Tax Systems Modernization: Unmanaged Risks Threaten Success (Testimony,
02/16/95, GAO/T-AIMD-95-86).

The Internal Revenue Service's (IRS) goal is a paperless work
environment in which tax returns are filed electronically and
information on paper returns and other documents is quickly converted to
electronic data that are immediately accessible to IRS employees.
However, after spending almost $2 billion over eight years to modernize
the nation's tax system, IRS has realized only marginal improvements in
its operations, and future efforts are at risk of failure.  Initial
systems were not built to be integrated into IRS' comprehensive Tax
Systems Modernization program and they have yet to deliver the expected
increases in capability and customer service.  Future efforts are at
risk because of (1) the lack of technical and management expertise to
implement Tax Systems Modernization; (2) the failure of ongoing systems
development to take into account changes arising from process
improvements; and (3) the lack of set system development priorities,
established performance measures, or fully established technical
guidelines.

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  T-AIMD-95-86
     TITLE:  Tax Systems Modernization: Unmanaged Risks Threaten Success
      DATE:  02/16/95
   SUBJECT:  Systems conversions
             Tax administration
             Tax administration systems
             ADP procurement
             Systems design
             Strategic information systems planning
             Information processing operations
             Cost control
             Systems compatibility
             Future budget projections
IDENTIFIER:  IRS Tax System Modernization Program
             TSM
             IRS Electronic Filing System
             IRS Corporate Files On-Line Project
             IRS Automated Underreporter System
             IRS Integrated Collection System
             IRS Integrated Case Processing System
             
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