IRS Does Not Yet Have a Comprehensive Strategy to Maximize Electronic Filings

IRS has identified increasing electronic filings as critical to achieving its modernization vision. This review included only TSM projects under development. It did not address operational systems, infrastructure, or management and technical support activities. Systems Architectures, Integration, and Testing Are Incomplete

We reported that IRS’ systems architectures, integration planning, and system testing and test planning were incomplete. No Single IRS Entity Controls All Information Systems Efforts

We reported that IRS had not established an effective organizational structure to consistently manage and control systems modernization organizationwide. IRS plans to increase the use of private-sector integration and development expertise by expanding the use of contractors to support TSM. Matters for Congressional Consideration

Because IRS still does not have (1) effective strategic information management practices needed to manage TSM as an investment, (2) mature and disciplined software development processes needed to assure that systems built will perform as intended, (3) a completed systems architecture that is detailed enough to guide and control systems development, and (4) a schedule for accomplishing any of the above, the Congress could consider limiting TSM spending to only cost-effective modernization efforts that (1) support ongoing operations and maintenance, (2) correct IRS’ pervasive management and technical weaknesses, (3) are small, represent low technical risk, and can be delivered in a relatively short time frame, and (4) involve deploying already developed systems, only if these systems have been fully tested, are not premature given the lack of a completed architecture, and produce a proven, verifiable business value.
Why GAO Did This Study

Pursuant to a legislative requirement, GAO reviewed the Internal Revenue Service's (IRS) actions to correct GAO-identified management and technical weaknesses that jeopardize its tax systems modernization (TSM) efforts.

What GAO Found

GAO found that: (1) IRS does not have a comprehensive strategy to maximize electronic filing because the present strategy targets only a small portion of the taxpayers likely to file electronically; (2) IRS strategic information management practices remain ineffective because information systems are not managed as investments; (3) IRS reengineering efforts lag behind the development of TSM projects; (4) IRS is improving its software development activities, but these improvements are not complete or institutionalized; (5) the IRS technical infrastructure, including systems architecture, integration planning, and system testing and test planning, is incomplete; (6) IRS has not established an effective organizational structure to consistently manage and control TSM; and (7) IRS plans to increase its use of contractors to facilitate TSM, but it has not been successful in managing all of its contractors.