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ExpectMore.govExpectMore.gov home pageEXPECT FEDERAL PROGRAMS TO PERFORM WELL, AND BETTER EVERY YEAR.
High Risk Issue

Issue

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IRS Business Systems Modernization


Problem: The Business Systems Modernization (BSM) program is developing and delivering a number of modernized systems to replace the aging business and tax processing systems currently in use. This effort is highly complex and scheduled to be carried out over a numbers of years, ultimately creating a more efficient and effective IRS. Though the IRS experienced delays and cost overruns in the early years of the effort, improved practices and oversight are now contributing to better delivery of outcomes.


Goal: Meet all BSM project milestones within a cost and schedule variance of 10% of the initial estimate.

Challenges/Actions

  • Fully implement all projects and programs for the Business Systems Modernization program.

    • Customer Account Data Engine (CADE) will hold over 200 million individual and business taxpayer's information that will provide flexibility to respond quickly to complex tax law and policy initiatives. Through mid-August of calendar year 2008 CADE processed 30.5 million individual tax returns which is 21 percent of all individual tax returns filed. Each new release of CADE will expand the functionality CADE can process and thus increase the numbers of returns processed. Under current resource assumptions, IRS has a goal of processing over 90 percent of all returns through CADE by fall 2012.
    • Make similar progress on all other BSM projects: Accounts Management Services (AMS) applies applications that enable IRS employees and taxpayers to access, validate, and update taxpayer accounts on demand. Modernized e-file (MeF) will allow the IRS to store all tax return data in a modernized tax return database allowing all viewers to see an entire tax return online. Custodial Detail Database (CDDB) provides detailed data to support revenue financial reporting. Revenue Accounting Control System (RACS) will reduce the risk of failure to sustain future clean IRS audit opinions, and streamline financial reporting.
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