Challenges to modernizing IRS information technology (IT) systems, and Equifax being awarded an IRS contract in the wake of a massive data breach, were cited as examples of how the agency is failing taxpayers in a recent subcommittee hearing led by U.S. Reps. Vern Buchanan (R-FL) and Jackie Walorski (R-IN).
Buchanan, the chairman of the House Ways and Means Subcommittee on Oversight, and Walorski, a member of the subcommittee, raised questions about the IRS’s outdated IT infrastructure, and how the IRS has elected to spend its available resources.
“The importance of this topic cannot be understated,” Buchanan said. “A modern and efficient IT infrastructure is essential for effective tax administration, something that we all would like to see.”
Still, Buchanan added, the Government Accountability Office (GAO) and the Office of Inspector General have identified many instances in which IRS decision-making has led to significant IT problems.
Walorski questioned why the IRS awarded a $7.25 million contract to Equifax one week after the credit reporting agency announced a data breach that exposed the personal information of 145 million Americans.
IRS Chief Information Officer (CIO) Gina Garza and IRS Deputy Commissioner for Operations Support Jeffrey Tribiano testified that they weren’t responsible for the Equifax contract and weren’t aware that it had been signed earlier in the day.
“This is an abject failure. If nothing else, it shows that the IRS structurally needs some reform and needs major change,” Walorski said. “… I don’t think there is anything anybody can say other than pointing the finger.”
David Powner, the director of Information Technology Management Issues at the GAO, noted that a provision of the Federal Information Technology Acquisition Reform Act (FITARA) could address accountability issues.
“One of the provisions in that law [FITARA] is to strengthen CIO authorities,” Powner said. “CIOs should approve the IT budget, they should approve major IT contracts, that’s a provision in the law. And I can tell you right now that was put in there because of this stuff that’s happening.”
As the lawmakers continue to examine tax administration reforms, Buchanan concluded, budget changes must be identified to better manage and govern resources that the IRS already has.
“I’d like someone to tell me ‘here’s what we need to invest, but here’s the efficiency coming out of the system.’ … I’m big on planning personally as a business guy, because if you don’t have a vision you perish … we need to have a plan,” Buchanan said.