IRS modernization gets funding boost in House

Text of H.R. 5576

H.R. 5576, the Fiscal 2007 Departments of Transportation, Treasury, and Housing and Urban Development, the Judiciary, District of Columbia and Independent Agencies Appropriations bill, would give the IRS $212.3 million for the program, or $45 million more than President Bush’s $167.3 million budget request.

In its report, the House Appropriations Committee noted BSM’s significant progress in its seven-year history, but it also mentioned its problems with cost overruns and project delays. The IRS tried to solve the problems by opening the Requirements Management Office.

“However, the committee is concerned that a year and a half later there remains no finalized policies and procedures for requirements development and management,” the report states.

A Government Accountability Office report, released April 19, stated that for the time being, the IRS needs to use the draft policies that the RMO created in January to address areas of concern. In response to the report, the IRS in April said it has done that, while continuing to work on final guidance policies. The agency said it expects to need another year, pushing completion to March 2007.

The House has yet to debate H.R. 5576.

The appropriations bill would provide funding for information technology contractors to update the IRS’ key business systems.

The committee recommends at least $167.3 million of the funds remain available until Sept. 30, 2009, for capital asset acquisition of IT systems.

GAO must approve the use of capital asset acquisition funds, and the Treasury Department must tell the committee within seven days if it moves BSM management funds to the capital asset acquisition program, the legislation mandates.