Business Systems Modernization: Internal Revenue Service's Fiscal Year 2008 Expenditure Plan
Highlights
The Internal Revenue Service's (IRS) Business Systems Modernization (BSM) program is a multibillion-dollar, high-risk, highly complex effort that involves the development and delivery of a number of modernized systems that are intended to replace the agency's aging business and tax processing systems. As required by law, IRS submitted its fiscal year 2008 expenditure plan in August 2007 to congressional appropriations committees, requesting $235.8 million from the BSM account. GAO's objectives in reviewing the plan were to (1) determine whether it satisfied the conditions specified in the law, (2) determine IRS's progress in implementing prior expenditure plan review recommendations, and (3) provide additional observations about the plan and the BSM program. To accomplish the objectives, GAO analyzed the plan, reviewed related documentation, and interviewed IRS officials.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Internal Revenue Service | To allow for more effective congressional oversight of the BSM program, the Commissioner of Internal Revenue should direct the Chief Information Officer to complete a plan with specific time frames for implementing the initiatives supporting its IT human capital strategy. Such a plan would help guide IRS's efforts and measure progress in implementing them. |
Closed – Implemented
Internal Revenue Service identified initiatives supporting its IT human capital strategy in its Applications Development Strategic Plan for 2007-2011 and its 2009-2011 Modernization Information Technology Services Corporate Strategies document. IRS also developed a time line for addressing these initiatives, which include addressing the IT corporate hiring challenge, succession planning, and coaching and mentoring. IRS officials noted that human capital initiatives are planned on an annual basis and that the agency is currently in the process of completing a new agencywide human capital plan from which the next cycle of IT specific plans (including plans for the new strategy for managing individual taxpayer accounts) will be derived.
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