IRS Modernization Projects at Risk

Auditors at the General Accounting Office (GAO) have determined that the IRS plans for modernization, as reported at AccountingWEB last week, are at risk for cost overruns, delays, and performance shortfalls.

Examples of potential problem areas include the new telephone system which is expected to answer calls more quickly and accurately. This system is reportedly three months behind schedule. The new IRS program for defining security and computer standards is nearly five months behind schedule, according to the GAO report.

The GAO recommended that the IRS slow its current projects and stagger the start times for new projects until controls and capabilities are fully implemented.

IRS Commissioner Charles O. Rossotti has commented that the IRS will work to implement controls to ensure the success of the modernization plans.

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