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 intended to replace the agency's aging business and tax processing systems. As required by law, IRS submitted its fiscal year 2005 expenditure plan in April 2005 to congressional appropriations committees, requesting about $203 million from the BSM account. GAO's objectives in reviewing the plan were to (1) determine whether it 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 plan and IRS's BSM program.
Recommendations for Executive Action
|Internal Revenue Service||1. To address the many changes associated with the BSM and to clearly describe what the modernization program is intended to accomplish, when it will be completed, and at what cost, the Commissioner of Internal Revenue should direct the Chief Information Officer to fully revisit the vision and strategy for the BSM program and develop a new set of long-term goals, strategies, and plans that are consistent with the budgetary outlook and IRS's management capabilities.|