FROM THE OFFICE OF PUBLIC AFFAIRS May 20, 1997RR-1695 Blueprint For Technology Modernization Summary The new IRS "Blueprint for Modernization" outlines a plan to update the technologicalsystems in order to provide superior service to the taxpayer, tomove toward paperless operations, and to increase compliance withthe law. The Blueprint represents a new way of doing business atthe IRS. It is the first comprehensive attempt to form astrategic partnership with the private sector in order to addressthe problems of the past and ensure that the IRS is flexible forthe future. The Blueprint uses a centralized, main-frame computersystem that will ensure taxpayer privacy and minimize cost, whileenabling IRS customer service and compliance personnel to easilyaccess accurate and timely information. History In 1988, the Internal Revenue Service put intoeffect a plan to upgrade and modernize the agency’stechnological system. The plan, known as the Tax SystemModernization (TSM), was implemented over the course of the nextseven years. In 1995, the General Accounting Office released areport that uncovered failures in the program and large financiallosses. It called for massive changes in program planning,management and implementation of TSM. Congress, in turn, calledon the IRS by May 15, 1997 to produce a plan for correcting andupdating its technological capabilities. The primary failure of TSM was the result ofinadequate design and planning. The system’s multiplecomputers and databases installed could not be integrated withexisting computers. TSM also failed to move the IRS toward apaperless system and made current inefficiencies worse. IRSemployees were unable to access current and correct informationto effectively serve American taxpayers. A Sharp Turn In early 1996 the Treasury Department - takinginto account the serious problems with the IRS computer system -called for a sharp turn in technology modernization. Treasury:
Principles of the Blueprint The new IRS "Blueprint forModernization" outlines a plan to update the technologicalsystems in order to provide superior service to the taxpayer, tomove toward paperless operations, and to increase compliance withthe law. The Blueprint represents a new way of doing business atthe IRS. It is the first comprehensive attempt to form astrategic partnership with the private sector in order to solvethe problems of the past and ensure that the IRS is flexible forthe future. In preparing the Blueprint, the MMB used a number ofstrategic principles which were developed in accord with the 1995GAO report. These principles are designed to:
The Plan The Modernization Blueprint addresses theproblems of the past, eliminates wasteful and ineffectiveprojects, and develops a plan that is flexible for the future.The Blueprint uses a centralized, main-frame computer system thatwill ensure taxpayer privacy and minimize cost, while enablingcustomer service and compliance personnel to easily accessaccurate and timely information. The Modernization Blueprintcalls for:
[IRS employees must currently use between 5-9terminals.]
Future Steps Along with the release of the Blueprint, the IRSplans to issue what is known as a Request for Comments(RFC), seeking input and guidance from the private sector. Afterreceiving and reviewing comments and revising the Blueprint, theIRS, working with the MMB, will competitively bid a contract toassume overall responsibility. The selected contractor will workin collaboration with the IRS and the Treasury Department as theBlueprint is put into effect.
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