United States Government Publishing Office publisher pbl distributor dst United States Government Accountability Office Accounting and Information Management Division author aut Government Organization text government publication eng GAOREPORTS Legislative Agency Publications gao legislative 2010-08-12 U.S. Government Printing Office 1996-08-26 monographic deposited born digital 37 p. GA 1.13:AIMD-96-140 https://www.govinfo.gov/app/details/GAOREPORTS-AIMD-96-140 P0b002ee18039081e f:ai96140 DGPO 2010-08-12 2011-03-24 GAOREPORTS-AIMD-96-140 machine generated eng fdlp REPORT GAOREPORTS-AIMD-96-140 AIMD-96-140 Tax administration systems Electronic forms ADP procurement Requirements definition Irregular procurement practices Internal controls Accounting procedures Sole source procurement Computer services contracts Interagency relations IRS Cyberfile SBA 8(a) Program IRS Tax System Modernization Program TSM Internet IRS Electronic Commerce Strategic Plan NTIS FedWorld Network Letter Report AIMD

The Internal Revenue Service's (IRS) Cyberfile project was intended to enable taxpayers to prepare and electronically send their tax returns via their personal computers. IRS' selection of the Commerce Department's National Technical Information Service (NTIS) to develop Cyberfile was not based on sound analysis that considered various alternatives and assessed NTIS' ability to develop and operate an electronic filing system. NTIS had promised IRS that it could develop Cyberfile in less than six months and have it up and running by February 1996. To meet these self-imposed deadlines, however, NTIS hastily initiated the project. Development and acquisition were undisciplined, and Cyberfile was poorly managed and overseen. The end result was that Cyberfile was not delivered on time, and IRS, after advancing more than $17 million to NTIS, has suspended Cyberfile's development and is reevaluating the project. IRS and NTIS did not follow all applicable procurement laws in developing Cyberfile, and NTIS actually circumvented procurement laws in implementing Cyberfile. Moreover, Cyberfile obligations and costs were not accounted for properly. Finally, adequate financial program management controls were not implemented to ensure that Cyberfile was acquired cost effectively. GAO summarized this report and discussed other tax systems modernization issues in testimony before Congress; see: Tax Systems Modernization: Actions Underway, But Management and Technical Weaknesses Not Yet Corrected, by Dr. Rona B. Stillman, Chief Scientist, Computers and Telecommunications Issues, before the Senate Committee on Governmental Affairs. GAO/T-AIMD-96-165, Sept. 10 (21 pages). https://www.govinfo.gov/content/pkg/GAOREPORTS-AIMD-96-140/html/GAOREPORTS-AIMD-96-140.htm https://www.govinfo.gov/content/pkg/GAOREPORTS-AIMD-96-140/pdf/GAOREPORTS-AIMD-96-140.pdf GAO/AIMD-96-140 https://www.govinfo.gov/app/details/GAOREPORTS-AIMD-96-140 Letter Report GAO/AIMD-96-140; Tax Systems Modernization: Cyberfile Project Was Poorly Planned and Managed; Tax administration systems Electronic forms ADP procurement Requirements definition Irregular procurement practices Internal controls Accounting procedures Sole source procurement Computer services contracts Interagency relations IRS Cyberfile SBA 8(a) Program IRS Tax System Modernization Program TSM Internet IRS Electronic Commerce Strategic Plan NTIS FedWorld Network Title 31 Section 1501 Title 31 Section 1535 Title 31 Section 3512 Title 31 Chapter 39 31 U.S.C. 1501 31 U.S.C. 1535 31 U.S.C. 3512 31 U.S.C. Chapter 39 Title 40 Section 759 40 U.S.C. 759 Public Law 104-106