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(fwd) IRS Modernization





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Subject: IRS Modernization
Date: 12 Sep 1997 19:33:17 GMT
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Begin forwarded message:

    Date: 23 Aug 1997 21:21:31 -0700
    From: Michael Dodas <miked@NOSPAM!.utw.com>
    Subject: IRS Modernization - Request for Information
    Newsgroups: comp.software.year-2000

I just recently read IRS's "Request for Comments (RFC)", which solicits
comments for modernizing the IRS's tax systems.  This document is the
first information I've seen that shows just how desperate the IRS is
and how complex the IRS tax systems are.  Their systems are literally
incomprehensible.

I won't even attempt to describe this document in any type of detail.
My comments are merely those taken from the document that "caught my
eye" upon my first reading of this document (RFC).  To truly appreciate
the gravity of what the IRS wants to accomplish, you'll need to read
the entire document.  Keep in mind, also, that the Modernization effort
is intended to proceed as a separate project from the Year 2000
correction effort.

The document, which I will refer to as the RFC, begins with a cover
letter from Arthur A.  Gross, Associate Commissioner/Chief Information
Officer at the IRS.  Mr. Gross acknowledges that "the IRS assumed
primary responsibility for managing both systems development and
integration with less than acceptable results".  This statement sets
the tone for the IRS's direction of creating a "partnership" with the
private sector "stakeholders" to modernize the IRS.  Mr. Gross further
indicates that it is "myth" to believe that the private sector alone
could modernize the IRS, since IRS possesses the necessary "knowledge
of tax administration" to build a new system.  For all intents and
purposes, IRS wants to turn over all of the project management,
re-engineering, systems engineer, design and development and
integration expertise to the private sector.

I always knew the IRS was extraordinarily complex, but it is more
complex than I could have ever imagined.  The RFC indicated that the
complete Modernization Blueprint consists of seven volumes--count
them--seven volumes.  It may be a simpler system, but it will
inevitably end up being yet another complex monster.

The RFC continues to say that "during the 1980's and early 1990's,
effort focused on delivering taxpayer services and compliance
functionality together with limited on-line development of stand along
"stovepiped" systems with stand along data bases utilizing the
principles of distributed computer processing, an approach to computing
en vogue during the late 1980's and 1990's.  Overall, the IRS computing
environment evolved into an extraordinarily complex array of legacy and
stand alone modernized systems with respect to both connectivity and
interoperability between the mainframe platforms and the plethora of
distributed systems."  In other words, the IRS succumbed to "fashion
technology" solutions which did nothing but complicate their previous
efforts to modernize.

To give you an idea of how large the IRS's information system are,
consider these statistics from the RFC:

There are three computing centers, with sixty (60) mainframes in ten
regional service centers. NONE OF THE MAINFRAMES ARE CENTURY DATE
COMPLIANT.  There are 62 million lines of code in the IRS core business
systems.  Duplicate distributed networks have interoperability and
connectivity problems and are largely not century date compliant.

IRS mentions "risk" many times in the RFC.  "While the risks inherent
in Phase III may be nearly incalculable given the aged systems, the
absence of critical documentation, dependency on Assembler Language
Code (ALC) and the inevitable turnover of the IRS workforce supporting
these systems, it is essential to plan and execute the conversion of
the Master Files and its related suite of applications".  IRS seems to
know that it will not be able to retain its technical expertise, who
will probably bail for better paying jobs.

The IRS's goal is to canvas "any reasonable strategy to move forward on
modernization" while, at the same time, managing the immediate crisis
(Y2K) to "stay in business".  Given the complexity of IRS, its past
modernization failures and the Year 2000 problem facing them, you would
have to be insane to believe these goals were obtainable.

The Next Eighteen Months: Staying In Business And Preparing For
Modernization:

While searching for executive and senior information technology
managers, the IRS received in excess of 800 applications from the "not
faint of heart".  IRS has an interesting way of describing what kind of
job is in store for these people.  They'll be luck to keep any of them
around long-term.

Rebuild Product Assurance.  IRS indicates that staffing levels have
sunk to less than 30 percent of the minimum industry standards, and is
one of the highest priorities with IRS.  The RFC indicated that today,
major tax systems changes are not subjected to comprehensive testing
prior to being migrated to production.  Moreover, the Century Date
conversion will place an extraordinary additional burden on the Product
Assurance Program.  I think what IRS is saying here is that they don't
have the staff for a Y2K remediation effort and have obviously only
partially completed the inventory phase.

The IRS indicates that "it must undertake and complete major
infrastructure initiatives no later than June 1999 to minimally ensure
century date compliance for each of its existing mainframes and/or
their successor platforms.  At the same time, the IRS must complete the
inventory of its field infrastructures as well as develop and execute a
century date compliance plan for the conversion replacement and/or
elimination of those infrastructures."  How in god's name is this
possible by June 1999 when they haven't even started.  Notice how they
used the words "minimally ensure century date compliance".  What is
that going to accomplish.  Either you're compliant or you're not.

Basically, the IRS admits it was "wrong-headed" to modernize the legacy
systems instead of creating a brand new system.  Considering the
spaghetti code and systems in place, I would have to agree.  On the
other had, the IRS is indicating that contractual agreements may be
extended for up to fifteen (15) years for the modernization effort.
The new system will probably be obsolete before it ever gets off the
ground.

The last thing I will point out in the document stood out to me as the
most profound of all, for obvious reasons.  This is the way IRS
describes themself:

"The Information Systems (IS) organization of the Internal Revenue
Service (IRS) is a huge enterprise--employing in excess of 7,500
personnel across the United States, budgeted in excess of $1 billion
annually and responsible for the design development and ongoing support
of a highly complex and vast array of technologies which, taken
together, comprise the technology-based engine that powers the IRS.  A
$1.4 trillion Financial Services Program, IRS business enterprises are
unprecedented in size and scope - a Fortune One company - with service
centers, district office and regional office operations, staffed by
more than 100,000 employees, largely dependent on highly automated
process as well as the currency, comprehensiveness and availability of
vast storehouses of computerized data.

The latter half of the last decade of the twentieth century presents IS
management and staff with unprecedented challenges: fraught with risks
and potential for failure; yet filled with opportunity to serve the
nation's taxpayers, while contributing to the creation of the largest
and most sophisticated technology-based program in business or
government".

The above two paragraphs may well be the IRS's epitaph.

In my opinion, the only way the Federal Government can secure its tax
revenue collection system is to completely repeal the current United
States Tax Code and replace it with a VERY simple one like a flat tax.
Any attempt to fix (Y2K and Modernize) is impossible.  The IRS is a
classic example and sets the standard for systems which are too complex
to automate.  This level of complexity should be limited to scientific
endeavors.  I truly believe that it will be easier for NASA to put a
man on Mars more easily and quickly than to continue on with the
current IRS and tax code currently in place.

This amazing document can be found at:

http://www.ustreas.gov/treasury/bureaus/irs/prime/primerfc.htm

Then select Request For Comment No. TIRNO-97-H-0010

It is a 116 page Adobe Acrobat document.  I had great difficulty
printing the document because of the complex diagrams.  I have a HP
Laserjet/4 with 4 megs of memory.  The only way I could print it was to
use a Laserjet/III driver.  It worked at the high resolution, but not
as well as the Laserjet/4.  Leave it to the government to create a
document that you can't even print easily!

Happy Reading,

-- Mike Dodas


-- end of forwarded message --