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. Chapter 2 describes current IRS training. Chapter 3 explains two factors--the changing workplace and work force--that affect IRS training. Chapter 4 discusses the technological, methodological, and organizational issues that affect IRS training, including computer-based training, artificial intelligence, hypertext and hypermedia, embedded training, asynchronous computer conferencing, one-way videoteleconferencing, two-way digital (compressed) videoteleconferencing, CD-ROM (Compact Disk Read-Only Memory), DVI (Digital Video Interactive), compact disk interactive (CD-I), interactive videodisk, trends in technology, educational methodologies, and organizational issues. Chapter 5 describes a workshop for IRS training managers and functional managers that provided the managers' views on the issues, possibilities, and problems identified during the project that produced this document. A 14-page bibliography is included in the document. An appendix lists information on the task force that guided the document's development. (CML)