The Internal Revenue Service achieved successes in its Business Systems Modernization Program when it has followed its system development and management guidance, the Treasury Inspector General for Tax Administration (TIGTA) said. The modernization program seeks to transform the IRS’ tax administration systems and processes and provide more services to taxpayers electronically.
The IRS' modernization also has progressed with the implementation of management components of its Enterprise Services organization and development of the Information Technology Modernization Vision and Strategy as a map for future development, TIGTA said in a report published June 26.
Since May 2007, the IRS has completed 19 of the 20 program milestones within 10 percent of cost estimates and 18 of them within 10 percent of schedule estimates, said Michael Phillips, deputy inspector general for audit. . However, the IRS and its contractors must overcome significant barriers to the goals of the modernization program, which has not progressed enough to eliminate its material weakness designation, TIGTA said in its annual assessment of the program. The service has adhered inconsistently to established project development guidelines, which has limited the effectiveness and growth of the modernization program, the report said.
“Over the past year, the IRS also made advances in incorporating the Information Technology Modernization Vision and Strategy into the framework of how it does business,” Phillips said. The strategy is five-year plan that drives IT investment decisions based on priorities centered on modernizing frontline tax administration and its supporting technical infrastructure.
Among its management improvements, IRS now identifies program weaknesses and determines how best to resolve them through its Highest Priority Initiatives process, which senior managers and executives oversee and receive monthly progress reports on. They identify new initiatives to focus on every six months, the report said.
Since the assessment, the IRS has taken other steps to improve its performance, said Arthur Gonzalez, the service's chief information officer. For exmple, the IRS is developing strategies to reduce the potential risks associated with future releases of its modernized systems, he said.
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