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IMTEC-92-55R 1 (1992-05-22)

handle is hein.gao/gaobackbe0001 and id is 1 raw text is: ji, United States GAO General Accounting Office Washington, D.C. 20548 Information Management and Technology Division B-244246 May 22, 1992 The Honorable Shirley Peterson Commissioner of Internal Revenue 146688 Dear Mrs. Peterson: During our April 2, 1992, testimony before the Chairman, Senate Committee on Governmental Affairs, we expressed concern about the Internal Revenue Service's (IRS) inadequate planning for the agency's multibillion-dollar Tax Systems Modernization (TSM) program.' Generally, we noted that IRS still lacked a (1) strategy describing how current and planned systems in the modernization were to be integrated and (2) plan describing how its business operations will transition to the newly defined way of doing business using modernized technologies. Because the completion of these planning components is a prerequisite to moving forward with IRS' modernization program, we are bringing our concerns to your attention so that timely follow-up action can be taken. LACK OF INTEGRATION STRATEGY AND BUSINESS TRANSITION PLAN Last year we testified before the Chairman, Senate Committee on Governmental Affairs, that IRS' Tax Systems Modernization program--the agency's third attempt in the past quarter century to modernize its antiquated tax processing systems--had come a long way and that IRS was in the best position it had ever been to modernize.2 However, we also testified that a number of prerequisites, which were needed prior to moving forward with the modernization, were not yet completed. Among these prerequisites were the lack of an integration strategy and a transition plan. 'Tax Systems Modernization: Progress Mixed In Addressing Critical Success Factors (GAO/T-IMTEC-92-13, Apr. 2, 1992). 2Tax System Modernization: Attention to Critical Issues Can Bring Success (GAO/T-IMTEC-91-8, June 25, 1991). GAO/IMTEC-92-55R, TSM: IRS' Key Planning Components c~ ki

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