IRS Operations

Significant Challenges in Financial Management and Systems Modernization Gao ID: T-AIMD-96-56 March 6, 1996

This testimony discusses the results of GAO's fiscal year 1994 financial audit of the Internal Revenue Service (IRS)--GAO's most recently completed audit--and GAO's reports on IRS' Tax System Modernization effort. Last year, GAO issued two reports (GAO/AIMD-95-156, July 1995, and GAO/AIMD-95-141, Aug. 1995) on IRS' guardianship of federal revenues and its ability to function efficiently in an increasingly high technology environment. These reports highlight several serious technical and managerial problems that IRS must address to make progress in both of these areas, discusses steps being taken by IRS to strengthen its operations, and makes recommendations for additional improvements.



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