Academic journal article Journal of Accountancy

Amid Criticism, Treasury Secretary Defends IRS Modernization Program

Academic journal article Journal of Accountancy

Amid Criticism, Treasury Secretary Defends IRS Modernization Program

Article excerpt

Treasury Secretary Robert E. Rubin told members of a House Appropriations Subcommittee that the Internal Revenue Service modernization program was essential to better serve taxpayers and improve revenue collection and compliance, but he said he shared public concern that the project had gone badly off track.

The General Accounting Office, the National Research Council (NRC) and Deputy Treasury Secretary Lawrence Summers among others have told Congress that the modernization initiative suffered serious long-term problems. The subcommittee's chairman, Jim Lightfoot (R-Iowa), gave the IRS an ultimatum that serious progress must be made or the subcommittee would more closely manage the program or cut its funding entirely.

In March, the GAO testified before the House subcommittee that the IRS lacked the strategic management practices, software development capability and effective organization structure to manage and control its systems modernization. Also in March, deputy secretary Summers told the subcommittee that the modernization program grew too complex and costly because it was too focused on technology independent of changes in its business processes. Summers added that the IRS lacked sufficient expertise in technical management.

"Because of my concern about this program, we have restructured our oversight process," said Rubin. He said he had asked deputy secretary Summers to manage the tax systems modernization program as if he were a board chairman overseeing a long-term corporate restructuring. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.