Computer Technology at IRS

GAO examined the Internal Revenue Service's (IRS) computer operations, as well as planned replacements, improvements, and additions to its computer resources, as of July 1983.

IRS processed over 170 million tax returns and collected about $632 billion in tax revenues in fiscal year 1982. GAO stated that, without computers, these activities would have been virtually impossible. Computers, teleprocessing, telecommunications, office automation, and other technology associated with information and data processing are critical to the IRS mission of enforcing the Nation's tax laws. Specific aspects of the IRS computer operations discussed in this study include: the computer processing of tax returns; the data reliability of controls in the tax returns processing system; the enhancements and improvements planned for the system; the computer processing of information returns; the current and planned nonreturns processing systems; and IRS policies and procedures for managing its computer resources.