The Internal Revenue Service modified a $103 million contract for the management of paper tax returns in November, according to a published report.According to the Washington Post, the original plan to turn over the filing, storage and retrieval activities at seven IRS centers to a contractor Dec. 1 was altered so that, for now, the outsourcing will occur at just two centers. In a statement, the IRS said the conversion was scaled back "to ensure that a sufficient number of employees with the required training and security clearances are in place to manage the files during the upcoming filing season."

The contract has been awarded to IAP Worldwide Services six months ago and the National Treasury Employees Union, which represents most of the agency's rank-and-file workers, has already been complaining that the IRS chose to rely on a contractor rather than its employees.

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