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 information systems that are intended to replace the agency's aging business and tax processing systems. BSM funds are not available until IRS submits an expenditure plan that meets various conditions to congressional appropriations committees for approval. In January and July 2004, the Department of the Treasury submitted IRS's initial and revised fiscal year 2004 plans, respectively. As required by law, GAO reviewed the plans to (1) determine whether the plans satisfied the conditions specified in the law, (2) determine what progress IRS had made in implementing our prior recommendations, and (3) provide any other observations about the plans and IRS's BSM program.
Recommendations for Executive Action
|Internal Revenue Service||1. The Commissioner of Internal Revenue should direct the Chief Information Officer to ensure that, after BSM projects are deployed, post-implementation reviews are performed that include an analysis of quantitative and qualitative investment data to determine, at a minimum, whether expected benefits were achieved.|