Tax System Modernization

Management Mistakes Caused Delays in Automated Underreporter System Gao ID: IMTEC-90-51 July 10, 1990

Pursuant to a congressional request, GAO reviewed the Internal Revenue Service's (IRS) Automated Underreporter System.

GAO found that: (1) IRS management mistakes caused the pilot system to be delayed for more than 2 years; (2) IRS has deferred the pilot system to October 1990 because of inadequate system design and limited technical and project management expertise; (3) IRS believed that the system was an important training ground for IRS automation modernization; (4) IRS decided to develop and deliver a separate interim system as a near-term solution for 10 service centers because the system was continuously delayed; (5) IRS presented the system as a tax modernization project, but developed it as an independent system; (6) available information indicates that most of the system's functions will require modifications before working with other modernization projects; and (7) there were instances where projects failed or were seriously delayed as a result of poor management decisions.


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