GAO to IRS: Don't bite off too much of modernization pie

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A report said the tax agency needs to divert funds it has earmarked for future modernization projects into managing those already started.

The Internal Revenue Service needs to divert funds it has earmarked for future modernization projects into managing those already under way, the General Accounting Office said in a Feb. 28 report.

The report, "IRS Needs to Better Balance Management Capacity with Systems Acquisition Workload," found that while the IRS "has made important progress in implementing modernization management controls" of its $351 million business modernization program, it still needs to better manage the projects it has started.

Software acquisition, configuration, quality assurance, enterprise architecture, human capital, risk management and cost and schedule estimations all need to be watched more closely, the GAO said. Without these controls, projects such as the Customer Account Data Engine and e-Services risk costs overruns and delays.

The GAO recommends slowing and delaying new projects and redirecting the capital into better management of those already in the critical stages of completion.

The study was done at the request of Senate Appropriations subcommittee on treasury and general government and the House Appropriations subcommittee on treasury, postal service and general government.

A copy of the report is available at www.gao.gov/new.items/d02356.pdf.