IRS rings up $200 million for modernization
- By Judi Hasson
- Nov 28, 2000
The Internal Revenue Service received an infusion of $200 million to move
ahead with a modernization program that will turn a paper-driven agency
into a paperless one.
The IRS announced Tuesday that Congress has released the latest installment
of funds to overhaul its aging legacy system.
"A lot of work remains, but we are encouraged by our initial efforts
and the continuing support from Congress and other oversight groups," said
Paul Cosgrave, chief information officer at the IRS.
The $200 million will be used to complete projects that include designing
ways to guarantee security and privacy. It also will be used to begin installing
a new accounting system — the first step toward an integrated financial
management system to help improve financial controls.
Congress also approved releasing $15 million, included as part of the
$200 million, for a management reserve fund to make sure modernization doesn't
The $200 million comes from a $577 million fund previously set aside
by Congress and released only after an intensive review of how it will be
spent. So far, $448 million has been released. The procedure was set up
after the IRS spent $3 billion trying to modernize its systems in the 1990s
and abandoned the program.