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Skymantics Wins $9.1M IRS Contract to Expand AI-Powered Synthetic Data Engine
Skymantics Wins $9.1M IRS Contract to Expand AI-Powered Synthetic Data Engine
MELBOURNE, FL / ACCESS Newswire / July 2, 2026 / The Internal Revenue Service (IRS) Chief Information Officer (OCIO) has awarded a three-year, $9,179,225 task order to Skymantics, LLC, a leader in artificial intelligence (AI)-driven data analytics and systems modernization. Skymantics successfully beat out four other bidders to lead Phase 5 of the Enterprise Systems Testing (EST) Simulation of the Nation (SimoN) Synthetic Data Engine project.
The SimoN project leverages statistics combined with AI and Machine Learning (ML) to generate highly realistic, synthetic households and tax data. This capability allows the IRS to perform rigorous enterprise-wide systems testing without copying or exposing sensitive Federal Tax Information (FTI) from production systems.
In Phase 4, Skymantics successfully enhanced SimoN to generate sophisticated data models that simulate non-compliant and potentially fraudulent activities. In Phase 5, Skymantics will expand the simulation engine even further to model complex real-life events for both individual taxpayers and business entities. The enhanced SimoN engine will generate comprehensive tax-specific data, including Modernized e-File (MeF) XML tax returns and information returns, which will feed directly into downstream IRS pipelines like the Individual Master File (IMF) and Business Master File (BMF).
Crucially, the expansion will advance the system's ability to track and simulate non-compliant taxpayers, underreporting, and fraudulent activities like identity theft, enabling the IRS to proactively test their fraud detection and enterprise systems against realistic threat scenarios. The engine will continue to be deployed and operationalized within the Treasury Workplace Community Cloud (WC2) Platform as a Service (PaaS) environment, utilizing modern Continuous Integration/Continuous Delivery (CI/CD) pipelines.
"We are honored to continue our trusted partnership with the IRS on the SimoN initiative," said Charles Chen, CEO of Skymantics. "This Phase 5 award is a testament to the value of AI in providing the IRS with the operational certainty they need to innovate and modernize securely, completely eliminating PII risk from the testing environment."
"Phase 5 represents a massive leap forward in scale and complexity for the SimoN engine," added Brad Molander, CTO of Skymantics. "We are moving beyond basic household aging to orchestrate complex, multi-year business and individual tax events, all outputted in precise IRS XML schemas. By injecting sophisticated fraud typologies directly into the synthetic data feeds, we are shifting enterprise testing to the left-empowering the IRS to validate system resilience and safeguard taxpayer systems before they are ever exposed to real-world threats."
Contact: Nikki Jedlicka | Communications Manager | [email protected]
About Skymantics: Skymantics, LLC is a Small Business Administration (SBA) 8(a) certified, minority-owned business specializing in applied Artificial Intelligence, synthetic data generation, and mission-essential systems modernization. Grounded in the core values of creativity, collaboration, and excellence, the company partners with federal agencies to engineer robust solutions that bridge the gap between legacy infrastructure and next-generation technology.
SOURCE: Skymantics, LLC
View the original press release on ACCESS Newswire
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