Treasury Inspector General for Tax Administration
November 23, 2011
TIGTA - 2011-82
Contact: David Barnes
WASHINGTON – The Internal Revenue Service (IRS) is making progress with the implementation of the Customer Account Data Engine 2 (CADE 2), according to three audits publicly released today by the Treasury Inspector General for Tax Administration (TIGTA).
The goal of the CADE 2 program is to provide state-of-the-art individual taxpayer account processing and technologies to improve service to taxpayers. When complete, CADE 2 should allow the IRS to more effectively and efficiently update taxpayer accounts, support account settlement and maintenance, and process refunds on a daily basis.
“Overall, the IRS is managing the CADE 2 program successfully,” said J. Russell George, Treasury Inspector General for Tax Administration, commenting on the three reports. “However, additional improvements and adherence to all project management criteria will help ensure that CADE 2 functions as intended by the stated January 2012 release date.”
The first CADE 2 audit, “The Customer Account Data Engine 2 Database Implementation Program Made Progress in Design Activities, but Improvements Are Needed,” found that the IRS made progress completing CADE 2’s design, addressed many security and privacy controls, and had an improved partnership with the IRS’s security organization to make critical decisions relating to security. TIGTA recommended improvements to ensure the timely delivery of key activities. The IRS agreed with most of TIGTA’s recommendations and has taken or plans to take appropriate corrective actions.
The second CADE 2 audit, “The Customer Account Data Engine 2 Is Making Progress Toward Achieving Daily Processing, but Improvements Are Warranted to Ensure Full Functionality,” found that the IRS is making progress towards meeting its goal of daily processing of taxpayer records, but improvements and adherence to all program criteria will help ensure that CADE 2 functions as intended. TIGTA recommended a series of systems development process improvements. IRS management agreed with most of these recommendations and stated that they plan to take appropriate corrective actions. However, IRS management disagreed with the recommendation to ensure that all open issues are addressed and closed prior to exiting a milestone. Exiting a milestone without properly addressing critical open issues could result in rework, potentially impact the design, and result in unnecessary costs.
The third CADE 2 audit, “The Customer Account Data Engine 2 Program Management Office Implemented Systems Development Guidelines; However, Process Improvements Are Needed to Address Inconsistencies,” found that the IRS added enhanced security controls beyond those controls required by security guidelines to help protect data from unauthorized access, modification, and corruption. TIGTA made recommendations to ensure the consistent application of systems development processes and proper controls were in place prior to initiating testing activities. IRS management agreed with most of these recommendations and indicated that corrective actions have been completed.
Note: The difference between the date TIGTA issues an audit report to the Internal Revenue Service and the date TIGTA publicly releases the report is due to TIGTA's internal review process to ensure that public release is in compliance with Federal confidentiality laws.
A special plugin is required to view PDF documents. To obtain the free PDF reader, please visit the Adobe web site.