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Treasury Inspector General for Tax Administration

Press Release

December 5, 2011
TIGTA - 2011-85
Contact: David Barnes
(202) 622-3062

TIGTA Issues Annual Information Technology Audit

WASHINGTON – The Internal Revenue Service (IRS) is improving its efforts to modernize its information technology systems and related business practices, according to a new report from the Treasury Inspector General for Tax Administration (TIGTA).

As required by the IRS Restructuring and Reform Act of 1998, TIGTA assessed the adequacy and security of the IRS’s information technology. The IRS relies extensively on its computer systems to administer our Nation’s tax laws. It is currently engaged in a multi-year, multibillion- dollar Business System Modernization Program (Modernization Program).

Since last year’s assessment, the IRS has developed and implemented significant systems to improve the tax return processing environment, and additional improvements and upgrades are being developed and implemented, TIGTA found. As such, TIGTA supports the IRS’s request to change the status of the Modernization Program from a material weakness to a deficiency. TIGTA also noted that the information technology operations program has implemented bestpractice principles designed to improve efficiency and effectiveness. However, computer security remains a material weakness, and the IRS needs to continue its emphasis and attention on becoming a security-conscious organization, TIGTA found.

“The IRS has generally improved its management of the Modernization Program,” said J. Russell George, Treasury Inspector General for Tax Administration. “However, we suggest that the IRS consider this Program to be high-risk and continue to stress improvements in both its processes and performance.”

Because this was an assessment report of the IRS’s Information Technology Program through Fiscal Year 2011, TIGTA did not offer any recommendations. IRS officials were provided an opportunity to review and comment on the report.

Read the report.


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.

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