Skymantics announced that it has won a three-year, $9.179 million task order from the Internal Revenue Service Chief Information Officer. The award covers Phase 5 of the Enterprise Systems Testing Simulation of the Nation Synthetic Data Engine project, known as SimoN.
Skymantics is an AI-driven data analytics and systems modernization company. The company won the task order after competing against four other bidders.
The SimoN project uses statistics, artificial intelligence, and machine learning to generate realistic synthetic households and tax data. This allows the IRS to conduct enterprise-wide systems testing without copying or exposing sensitive Federal Tax Information from production systems.
In Phase 4, Skymantics enhanced SimoN to generate data models that simulate non-compliant and potentially fraudulent activities. In Phase 5, the company will expand the engine further to model complex real-life events for individual taxpayers and business entities.
The expanded SimoN engine will generate tax-specific data, including Modernized e-File XML tax returns and information returns. This data will feed into downstream IRS pipelines such as the Individual Master File and Business Master File.
The expansion will also improve the system’s ability to track and simulate non-compliant taxpayers, underreporting, and fraudulent activities such as identity theft. Skymantics said this will enable the IRS to test fraud detection and enterprise systems against realistic threat scenarios.
The engine will continue to be deployed and operationalized within the Treasury Workplace Community Cloud Platform as a Service environment. It will also use modern continuous integration and continuous delivery pipelines.
Skymantics is an SBA 8(a)-certified, minority-owned business specializing in applied AI, synthetic data generation, and mission-essential systems modernization. The company works with federal agencies to modernize legacy infrastructure and develop next-generation technology solutions.
KEY QUOTES:
“We are honored to continue our trusted partnership with the IRS on the SimoN initiative. 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.”
Charles Chen, CEO of Skymantics
“Phase 5 represents a massive leap forward in scale and complexity for the SimoN engine. 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.”
Brad Molander, CTO of Skymantics
