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Treasury Inspector General for Tax Administration

Press Release


January 6, 2011
TIGTA - 2011-2
Contact: Karen Kraushaar
(202) 622-6500
karen.kraushaar@tigta.treas.gov
TIGTA-PAO@tigta.treas.gov

TIGTA Recommends Improvements to the IRS’s Current Efforts to Modernize Taxpayer Account Administration

WASHINGTON – The Internal Revenue Service (IRS) will get closer to its goal of providing state-of-the-art individual taxpayer account processing and technologies if it improves its processes to develop the Customer Account Data Engine, or CADE 2 Program, according to a new audit report publicly released today by the Treasury Inspector General for Tax Administration (TIGTA).

“The IRS has established the laudable goal of providing state-of-the-art taxpayer service, for which we applaud them,” said J. Russell George, the Treasury Inspector General for Tax Administration. “We hope that the improvements we recommended for the CADE 2 Program will help the IRS find this goal achievable,” he added.

Established in June 2009, the mission of the CADE 2 Program is to provide state-of-the-art individual taxpayer account processing and technologies to improve service to taxpayers and enhance IRS tax administration. Once completed, the new modernization environment is expected to allow the IRS to more effectively and efficiently update taxpayer accounts, support account settlement and maintenance, and process refunds on a daily basis, thereby improving service to taxpayers.

TIGTA’s review was specifically designed to determine the effectiveness of CADE 2 Program prototype efforts, including applicable security provisions, designed to validate the first phase of development plans.

TIGTA found that the CADE 2 prototype teams, which were developed to demonstrate confidence in the CADE 2 solution, generally managed their objectives effectively. In addition, these teams identified risks to the successful execution of prototype plans and took steps to overcome barriers. However, TIGTA also found that the CADE 2 Program Office could improve its management of prototype activities by ensuring the timely development of a work breakdown structure (task assignments) and documenting prototype testing activities, potential organizational conflict of interest, and security background checks on contractor personnel working with prototype teams.

TIGTA made one recommendation and the IRS agreed with that recommendation. To view the new report, including the scope, methodology, and full IRS response, go to: http://www.treas.gov/tigta/auditreports/2011reports/201120001fr.pdf.

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