IRS Management: Business and Systems Modernization Pose Challenges

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Report Type	Reports and Testimonies
Report Date	April 15, 1999
Report No.	T-GGD/AIMD-99-138
Subject	Customer service Employee incentives Federal agency reorganization Internal controls Performance appraisal Performance measures Strategic information systems planning Systems design Tax administration systems IRS Restructuring Initiative IRS Tax System Modernization Program IRS Taxpayer Compliance Measurement Program Internal Revenue Service Computer fraud

Summary:

The Internal Revenue Service (IRS) has been the subject of much criticism and congressional scrutiny in recent years because of its perceived inability to serve taxpayers and its failed attempts to replace its antiquated computer systems. GAO has included several key IRS programs on its list of government operations that are particularly vulnerable to waste, fraud, abuse, and mismanagement. (See GAO/HR-99-1, Jan. 1999.) The IRS Restructuring and Reform Act of 1998 provides the agency with clear guidance on serving taxpayers and helping them to voluntarily comply with the tax laws. In response, IRS has developed a restructuring initiative to modernize its business and information systems. The goal is to (1) make IRS' management and operations results oriented and (2) acquire information systems that would, among other things, allow IRS to provide employees and taxpayers with up-to-date account information. This testimony evaluates IRS' progress in implementing its new restructuring initiatives.

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IRS Management: Business and Systems Modernization Pose Challenges