The Internal Revenue Service's (IRS) Business Systems Modernization (BSM) program is a multi-billion-dollar, high-risk, highly complex effort that involves the development and delivery of a number of modernized systems that are intended to replace the agency's aging business and tax processing systems. As required, IRS submitted its fiscal year 2009 expenditure plan in August 2008 to the congressional appropriations committees, requesting $222 million from the BSM account. GAO's objectives in reviewing the expenditure plan were to (1) determine whether it satisfies the applicable legislative conditions, (2) determine IRS's progress in implementing prior expenditure plan review recommendations, and (3) provide additional observations about the plan and the BSM program. To accomplish the objectives, GAO analyzed the plan, reviewed related documentation, and interviewed IRS officials.
Recommendations for Executive Action
|Internal Revenue Service||1. The Commissioner of Internal Revenue should direct that procedures be defined for determining when to grant conditional milestone exits. Such guidance would help ensure that IRS's process for granting milestone exit approvals is not used to mask cost and schedule overruns and that projects are not exiting milestones prematurely thereby introducing cost, schedule, and performance risks.|