Tax Systems Modernization: IRS Needs to Resolve Certain Issues With Its Integrated Case Processing System
GGD/AIMD-97-31
Published: Jan 17, 1997. Publicly Released: Jan 17, 1997.
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Highlights
Pursuant to a congressional request, GAO reviewed the Internal Revenue Service's (IRS) Integrated Case Processing (ICP) systems development effort, focusing on: (1) IRS' assessment of ICP costs and benefits and users' perceptions of the system's benefits; (2) IRS' testing of ICP; (3) IRS' ongoing efforts to redesign its customer service work processes to fully use ICP capabilities; and (4) the software development processes being used for ICP.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Internal Revenue Service | Concurrent with the risk assessment being performed by the contractor, the Commissioner of Internal Revenue should immediately limit deployment of ICP workstations to those already purchased until: (1) projected costs and benefits are better known and can be validated by testing the system in a realistic operational environment, using baseline performance measures; and (2) decisions are made on work processes, including the blending of collection and service work and specific duties of CSRs. |
IRS said that the Illinois Institute for Technology Research Institute, Inc. undertook an independent verification and validation of the project and recommended that Release 2.0 development efforts be terminated. Further, IRS applied its Investment Review Board (IRB) Project Disposition Criteria to ICP 2.0, which also resulted in a recommendation to terminate the project. Accordingly, the Deputy Commissioner and Chair of the IRB terminated the project on February 24, 1997, and planned to allocate project assets of $279.7 million to higher-priority programs.
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| Internal Revenue Service | Expedient steps should be taken to better position IRS to develop its software successfully and to protect its software investments. Specifically, the Commissioner of Internal Revenue should develop and implement an action plan to ensure that ICP software is developed by an organization with at least a level 2 CMM rating. |
IRS terminated future ICP requirements in February 1997. While IRS continues to make progress in processes to develop software, it is not rated at CMM level 2.
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| Internal Revenue Service | Expedient steps should be taken to better position IRS to develop its software successfully and to protect its software investments. Specifically, the Commissioner of Internal Revenue should delay major investment in ICP software until the action plan is implemented. |
IRS has terminated ICP effective February 24, 1997.
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