GAO: IRS technology overtaxed and under par

BY Judi Hasson

03/01/2000

The Internal Revenue Service is riddled with operational problems ranging from lapses in its computer security system to budgetary and financial systems that fail, a new General Accounting Office report disclosed Tuesday.

In its annual review of the tax agencys problems, GAO told Congress an obsolete and antiquated system would continue to plague the IRS with problems until it is replaced with a state-of-the art system.

"The agency continues to experience pervasive material weaknesses in the design and operation of its automated financial management and related operational systems," the GAO reported to the House Government Management, Information and Technology Subcommittee.

Although the IRS has embarked on a program to overhaul its systems, it is estimated that enhancements would take 10 to 15 years and cost more than $2 billion.

Meantime, the agency continues to limp along without tools to keep track of financial data, causing endless headaches, such as last years payments of billions of dollars in refunds to taxpayers who were not entitled to them.

"Unfortunately, it is an accepted fact that the federal governments financial systems are obsolete and ineffective.

Most federal agencies cannot produce complete, consistent and reliable financial information on a timely basis," said Rep. Stephen Horn, R-Calif., chairman of the subcommittee.

Among the problems identified by GAO: * Significant delays  in some cases more than 10 years  in recording payments made by taxpayers. * Delays in releasing tax liens against properties owned by taxpayers who have paid off their tax liabilities. * Hiring IRS employees to process money and taxpayer data before receiving satisfactory results from fingerprint checks. * Serious weaknesses in protecting computer security.

"The key to better financial management at the IRS is improved technology. The IRS must replace nearly its entire inventory of computer applications and convert its data on every taxpayer to new systems," said Lawrence Rogers, acting chief financial officer of the IRS, who testified before the subcommittee.

http://www.fcw.com/fcw/articles/2000/0228/web-irs-03-01-00.asp

-- Carl Jenkins (Somewherepress@aol.com), March 02, 2000

Answers

"The key to better financial management at the IRS is improved technology. The IRS must replace nearly its entire inventory of computer applications and convert its data on every taxpayer to new systems."

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That would be a bigger job than Y2K remediation. How far back do their records go? They have more information returns then there are grains of sand on the beach and it all has to be transferred to new media (probably).

-- Guy Daley (guydaley@bwn.net), March 02, 2000.