The application of Information Technology in the tax system has a significant impact on the efficiency, transparency, and fairness of tax procedures. This study explores how IT solutions optimize the collection, processing, and analysis of tax data, contributing to the reduction of administrative costs and time. The introduction of e-taxation enables electronic filing of tax returns, simplifying communication between taxpayers and authorities. The transparency of tax systems is enhanced by providing access to data on tax obligations, regulations, and deadlines through online platforms. Enhancing data security is crucial for maintaining the trust of citizens in e-taxation, often necessitating the implementation of high-security standards and privacy protection systems. The implementation of analytical tools in the tax system facilitates the detection of tax fraud and irregularities. Additionally, e-taxation allows for faster tax collection through online payment systems, contributing to improved liquidity and financial management. Despite numerous advantages, the implementation of e-taxation presents challenges, including the need for the development of technical infrastructure, ensuring data security, and the education and training of users. Addressing these challenges is crucial for the successful functioning of e-taxation and realizing its full potential in modernizing tax systems. This study analyzes key aspects of IT application in the tax system, evaluating how technological advancements shape a contemporary approach to tax and financial management.