Data Communications:

Progress in Installing IRS' Communications Replacement System

IMTEC-89-14: Published: Feb 22, 1989. Publicly Released: Mar 28, 1989.

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In response to a congressional request, GAO reviewed the status of the Internal Revenue Service's (IRS) installation of a new $156-million Communications Replacement System at its Martinsburg, West Virginia, computing center.

GAO found that: (1) IRS decided to install the new system at its service centers, since the contractor had corrected all but 16 of the 900 software problems and the problems would not affect the systems' ability to process tax returns; (2) IRS did not accept the system and was withholding $4.3 million in contractor payments pending the delivery of acceptable system documentation and correction of software problems; and (3) the IRS decision to proceed with nationwide installation and its progress in using a phased installation approach was satisfactory.

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