Summary: The Internal Revenue Service (IRS) has made substantial progress in addressing GAO's earlier concerns about the Tax Systems Modernization program. IRS now has clearly articulated its business vision. Through the introduction of new technology, the agency envisions dramatically reducing the burden on taxpayers, generating substantial additional revenue through improved voluntary compliance, and achieving significant productivity gains throughout the agency. In addition, it has finalized and published its Design Master Plan for the modernization and has developed a way to track costs, benefits, and schedules for modernization projects. IRS is also implementing a strategy for hiring, training, and retaining the expertise needed to carry out the modernization and is giving greater attention to security and privacy issues. GAO remains concerned, however, about IRS' effectiveness in addressing other factors affecting planning, systems development, and procurement that are critical to the program's success.
