Tax Systems Modernization: Input Processing Strategy is Risky and Lacks a Sound Analytical Basis.
GENERAL ACCOUNTING OFFICE WASHINGTON DC INFORMATION MANAGEMENT AND TECHNOLOGY DIV
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This GAO report discusses the work performed relating to the Internal Revenue Services IRS integrated input processing initiative. This initiative is part of the IRS multiyear, multibillion dollar Tax Systems Modernization program and is intended to allow the agency to drastically reduce the manual processes associated with handling paper income tax returns, tax payments, information returns, and other correspondence. This reduction is to be accomplished, in part, by using imaging and optical character recognition OCR to electronically capture and optically read data on paper documents. Any subsequent work with the data would be done entirely electronically. The work addressed four questions 1 Has the IRS adequately assessed the costbenefit tradeoffs of receiving and imaging paper returns and documents compared to receiving and processing input in electronic form 2 If the IRS were to aggressively market various forms of electronic input, thereby reducing the percentage of input requiring imaging, is there a reasonable likelihood that imaging would continue to be cost effective for IRS 3 Is the IRS current input processing strategy technically feasible and realistic given the state of imaging and character recognition technology today, and are the complexities of implementing this technology feasible on the scale necessary for the IRS 4 How are the two current tax return imaging projects, the Document Processing System DPS and the Service Center Recognition Image Processing System SCRIPS, complementary and integrated into the IRS overall strategy for processing paper documents RWJ
- Information Science
- Computer Programming and Software
- Economics and Cost Analysis