Virtual reality, a three-dimensional simulation technology, may best be used (1) when training mistakes would be costly; (2) when the environment cannot be experienced in the real world; (3) to improve human-machine interfaces; (4) to make training situations real; and (5) to make the perceptible imperceptible. (SK)

This document reports the results of an examination of the external and internal environments of the Internal Revenue Service (IRS) and the most promising technological tools and methods to create the training system capabilities the IRS will need in the future. Following an executive summary, chapter 1 describes how the document was developed.…