no easy it fix for the irs - cio.com - business technology leadership

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apply today for a free subscription to cio magazine! subscription services » reprints »     news feature   no easy it fix for the irs   leave a comment by elana varon april 01, 2004 — cio — the internal revenue service’s master file is an accident waiting to happen. a legacy of the kennedy administration, this database stores the taxpaying histories of 227 million individuals and corporations, including every transaction between taxpayers and the irs for the past 40 years. the master file is used to determine if you’ve paid what you owe, and without it the government would have no way to flag returns for audits, pursue tax evaders or even know how much money is or should be flowing into its coffers. yet the system still runs code from 1962, written in an archaic programming language almost no one alive understands. every year, programmers, some who have worked at the irs for decades, add new code to the master file to reflect new rules passed by congress. as a result, the system has become a high-tech rube goldberg machine. those familiar with the master file say it is poised for a fatal crash that would shut the government down. congress and the irs had hoped that by this tax season, this fragile system would be partially replaced by a centralized database that could provide both irs agents and individual taxpayers with daily updates of taxpayer accounts, just as credit card companies and banks do, enabling speedier refunds and more timely customer service. this new customer account data engine, or cade, is part of a massive $8 billion modernization program launched by the irs in 1999 to upgrade its it infrastructure and more than 100 business applications. but the program, called business systems modernization, has stumbled badly, running into serious delays and substantial cost overruns. the first of multiple software releases planned for the new database (which would enable faster processing of returns and faster refunds for 6 million out of the 21.5 million people who file the 1040ez form) is nearly three years late and $36.8 million over budget. eight other major projects have missed deployment deadlines by at least three months, and costs have ballooned by more than $200 million, according to the u.s. general accounting office and the congressionally chartered irs oversight board, an independent panel of tax industry and technology experts who advise the irs and congress. those familiar with the program say the fault lies largely with the irs’s entrenched bureaucracy. the agency did not follow its own procedures for developing the new systems and failed to give consistent direction and oversight to computer sciences corp. (csc), the vendor it hired to do the work. longtime managers resistant to change undercut csc and the private-sector it executives who were hired to oversee the program, according to mark forman, who, as associate director for it and e-government at the office of management and budget, oversaw the government’s major it initiatives from june 2001 until last summer. three cios have come and gone in the seven years since planning began for business systems modernization. 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 |next page »          email print comments digg this slashdot           related articles   csc annual report delayed due to accounting errors former cios: the view from the other side of the table government outsourcing - you can't outsource city hall     related solutions       how-to » 10 mistakes to avoid when writing an rfp for master data management abc: an introduction to service-level agreements (slas) research & analysis » study: cios struggle with mobile device management, look to operators for help why you should create a vendor management office advice & opinion » join the conversation! ask, answer and interact with the cio community news » the business intelligence landscape: how will the ibm purchase of cognos impact end-users? 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companies now view business alignment with it as a greater driver than either compliance or security. find out why. more white papers »     featured sponsors       sponsored links   8e6 technologies, sc magazine's best buy for filtering and reporting. members of the cio executive council share their opinions on the future of the cio role in business it leaders can take effective steps to bring it infrastructure expenses under control get a 5-step action plan for soa success. learn how hubspan solves the customer integration challenge for you. busting myths of on- demand integration by managing client pcs as strategic assets, intel it reduced tco by 67 percent from 1995 to 2006 webcast: learn the secrets to improving help desk productivity and user perception read how food manufacturer cut licensing costs by $492,000 learn how to complete development and integration projects faster! learn about the use of risk management as a tool to effectively generate positive results view this live webcast on managed communication services. it service management solutions help organizations free resources for strategic initiatives. learn how utility computing can increase server utilization rates dramatically automate the development lifecycle-- build better software faster and cheaper webinar real-time analytics deliver predictable it operations next generation data warehousing and business intelligence - webcast show me the metrics: gain deeper visibility into your it processes - webcast where risk, compliance & security intersect - white paper seven critical questions to ensure data governance success a unified, proactive approach to endpoint security the microsoft enterprise cal suite helps improve corporate compliance virtualization in your wide area network: why so many global corporations are embracing it! preventing high profile data breaches: a root cause approach - webcast platform as a service - check out this free force.com cookbook cios discuss the key leadership competencies they leverage to be effective in driving innovation sap speaks retail. learn more at sap.com/speaks-retail learn how to bring it infrastructure expenses under control through best practices learn about certified for windows vista products preventing high profile data breaches: a root cause approach webcast soa: a building block to profit webcast the secret of secure remote support with gotoassist firm saves 60% by acquiring multiple integrated server products under one license learn about addressing it objectives through effective software licensing live webcast - the future starts now with endpoint protection cios describe the challenges they have faced by working in siloed environments secrets to improving management of your master data - from sap learn how to get ahead of the evolving demands of your business enable business growth through a focused application lifecycle management strategy sprint helps you do more in more places. best practices webcast series: efficient information management best practices: implementing content loss prevention - webcast where risk, compliance and security intersect - webcast next generation of enterprise business solutions how to write an rfp for master data management: 10 common mistakes to avoid achieving a best-practice service desk from desktop to data center: a step-by-step approach your linux is ready(tm) - see the new suse linux enterprise 10 tealeaf: see how and why customers succeed or fail in their transactions. how enforcement of information security measures can reduce risk webcast using web conferencing to boost productivity and increase profitability     home| about cio| privacy policy| terms of service| subscription services| advertising| executive programs| sitemap the idg network cio| computerworld| cso| demo| game pro| games.net| idg connect| idg world expo| infoworld| javaworld| linuxworld| macuser| macworld| network world| pc world| playlist| cio germany| cio china| cio sweden| cio australia| other cio sites|  

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