TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRATION
Office of Audit
Customer Account Data Engine Release 3 Successfully Processes
Individual Tax Return and Tax Account Information
Issued on October 24, 2008
Highlights
Highlights of
Report Number: 2009-20-001 to the
Internal Revenue Service Commissioner for
the Wage and Investment Division.
IMPACT ON TAXPAYERS
The Internal Revenue Service (IRS) has developed a strategy
for a phased replacement of its computer systems to better support today’s tax
laws, policies, and taxpayer needs. As
the centerpiece of the IRS modernization program, the Customer Account Data
Engine (CADE) is an essential project in this strategy. The modernized CADE database will allow the
IRS to update taxpayer accounts, support account settlement and maintenance,
and process refunds daily, which will contribute to improved service to
taxpayers. Based on our review, CADE
Release 3 is operating effectively to help the IRS provide these improved
services to taxpayers.
WHY TIGTA DID THE AUDIT
This audit was initiated as part of TIGTA’s Fiscal
Year 2008 Annual Audit plan for reviews of the IRS’ modernization efforts. The overall objective of this audit was to
determine whether CADE Release 3 met user requirements and is performing as
expected.
WHAT
TIGTA FOUND
CADE
Release 3 successfully incorporated new requirements to accept and process tax
return and tax account information. In
addition to new tax law changes, several new tax return schedules were added to
the CADE, as was the enhanced ability to process taxpayer address changes. For the first time, the CADE is now
processing two mathematical error notices and an Earned Income Tax Credit
informational notice.
As
of July 25, 2008, the CADE had processed more than 30 million tax returns
(approximately 21 percent of all individual tax returns filed) and generated
more than $44 billion in refunds in Calendar Year 2008. This is a significant increase over the 11.2
million tax returns processed in Calendar Year 2007.
In
addition, the CADE accurately and effectively processed payments to taxpayers
required by the Economic Stimulus Act of 2008.
Through July 25, 2008, the CADE had processed almost 24 million economic
stimulus payments totaling more than $18 billion.
WHAT TIGTA RECOMMENDED
TIGTA did not make any recommendations in this
report. Because the IRS concurred with
an advance copy of the report and the report contained no recommendations, the
IRS was not required to and did not provide a formal response.
READ THE
FULL REPORT
To view the report,
including the scope and methodology, go to:
http://www.treas.gov/tigta/auditreports/2009reports/200920001fr.html.
Email Address: inquiries@tigta.treas.gov
Phone Number: 202-622-6500
Web Site:
http://www.tigta.gov