Congress Releases IRS Funds

Congressional leaders have released $200 million for the Internal Revenue Service modernization efforts in fiscal year 2001, despite some earlier threats to withhold the funds.


The money will help fund work being performed by Computer Sciences Corp. of El Segundo, Calif., under the IRS Prime Integration Contract the company won in late 1998.


Rep. Tom Davis, R-Va., told Washington Technology Nov. 9 that funding for the IRS project might be held up during the lame duck session of Congress because President Clinton had vetoed the Treasury appropriations bill.


"It was a spite veto," Davis said. "You can't just veto something and then expect to still get everything you want."


But Nov. 28 leaders of the Senate and House Appropriations committees released $200 million, noting that the IRS has made significant progress on the modernization project.


"This moves us another step forward in our long term effort to modernize IRS business systems," said Paul Cosgrove, IRS chief information officer.


The money will be spent on strategy for systems development, architecture engineering activities, completion of a tax calculation software package and other infrastructure projects.


"A lot of work remains but we are encouraged by our initial efforts and the continuing support from Congress and other oversight groups," Cosgrove said.