Treasury
Inspector General for Tax Administration
Office of Audit
IMPLEMENTING THE DATA STRATEGY WILL MAKE
SYSTEM AND APPLICATION DEVELOPMENT MORE EFFICIENT AND EFFECTIVE
Issued on February 19, 2009
Highlights
Highlights of Report
Number: 2009-20-022 to the Internal
Revenue Service Chief Technology Officer.
IMPACT ON TAXPAYERS
The Internal Revenue Service (IRS) is developing a
Data Strategy that includes a comprehensive plan for data collection,
consolidation, storage, and distribution.
The Data Strategy is a key element in the IRS Modernization Program
along with the Modernized Electronic Filing, Customer Account Data Engine, and
Account Management Services projects.
Successful implementation of these four “pillars” is essential to the
support of all tax administration activities and is critical to the long-term
success of the Modernization Program.
WHY TIGTA DID THE AUDIT
This audit was initiated as part of our Fiscal Year 2008
Annual Audit Plan for reviews of the IRS Modernization Program. The overall objective of this review was to
determine whether the IRS
Data Strategy includes adequate management and internal controls for its
program and project plans.
WHAT
TIGTA FOUND
The
Enterprise Data Access and Data Strategy Implementation Programs are the major
components of the Data Strategy. These programs
are in development, and projects related to these programs have been initiated
and, in some cases, completed.
While
progress is being made, challenges facing Modernization and Information
Technology Services organization executives include gaining support for the
Data Strategy throughout the IRS, obtaining adequate funding to execute the
related Data Strategy programs, and sustaining the support to achieve the goals
of the Information Technology Modernization Vision and Strategy.
Although
specific funding for the Data Strategy was not designated in the IRS budget, the
Data Strategy executives were able to obtain funding from the respective
organizations that anticipate using the capabilities. Without a commitment to fully fund and
implement the Data Strategy, the IRS will continue to have redundant,
inconsistent, and outdated data, making it difficult to provide its customers
and stakeholders with appropriate service and to efficiently and effectively
enforce the nation’s tax laws.
Defining
and sharing the quantifiable benefits for using the Data Strategy would help
the various Modernization project teams understand the advantages and necessity
of employing the Data Strategy. However,
the Data Strategy team stated that it does not currently have cost details
quantifying the benefits it expects to provide.
In addition, the IRS has developed an Information Technology Modernization
Vision and Strategy plan to help guide the Modernization Program, but it does
not assign a priority for scheduling development and implementation. This could lead to an ineffective and
inefficient transition of the Data Strategy.
WHAT TIGTA RECOMMENDED
To facilitate
implementation of the Data Strategy, TIGTA recommended that the Chief
Technology Officer 1) work with IRS senior executives to consider the priority
of the Data Strategy effort to provide the necessary funding so that it can be successfully implemented as an integral
component of the Information Technology Modernization Vision and Strategy, 2)
quantify and communicate the benefits that will be realized from implementation
of the Data Strategy, and 3) develop a method to determine the priority for IRS
systems and data assets to begin following the Data Strategy and when systems
and data assets can be retired.
The
IRS agreed with two of our recommendations.
The Data Strategy Implementation Program Office plans to quantify
potential benefits from the Data
Strategy and develop a method to determine the priority for IRS systems and
data assets to begin following the Data Strategy. While
the IRS agreed with the intent of our first recommendation to consider the
priority of the Data Strategy effort, IRS management does not plan to implement
the recommendation because they cannot agree to fund any one project without
considering each year's annual budget.
TIGTA understands the IRS
cannot agree to fund any one project without considering the available budget,
but the IRS should place a high enough priority on the Data Strategy that the
project is considered for a relevant portion of available funding. Without providing the resources to secure
this portion of the foundation, the Modernization effort is weakened, potentially
leading the Data Strategy to a partially completed goal.
READ THE
FULL REPORT
To view
the report, including the scope, methodology, and full IRS response, go to:
http://www.treas.gov/tigta/auditreports/2009reports/200920022fr.html.
Email Address: inquiries@tigta.treas.gov
Phone Number: 202-622-6500
Web Site:
http://www.tigta.gov