Uncertainties Surrounding IRS' Fiscal Year 1992 Budget Request for Tax System Modernization

T-IMTEC-91-4: Published: Mar 20, 1991. Publicly Released: Mar 20, 1991.

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GAO discussed the: (1) Internal Revenue Service's (IRS) fiscal year (FY) 1992 budget request of $451 million for its Tax System Modernization program; (2) effects of the $49-million FY 1991 cut to the IRS data processing budget; and (3) impact of selected tax processing systems on the 1991 tax filing season. GAO noted that IRS: (1) may have overstated its FY 1992 modernization budget by nearly $55 million; (2) did not have a system to track the modernization projects against cost, schedule, and performance goals; and (3) computer operations would not be adversely affected by FY 1991 budget cuts in data processing. GAO also noted that the: (1) Auto-pipeline Prototype and the Federal Tax Deposit project were in the testing stages; and (2) On-Line Entity system was operational throughout the 10 IRS service centers.

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