For the IRS There's No EZ Fix
By assembling a star-studded team of vendors, the IRS thought its $8 billion modernization project would manage itself. The IRS thought wrong. Now the agency's ability to collect revenue, conduct audits and go after tax evaders has been severely compromised.
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...
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