IRS may restrict extra funds for ‘modernization’ plans
TL/DR –
The IRS received billions from the Inflation Reduction Act for modernizing its information technology. However, the Government Accountability Office (GAO) found that the IRS doesn’t have a roadmap for achieving its strategic objectives for tech modernization. The GAO’s Director of Information Technology and Cybersecurity, Dave Hinchman, suggested the IRS needs to complete its enterprise roadmap and improve reporting to Congress on the status of its IT modernization projects.
The Inflation Reduction Act and IRS Modernization
The Inflation Reduction Act has allocated billions to the IRS, part of which is being used to modernize its information technology. However, the Government Accountability Office (GAO) suggests that the IRS needs to improve their planning for this task. For more information, check out the interview with Dave Hinchman, GAO’s Director of Information Technology and Cybersecurity, on the Federal Drive with Tom Temin.
Modernization Challenges and Objectives
The IRS has been working towards modernizing its systems for three decades. With the funds from the Inflation Reduction Act, they need to create a clear roadmap for their plans, particularly for business systems modernization. The agency has outlined five strategic goals but lacks detailed, actionable plans to achieve them.
Importance of Technology in Modernization
The fourth goal, which involves the integration of technology, is key to achieving all other objectives. The IRS will need to provide a comprehensive plan on how they will use their budget effectively over the next seven years to accomplish their goals.
The Role of Strategic Planning
Modernization plans currently in progress will provide a guiding timeline along with the necessary actions to terminate legacy systems. While these plans are not yet visible, they are vital for the agency to proceed with necessary contracting and system overhauls.
Legacy System Disposal
Disposal involves more than just hardware replacement; it also includes shutting down old code to ensure it does not interfere with the new system. Some legacy code, like the integrated master file used for processing individual tax returns, may need to be preserved for historical purposes.
GAO Recommendations
The GAO recommended a program-focused approach, emphasizing the need for IRS to finalize the enterprise roadmap and modernization program plans. The agency also needs to improve its report to Congress on IT modernization status for better oversight. This will help maintain a good rapport with the appropriators, leading to better communication and improved relationships.
The Power of Detailed Plans
Having detailed plans will allow for better project management, including contract specifications and requirements. This strategic planning is crucial for the IRS to utilize the funds from the Inflation Reduction Act effectively and achieve their modernization goals.
—
Read More US Economic News