IRS gets the go-ahead to spend $148.4 million on modernization

IRS gets the go-ahead to spend $148.4 million on modernization

By Shruti Dat'

GCN Staff

Congress has released $148.4 million from the IRS Information Technology Investment Account to fund the service's modernization efforts.

Rep. Jim Kolbe (R-Ariz.), chairman of the House Appropriations Subcommittee on Treasury, Postal Service and General Government, in mid-April approved the IRS' third and largest request. The IRS received $35 million last July and $33 million in December from the fund to develop a revised modernization blueprint with its Prime contractor Computer Sciences Corp.

Less is OK

The IRS had requested that Congress approve $176.3 million for the modernization effort.

'Our view is that this is less than we requested, but it signals Congress' cautious but increasing confidence in our modernization effort,' IRS chief information officer Paul Cosgrave said.

The third installment would fund three facets of the modernization: completion of an enterprise lifecycle plan, publication of an updated modernization blueprint and the initial development of some systems programs, Cosgrave said.

The IRS will allot $49 million to complete its enterprise lifecycle plan, refresh its 3-year-old blueprint and further formulate its vision, he said. The agency will funnel $60 million to the development of individual projects, such as the Customer Account Data Engine, he said. CADE will replace the 30-year-old Master File and Integrated Data Retrieval systems.

Finally, the service's customer communication project will receive $38 million to make call routing more efficient by next year. But the IRS will delay work on its Customer Relationship Management projects until after the release of its Blueprint 2000, Cosgrave said.

He said the IRS would request additional funding from ITIA in the summer and toward year's end. The agency will begin developing a new financial management system'a congressional priority'this summer, Cosgrave said.

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