Modernizing Business Systems

IRS continues to face substantial challenges in modernizing its business systems. 

• While progress has been made and some project segments were delivered within cost or schedule commitments, others continue to experience cost increases or schedule delays, and critical management controls and capabilities have not yet been fully implemented or institutionalized.  
• Further, IRS does not have a financial management system that provides management with the current, reliable information on the costs and benefits of program activities needed to support informed day-to-day or long-term resource allocation decisions.   

^ Back to topWhat Needs to Be Done

IRS is taking action to resolve these issues but more remains to be done to fully address the problems that have affected past systems modernization efforts and that continue to affect IRS’s ability to successfully modernize its operational and financial management systems. IRS, among other things, needs to  

• develop long-term plans for completing systems modernization efforts, including consolidating and retiring legacy systems;
• complete a plan with specific time frames for implementing the human capital strategy supporting its modernization program;
• address the weaknesses in information security that increase the risk that (1) proprietary programs or data may be accessed and potentially altered by unauthorized personnel or that (2) sensitive taxpayer information may be compromised; and

^ Back to topKey Reports

Management Report

Internal Revenue Service

Information Security

Business Systems Modernization

More Reports