IRS Satisfied Some, But Not All, of the Subcommittees’ Conditions

IRS did not fully satisfy all of the conditions that its appropriations  subcommittees established in their April 2000 letters releasing  modernization investment account funding. Conclusions

Although IRS has not fully met all the conditions specified by the  subcommittees, it has moved aggressively and made important progress  since March 2000 in advancing many projects and addressing  modernization management weaknesses. Nevertheless, until these  management weaknesses are fully addressed, key controls will be missing,  thereby increasing the risks that projects will not perform as intended  and/or cost more and take longer to complete.
What GAO Found

The Internal Revenue Service (IRS) has tried unsuccessfully to modernize its information systems. To prevent a repeat of past mistakes, Congress legislated explicit controls over IRS spending on systems modernization. Congress did so by creating Senate and House appropriations subcommittees, which specified four conditions. IRS has satisfied some, but not all, of the conditions set out by its appropriations subcommittees; however, it has moved aggressively and made important progress in advancing many projects and addressing modernization management weaknesses. Until these weaknesses are fully addressed, key controls will be missing, thereby increasing the risk that projects will not perform as intended or cost more and take longer to complete.