ADP Modernization: IRS' Automated Examination System--Troubled Past, Uncertain Future
IMTEC-89-54
Published: Jun 22, 1989. Publicly Released: Jul 25, 1989.
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Highlights
Pursuant to a congressional request, GAO reviewed the Internal Revenue Service's (IRS) Automated Examination System (AES), intended to automate the examination of income tax returns, focusing on: (1) IRS progress in developing and implementing AES; and (2) AES compatibility with the IRS Tax System Modernization effort, intended to streamline tax processing through increased automation.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Internal Revenue Service | In light of AES troubled past, before additional investments are made in this project, the Commissioner of Internal Revenue should establish a sound and consistent methodology for estimating its benefits. To validate this methodology and measure the success of further development efforts, estimated benefits should be compared with actual benefits achieved as components of the system are deployed, and the Commissioner should make this comparison available to Congress as part of the agency's annual budget submission. |
Closed – Implemented
The AES project has been renamed "Examination Automation". IRS has hired a contractor to establish a method of evaluating productivity and tracking actual usage and impact. IRS has accepted the contractor's package and instituted internal procedures.
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| Internal Revenue Service | In view of the unresolved questions concerning AES integration with Tax System Modernization, the Commissioner of Internal Revenue should develop a strategy to enable AES to function effectively with other components of the modernized system. In particular, IRS should determine how AES standards for data structures can be made consistent with the standards of other systems within the modernization effort. |
Closed – Implemented
AES officials agreed to comply with modernization standards as they become available. A working group meets monthly to coordinate AES with the modernization. IRS officially plans no review of AES documentation for compliance. This is nonresponsive, since the action plan does not lead to a concrete result, and does not provide for evaluation.
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Topics
Cost effectiveness analysisCost overrunsData collectionIT acquisitionsSoftware verification and validationSystems compatibilitySystems conversionsSystems designTax administration systemsTax return audits