Skip to main content

Tax Systems Modernization: Imaging System's Performance Improving but Still Falls Short of Expectations

GGD-97-29 Published: Jan 16, 1997. Publicly Released: Jan 16, 1997.
Jump To:
Skip to Highlights

Highlights

Pursuant to a congressional request, GAO reviewed the performance of the Internal Revenue Service's (IRS) Service Center Recognition/Image Processing System (SCRIPS) in 1996, focusing on: (1) the primary causes for performance problems that occurred in 1995; (2) whether SCRIPS performance improved in 1996 as of September 30, 1996; and (3) the status of IRS future plans for SCRIPS.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Internal Revenue Service Before deciding to increase the percentage of Forms 1040EZ or information returns that SCRIPS processes or using SCRIPS to process other tax forms, such as Forms 941, the Commissioner of Internal Revenue should: (1) do a cost-benefit analysis that includes examining the costs and benefits of alternative ways for processing those forms, such as those developed by the paper processing task team; and (2) if the analysis shows that it is cost-effective to have SCRIPS process Forms 941, ensure that IRS tests SCRIPS' ability to process the existing software applications along with any new software applications that may be added using peak volumes or volumes simulating peak workload conditions to ensure that SCRIPS can meet performance expectations.
Closed – Not Implemented
GAO is closing this recommendation because it is no longer applicable. SCRIPS is nearing the end of its system life. SCRIPS is being used to process IRP documents, 1040EZs, and FTDs. When GAO made its recommendation, FTDs accounted for most of the form volume processed on SCRIPS. Based on data for the 1997 and 1998 filing seasons, the total number of FTDs processed on SCRIPS is declining, and will continue to do so as more FTDs are received electronically.

Full Report

Office of Public Affairs

Topics

Application softwareCost controlElectronic data processingElectronic formsImage databasesOptical scannersSoftware verification and validationSystems conversionsTax administration systemsTax returns