating identity as a strategic enabler of digital service delivery, not just a standalone set of controls. This reflects a broader shift across government toward ICAM as foundational infrastructure that supports fairness, resilience, and efficiency.

Agencies watching this evolution should take note. Strong identity foundations are becoming essential for delivering modern services that meet rising expectations while managing fraud and operational risk.

What Leaders Can Do Now

Federal leaders do not need to reinvent identity, but they do need to ask better questions.

  1. Engineer for the worst day, not the average day.
    Treat identity throughput and availability as first‑class reliability objectives. Stress‑test during filing‑season equivalents.
  2. Create one front door.
    Align access rules across services so users don’t relearn identity for every application. Make recovery paths consistent.
  3. Prioritize top journeys for friction removal.
    Pick your three highest‑volume tasks (e.g., see transcripts, resolve notices) and remove unnecessary prompts, measure drop‑off and success rates.
  4. Right‑size assurance to risk.
    Stronger proofing for sensitive actions. Streamlined flows for routine tasks to keep security high and friction low.
  5. Instrument identity like you instrument apps.
    Monitor performance and failure points, not just security signals to detect issues before they cascade.

The future of digital government depends on getting identity right. Agencies that treat identity as mission infrastructure will deliver secure, scalable, and trusted services, especially when it matters most. Those that do not will continue to struggle with stalled modernization, rising fraud, and eroding confidence.

Identity will not always be visible to the public. But when it works, everyone feels it.


Jessica Alfaro is the Vice President of Technology at Makpar. She is a seasoned federal IT leader with deep expertise in technology strategy, delivery, systems integration, and service management. Throughout her career, Jessica has helped agencies modernize critical systems, strengthen cybersecurity, and implement strategies that improve mission outcomes.

Photo by Mikhail Nilov

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