Of the IRS's 110,000 computers, 52,000 have been upgraded to Windows 7, but the agency could not raise the additional $30 million needed to migrate the rest. Microsoft announced the end-of-life dates for XP back in 2008.
The new commissioner of the IRS, John Koskinen, said the agency had $300 million in IT projects on hold due to budget cuts in the past years, including the migration to Windows 7. Because they could not complete the upgrades, the IRS will likely have to pay near $10 million for just one year of Microsoft "Custom Support" for the operating system.
As of now, Koskinen says they will take money from their enforcement budget to complete the move by the end of 2014.
Source:
Computerworld