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Friday, December 02, 2005

IRS accounting system cumbersome despite updates

Once troubled, the IRS's modernization project is now on track and producing results for the agency. But improvements came too late to prevent Congress from slashing almost a third from the modernization budget in fiscal 2005 and keeping the funding level at that relatively low level during fiscal 2006.

Because they lost about $85 million, modernization officials put on hold further updates to IFS and permanently shut down another project, the Custodial Accounting Project, which would have connected IFS with the tax administration database.

In CAP's place, the IRS in March began another project called the Custodial Detail Data Base, which it says will address some audit weaknesses through creation of a ledger for unpaid taxes. CAP's replacement project should link to the Master File during fiscal 2006, and subject to funding, will also link to CADE in fiscal 2007.

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