Internal Revenue Service 

FY 2019

Capital Investment Plan
2

Table of Contents

Investment Name: Account Management Services (AMS)........................................................ 3

Investment Name: Affordable Care Act (ACA) Administration................................................ 6

Investment Name: Customer Account Data Engine 2 (CADE 2)............................................... 9

Investment Name: e-Services (e-SVS) ..................................................................................... 12

Investment Name: Enterprise Case Management (ECM)......................................................... 14

Investment Name: Foreign Account Tax Compliance Act (FATCA)...................................... 17

Investment Name: Individual Master File (IMF)...................................................................... 21

Investment Name: Integrated Customer Communication Environment (ICCE)...................... 23

Investment Name: Integrated Data Retrieval System (IDRS).................................................. 27

Investment Name: Integrated Financial System/CORE Financial System (IFS) ..................... 30

Investment Name: Integrated Submission and Remittance Processing System (ISRP)........... 32

Investment Name: IRS.GOV - Portal Environment ................................................................. 35

Investment Name: Modernized e-File (MeF) ........................................................................... 38

Investment Name: Return Review Program (RRP).................................................................. 40

Investment Name: Service Center Recognition/Image Processing System (SCRIPS)............. 44

Investment Name: Web Applications....................................................................................... 47

Investment Name: IRS End User Systems and Services (EUSS)............................................. 50

Investment Name: IRS Main Frames and Servers Services and Support (MSSS)................... 53

Investment Name: IRS Telecommunications Systems and Support (TSS).............................. 55
3

The Office of Management and Budget FY 2019 IT Budget – Capital Planning Guidance changed 

how certain IT Investments are categorized. The Agency IT portfolio summary consists of Part 1: 

IT Investments for Mission Delivery; Part 2: IT investment for Administrative Services and Support 

Systems; and Part 3, IT Investments for IT infrastructure, IT Security, and IT Management. The 

guidance no longer requires Part 3 investments to be reported as major or non-major 

investments. However, the Department of the Treasury’s Capital Investment Plan will continue to 

report these investments as well as non-IT investments included in prior years. 

Treasury guidance requires five years of investment data for most IT investments. However, 

cybersecurity and non-major IT investments are not required to provide this level of detail. In 

addition, Treasury gives discretion to bureaus on the level of detail to provide for out-year cost 

data. Due to this, there is some variability in the presentation of out-year cost estimates.

The FY 2018 Annualized Continuing Resolution (CR) (“2018 Enacted”) level does not include 

resources to implement the requirements under the Tax Cuts and Jobs Act (Public Law 115-97). 

Bureau: IRS

Investment Name: Account Management Services (AMS)

Type of Investment: Major IT Investment

Description:

AMS is a major strategic investment that delivers improved customer service to over 37,500 endusers by providing the tools necessary to access tax information quickly and accurately.

Investment Anticipated Outlay: ($000,000s): 

Type 2016 and 

Prior 

Actual

2017 

Actual

2018 

Enacted

2019 

Estimated

2020 

Estimated

2021 

Estimated

2022 

Estimated

2023 and 

Beyond 

Estimated

Total

Sub-Total 

DME 

(Including 

Internal labor 

(Govt. FTE) 

Costs)

23.27 23.27

Sub-Total 

O&M Costs 

(Including 

Internal Labor 

(Govt. FTE) 

Costs)

129.31 14.90 16.05 16.19 16.38 16.58 16.78 16.98 243.15

Total Costs 152.58 14.90 16.05 16.19 16.38 16.58 16.78 16.98 266.43

Number of 

FTE 736.61 74.76 77.16 77.16 79.30 1044.99

Summary of Purpose, Goals, and Benefits: 

AMS is a major strategic investment that delivers improved customer service to over 37,500 end-
4

users by providing the tools necessary to access tax information quickly and accurately.

AMS is a strategic program that delivers improved customer support for managing taxpayer 

accounts by leveraging existing Internal Revenue Service (IRS) applications. As part of the 2006 

Modernization Vision and Strategy process, IRS developed a strategy to use, retain, and provide 

real-time access to account data regardless of location in the current processing environment 

(CPE) or modernized data sources. Using a phased release strategy, AMS was able to validate 

this approach during its initial deployment in October 2007 using a service-oriented architecture 

implementation to access both CPE and Customer Account Data Engine (CADE). In 2009 the 

Desktop Integration (DI) system was integrated into AMS and the Correspondence Imaging 

System (CIS) became an inventory within AMS. AMS was fully deployed in December 2010 

and is now in the Operations and Maintenance phase. 

AMS provides multiple systems interfaces using only one computer terminal. The AMS 

application provides IRS employees the ability to access and update taxpayer accounts quickly, 

provides data presentation services to display and validate changes/updates for taxpayer 

accounts, facilitates management actions/activities (such as work assignments, transfers, case 

creation and closures, and generation of letters to taxpayer) and making case information readily 

available for decision making and reporting, provides the front-end applications for adjustments, 

penalties, interest, abatements, credit and debit transfers, name and address changes, 

bankruptcies, installments agreements, changes to the automated treatment streams and many 

other taxpayer account-related functions required for customer service and compliance. AMS 

also provides the functionality to monitor taxpayer accounts for follow-up activity or deferred 

actions.

Return on Investment: 

AMS provides a variety of research and case management tools for approximately 35,000 IRS 

employees. The AMS system also provides both large-scale inventory management at the 

enterprise level and customized workflow management at the individual case level. In the tollfree telephone arena, IRS customer service representatives (CSRs) utilized AMS while 

answering over 3 million taxpayer phone calls for FY 2018 1st quarter (Oct 1, 2017 - December 

31, 2017). CSRs depended on AMS to provide detailed account history and other online tools 

(i.e., tax return view, worksheets and checklists) in order to respond to taxpayers efficiently and 

effectively. Approximately 1 million documents were scanned into the AMS system during FY 

2018 1st quarter (Oct 1, 2017 - December 31, 2017), providing employees with electronic copies 

of taxpayer correspondence. AMS has several electronic inventories providing IRS business 

organizations with case workflow automation and mobility. The electronic inventories are 

systemically delivered to all ten IRS campuses allowing the IRS to manage taxpayer accounts 

and to balance employees' workload. There were 1.6 million electronic cases worked, managed 

and controlled via AMS during the period of FY 2018 1st quarter (Oct 1, 2017 - December 31, 

2017).

Requirements/ Benefits/ Mandates: 

Legislative mandates, Outstanding audit findings or Material weakness, Presidential 

Directive: AMS will provide customer service for individual legislative mandates. AMS is a 

strategic program that delivers improved customer support for managing taxpayer accounts by 
5

leveraging existing IRS applications. The AMS application provides a variety of research and 

case management tools for approximately 35,000 IRS employees. The AMS system also 

provides both large-scale inventory management at the enterprise level and customized workflow 

management at the individual case level.

Accomplishments and Future Objectives: 

PY 2017 - Prior Year

- Delivered modifications in support of legislative and filing season tax year changes. 

- Upgraded AMS infrastructure, including hardware and Commercial Off The Shelf (COTS) 

product software upgrades.

- Maintained investment to keep asset functioning as designed and maintain high performance 

record.

CY 2018 - Current Year

completed 

- Delivered modifications in support of legislative and filing season tax year changes. 

- Upgraded AMS infrastructure, including hardware and Commercial Off The Shelf (COTS) 

product software upgrades.

- Maintained investment to keep asset functioning as designed and maintain high performance 

record.

BY 2019 - Budget Year

- Deliver modifications in support of legislative and filing season tax year changes, including 

Tax Reform.

- Upgrade AMS infrastructure, including hardware and COTS product software upgrades.

- Maintain investment to keep asset functioning as designed and maintain high performance 

record.

Details of Useful Life Period: 

Year the investment began: 2007

End Year of the current planning cycle: 2023

Description of why the investment is not consistent with life cycle model defined in OMB 

Circular A-131.: This investment covers ongoing functionality with no clear retirement date. We 

are using 5 year standard Period of Performance (POP) - Lifecycle not applicable to overall 

investment.

Performance Evaluation and Metrics: 

Metric Description

Performance 

Measurement 

Category 

Mapping

Measurement 

Condition

Reporting 

Frequency

Unit Of 

Measure

CY 

Target

Latest 

Actual 

Result

Date of 

Latest 

Actual 

Result

AMS Core Application Availability - The percentage of 

uptime that the AMS system is available for AMS 

users. The AMS Core Application allows all AMS users 

to handle a variety of Accounts Management actions. 

This measure indicates the percentage of scheduled uptime that the application is available to IRS employees. 

This technical measure considers the application servers 

and the infrastructure components of the AMS Core 

Strategic and 

Business Results Over target Monthly percent 96.00 94.00 02/06/2018
6

Application.

AMS Imaging Inventory Application Availability - The 

AMS Imaging Inventory is used by over 8000 users to 

respond to taxpayer correspondence. This measure 

indicates the percentage of scheduled up-time that the 

application is available to customer service 

representatives. This technical measure considers the 

availability of the application servers, workflow system 

and content management system components of the 

Imaging Inventory.

Strategic and 

Business Results Over target Monthly Percentage 96.00 95.00 01/11/2018

AMS Databases Availability - This technical measure 

indicates the percentage of scheduled up-time of the 

four AMS databases that provide the data needed by 

AMS users.

Strategic and 

Business Results Over target Monthly Percentage 96.00 94.00 02/06/2018

The projects actual costs will not exceed the budget 

allocation in each quarter.

Financial 

Performance Under target Quarterly Percentage. 0.00 9.00 10/20/2017

Availability of AMS Affordable Care Act (ACA) tools 

to Customer Service Representatives (CSRs) to provide 

answers to taxpayers and accurate computation of ACA 

Premium Tax Credit (PTC) and Shared Responsibility 

Payment (SRP)

Customer 

Satisfaction 

(Results)

Over target Quarterly percentage 97.00

Investment Name: Affordable Care Act (ACA) Administration

Type of Investment: Major IT Investment

Description:

The ACA investment encompasses the planning, development, & implementation of IT systems 

needed to support IRS' tax administration responsibilities associated with key provisions of the 

ACA legislation. ACA was previously listed as 015-000000285.

Investment Anticipated Outlay: ($000,000s): 

Type 2016 and 

Prior 

Actual

2017 

Actual

2018 

Enacted

2019 

Estimated

2020 

Estimated

2021 

Estimated

2022 

Estimated

2023 and 

Beyond 

Estimated

Total

Sub-Total 

DME 

(Including 

Internal labor 

(Govt. FTE) 

Costs)

1228.77 21.49 0.32 0.33 0.33 0.33 1251.57

Sub-Total 

O&M Costs 

(Including 

Internal Labor 

(Govt. FTE) 

Costs)

112.42 185.44 191.41 189.53 191.81 194.11 196.44 198.80 1459.96

Total Costs 1341.19 206.93 191.74 189.86 192.14 194.44 196.44 198.80 2711.53

Number of 

FTE 2469.10 277.10 282.07 282.07 282.07 282.07 282.07 282.07 4438.62
7

Summary of Purpose, Goals, and Benefits: 

The ACA Administration investment plays a critical role implementing many of the changes 

required to support IRS tax administration responsibilities associated with key provisions of the 

ACA. These responsibilities require work that encompasses the planning, development, and 

implementation of new IT systems needed as well as updating current systems in support for the 

implementation of the American Health Benefit Exchanges; validation of health care coverage 

retained by individuals and provided by employers, along with assessment of required penalties; 

administration of a variety of industry-specific credits, fees, and taxes (including, but not limited 

to, branded prescription drug companies, health insurance companies, high-cost health insurance 

plans, taxes on medical devices and services); sharing of information across governmental 

entities and additions or changes to individual and business tax administration (such as new 

credits or payments, or changes to return processing).

Releases ACA 1.0 through 7.1, already in production, included the design and deployment of 

new systems, along with changes to existing IRS IT infrastructure. These releases supported new 

taxes, credits, and fees, such as the Small Business Health Care Tax Credit, Branded Prescription 

Drug Industry Fee, Excise Tax on Medical Device Manufacturers, Hospital Insurance Tax, and 

Insurance Provider Fee. These releases also provided the technical solution to support Health 

Insurance Marketplace open enrollment in the fall of 2013 and thereafter on an annual basis, 

along with IRS pre-filing and post-filing compliance activities. These releases also expand 

information return processing and capabilities needed for compliance processing. New IT 

systems deployed include the ACA Coverage Data Repository, Income and Family Size 

Determination, Information Sharing and Reporting, Premium Tax Credit (PTC), ACA 

Information Returns, ACA Verification Service, ACA Compliance Validation, and acceptance 

and validation of new of new ACA Information Return 1094/1095 A/B/Cs.

Current work focuses on operations and maintenance of the ACA systems as they continue in the 

Current Production Environment (CPE) to support Filing Seasons and Open Enrollments. This 

includes development, modernization and enhancement (DME) work on changes to the CPE for 

ACA systems and CPE updates to systems supporting ACA.

Return on Investment: 

This investment allows the IRS to fulfill its responsibilities under the ACA. Benefits include: the 

ability to verify household income and family size to support calculation of Premium Tax Credit; 

common web services hosted at the IRS; the ability for individuals and preparers to estimate 

potential penalties for non-coverage; a single, consistent source for all ACA-related data, which 

leads to better reporting; a common infrastructure for data access which has allowed for faster 

response times; standardized methodology for secure, stable connectivity between IRS and 

Health and Human Services (HHS); and a seamless customer service experience for the 

individual.

Requirements/ Benefits/ Mandates: 

Legislative mandates, Outstanding audit findings or Material weakness, Presidential 

Directive: The main requirement for this investment is to administer the various tax provisions 

included in the ACA. The seven named Releases currently in production are providing support 
8

for the Market Place, Premium Tax Credit calculations, Branded Prescription Drug Fees, Excise 

Tax on Medical Device Manufacturers, Hospital Insurance Tax, and Insurance Provider Fee. It 

also supports IRS pre-filing and post-filing compliance activities, along with expanded 

information return processing and capabilities needed for compliance processing.

Accomplishments and Future Objectives: 

For the Previous Year (FY 2017), ACA focused on Releases 6.1 through 7.1. The objectives 

included:

-ACA 6.1 supported initial post-filing compliance activities through a new system, ACA 

Compliance Validation.

-ACA 6.2 supported electronic acceptance and validation of Information Returns 1094/1095 

B/Cs for the initial voluntary year

-ACA 7.0 expanded information return processing and capabilities needed for compliance 

processing by enhancing ACA Information Returns (IR) validations, expanding intake and 

validation for paper/electronic submissions of ACA IR and handling duplicate and replacement 

IRs.

-ACA 7.1 expanded post-filing compliance for 4980H(a) and data analytics supporting business 

reporting to identify Applicable Large Employers (ALEs) who have failed to offer coverage to 

full time employees. It will also develop enterprise common service for performing data 

reconciliation of Information Returns to ensure consistent treatment of taxpayer compliance.

For the Current Year (FY 2018) and for FY 2019 and beyond, IRS will continue to support the 

operations of ACA 1.0 through 7.1, already in production with maintenance and enhancements to 

existing IRS IT infrastructure.

Details of Useful Life Period: 

Year the investment began: 2010

End Year of the current planning cycle: 2023

Description of why the investment is not consistent with life cycle model defined in OMB 

Circular A-131.: This investment covers ongoing functionality with no clear retirement date. We 

are using a five year standard Period of Performance (POP) - Lifecycle not applicable to overall 

investment.

Performance Evaluation and Metrics: 

Metric Description

Performance 

Measurement 

Category 

Mapping

Measurement 

Condition

Reporting 

Frequency

Unit Of 

Measure

CY 

Target

Latest 

Actual 

Result

Date of 

Latest 

Actual 

Result

Percent of successful transactions. Strategic and 

Business Results Over target Monthly Percentage 95.00 97.99 12/31/2017

Response Time Performance - Average Response 

Time in Seconds.

Customer 

Satisfaction 

(Results)

Under target Monthly Seconds 5.00 0.40 12/31/2017

ACA applications in production requiring software 

code changes via P1/P2 defects. Note: Applications 

in production requiring no more than three P2 

defects and zero P1 defects. Yellow Threshold is 4 

P2 Defects and Red Threshold is 8 P2 defects or 

any P1 defect.

Customer 

Satisfaction 

(Results)

Under target Monthly Number 3.00 0.00 12/31/2017
9

Branded Prescription Drug Feeï¿1⁄2Statutory 

"Allocated Amount" Collected.

Strategic and 

Business Results Over target Annual Percentage 100.00 100.00 09/30/2016

End-to-End Metric - Branded Prescription Drug. Strategic and 

Business Results Over target Monthly Percentage 97.00 100.00 12/31/2017

Annual Overall Cost Variance Financial 

Performance Under target Annual Percentage 5.00 -20.67 09/30/2017

Investment Name: Customer Account Data Engine 2 (CADE 2)

Type of Investment: Major IT Investment

Description:

The CADE 2 program's purpose is to implement a single, data-centric solution which provides 

daily processing of taxpayer accounts and addresses financial material weaknesses to maintain 

IRS' clean audit opinion.

Investment Anticipated Outlay: ($000,000s): 

Type 2016 and 

Prior 

Actual

2017 

Actual

2018 

Enacted

2019 

Estimated

2020 

Estimated

2021 

Estimated

2022 

Estimated

2023 and 

Beyond 

Estimated

Total

Sub-Total 

DME 

(Including 

Internal labor 

(Govt. FTE) 

Costs)

1092.94 117.01 95.00 40.31 40.90 41.50 42.12 42.74 1512.52

Sub-Total 

O&M Costs 

(Including 

Internal Labor 

(Govt. FTE) 

Costs)

22.06 12.68 15.86 16.07 16.27 16.54 16.81 17.10 133.39

Total Costs 1115.00 129.68 110.86 56.39 57.17 58.04 58.93 59.83 1645.91

Number of 

FTE 1785.78 216.08 215.10 215.19 215.19 215.19 215.19 215.19 3292.91

Summary of Purpose, Goals, and Benefits: 

CADE 2 was chartered in 2009 to provide 21st century technology and digital services to the 

taxpayer and to IRS employees. The CADE 2 solution is an authoritative database for individual 

taxpayer data that will transform the way the IRS approaches tax administration.

CADE 2 goals are to: 1) establish one authoritative source for taxpayer data by leveraging a 

relational database and daily processing capability; 2) continue IT modernization efforts so 

business processes can be realigned to enable better taxpayer service and more timely 

compliance; 3) address the Financial Material Weakness (FMW), demonstrate compliance with 

Federal Financial Management System Requirements (FFMSR), and maintain a clean audit 
10

opinion; and 4) improve security and privacy posture by addressing identified weaknesses. 

Transition State 1 (TS1) and TS1.5 built and initialized the CADE 2 database in production. In 

doing so, the IRS accelerated the return processing cycle from weekly to daily, and moved the 

management of individual taxpayer account data from 1960s sequential flat-files stored on 

magnetic tapes to state-of-the-art database technology. This was accomplished by updating 

individual taxpayer account data daily in relational formats dictated by a data model that 

maintains historical values never before retained on account transactions, with instant viewing of 

taxpayer account data by IRS customer service and other representatives. TS1 offers faster 

refunds and notices, faster payment postings, and improved service for taxpayers. In TS2, the 

IRS is reengineering core components of the Individual Master File (IMF) by: 1) applying 

modern programming languages; 2) establishing CADE 2 as the authoritative data source for 

financial and legal purposes; and 3) implementing functionality to address the IRS FMW over 

unpaid tax assessments for individual taxpayer accounts. The final phase will complete the 

reengineering of the legacy IMF architecture by updating upstream/downstream technology and 

focus on aligning business processes.

Return on Investment: 

With CADE 2, the IRS will modernize its tax processing capabilities. The Return on Investment 

(ROI) is being realized incrementally as each piece of functionality within the transition states is 

deployed. There are many internal and external expected benefits of the program for both the 

taxpayer and the IRS. 

Taxpayer benefits are already being realized. Taxpayers continue to receive timely refunds in 

accordance with our daily processing efforts. As of September 1, 2017 (Filing Season 2017), 

CADE 2 posted 145 million tax returns and issued more than 111 million refunds totaling over 

$313 billion. Daily processing of data allows taxpayers to address issues closer to the event that 

generated the notice. Thus, taxpayer issues are more efficiently resolved because account 

information is available to IRS Customer Service Representatives faster. Additional taxpayer 

benefits include: reduced taxpayer burden to make compliance easier by enabling self-service 

tools and real-time access to account information; better access to data and analytical tools by 

leveraging a relational database, which provides more granular, historic and timely data, and 

increases the IRS's ability to analyze, research, and respond to fraud and identity theft. Work is 

aligned around data, not forms, to manage U.S. taxpayers' dollars, track taxpayer relationships, 

and store and report on more accurate account balances. 

Benefits to the IRS include: increased agility of response to changing taxpayer priorities and 

legislation; reduced IT costs and complexity; reduced workforce risk; enhanced analytics and 

reporting to greatly improve compliance and issue resolution; and reduced burden of manually 

intensive processes on IRS employees, by enabling automated calculations that currently are not 

possible; addressing the Unpaid Assessments FMW, retaining the clean audit opinion, complying 

with FFMSR.

Requirements/ Benefits/ Mandates: 

Legislative mandates, Outstanding audit findings or Material weakness, Presidential 
11

Directive: As part of TS 2, the IRS will rewrite its core taxpayer account processing applications 

to leverage the benefits of the new CADE 2 relational database. Once that is done, CADE 2 will 

become the authoritative source for individual taxpayer account data for the IRS. This will 

address IRS's long-standing Unpaid Assessments Financial Material Weakness (FMW), and will 

ensure long-term viability of IRS tax processing systems.

Accomplishments and Future Objectives: 

In FY 2017, IRS developed applications to move dozens of financial reports and data feeds from 

the legacy IMF system to the modernized CADE 2 database. This helps to establish CADE 2 as 

the Authoritative Data Source for IRS financial and legal purposes and will ultimately allow the 

CADE 2 database as the source of all individual taxpayer financial transactions for the Annual 

Financial Statement. This is a prerequisite and major step toward addressing the Unpaid 

Assessment FMW.

Three projects completed development in FY 2017: Financial Recap Reports uses CADE 2 data 

to support financial reporting; Feed to Integrated Production Model Phase 2 enhances the CADE 

2 to IPM interface and data model to update the CADE 2 Operational Data Store on a daily basis 

and enables additional reporting capabilities; and Data Services Framework provides a set of 

sharable and reusable IRS-developed common services used to perform data selection, 

transformation, and output generation establishing the framework to provide CADE 2 data to 

downstream systems in legacy and modernized data formats. 

During FY 2018, IRS will focus on designing and developing the most critical stage of 

modernizing individual tax processing as part of the Integrated Tax Processing Engine (ITPE) 

project and on completing the CFO Critical Reports (CCR) and Refunds projects. ITPE will 

introduce a modern application design to begin replacing 1960s software. CCR migrates 

financial and legal interfaces to leverage data provided by the CADE 2 database. The Refunds 

project establishes an interface from the CADE 2 database to IMF post-settlement runs, which 

will continue to generate refund files and the Net Tax Refund Report, and allow CADE 2 data to 

be used for refund generation. CCR and Refunds demonstrate the ability to use the CADE 2 data 

to support financial and operational needs and are a prerequisite to mitigating the Unpaid 

Assessment FMW.

During FY 2019, IRS will continue execution of the ITPE project, including the completion of 

Product Increments and the definition and measurement of confidence milestones that 

demonstrate progress. Beyond FY 2019, IRS will complete the modernization of core tax 

processing through ITPE, establish CADE 2 as the authoritative data source and make that 

available data for multiple uses, and provide enhanced financial information to improve IRS 

Unpaid Assessment Financial Reporting and address the Unpaid Assessment FMW.

Details of Useful Life Period: 

Year the investment began: 2009

End Year of the current planning cycle: 2023

Description of why the investment is not consistent with life cycle model defined in OMB 

Circular A-131.: This investment covers ongoing functionality with no clear retirement date. 
12

CADE 2 is using a 5-year standard Period of Performance (POP) - Lifecycle not applicable to the 

overall investment.

Performance Evaluation and Metrics: 

Metric Description

Performance 

Measurement 

Category 

Mapping

Measurement 

Condition

Reporting 

Frequency

Unit Of 

Measure

CY 

Target

Latest 

Actual 

Result

Date of 

Latest 

Actual 

Result

Faster Refunds. The percentage of business days 

refunds (paper and electronic) were processed timely.

Financial 

Performance Over target Monthly Percentage 98.00 85.71 01/31/2018

Daily Updates to IDRS. The percentage of business 

days in which updates to IDRS are processed within 48 

hours by CADE 2.

Customer 

Satisfaction 

(Results)

Over target Monthly Percentage 98.00 85.71 01/31/2018

CADE 2 Database. The percentage of business days in 

which the Service is pointing to CADE 2 data in lieu of 

the Virtual Storage Access Method (VSAM) files 

which is how Individual Masterfile (IMF) data is 

stored/viewed. If CADE 2 data is not available for 

Individual Master File On Line (IMFOL) on a daily 

basis, then services will point to VSAM instead of 

CADE 2. This measures the availability of CADE 2 

data.

Strategic and 

Business Results Over target Monthly Percentage 98.00 85.71 01/31/2018

CADE 2 Production Validation. The production 

validation to ensure the data in the CADE 2 database 

matches the data in the Individual Master File (IMF). 

This measure tracks the number of times the data does 

not validate.

Strategic and 

Business Results Under target Annual Number 1.00 0.00 03/30/2017

Feed to IPM. Percentage of timely updates from the 

CADE 2 Database to the Operational Data Store (ODS) 

for data analytics.

Strategic and 

Business Results Over target Monthly Percentage 98.00 100.00 01/31/2018

Investment Name: e-Services (e-SVS)

Type of Investment: Major IT Investment

Description:

e-SVS is a suite of web-based, self-assisted services that allow authorized individuals to do 

business with the IRS electronically. e-Services products are currently available to tax 

practitioners, registered agents and other third parties.

Investment Anticipated Outlay: ($000,000s): 

Type 2016 and 

Prior 

Actual

2017 

Actual

2018 

Enacted

2019 

Estimated

2020 

Estimated

2021 

Estimated

2022 

Estimated

2023 and 

Beyond 

Estimated

Total

Sub-Total 

DME 

(Including 

Internal labor 

(Govt. FTE) 

Costs)

54.45 0.83 55.29

Sub-Total 

O&M Costs 

(Including 

150.30 9.56 10.95 11.07 11.20 11.34 11.47 11.61 227.49
13

Type 2016 and 

Prior 

Actual

2017 

Actual

2018 

Enacted

2019 

Estimated

2020 

Estimated

2021 

Estimated

2022 

Estimated

2023 and 

Beyond 

Estimated

Total

Internal Labor 

(Govt. FTE) 

Costs)

Total Costs 204.75 10.39 10.95 11.07 11.20 11.34 11.47 11.61 282.78

Number of FTE 471.93 32.73 34.70 34.70 574.06

Summary of Purpose, Goals, and Benefits: 

E-Services is a suite of web-based, self-assisted services that allow authorized individuals to do 

business with the IRS electronically. The e-Services products are currently available to tax 

practitioners, payers, and other third parties. The services include: Registration, Tax 

Identification Number (TIN) Matching, e-File Application, Transcript Delivery System (TDS), 

Return Preparer Registration - Identity Verification Service (RPR-IVS), TIN Validation 

Enterprise Common Service, Automated Electronic Fingerprinting, and eServices External 

Services Authorization Management (ESAM).

Return on Investment: 

Cumulative data from October 1 2016 through August 30, 2017 current IRS IT Business Value 

Chart is as follows:

e-Services Registration: More than 805,142 individuals registered via the Integrated Enterprise 

Portal (IEP).

e-file Application: Processed more than 425,525 Electronic Return Originator Applications for eFile via the IEP and Enterprise User Portal (EUP).

TIN Matching: Processed more than 218,995,003 bulk requests and more than 17,904,662 

interactive requests.

Transcript Delivery System: Processed more than 49,160,816 requests for transcripts via the IEP 

and more than 27,869,798 requests via the EUP

Total estimated operational savings (print/mail/labor costs) in excess of $1,900.1 million for eFile Application, TDS, and address change via the IEP and EUP. 

TIN Matching uncovered more than $1,398.8 million in potentially unpaid taxes on 1099 

income.

Requirements/ Benefits/ Mandates: 

Legislative mandates, Outstanding audit findings or Material weakness, Presidential 

Directive: .N/A.

Accomplishments and Future Objectives: 

As part of Organization and Business Systems Modernization programs, the IRS has reinforced 

the importance of leveraging the indirect channel of third party relationships to meet its strategic 

goals of service to all taxpayers, and productivity. 

FY 2018 accomplishments include: eFile Application capabilities were migrated to External 
14

Services Authorization Management (ESAM) 3.0 and PeopleSoft was eliminated from eServices 

Infrastructure. eServices Registration was moved under eAuthentication and is now using a 

standard common Authentication process.

Details of Useful Life Period: 

Year the investment began: 1999

End Year of the current planning cycle: 2023

Description of why the investment is not consistent with life cycle model defined in OMB 

Circular A-131: This investment covers ongoing functionality with no clear retirement date. We 

are using 5 year standard Period of Performance (POP) - Lifecycle not applicable to overall 

investment.

Performance Evaluation and Metrics: 

Metric Description

Performance 

Measurement 

Category Mapping

Measurement 

Condition

Reporting 

Frequency

Unit Of

Measure

CY 

Target

Latest 

Actual 

Result

Date of Latest 

Actual Result

Number of transcripts processed through 

the Transcript Delivery System (TDS).

Strategic and 

Business Results Over target Monthly Number 3000.00 14257.10 01/31/2018

The percentage of scheduled eServices 

availability per the approved Service 

Level Agreement as documented monthly 

by IRS Enterprise Services.

Customer Satisfaction 

(Results) Over target Monthly Percentage 96.00 100.00 01/31/2018

Number of Priority 2 tickets opened and 

are related to eServices applications.

Strategic and 

Business Results Under target Monthly Number 10.00 0.00 01/31/2018

Number of defect transmittals to the 

production environment.

Financial 

Performance Under target Monthly Number 3.00 0.00 01/31/2018

Number of TIN Matching Requests 

processed through the TIN Matching 

application

Strategic and 

Business Results Over target Quarterly Number 3500.00 5252.30 12/31/2017

Investment Name: Enterprise Case Management (ECM)

Type of Investment: Major IT Investment

Description:

This investment will provide an enterprise solution for performing case management functions 

using a common infrastructure platform and common services that multiple aging and new case 

management system will leverage.

Investment Anticipated Outlay: ($000,000s): 

Type 2016 and 

Prior 

Actual

2017 

Actual

2018 

Enacted

2019 

Estimated

2020 

Estimated

2021 

Estimated

2022 

Estimated

2023 and 

Beyond 

Estimated

Total

Sub-Total 

DME 

(Including 

Internal labor 

(Govt. FTE) 

Costs)

42.24 34.53 54.00 23.55 30.68 30.76 215.77
15

Type 2016 and 

Prior 

Actual

2017 

Actual

2018 

Enacted

2019 

Estimated

2020 

Estimated

2021 

Estimated

2022 

Estimated

2023 and 

Beyond 

Estimated

Total

Sub-Total 

O&M Costs 

(Including 

Internal Labor 

(Govt. FTE) 

Costs)

Total Costs 42.24 34.53 54.00 23.55 30.68 30.76 215.77

Number of FTE 70.79 85.84 57.00 57.00 270.63

Summary of Purpose, Goals, and Benefits: 

ECM will address the need to modernize, upgrade, and consolidate ECM solutions. The 

approach to modernizing these systems is to develop an enterprise solution for performing case 

management functions utilizing a common infrastructure platform, thus reducing long-term costs 

for the organization. Today, the current systems provide limited visibility of case management 

practices between programs, process redundancies, and multiple handoffs which can lead to 

work impediments and increased risk. The case management functions will be developed as 

common services for systems to share. Implementation of the solution will provide a consistent 

approach to case management across business units. The ECM program will provide the 

following benefits: A single point of view for taxpayers for all of their interactions with the IRS; 

Access to taxpayer data for employees through a single interface that virtually eliminates the 

need to access multiple systems or transfer cases to another employee; Reduced process 

redundancies to improve transparency and timeliness, and to reduce the risk of systems failure 

impeding revenue collection; Increased process and case management efficiencies by creating 

one solution for all case types, treatment streams, and operating divisions; Increased integration 

amongst existing case management programs, which leads to migrating legacy systems to a 

standardized enterprise-wide solution for case management and reducing the fragmentation of 

both business and IT processes across legacy applications; Standardized system design for 

increased taxpayer information security, shortened development milestones; Reduced IT 

hardware, software, and systems operations and maintenance costs through replacement of 

numerous case management systems.

Return on Investment: 

Through the utilization of the ECM solution, it is expected that operations and maintenance costs 

of these projects will be reduced and aging architecture can be retired. The enterprise solution 

will also be a basis for the development of new case management systems. For new projects, 

design and development costs will be reduced through reuse of the common services and 

infrastructure.

Internal Benefits:

- Streamline operations that reduce costs

- Reduce staff hours for reporting due to implementing a common repository

- Integrate across programs
16

- Increase process and case management efficiencies

- Reduce training needs

- Reduce redundancies through reuse of common services and infrastructure

External Benefits:

- Reduce operations and maintenance costs

- Improve employee experience by enabling cases to be prioritized and accordingly transferred 

across geographical locations

- Improve tax payer compliance by understanding non-compliant behaviors

- Decrease fraud and tax-related crimes.

Requirements/ Benefits/ Mandates: 

Legislative mandates, Outstanding audit findings or Material weakness, Presidential 

Directive: None listed.

Accomplishments and Future Objectives: 

In 2016 Q3/Q4, the ECM Program discovered significant technical limitations in the 

commercial-off-the-shelf (COTS) product selected as the enterprise platform for ECM. After 

extensive analysis, including participation by vendor's experts, the IRS determined that these 

limitations could not be overcome to address enterprise needs in an acceptable timeframe. In 

2017 Q2, the ECM program paused all ECM development activities. The program then defined 

and launched a product assessment and acquisition strategy to identify and evaluate a suite of 

products with core capabilities. This suite must also be scalable to serve as the foundation for an 

enterprise case management platform. The strategy includes: 

* Information exchanges with other agencies to learn about their experiences in implementing 

enterprise case management

* Information exchanges with industry via requests for information (RFIs) 

* RFI vendor demonstrations to learn about capabilities and features available in the case 

management marketplace

* Analysis of applicable audit findings and recommendations across multiple agencies

* A request for quotations (RFQ) informed by the above information.

The IRS published the first RFI in May 2017 and received 44 responses from industry, which 

were analyzed to inform product demonstrations and a second RFI, published in August 2017. 

The IRS received 25 responses to the second RFI, including 16 from vendors offering a product 

and nine vendors offering their services as an integrator. An initial RFQ architecture informed by 

these activities was created in October 2017.

Scripted, scenario-based table top demos were conducted with four product vendors in October 

2017. The IRS developed a second iteration of the ECM RFQ architecture based on these 

experiences, along with a draft RFQ. Comprehensive planning for the RFQ and First Article Test 

(challenge-based scenarios) is underway. This draft RFQ was published in January 2018 for 

industry comment. Comprehensive planning for the final RFQ and challenge-based scenarios is 

underway. The IRS plans to publish the final RFQ in May 2018, evaluate responses over the 

summer, and begin execution of the challenge based scenarios with two selected vendors in 
17

September 2018. An award for one or more products for an ECM solution is expected in early 

2019.

Details of Useful Life Period: 

Year the investment began: 2016

End Year of the current planning cycle: 2023

Description of why the investment is not consistent with life cycle model defined in OMB 

Circular A-131: This investment covers ongoing functionality with no clear retirement date. We 

are using 5 year standard Period of Performance (POP) - Lifecycle not applicable to overall 

investment.

Performance Evaluation and Metrics: 

Metric 

Description

Performance Measurement 

Category Mapping

Measurement 

Condition

Reporting 

Frequency

Unit Of 

Measure

CY 

Target

Latest Actual 

Result

Date of Latest 

Actual Result

Investment Name: Foreign Account Tax Compliance Act (FATCA)

Type of Investment: Major IT Investment

Description:

FATCA requires foreign financial institutions to report to the IRS information about financial 

accounts held by U.S. taxpayers, or foreign entities in which U.S. taxpayers hold a substantial 

ownership interest.

Investment Anticipated Outlay: ($000,000s): 

Type 2016 and 

Prior 

Actual

2017 

Actual

2018 

Enacted

2019 

Estimated

2020 

Estimated

2021 

Estimated

2022 

Estimated

2023 and 

Beyond 

Estimated

Total

Sub-Total 

DME 

(Including 

Internal labor 

(Govt. FTE) 

Costs)

169.26 31.04 41.34 241.64

Sub-Total 

O&M Costs 

(Including 

Internal Labor 

(Govt. FTE) 

Costs)

17.25 27.37 29.51 45.36 45.36 45.36 210.23

Total Costs 186.51 58.42 70.85 45.36 45.36 45.36 451.87

Number of 

FTE 428.73 118.70 136.67 136.67 136.67 136.67 1094.11
18

Summary of Purpose, Goals, and Benefits: 

The purpose and goal of FATCA is to promote disclosure of foreign accounts held by U.S. 

taxpayers and to integrate this information into current IRS compliance activities. FATCA 

introduces new reporting requirements for U.S. taxpayers and Foreign Financial Institutions 

(FFIs). The legislation requires U.S. taxpayers holding foreign financial assets, with aggregate 

values exceeding certain thresholds, to annually report information to the IRS; and for FFIs with 

U.S. taxpayer accounts to register, report annually to the IRS, and withhold / pay 30 percent of 

selected U.S. source income to the IRS. These complementary provisions create a web of 

international tax accountability, allowing the IRS to gather and analyze information from 

multiple sources, bolstering the compliance of U.S. taxpayers with assets overseas. 

Treasury has worked with foreign governments to negotiate Intergovernmental Agreements 

(IGAs) that address specific legal impediments surrounding privacy laws and the disclosure of 

accountholder information. In addition to foreign account and asset data submitted by taxpayers 

and entities, the IRS will assemble and transmit Bank Deposit and Interest (BDI) data on 

accounts held by foreign nationals from U.S. financial institutions (FIs) to foreign government 

Host Country Tax Authorities (HCTAs), under agreements intended to facilitate FATCA 

adoption. 

The FATCA investment encompasses planning, development, and implementation of key IT 

systems needed to support IRS tax administration response to FATCA provisions. Work is 

organized into Releases that deploy functionality to meet key legislative dates. Major application 

components of the FATCA Program are: Financial Institution (FI) Registration, International 

Data Exchange Service (IDES), International Compliance Management Model (ICMM), 

Withholding and Refund (W&R) and Qualified Intermediary (QI) Application. Release details 

are explained in further detail below.

Return on Investment: 

FATCA initiatives improve international service and enforcement practices of the IRS via 

specialty audits and criminal investigations. The FATCA Program Management Office delivers 

IT solutions that enable the IRS to meet business responsibilities and legislative mandates. The 

IRS has deployed major releases to ensure Return on Investment. Prior to Release 1.0 Form 8938 

was delivered to capture reporting data from individual taxpayers with foreign assets. 

*Release 1.0 & 1.1 focused on capability to register FIs worldwide & create/publish a 

Participating FI List with search/download functionality. 

*Release 2.0 deployed IDES, introducing a secure data exchange, allowing FIs & HCTAs to 

submit FATCA data; deployed the ICMM for file ingestion, transcription & storage from IDES; 

and improved W&R compliance via updates to legacy systems. 

*Release 2.1 included a Competent Authority Request capability allowing for formal 

communication with HCTAs, new functionality to process Forms 8938 & 8966, & backend 

employee analytics.

*Release 3.0 enabled Sponsoring Entities to bulk upload an electronic file; focused on updates to 

the FI List search/download tool; supported receipt & management of notifications in response to 

reciprocal data files; automated matching of Form 1042-S data (credit determination for Chapter 

3 Qualified Intermediaries & Chapter 4 FATCA); and created an interface with ICMM source 

data for compliance & analytics.
19

*Release 4.0/4.1 provided functionality to move FIs to alternative status upon expiration of 

limited status; update existing forms submitted electronically & via paper, for ICMM processing; 

match & compare Withholding Agents' and Recipients' Form 1042-S filings & deposits; and 

make refund and reciprocal data available to Model 1 IGAs. 

*Release 5.0 enabled Reciprocal Data Exchanges to include Form 1042S-Withholding Agent 

changes for TY2015; Application submission, renewal, & termination of Qualified Intermediary/ 

Withholding Foreign Partnerships/Withholding Foreign Trust (QI/WP/WT) Agreements; and 

Renewal of FI Agreements.

*Release 6.0 is in flight and addresses the following legislative requirements; Reciprocal Data 

Exchanges to include FS 2017 compliance, provide ability for FIs to electronically submit a 

certification of a pre-existing account (the pre-existing certification ensures registered and 

approved FIs have been following IGAs with the U.S., and to allow the QI, WP, or WT to 

electronically submit periodic certification.

Requirements/ Benefits/ Mandates: 

Legislative mandates, Outstanding audit findings or Material weakness, Presidential 

Directive: FATCA was passed as part of the HIRE Act, and generally requires that foreign 

financial Institutions and certain other non-financial foreign entities report on the foreign assets 

held by their U.S. account holders or be subject to withholding on withholdable payments. The 

HIRE Act also contained legislation requiring U.S. persons to report, depending on the value, 

their foreign financial accounts and foreign assets.

Accomplishments and Future Objectives: 

The IRS has delivered all legislative mandated functionality ahead of schedule and under budget. 

* Deployed state-of-the-art FATCA Registration solution for Financial Institutions (FIs) 

worldwide, establishing a streamlined environment to register, ensuring data security; 284,713 

FIs have registered as of August 9, 2017

* Developed Global Intermediary Information Number (GIIN), issued to all FIs that register with 

the IRS that allows the U.S. and IGA partners to identify FIs with associated filing data

* Deployed FI List, which is electronically searchable/downloadable 

* Developed uniform standards for data collection/transmission from FIs via the FATCA XML 

schema, with cooperation of foreign governments; information sharing pursuant to IGAs will 

take place in accordance with these standards

* Released a series of new FATCA forms and deployed a global platform, International Data 

Exchange Service (IDES); successfully enabling reporting and the electronic exchange of 

information

* Launched the ICMM to receive, process, store, and manage FATCA data received from 

various sources, making it available for future compliance activities

* Implemented significant communication and outreach activities to streamline processes and 

provide FATCA guidance (e.g., issues escalated from IRS.gov, eHelp Desk, and Comments 

Application)

* Established IGAs with over 100 governments worldwide, on behalf of The Department of 

Treasury

* Implemented Reciprocal Data Exchanges to include Form 1042S-Withholding Agent changes; 
20

application submission, QI Agreements; and Renewal of FI Agreements.

FATCA's long-term goals will be achieved through the FATCA Program Release Plan. This plan 

outlines a prioritized approach to: address required legislative mandates, deliver new and 

enhanced business capabilities, reduce/mitigate risks, evaluate deficiencies in current system 

capabilities, reduce manual workarounds for the Business and IT, improve FATCA compliance 

practices, and establish IT capabilities that can support other IRS initiatives.

Details of Useful Life Period: 

Year the investment began: 2011

End Year of the current planning cycle: 2023

Description of why the investment is not consistent with life cycle model defined in OMB 

Circular A-131: This investment covers ongoing functionality with no clear retirement date. We 

are using 5 year standard Period of Performance (POP) - Lifecycle not applicable to overall 

investment.

Performance Evaluation and Metrics: 

Metric Description

Performance 

Measurement 

Category 

Mapping

Measurement 

Condition

Reporting 

Frequency

Unit Of 

Measure

CY 

Target

Latest 

Actual

Result

Date of 

Latest 

Actual 

Result

Speed of Processing Submitted Registrations -

This measure indicates the number of days the 

IRS used to process a submitted registration 

from a status of Submitted to a status of 

Approved, Limited Conditional, or 

Terminated).

Customer 

Satisfaction 

(Results)

Under target Monthly Days 30.00 0.43 01/31/2018

Timeliness of FFI List updated on IRS.GOV -

This measure indicates the timeliness of the 

data getting posted to the IRS.GOV. Posting 

this data provides the public with easier access 

to regularly released data lowering operational 

costs for the IRS and for the FFIs and 

Individuals who use it.

Strategic and 

Business Results Under target Monthly Hours 24.00 39.00 01/02/2018

System Availability: Percentage of scheduled 

system availability. To measure this steady state 

performance metric, calculate the cumulative 

average percentage of system availability per an 

approved service level agreement as 

documented by IRS Information Technology 

Enterprise Services for 'Essential Business 

System's'

Strategic and 

Business Results Over target Monthly Percentage 90.00 99.85 01/31/2018

Number of Host Country Tax Authorities 

(HCTAs) reporting via International Data 

Exchange Service (IDES): This measures the 

treaty-based collaboration among international 

peers of IRS in leveraging their collective 

resources to jointly combat offshore tax 

evasion.

Strategic and 

Business Results Over target Annual Number 75.00 97.00 09/30/2017

Number of Form 8966 "FATCA Reports" 

received: This helps to measure how FATCA's 

implementation influences taxpayer behavior 

and shines light on often previously undisclosed 

offshore financial accounts, aiding in treatybased efforts to systematically identify 

fraudulent or erroneous tax refunds and credit 

claims

Strategic and 

Business Results Over target Quarterly Number 800000.00 1735896.00 12/31/2017
21

Investment Name: Individual Master File (IMF)

Type of Investment: Major IT Investment

Description:

IMF is the authoritative data source for individual tax account data. All other IRS information 

system applications that process IMF data depend on output from this source. IMF is a critical 

component of IRS' ability to process tax returns.

Investment Anticipated Outlay: ($000,000s): 

Type 2016 and 

Prior 

Actual

2017 

Actual

2018 

Enacted

2019 

Estimated

2020 

Estimated

2021 

Estimated

2022 

Estimated

2023 and 

Beyond 

Estimated

Total

Sub-Total 

DME 

(Including 

Internal labor 

(Govt. FTE) 

Costs)

28.97 28.97

Sub-Total 

O&M Costs 

(Including 

Internal Labor 

(Govt. FTE) 

Costs)

93.26 14.95 15.99 16.14 16.34 16.53 16.73 16.93 206.89

Total Costs 122.23 14.95 15.99 16.14 16.34 16.53 16.73 16.93 235.85

Number of 

FTE 660.09 62.05 65.49 65.49 65.49 65.49 65.49 65.49 1115.08

Summary of Purpose, Goals, and Benefits: 

IRS is responsible for collecting revenue from individuals to fund the operations of the federal 

government. In order to effectively accomplish this goal, it must maintain authoritative data on 

individual taxpayers. The Individual Master File (IMF) is the authoritative data stores for 

individual taxpayers accounts. Within the IMF, accounts are updated, taxes are assessed, and 

refunds are generated as required each tax filing period. Virtually all IRS information system 

applications and processes depend on output, directly or indirectly, from this data source.

Return on Investment: 

IMF is a legacy system that collects taxpayer data and information for tax processing. The IMF 

is a batch process that provides the taxpayer data to various downstream systems and selected 

outside organizations, such as Social Security.

Requirements/ Benefits/ Mandates: 
22

Legislative mandates, Outstanding audit findings or Material weakness, Presidential 

Directive: N/A.

Accomplishments and Future Objectives: 

Currently, the IMF continues to be leveraged to fill the functional needs of the individual 

taxpayer account processing and to perform Operations & Maintenance for tax law changes. 

Future endeavors include an organizational decision to translate key IMF runs from ALC to 

JAVA leveraging a modernized language and adopt new development techniques that will enable 

rapid response, and delivery, to customer requests. This is being initiated in the CADE 2 

Individual Tax Processing Engine (ITPE) project. IMF is engaged in discussions with ITPE and 

CADE2 on modernizing IMF code. IMF will continue interacting with programs that impact 

IMF and continue performing Operations & Maintenance for tax law and maintenance changes.

Details of Useful Life Period: 

Year the investment began: 1970

End Year of the current planning cycle: 2023

Description of why the investment is not consistent with life cycle model defined in OMB 

Circular A-131.: This investment covers ongoing functionality with no clear retirement date. We 

are using 5 year standard Period of Performance (POP) - Lifecycle not applicable to overall 

investment.

Performance Evaluation and Metrics: 

Metric Description

Performance 

Measurement 

Category 

Mapping

Measurement 

Condition

Reporting 

Frequency

Unit Of 

Measure

CY 

Target

Latest 

Actual 

Result

Date of 

Latest 

Actual 

Result

Interest paid on taxpayer refunds per 1 Million Dollars. 

This figure represents total Refund Interest divided by 

total refund dollars issued on original settlement. 

Measurement data is provided by W&I and SB/SE in 

the SMART database. The Business target for this 

measure is established by CAS every January, with a 

yearly goal and cummulative planned projection for 

each month. The results report the variance against the 

target, and the monthly cummulative target is reported 

in the comments.

Customer 

Satisfaction 

(Results)

Under target Monthly

Dollars per 

Million Paid 

in Refunds

64.00 42.26 12/31/2017

Percent of Taxpayer refunds (paper returns only) 

issued within 40 days. Timeliness measured by 

sampling taxpayers receiving refunds. Measurement 

data is provided by W&I and SB/SE in Submission 

Processing (SMART) database. The Business target for 

this measure is established by CAS every January, with 

a yearly goal and cummulative planned projection for 

each month. The results report the variance against the 

target, and the monthly cummulative target is reported 

in the comments

Strategic and 

Business Results Over target Monthly

Percent of 

Refund 

Issued 

Within 40 

Days

97.00 91.50 12/31/2017

Refund Error rate with Systemic Errors- The error rate 

is the ratio of total incorrect refunds compared to the 

total number of refunds. Measurement data is provided 

by W&I and SB/SE in the SMART database. Systemic 

errors (errors attributed to incorrect programming, less 

than ideal products from properly working systems, 

and incorrect IRM procedures) are also included in the 

rates which indicate "with systemic errors". CAS sets 

the yearly target for this measure in January

Strategic and 

Business Results Under target Monthly

Percent of 

Refund 

Errors Per 

Refund 

Issued

2.00 1.30 12/31/2017

IMF completes planned processing schedule (e.g., 

daily, weekly) to meet refund, notice and on-line 

Strategic and 

Business Results Over target Annual Percent 95.00 100.00 08/31/2017
23

access deadlines. Measurement available on Enterprise 

Operations weekly reports.

The percentage of scheduled system availability per 

the approved Service Level Agreement, as documented 

monthly by IRS Enterprise Services in the IT 

Performance Report.

Financial 

Performance Over target Annual Percentage 95.00 100.00 08/31/2017

Investment Name: Integrated Customer Communication Environment (ICCE)

Type of Investment: Major IT Investment

Description:

ICCE provides problem-solving information through software and connections to legacy 

databases for both the phone and web. These applications use voice response, Internet, and other 

computer technology to provide service to taxpayers 24 hrs a day.

Investment Anticipated Outlay: ($000,000s): 

Type 2016 and 

Prior 

Actual

2017 

Actual

2018 

Enacted

2019 

Estimated

2020 

Estimated

2021 

Estimated

2022 

Estimated

2023 and 

Beyond 

Estimated

Total

Sub-Total 

DME 

(Including 

Internal labor 

(Govt. FTE) 

Costs)

197.37 0.92 198.29

Sub-Total 

O&M Costs 

(Including 

Internal Labor 

(Govt. FTE) 

Costs)

334.26 10.68 10.94 11.07 11.20 11.33 389.48

Total Costs 531.63 11.60 10.94 11.07 11.20 11.33 587.77

Number of 

FTE 784.41 36.49 38.10 38.10 38.10 38.10 973.30

Summary of Purpose, Goals, and Benefits: 

ICCE directly supports the IRS strategic goal of empowering and enabling all taxpayers to better 

meet their tax obligations with the use of technology automation. ICCE is comprised of many 

capabilities with specific functionality, including:

- Get Transcript is a web based application that allows authenticated taxpayers to view copies of 

their account and return transcripts in a secure environment. 

- Online Payment Agreement Application allows the taxpayer or authorized representative 

(Power of Attorney) and qualified businesses to apply for and receive on-line approval for a 

short term extension of time to pay or set up a monthly installment agreement. 

- Identity Protection PIN (IPPIN) is a web based application designed to provide a pin to 
24

taxpayers that are victims of identity theft. This pin will be used by taxpayers to file their tax 

return and prevent fraudulent tax return filing. Taxpayers will have to be authenticated and 

registered in e-authentication interface prior to accessing IPPIN. 

- Internet Refund Fact of Filing (IRFOF) - Where's My Refund application - provides tax refund 

status information via the web to 1040 series filers. 

- IRS2Go mobile applications - This product is designed for the taxpayer on the go to be used via 

smart phone technology.

- Where's My Amended Return (WMAR) allows taxpayers to check the status of their amended 

returns in either a web or mobile smartphone environment.

- Internet Refund Trace allows taxpayers who have not received paper refunds after a specific 

amount of time to initiate a refund trace. 

- The Modernized Internet Employer Identification Number application allows the general public 

to apply for an Employer ID number (EIN) over the web and receive the number in the same 

session. 

- ICCE provides a set of telephone applications that allow individual taxpayers to interact 

directly with their accounts. Consolidating logic for telephone applications reduces overall costs 

as standard solutions are applied to what was a specialize arena.

- ICCE Online Services (OLS) WEB services & mobile applications - This suite of products is 

designed for the taxpayer on the go to be used via smart phone technology, applications include 

(Foreign Account Tax Compliance Act Foreign Financial Institution (FATCA FFI) Look-up 

Tool, Offer In Compromise (OIC) Calculator, Return Preparer Look-Up Tool, IRS2Go, 

Volunteer Income Tax Assistance (VITA) and Search).

Return on Investment: 

With the automation of taxpayer services, the government and taxpayers will realize significant 

time savings as a result of the ICCE investment. The ICCE team continues to identify 

appropriate automated self-service features to incorporate into future releases to meet the 

challenge of increased automation.

The primary benefits defined for ICCE are due to productivity improvement in the cost per 

taxpayer contact. Currently, the toll-free phone service and internet inquiry features create 

significant savings of over $400 million per year when compared to the cost of live Customer 

Service Representative (CSR) handling.

Estimates show a cost of approximately $0.71 per completed toll-free automated call. The cost is 

~$70/hr. (loaded cost) for live Customer Service Representative and a cost of $0.21 per web 

inquiry compared to the cost of CSR's. 

The ICCE Alternatives Analysis estimates benefits for FY 2018, (mainly from Productivity 

Improvement) at $558 million. This high cost estimate for productivity improvement derives 

from the 24x7 availability of the internet compared to what the same service would cost if 

provided by CSRs working approximately 4.2 shifts per week, including extra compensation for 

overtime, weekends and holidays. The estimate also includes the cost of the additional overhead 

involved in supervision, building maintenance, security, insurance and all other ancillary 

expenditures required for continuous customer service provided by a workforce. The Return on 
25

the Investment (ROI) for ICCE is derived by dividing this number annual cost of the ICCE 

investment. It calculates to the return of 3720 percent.

Requirements/ Benefits/ Mandates: 

Legislative mandates, Outstanding audit findings or Material weakness, Presidential 

Directive: The ICCE investment is required to respond and comply with legislative mandates.

Accomplishments and Future Objectives: 

FY 2017 Accomplishments:

* Oracle database upgrade

* Deployed WR #188546 (Turning address application off - to include an IRFOF KISAM)

* eAuth Notice Processing (DR2578)

* Removal of the EFP from the IRFOF EAR file.

* RPO PD deployment into production with TLS 1.2 

* OIC Deployment into production with TLS 1.2

* IRS2GO Versions 5.3

* VITA 2.0 (WR 186490) Deployment into production with TLS 1.2

* Online Payment Agreement (Update of the OPA Font standards)

* FATCA deployment to PWAS

* FOTW URL Change

* Filing Season - MFT43 (OPA Only) 

* Filing Season Final Phone Deployment and enabled web links.

* Deployed Offer in Compromise into Production

* 5/14/2017 - RPO - Update the Directory of Federal Tax Return Preparers with Credentials and 

Select Qualifications

* Successful Filing Season 2017 Deployment

* FSA-D Deployment (Notices) - Deployed on 5/21 but will enable on 6/1.

* FSA-D/IDR Security Changes

* FSA-D Mid-Year Deployment

* FSA-D - Data Encryption

* IRFOF Thumbnails (2nd drop IRFOF)

* GetTrans August Release

* FSA (FOTW 404 page), IDR (Security Briefcase), FTHBC and OAT Security Changes.

* 5/25/2017 - FOTW URL Change

* 5/31/2017 - RPO PD Ver 50.16

* GetTrans Spanish Browser Issue (Shane add RPT)

* GetTrans File extension changed from XHTML to PDF.

* IPPIN, GetTrans Updated Null Application ID.

* OLS - Allow Secondary Filer to establish agreement in OPA.

FY 2018 Goals

* IRS2Go Ver 5.4 Soft Launch

* OLS - Google Analytics for Legacy Web Applications

* Standard CFOL Access Protocol (SCAP)/Standard CFOL Overnight Processing (SCOP) 2018 

Maintenance Request for TDOL, Corporate Data 
26

* Deployment of Web Apps: Mail Transcript Address 

* eAutheAuth Application Integration

* MOD IEIN changes due to Treas Reg Section 6038A

* Operations and Maintenance (O & M) for eAuthentication - ICCE

* Operations and Maintenance (O & M) for ICCE OLS - Web Services and Mobile Applications

* Operations and Maintenance (O&M) for Federal Student Aid (FSA) Applications

* Operations and Maintenance (O&M) for ICCE Refund.

FY 2019 Goals:

* Get Transcript by Mail (OaT) Help Count FS 19

* PDC: Private Debt Collection Release 4.0 BMF - Legislation FAST ACT P.L. 114-94 (H.R. 

22) FS 19

* Web Apps-Rapid Delivery-Agile-Apply for/Modify Installment Agreement through Online 

Account FS 19

* Installment Agreement User Fee Update, OPA DDIA Revision and other Miscellaneous 

Installment Agreement Programming Updates FS 19.

Details of Useful Life Period: 

Year the investment began: 1992

End Year of the current planning cycle: 2023

Description of why the investment is not consistent with life cycle model defined in OMB 

Circular A-131: This investment covers ongoing functionality with no clear retirement date. We 

are using 5 year standard Period of Performance (POP) - Lifecycle not applicable to overall 

investment.

Performance Evaluation and Metrics: 

Metric Description

Performance 

Measurement 

Category 

Mapping

Measurement 

Condition

Reporting 

Frequency

Unit Of 

Measure

CY 

Target

Latest 

Actual 

Result

Date of 

Latest

Actual 

Result

Reduction in the number of Transmittals or 

requests for corrective changes to production 

environment, as evidence of improved 

efficiency.

Financial 

Performance Under target Quarterly Number of 

transmittals 45.00 21.00 12/31/2017

Customer Satisfaction (IRS.gov American 

Customer Satisfaction Index (ACSI Score)

Customer 

Satisfaction 

(Results)

Over target Monthly number 52.00 62.00 01/31/2018

The percentage of scheduled system availability 

per the approved Service Level Agreement, as 

documented monthly by IRS Enterprise Services 

in the IT Performance Report.

Strategic and 

Business Results Over target Monthly Percentage 98.00 99.92 01/31/2018

Percentage of taxpayers utilizing IRS web 

applications and automated Phone Service vs. 

Customer Service Representatives in order find 

solutions and answer questions related to tax 

matters. This is a periodic metric.

Strategic and 

Business Results Over target Monthly percentage 50.00 79.00 01/31/2018

The number of times taxpayers access IRS web 

applications to request refund status and other 

web services. (Internet Refund Fact of Filing 

(IRFOF), Internet Employee Identification 

Number (IEIN), Online Payment Agreement 

(OPA)).

Strategic and 

Business Results Over target Monthly Number (in 

millions) 10.00 52.27 01/31/2018

ICCE Health Assessment measures Cost Financial Under target Monthly percentage 10.00 4.00 01/31/2018
27

Variance, the difference between planned and 

actual costs for ICCE DME work.

Performance

The number of times the ICCE overall schedule 

slips each month.

Strategic and 

Business Results Under target Monthly integer 3.00 0.00 01/31/2018

Investment Name: Integrated Data Retrieval System (IDRS)

Type of Investment: Major IT Investment

Description:

Since 1973, IDRS has been a mission-critical system. Used by 60,000 IRS employees, it 

provides for systemic review, consistency in case control, alleviates staffing needs, issues notices 

to taxpayers and allows taxpayers to see status of refunds.

Investment Anticipated Outlay: ($000,000s): 

Type 2016 and 

Prior 

Actual

2017 

Actual

2018 

Enacted

2019 

Estimated

2020 

Estimated

2021 

Estimated

2022 

Estimated

2023 and 

Beyond 

Estimated

Total

Sub-Total 

DME 

(Including 

Internal labor 

(Govt. FTE) 

Costs)

31.67 31.67

Sub-Total 

O&M Costs 

(Including 

Internal Labor 

(Govt. FTE) 

Costs)

217.56 15.17 16.56 16.65 17.15 17.66 18.19 18.74 337.69

Total Costs 249.23 15.17 16.56 16.65 17.15 17.66 18.19 18.74 369.35

Number of 

FTE 2080.44 97.61 101.73 101.73 101.73 101.73 101.73 101.73 2788.43

Summary of Purpose, Goals, and Benefits: 

Operational since 1973, IDRS is a secure, reliable, flexible and mission-critical system 

consisting of databases and programs supporting IRS employees who are working active tax 

cases. It manages data retrieved from the Tax Master Files allowing over 60,000 IRS employees 

who use it daily to take actions on specific taxpayer account issues, track status and post updates 

back to the Master Files. It provides for systemic review of case status, alleviating staffing needs 

and providing consistency in case control. For example, each time a taxpayer phones IRS, the 

person answering the phone uses IDRS to log the call and answer any questions. IDRS issues 

notices and processes installment agreements, offers in compromise, and adjustments. Actions 

taken via IDRS include notice issuance, installment agreement processing, offers in compromise, 

adjustment processing, penalty and interest computations and explanations, credit and debit 

transfers among accounts and research of taxpayer accounts for problem resolution of taxpayer 
28

inquiries. Using data analytics, IDRS enables IRS to efficiently evaluate taxpayer data to inform 

enforcement and secure legal compliance, both domestically and internationally.

In addition to IRS employees, IRS internet applications depend on IDRS to provide back-end 

services to enable them to help taxpayers. For example, over 290 million taxpayers ask Where'smy-refund at irs.gov annually and over 4 million business taxpayers obtain Employer 

Identification Numbers via irs.gov instead of via paper. IDRS enables businesses providing 

payroll services to submit tax data on behalf of millions of taxpayers and collaborates with 

registered tax practitioners to reduce the burden of filing Powers of Attorney and Taxpayer 

Information Authorizations, allowing them to request access to other E-Services. Many kinds of 

tax information are produced by IDRS to support sending and receiving information to and from 

other systems within the IRS, SSA, Financial Management Service, State and local governments 

and tax practitioners.

IDRS is continuously monitored for cost, schedule, and project performance. IDRS serves the 

taxpayers in many ways and helps address various performance gaps. IDRS' citizen-centered 

services promote intangible goodwill to citizen's perception of IRS and the Federal Government 

as well as ensuring consistent, efficient service.

Return on Investment: 

In addition to dollar benefits, there are many quantitative and qualitative benefits:

a. As a result of H.R. 5552, Firearms Excise Tax Improvement Act of 2010, legislation changes 

the way criminal restitution is assessed, allowing IRS to assess and collect restitution as if it were 

tax. A new sub-system, Restitution Assessment Project (RAP), was developed and allows 

employees to create, research, update and delete Restitution Assessment. The Database contains 

cross-reference information concerning restitution assessments against individuals and 

businesses. The benefits reduce the amount of adjustments to the financial statement due to 

duplicate assessments and reporting. Failure to have the ability to view accounts would be a 

detriment to the IRS's ability to validate and attest that these criminal restitution assessments are 

collected once as required.

b. IDRS enables IRS to answer the question Where's-my-refund? Over 290 million times each 

year without assistance of a Federal employee, through www.irs.gov, the IRS2Go smartphone 

application, and the toll-free telephone number. IDRS annually enables over four million 

business taxpayers to obtain Employer Identification Numbers (EIN) via irs.gov instead of paper 

copies. 

c. IDRS allows users to submit tax data on behalf of millions of taxpayers and collaborates with 

registered tax practitioners to reduce the burden of filing Powers of Attorney and Taxpayer 

Information Authorizations, allowing them to request access to other E-Services. Without access 

to other E-services there would be additional costs to taxpayers and IRS. 

d. IDRS is the only system within IRS that directly services taxpayer accounts in a real-time 

environment. Each year, Congress passes legislation (Foreign Account Tax Compliance Act, 

Patient Protection and Affordable Care Act and Firearms Excise Tax Improvement Act) that 

mandates form creation or revision. Without consistent IDRS updates, IRS would not be able to 

maintain the consistency and integrity of tax cases, which would negatively impact the integrity 

of the nation's tax system.

e. The IDRS Identity Theft Command Code allows IRS to credit ID theft victims faster and 
29

automatically update the accounting system for stolen refunds. Thus far in FY 2018, there are 

17,647 ID theft transactions, crediting victims over $56 million.

Requirements/ Benefits/ Mandates: 

Legislative mandates, Outstanding audit findings or Material weakness, Presidential 

Directive: N/A.

Accomplishments and Future Objectives: 

Future development efforts are limited primarily to legislatively mandated tax law changes. 

Continue implementing customer-approved work requests, to enable IRS employees and systems 

that depend on IDRS, to ensure compliance with current tax law while providing quick and 

accurate service to taxpayers.

Accomplishments FY 2017:

- ACA-2017 P-1421 - TY2016 -- IDOCS Form 1040 Family Form 8941 Operations 

- Tax Increase Prevention Act of 2014, Division B, Title II, Sec 20

- GMF ABLE ACT-2017 P.L. 113-295 F1096 CRL - Indicators for ABLE ACT Added

- Penalty - Initial and Continuation Penalties for Form 3520

- Implementation of Private Debt Collection Legislation

- Passport Legislation

- Work Opportunity Tax Credit Extension for FTD

- ACA-2017 P4980H(a) providing updates to taxpayer account data and correspondence 

generation

Current Year FY 2018: 

Development for legislatively mandated tax law changes and customer requested modernization 

and enhancement and FY2018 Maintenance (for example, incorporate filing season format and 

validation changes). 

Budget Year FY 2019:

FY 2019 Development for legislatively mandated tax law changes and customer requested 

modernization and enhancement and FY 2019 maintenance (for example, incorporate format and 

validation changes).

Details of Useful Life Period: 

Year the investment began: 1973

End Year of the current planning cycle: 2024

Description of why the investment is not consistent with life cycle model defined in OMB 

Circular A-131.: This investment covers ongoing functionality with no clear retirement date. We 

are using 5 year standard Period of Performance (POP) - Lifecycle not applicable to overall 

investment.

Performance Evaluation and Metrics: 

Metric Description Performance 

Measurement 

Measurement 

Condition

Reporting 

Frequency

Unit Of 

Measure

CY 

Target

Latest 

Actual 

Date of 

Latest 
30

Category 

Mapping

Result Actual 

Result

Percentage of certified letters printed centrally versus 

locally. These notify business and individual 

taxpayers of issues. This aligns with IRS goals to 

improve taxpayer service and enhance enforcement of 

tax law. To measure this steady state performance 

metric, calculate the percentage of certified letters 

printed centrally versus locally out of all certified 

letters printed.

Financial 

Performance Over target SemiAnnual

Percentage. 

Percentage of 

certified 

letters

95.10 92.50 09/30/2017

Percentage of IDRS system availability, per an 

approved service level agreement, as documented by 

IRS Information Technology Enterprise Services for 

"Essential Business Systems".

Customer 

Satisfaction 

(Results)

Over target Monthly

Percentage of 

system 

availability

95.00 100.00 01/31/2018

1. Individual taxpayer usage of "Where's my refund?" 

feature through www.irs.gov, IRS2Go smartphone 

application or automated, toll-free telephone number. 

This feature allows taxpayers to find out the status of 

their refunds without the assistance of a Federal 

employee. The target for this steady state performance 

metric is usage equal to 100 percent of the average 

usage during typical processing years.

Strategic and 

Business Results Over target Monthly

Pct; Usage 

equal to avg. 

typical 

processing 

years

9.20 9.20 01/31/2018

Business taxpayer usage of www.irs.gov to obtain 

Employer Identification Numbers (EINs). This feature 

lets taxpayers obtain EINs on-line instead of mailing 

form SS-4 "Application for EIN", which requires 

assistance of an IRS employee. It reduces the expense 

and difficulty of doing business with the Government 

and has environmental impact. The target for this 

steady state performance metric is usage equal to 100 

percent of the average usage during typical processing 

years.

Strategic and 

Business Results Over target SemiAnnual

Pct; Usage 

equal to avg. 

typical 

processing 

years.

100.00 124.40 09/30/2017

IRS staff usage of IDRS. The Command Code 

TXMOD allows approximately 60,000 taxpayerfacing IRS employees to retrieve taxpayer records 

quickly, accurately, and securely when responding to 

taxpayer inquiries and conducting examinations. 

TXMOD displays tax data for specific taxpayers for 

specific periods. The target for this steady state 

performance metric is TXMOD usage equal to 100 

percent of the average usage during typical processing 

years.

Strategic and

Business Results Over target Monthly

Pct; Usage 

equal to avg. 

typical 

processing 

years

23.30 21.10 01/31/2018

Investment Name: Integrated Financial System/CORE Financial System (IFS)

Type of Investment: Major IT Investment

Description:

IFS is the IRS's core financial system used for budget, payroll, accounts payable/receivable, 

general ledger functions and financial reporting. IRS uses IFS to report on the cost of operations 

and manage budgets by fiscal year.

Investment Anticipated Outlay: ($000,000s): 

Type 2016 and 

Prior 

Actual

2017 

Actual

2018 

Enacted

2019 

Estimated

2020 

Estimated

2021 

Estimated

2022 

Estimated

2023 and 

Beyond 

Estimated

Total

Sub-Total 

DME 237.28 7.06 1.63 1.65 247.63
31

Type 2016 and 

Prior 

Actual

2017 

Actual

2018 

Enacted

2019 

Estimated

2020 

Estimated

2021 

Estimated

2022 

Estimated

2023 and 

Beyond 

Estimated

Total

(Including 

Internal labor 

(Govt. FTE) 

Costs)

Sub-Total 

O&M Costs 

(Including 

Internal Labor 

(Govt. FTE) 

Costs)

219.58 9.29 10.01 10.17 10.30 10.42 10.55 10.67 290.99

Total Costs 456.86 16.35 11.64 11.83 10.30 10.42 10.55 10.67 538.62

Number of 

FTE 137.01 16.63 16.63 16.63 16.63 16.63 16.63 16.92 253.71

Summary of Purpose, Goals, and Benefits: 

Integrated Financial System (IFS) is the core financial system used by the IRS for budget, 

payroll, accounts payable, accounts receivable, general ledger functions and financial reporting. 

The IFS system provides the ability to accountants, budget, and financial management analysts 

to effectively manage U.S. Government finances for the Internal Revenue Service and respond to 

audit requests in support of a clean audit opinion. IFS allow the IRS to pay its bills on time while 

meeting the myriad of Federal financial regulations and account for how budget is spent. The 

main stakeholder of IFS is the CFO organization.

Return on Investment: 

By leveraging a Federal version of SAP COTS software, IFS provides a reliable, standardized 

and auditable platform for budget, payroll, accounts payable, accounts receivable, general ledger 

functions and financial reporting. IFS allows the IRS to annually close its books and return the 

system to users in less than 3 days, supports monthly financial closures in less than 3 days, and 

provides the ability to input transactions with a .4 second response time. By implementing the 

latest version of SAP, IFS is on the upgrade path required to more easily meet new government 

accounting requirements which will be included in future SAP releases. The upgraded method is 

part of the budgetary ledger and will cause far fewer posting errors. By implementing the latest 

version of SAP, IFS is on the upgrade path required to more easily meet new government 

accounting requirements which will be included in future SAP releases.

Requirements/ Benefits/ Mandates: 

Legislative mandates, Outstanding audit findings or Material weakness, Presidential 

Directive: Going into FY2018, the IFS application does not have any outstanding audit findings 

or material weaknesses directly assigned to the application.

Accomplishments and Future Objectives: 

During FY 2017, IFS completed an ORACLE upgrade for Business Warehouse (BW), Tivoli 

Workload Schedule (TWS), Informatica and Portal to Version 12C. The SAP ERP Central 
32

Component (ECC) component will be upgraded to Oracle version 12C during the next Fiscal 

Year. During FY 2018 IFS will continue to enable additional asset categories in the SAP Asset 

Module (SM). IFS will complete standard maintenance patches, year-end close, and support the 

GAO audit responding to audit findings (if any). For the BY and budget out years IFS will 

complete standard maintenance patches, year-end close, and address any GAO findings. In FY

2018 IFS will be making system updates to support the Federal Data Act and enhance Fixed 

Asset Accounting. IFS will also be working to enable the procurement functionality within the 

IFS application to eventually replace the current procurement system, IPS. The plan is to deploy 

this functionality in Q1 of FY 2018. In addition, IFS will also make changes as necessary to 

support ongoing Federal Financial System mandates.

Details of Useful Life Period: 

Year the investment began: 2001

End Year of the current planning cycle: 2024

Description of why the investment is not consistent with life cycle model defined in OMB 

Circular A-131: This investment covers ongoing functionality with no clear retirement date. We 

are using 5 year standard Period of Performance (POP) - Lifecycle not applicable to overall 

investment.

Performance Evaluation and Metrics: 

Metric Description

Performance 

Measurement 

Category Mapping

Measurement 

Condition

Reporting 

Frequency

Unit Of 

Measure

CY 

Target

Latest 

Actual 

Result

Date of 

Latest Actual 

Result

The percentage of scheduled system 

availability per the approved Service Level 

Agreement, as documented monthly by IRS 

Enterprise Services.

Strategic and 

Business Results Over target Monthly Percentage 99.00 100.00 01/31/2018

Complete monthly financial close process and 

submit Treasury Information Executive 

Repository (TIER) report within 3 days after 

month end.

Financial 

Performance Under target Monthly Number of 

days 3.00 1.00 01/31/2018

Percentage of end user issues (aka, Priority 1 

and Priority 2 tickets, equating to severity) 

eliminated or remediated within timeframes 

established in the approved Service Level 

Agreement.

Strategic and 

Business Results Over target Monthly percentage 90.00 100.00 01/31/2018

Percentage of timely implementation per IFS 

maintenance schedule (i.e. deployment) of IFS 

server patches including Solaris, Veritas, 

Oracle, SAP and Informatica

Strategic and 

Business Results Over target Quarterly percentage 100.00 100.00 01/31/2018

Percentage of interface failures requiring 

transmition to system

Financial 

Performance Over target Monthly percentage 95.00 99.94 01/31/2018

Timely availability of environments for Mocks 

and testing

Customer 

Satisfaction 

(Results)

Over target Quarterly Percentage 100.00 100.00 12/31/2017

Investment Name: Integrated Submission and Remittance Processing System 

(ISRP)

Type of Investment: Major IT Investment
33

Description:

ISRP is the legacy frontline tax processing system that processes paper tax returns from 

individuals and businesses. It also updates tax forms to comply with tax law changes.

Investment Anticipated Outlay: ($000,000s): 

Type 2016 and 

Prior 

Actual

2017 

Actual

2018 

Enacted

2019 

Estimated

2020 

Estimated

2021 

Estimated

2022 

Estimated

2023 and 

Beyond 

Estimated

Total

Sub-Total 

DME 

(Including 

Internal labor 

(Govt. FTE) 

Costs)

1.62 0.46 2.08

Sub-Total 

O&M Costs 

(Including 

Internal Labor 

(Govt. FTE) 

Costs)

175.55 9.61 12.17 12.36 12.51 12.66 12.81 12.96 260.63

Total Costs 177.17 10.07 12.17 12.36 12.51 12.66 12.81 12.96 262.71

Number of 

FTE 149.07 15.56 16.51 16.51 16.51 16.51 16.51 16.51 263.69

Summary of Purpose, Goals, and Benefits: 

The ISRP system is a mission critical operations and maintenance project that processes tens of 

millions of tax returns and deposits billions of dollars to the U.S. Treasury on a yearly basis. 

ISRP is an integrated suite of hardware, software and network components that provides the 

interfaces for data entry perfection and transmission of data to IRS Corporate data storage. ISRP 

Data Entry Operators enter the information from various paper documents, which are then 

converted into electronic data used by downstream operations such as Financial Information 

Systems. ISRP also updates tax forms to comply with legislative changes in tax laws. There is a 

system dependence on various IRS applications such as Generalized Mainline Framework 

(GMF), Enhanced Entity Index File (EEIF), Integrated Data Retrieval System (IDRS), and 

Enterprise File Transfer Utility (EFTU).

Return on Investment: 

The service ISRP provides is crucial to taxpayers (both individual and corporate), and to the U.S. 

Department of the Treasury, as tens of millions of returns and billions of dollars in receipts are 

processed by ISRP each year. The cost of updating, operating, and maintaining ISRP has been 

reduced by more than 40 percent since 2010. 

The service that ISRP provides to taxpayers is necessary. Even though, most individual and 

corporate taxpayers have switched to submitting their forms and payments electronically, 

millions still submit their forms and payments on paper. Electronic versions do not cover all 

forms and payment vouchers and ISRP is the only system at the IRS that can support this 
34

taxpayer requirement. ISRP provides top quality service to taxpayers through fair and uniform 

application of the law.

Requirements/ Benefits/ Mandates: 

Legislative mandates, Outstanding audit findings or Material weakness, Presidential 

Directive: N/A.

Accomplishments and Future Objectives: 

Current Year FY 2018: 

Deliver legislatively mandated Tax Year Changes to keep ISRP up-to-date. 

ISRP to program, test and deploy the new Achieving a Better Life Experience (ABLE) Act 

functionality to capture and archive in the AIR/IRI system for IRIS. 

Deliver updates to the ISRP system for The Protecting Americans from Tax Hikes Act (PATH 

Act) and Affordable Care Act (ACA). 

Update programs and continue to send FATCA information (Forms 8938, 8966 and 1042-S 

(Recipient Copy) to the ICMM system (International Compliance Management Model). 

Began migration of the ISRP Program Requirements Package (PRP) documents currently in 

WORD format to the Rational Requirements Composer (RRC) system. 

Complete the deployment of the upgrade to the Intrust Version 11 that supports server event log 

management. 

Deploy security patches, maintenance and firmware updates. 

PATH Act Legislation - Add new programs to ISRP for Forms 943 and 944 so that taxpayers can 

accurately file their paper return to claim credit. Also changes to Form 8867.

Submission Processing Consolidation: Initial work required to ready OCS and FSC to support 

both IMF and BMF.

Budget Year FY 2019:

Consider proposals and options to leverage functionality between the ISRP and SCRIPS systems 

to improve efficiency and continue to reduce costs. 

Continue migration of the ISRP Program Requirements Package (PRP) documents currently in 

WORD format to the Rational Requirements Composer (RRC) system.

The refresh of ISRP hardware, both server infrastructure and workstation is planned. 

Transfer of desktop support from Enterprise Operations (EOps) to User and Network Services 

(UNS).

Details of Useful Life Period: 

Year the investment began: 1998

End Year of the current planning cycle: 2024

Description of why the investment is not consistent with life cycle model defined in OMB 

Circular A-131.: This investment covers ongoing functionality with no clear retirement date. We 

are using 5 year standard Period of Performance (POP) - Lifecycle not applicable to overall 

investment.

Performance Evaluation and Metrics: 
35

Metric Description

Performance 

Measurement 

Category Mapping

Measurement 

Condition

Reporting 

Frequency

Unit Of 

Measure

CY 

Target

Latest 

Actual 

Result

Date of Latest 

Actual Result

Scanner/ Transport HARDWARE 

Response Timeliness - Percentage of 

Priority Trouble Tickets (P1) Maintenance 

Response within 2 hours.

Strategic and Business 

Results Over target Monthly Percent 97.00 99.98 12/31/2017

Production Problem Resolution and 

Reporting - Number of high priority 

trouble tickets (P1) not closed within 4 

hours.

Strategic and Business 

Results Under target Monthly numeric 0.00 0.00 12/31/2017

System Availability (Uptime) - Percent of 

up time hours (actual uptime hours/planned 

uptime hours).

Financial Performance Over target Monthly Percent 99.00 100.00 12/31/2017

Production Problem Resolution and 

Reporting - Number of priority trouble 

tickets (P2) not closed timely within 24 

hours

Customer Satisfaction 

(Results) Under target Monthly Numeric 1.00 0.00 12/31/2017

Percentage of daily ISRP deposits made in 

accordance with IRM 3.0.275.

Strategic and Business 

Results Over target Monthly Percent 70.00 96.90 12/31/2017

Investment Name: IRS.GOV - Portal Environment

Type of Investment: Major IT Investment

Description:

IRS portal provides seamless one-stop web-based services to internal and external users, such as 

taxpayers, business partners and IRS employees. NOTE Acquisition for IEP 1.5 will continue to 

provide the same level of infrastructure web service hosting.

Investment Anticipated Outlay: ($000,000s): 

Type 2016 and 

Prior 

Actual

2017 

Actual

2018 

Enacted

2019 

Estimated

2020 

Estimated

2021 

Estimated

2022 

Estimated

2023 and 

Beyond 

Estimated

Total

Sub-Total 

DME 

(Including 

Internal labor 

(Govt. FTE) 

Costs)

136.16 39.36 8.03 6.14 189.69

Sub-Total 

O&M Costs 

(Including 

Internal Labor 

(Govt. FTE) 

Costs)

567.96 57.48 64.63 86.78 66.07 66.86 67.66 977.44

Total Costs 704.12 96.84 72.66 92.92 66.07 66.86 67.66 1167.13

Number of FTE 215.52 5.22 5.82 5.82 232.38
36

Summary of Purpose, Goals, and Benefits: 

The mission at the IRS is to provide Americas taxpayers top-quality services by helping them 

understand and meet their tax responsibilities and enforce the law with integrity and fairness to 

all. The IRS.gov website has the long-term goal of providing a virtual tax assistance center for 

internal and external users. This investment enables landing page access to services for 

taxpayers, businesses, practitioners, electronic return originators and IRS employees.

Return on Investment: 

The Integrated Enterprise Portal is an infrastructure hosting and therefore, does not have a direct 

return on investment. However, the business area such as On-Line Service (OLS) does receive 

cost savings.

Maintained 100 percent availability for public access and use (since 2012). Supports tax preparer 

agencies' or agent's submissions and reduces paper and person-to-person delays between the IRS 

and the public to complete a tax transaction. 

Enables millions of taxpayers to use IRS web services such as "Where's My Refund" Web 

inquiries, "Get Transcript" on-line services, and "IRS2Go" application downloads. 

Enables taxpayers and tax preparers to easily find and obtain information and material without 

calling the IRS. 

Keeps taxpayers' and tax preparers' information secure. 

Enabled security measures at the perimeter that prevent various cyber attacks and exploits. 

Enabled analytics tools to identify vulnerabilities and mitigate quickly to protect taxpayer data.

Requirements/ Benefits/ Mandates: 

Legislative mandates, Outstanding audit findings or Material weakness, Presidential 

Directive: FAR- Subpart 6.2; Full and Open Competition After Exclusion of Sources 

6.200 Scope of subpart

This subpart prescribes policy and procedures for providing for full and open competition after 

excluding one or more sources. 

6.201 Policy

- Acquisitions made under this subpart require use of the competitive procedures prescribed in 

6.102.

Accomplishments and Future Objectives: 

Integrate Enterprise Portal (IEP) Public User Portal (PUP) (IRS.gov) 

-Completed Political Organization Filing & Disclosure (POFD) B/E release (6/2)

-Continued PUP to IEP Migration effort (Production Implementation September 2017)

-Began Transition Process/Activities for Drupal (Drupal goes to production on or about August 

20, 2017)

Integrated Enterprise Portal Registered User Portal (RUP) 

-Supported the firewall hardware upgrade

-Provided support of the onboarding of the new Taxpayer Digital Communication - Outgoing 

Notification (TDC-ON) application, the new eAuth CS application, the new OLA-ALT stream, 

the new eServices-ALT stream, the new SOR ALT stream and the new ACA RUP applications 

streams.
37

Employee User Portal (EUP) 

-Coordinated and fulfilled upcoming new application onboarding requests to the EUP portal.

-Supported the firewall hardware upgrade

IEP Affordable Care Act (ACA) Transactional Portal Environment (TPE):

-Supported the required activities for the following IRS Initiatives: 

-Martinsburg Failover to Memphis

-Memorial Day Martinsburg Power Down/Up

-Memphis Failback to Martinsburg

-Continued to support the ACA eAuth migration for all ACA User Interface Applications (ACA 

Forms Acceptance/ACA Assurance Testing Software/Information Sharing & 

Reporting)Applications (AFA/AATS/ISS)

-Supported the firewall hardware upgrade 

IEP 1.5 award and transition: The Integrated Enterprise Portal (IEP 1.5) contract for IRS.gov was 

awarded on February 15, 2017. This new contract provides a five-year base period of 

performance with three additional option years, along with a new funding ceiling. The IEP 1.5 

contract enables work to continue for both operations and maintenance and additional 

enhancements. The IEP 1.5 contract provides a series of operational and security enhancements. 

All IEP operations and maintenance will transition from 1.0 to 1.5 completed in September 2017 

with no service interruption.

-Supported the launch of the updated Withholding Calculator based on the new Tax Reform 

legislation.

-Launched the new Field Assistance Scheduling Tool (FAST).

Future Objectives:

- Support on going Tax Reform updates for content and applications

- Support the upcoming releases for Web Applications, FACTA, and TEGE's Form 4506A

- Support enhancements to the new IRS.gov Web Content Management System (WCMS)

- Begin the preparation and planning for Filing Season 2019.

Details of Useful Life Period: 

Year the investment began: 1996

End Year of the current planning cycle: 2023

Description of why the investment is not consistent with life cycle model defined in OMB 

Circular A-131: This investment covers ongoing functionality with no clear retirement date. We 

are using 5 year standard Period of Performance (POP) - Lifecycle not applicable to overall 

investment.

Performance Evaluation and Metrics: 

Metric Description

Performance 

Measurement 

Category Mapping

Measurement 

Condition

Reporting 

Frequency

Unit Of 

Measure

CY 

Target

Latest 

Actual 

Result

Date of Latest 

Actual Result

System Response Targets- Web site 

response time: Search queries completed in 

three 3 seconds or less.

Strategic and 

Business Results Over target Monthly Percentage 99.99 99.90 01/31/2018
38

System Response Targets-Website Response 

Time: User requests for website content 

from a user page to user page served 

completed in 3 seconds or less.

Strategic and 

Business Results Over target Monthly Percentage 95.00 99.84 01/31/2018

Web Content Management System (WCMS) 

Availability: Monthly cumulative 

availability of WCMS as measured in P1/P2 

(PROD) tickets.

Financial 

Performance Over target Monthly Percentage 90.00 100.00 01/31/2018

Web Content Management System 

(WCMS): Content updates must be publicly 

available 30 minutes or less following 

completion of publishing action within 

WCMS.

Strategic and 

Business Results Over target Monthly Percentage 99.99 99.99 01/31/2018

Outage minutes for irs.gov calculated by 

Points of Presences (PoPs) reports

Customer 

Satisfaction (Results) Over target Monthly percentage 99.99 100.00 01/31/2018

Investment Name: Modernized e-File (MeF)

Type of Investment: Major IT Investment

Description:

MeF provides a secure web-based platform for electronic filing of individual and business tax 

and information returns by registered Electronic Return Originators. Returns are submitted 

through the Internet in Extensible Markup Language (XML) format.

Investment Anticipated Outlay: ($000,000s): 

Type 2016 and 

Prior 

Actual

2017 

Actual

2018 

Enacted

2019 

Estimated

2020 

Estimated

2021 

Estimated

2022 

Estimated

2023 and 

Beyond 

Estimated

Total

Sub-Total 

DME 

(Including 

Internal labor 

(Govt. FTE) 

Costs)

502.48 11.90 514.38

Sub-Total 

O&M Costs 

(Including 

Internal Labor 

(Govt. FTE) 

Costs)

261.98 44.91 44.71 45.38 45.92 46.47 489.37

Total Costs 764.46 56.81 44.71 45.38 45.92 46.47 1003.75

Number of 

FTE 933.66 112.24 75.01 75.01 75.01 75.01 1345.94

Summary of Purpose, Goals, and Benefits: 

The Modernized e-file (MeF) Program provides a secure, web platform for electronically filing 

tax and information returns by registered Electronic Return Originators (EROs). This system 

uses a browser-based and application-to-application solution to provide ERO end users with 
39

optimized return filing. MeF is becoming the primary system for electronic filing of business and 

individual tax returns and forms. 

The MeF program supports the Treasury and IRS strategic goals by effectively and efficiently 

using resources to optimize return filing, expand e-Government, and reduce taxpayer burden.

Beneficiaries include the tax preparation community and the taxpayers they represent. MeF also 

benefits large corporations and tax-exempt organizations that are required at a specific asset 

threshold to electronically file their tax returns or annual information returns by reducing the 

handling/mailing of voluminous paper returns which sometimes exceed 700 

attachments/schedules. 

MeF has dependencies with:

irs.gov - Portal Environment 

Information Return and Document Matching (IRDM) 

Individual Master File (IMF) 

Business Master File (BMF)

Tax Return Data Base (TRDB)

Electronic Fraud Detection System (EFDS).

Return on Investment: 

Benefits of Modernized e-File (MeF) include a cost savings of $2 for filing a business return vs. 

a paper return. As of December 31, 2017, over 44.1M BMF returns have been accepted this 

translates to a cost savings of $88M. For individual returns the cost savings are $3.13 per return. 

As of December 31,2017, over 142.1M IMF returns have been accepted. The total IMF cost 

savings are $445M. Total cost savings for MeF program are therefore $533M. For FY2017 the 

total cost expended for MeF is $57M. As a result, the MeF Return on investment is 935%.

Modernized e-File (MeF) receives and processes e-file returns in an Internet environment. MeF 

provides for real time processing of acknowledgements, streamlined error detection, 

standardization of business rules and requirements across form types, capability to attach PDF 

files, and capability for IRS employees to view MeF return data through the Employee User 

Portal (EUP) and also the Business Objects Server.

MeF contributes to Treasury's Federal Enterprise Architecture (FEA) Performance Reference 

Model (PRM) objectives 'Increase Voluntary Tax Compliance'; and 'Increase electronic 

transactions with public to improve service, prevent fraud and reduce costs'.

Requirements/ Benefits/ Mandates: 

Legislative mandates, Outstanding audit findings or Material weakness, Presidential 

Directive: N/A.

Accomplishments and Future Objectives: 

CY (2018):

Deploy MeF Release 10.1 which will allow changes due to ACA, FATCA and maintenance of 
40

MeF including hardware, software, security, helpdesk, training, etc. 

Develop MeF Release 10.2 which will allow maintenance of MeF including hardware, software, 

security, helpdesk, training, etc.

BY (2019): 

Deploy MeF Release 10.2 which will allow maintenance of MeF including hardware, software, 

security, helpdesk, training, etc. 

Develop MeF Release 10.3 which will allow maintenance of MeF including hardware, software, 

security, helpdesk, training, etc.

Details of Useful Life Period: 

Year the investment began: 2001

End Year of the current planning cycle: 2023

Description of why the investment is not consistent with life cycle model defined in OMB 

Circular A-131.: This investment covers ongoing functionality with no clear retirement date. We 

are using 5 year standard Period of Performance (POP) - Lifecycle not applicable to overall 

investment.

Performance Evaluation and Metrics: 

Metric Description

Performance 

Measurement 

Category Mapping

Measurement 

Condition

Reporting 

Frequency

Unit Of 

Measure

CY 

Target

Latest 

Actual 

Result

Date of 

Latest Actual 

Result

Error rate for electronically filed tax returns Financial 

Performance Under target Quarterly percentage 8.00 8.00 12/31/2017

The percentage of scheduled system 

availability per the approved Service Level 

Agreement, as documented monthly by IRS 

Enterprise Operations.

Customer 

Satisfaction 

(Results)

Over target Monthly percentage 99.00 99.00 01/31/2018

The average number of minutes within which 

electronic filers receive acknowledgement of 

their electronically filed tax returns.

Customer 

Satisfaction 

(Results)

Under target Monthly minutes 5.00 5.00 01/31/2018

Percent of business tax returns processed 

electronically by MeF.

Strategic and 

Business Results Over target Monthly percentage 40.00 67.52 01/31/2018

Percent of individual tax returns processed 

electronically.

Strategic and 

Business Results Over target Quarterly percentage 80.00 86.93 12/31/2017

Total quarterly cost savings derived from 

electronically filed tax returns. Savings 

achieved is based on an average of $10M 

target savings per quarter. This a periodic 

metric.

Strategic and 

Business Results Over target Quarterly

Millions of 

Dollars. 

($M)

3.00 5.70 12/31/2017

Investment Name: Return Review Program (RRP)

Type of Investment: Major IT Investment

Description:

The Return Review Program (RRP) is an automated system designed to maximize fraud 

detection at the time that tax returns are filed to eliminate the issuing of questionable refunds.
41

Investment Anticipated Outlay: ($000,000s): 

Type 2016 and 

Prior 

Actual

2017 

Actual

2018 

Enacted

2019 

Estimated

2020 

Estimated

2021 

Estimated

2022 

Estimated

2023 and 

Beyond 

Estimated

Total

Sub-Total 

DME 

(Including 

Internal labor 

(Govt. FTE) 

Costs)

240.10 57.50 53.62 8.37 359.59

Sub-Total 

O&M Costs 

(Including 

Internal Labor 

(Govt. FTE) 

Costs)

52.68 32.57 52.88 97.66 107.42 108.71 451.92

Total Costs 292.78 90.07 106.50 106.02 107.42 108.71 811.51

Number of 

FTE 336.81 96.38 104.89 104.89 104.89 104.89 852.75

Summary of Purpose, Goals, and Benefits: 

The Return Review Program (RRP) performs automated Identity Theft (IDT) & pre-refund 

individual anomaly & fraud detection. RRP continues to evolve & enhance its system 

capabilities, providing greater security for the Service & our nation's taxpayers & leading the 

charge against IDT & the filing of fraudulent returns. RRP keeps pace with the complex, everevolving world of tax fraud by collaborating with its business partners to iteratively enhance 

models & filters for processing individual tax returns. As RRP expands its anomaly detection 

engine into the realm of processing business tax returns, the Service is exploring how RRP can

improve anomaly & fraud detection for both individual and business returns, with even more 

powerful & sophisticated capabilities for data comparisons, data analysis through its filters, 

predictive models, data visualization & data computing appliances.

During FS17, RRP successfully expanded into processing paper returns, and protected a total of 

$1.2 billion for both IDT and Non-IDT for paper returns. This is compared to $1.73 billion 

protected through electronic returns for FS17 for RRP, independent of legacy systems (as of 

10/25/17). As of10/25/17, RRP has selected 1,062,595 potential tax refund fraud returns with a 

refund value of $15.61 billion (excludes a few claimed refunds in excess of $5 billion that skew 

the value). Since the start of FS15, RRP has protected over $6.28 billion of revenue in confirmed 

fraud, independent of legacy systems (Dependent Database [DDb] & Electronic Fraud Detection 

System [EFDS]), with an ROI of more than 1,575 percent.

RRP is critical for IRS mission success by enforcing the law, verifying compliance with tax 

responsibilities, & actively working to combat fraud. RRP has adopted innovative approaches & 

methodologies to detect ever-evolving fraud in the ever-changing tax landscape.

RRP protects taxpayer dollars using its analytics capabilities with the goal of creating predictive 
42

fraud & non-compliance detection models, which will seek out subtle data patterns to determine 

reliability of return data. The IRS has realigned funding of the EFDS investment under RRP to 

streamline budget reporting and management oversight and to streamline integrated release 

planning under one program. RRP looks to prioritize increasing pre-refund revenue protection, 

improving operational efficiency and performance, & expanding scope to include business 

returns in an effort to realize RRP's potential.

Return on Investment: 

In FS17, RRP is responsible for identifying over $15.6B in suspicious refunds across 1,062,595 

returns. Actual values for RRP FS17 as of 10/25/17 are the following: 

- 339K confirmed Identity Theft (IDT) fraud returns at $2.9B which is equal to 47% False 

Detection Rate

- 56K confirmed Non-IDT Fraud returns at $1.1B

Other benefits both internal & external to the Fed Government that RRP provided are as follows:

- RRP continues to reinforce improved tax compliance & revenue protection for the U.S. Dept. 

of Treasury

- IDT victims have decreased 64% since 2015 & 48% since 2016

- RRP used data provided by PATH Act legislation to verify 17M W-2s by 2/15/17 - an increase 

of 188% over 2016. RRP is the only system to use data real-time, in-line to prevent compliant 

taxpayers from getting selected for fraud treatment

- RRP reduced improper payments of refundable credits such as EIC & ACTC by using data 

provided by PATH Act legislation to identify $720M in suspicious refunds that would have 

otherwise not been selected by in-line analytics systems for fraud treatment

- In 2017, RRP used additional data from Tax Software Industry partners including driver's 

license & ultimate bank account to reduce good taxpayer burden by verifying an additional 119K 

returns & avoiding sending these compliant taxpayers to a fraud treatment

- Continued pre-refund revenue & fraud detection functionality resulting in preventing payment 

from the Treasury of fraudulent refund claims through data analysis of foreign financial 

institutions' tax withholding reports to IRS & withholding claimed on taxpayers' returns

- Identification of real-time potential fraud/suspicious activity by using a comprehensive & 

flexible set of data analytic techniques including risk scoring & anomaly detection to detect 

suspicious conditions on returns & react quickly

- Systemic identification of suspected IDT on tax returns based on entity analytics, resulting in 

greater revenue protection for the Government & reduced impact to taxpayers whose identities 

were stolen

- New entity-based non-compliance & fraud pattern detection through predictive analytics, data 

mining using external sources & IRS entity history, a business rules engine that enables near 

real-time response to emerging trends, & Linked Return Analysis (LRA), a comprehensive view 

of filer's ID & filing history, enabling systemic detection of new fraud. In 2017, LRA has 

clustered over 3.3M returns into 262K fraud scheme clusters.

Requirements/ Benefits/ Mandates: 

Legislative mandates, Outstanding audit findings or Material weakness, Presidential 

Directive: N/A.
43

Accomplishments and Future Objectives: 

RRP developed the Release Plan (RP) using inputs from Business & IT to prioritize capabilities 

that will be implemented into the system based on alignment with the goal of retiring remaining 

components of the legacy fraud detection system, EFDS. The RP, which grouped the prioritized 

capabilities into projects & identified the cost, scope, & schedule for Phase 1 of RRP, was 

approved Jan 2016. RRP RP Release(R) 2 projects are currently in progress, as described below. 

The RP is being updated to provide a re-baselined 2018 schedule based on increased 

understanding of scope & complexity of the remaining functionality, & schedule alignment with 

other components needed to retire EFDS.

RRP completed & deployed R2.1 project. R2.1 provides core capabilities for ad-hoc reporting 

via the BusinessObjects Enterprise tool, as well as providing return information, processing 

information, & prior year return information for use by the business stakeholders. R2.1 also 

provides a new standard report, Transaction Summary Report, & associated functionality needed 

to access & analyze RRP data.

RRP R2.2 completed & deployed in mid-Nov 2017, expanding reporting capabilities & data 

loads. R2.2 provides data for reporting such as rejected returns, referrals, Cluster Management 

data, audit trail information, as well as the new Business Master File Daily Loads Report for 

business stakeholders. Additional capabilities that were delivered with R2.2 are data loads such 

as business return & partnership data & Affordable Care Act data & data extracts to Research, 

Applied Analytics, & Statistics & Criminal Investigation.

R3 (CY18) will include the following capabilities:

-Create contingency plan for legacy reporting tools 

-Develop long-term strategy to address RRP Data Access & Analysis, including a feedback loop, 

identification of the types of data included, improved manual research capabilities, & analysis on 

training needs

-Further enhance predictive modeling & analytics & explore opportunities for analytics for 

business returns

-Implement Manual Workarounds in legacy case management to address manual processes

-RRP environment upgrades & phased Data Exchange Broker & Operational Intelligence 

Implementation

R4 & Future Increments will include the following capabilities:

-User access to all RRP data for research, analysis, & visualization needs to support 

manual/systemic fraud detection

-Increased revenue protection

-Infrastructure & core capability upgrades.

Details of Useful Life Period: 

Year the investment began: 2010

End Year of the current planning cycle: 2024

Description of why the investment is not consistent with life cycle model defined in OMB 

Circular A-131.: This investment covers ongoing functionality with no clear retirement date. We 

are using 5 year standard Period of Performance (POP) - Lifecycle not applicable to overall 

investment.
44

Performance Evaluation and Metrics: 

Metric Description

Performance 

Measurement 

Category 

Mapping

Measurement 

Condition

Reporting 

Frequency

Unit Of 

Measure

CY 

Target

Latest 

Actual 

Result

Date of 

Latest 

Actual 

Result

System Availability - The percent of 

hours the RRP system is up and running 

during hours RRP is scheduled to be 

available, per the Service Level 

Agreement (SLA).

Customer 

Satisfaction 

(Results)

Over target Quarterly Percent 90.00 100.00 12/31/2017

False Protection ID Theft - The percent of 

all individual tax returns that RRP detects 

to be the result of stolen identity refund 

fraud (SIRF) that are not actually SIRF 

returns. (RRP False Detection Rate for ID 

Theft].

Strategic and 

Business Results Under target Annual Percent 61.00 48.00 12/31/2017

Systemic Verification of Income and 

Withholding Reported on Returns -

Percent of electronically-filed income 

documents received by the IRS that RRP 

systemically verified.

Strategic and 

Business Results Over target Quarterly Percent 80.00 94.00 12/31/2017

Total RRP P1 + P2 Production Tickets 

Opened each Month.

Strategic and 

Business Results Under target Monthly Number 18.00 1.00 01/31/2018

The cumulative number of confirmed 

identity theft (ID) returns identified by the 

data models.

Financial 

Performance Over target Quarterly

Number of 

confirmed 

identity theft 

(ID) returns

320000.00 357557.00 12/31/2017

Investment Name: Service Center Recognition/Image Processing System (SCRIPS)

Type of Investment: Major IT Investment

Description:

SCRIPS is a data capture, management and image storage system that uses high speed scanning 

and digital imaging to process the 940, 941, K-1, IRP, and ACA-IRP paper returns and converts 

data to electronic format for processing downstream.

Investment Anticipated Outlay: ($000,000s): 

Type 2016 and 

Prior 

Actual

2017 

Actual

2018 

Enacted

2019 

Estimated

2020 

Estimated

2021 

Estimated

2022 

Estimated

2023 and 

Beyond 

Estimated

Total

Sub-Total 

DME 

(Including 

Internal labor 

(Govt. FTE) 

Costs)

3.50 0.46 3.95

Sub-Total 

O&M Costs 

(Including 

Internal Labor 

(Govt. FTE) 

Costs)

184.92 8.49 9.59 9.75 9.87 9.99 10.11 10.23 252.95

Total Costs 188.41 8.95 9.59 9.75 9.87 9.99 10.11 10.23 256.90
45

Number of 

FTE 117.08 8.41 8.92 8.92 8.92 8.92 8.92 8.92 179.01

Summary of Purpose, Goals, and Benefits: 

The Service Center Recognition/Image Processing System (SCRIPS) is a major paper input 

processing system specifically designed to automate the processing of Information Return 

Processing (IRP) forms, Schedule K-1's (Forms 1041 K-1, 1065 K-1, and 1120 K-1), Form 941 

(and associated Schedules B and Schedule R), and Form 940 (and associated Schedule A and 

Schedule R). SCRIPS will process ACA-IRP Forms 1094-x and 1095-x. SCRIPS scans and 

stores images of all tax documents processed, saving time by converting the scanned images and 

data to computer-readable code and providing hardcopy images when requested. This is 

accomplished using the Optical Character Recognition/Intelligent Character Recognition 

(OCR/ICR) engine in addition to utilizing 2 Dimensional (2D) bar code recognition which 

optimizes and automates data entry of the taxpayer data.

SCRIPS is one of the front-end input systems that operates at four IRS Service Centers where 

forms are received, sorted, and then sent to the scanning areas. SCRIPS sends the electronic 

taxpayer data to the IRS downstream tax processing systems, including Generalized Mainline 

Framework (GMF) and Master File for posting to the IRS database, as well as Service-Wide 

Employment Tax Research System (SWETRS) and Statistics Of Income (SOI) for compliance. 

Beginning in 2016, SCRIPS sent data to ACA Information Returns (AIR) database for Master 

Files. Images are archived and retained on the Enterprise Shared Storage platform. IRS Customer 

Service Representatives can request hard copies of images through the Integrated Data Retrieval 

System (IDRS). 

SCRIPS will deliver legislatively mandated Tax Year Changes to keep SCRIPS the system upto-date. In addition, SCRIPS will program, test, and deploy new Affordable Care Act (ACA) 

functionality. SCRIPS processed more than 64 million tax forms in 2017 and expects to process 

65 million tax forms in 2018. SCRIPS provides taxpayers fair and uniform application of the 

law, and increases efficiency for tax processing by converting paper forms to electronic images.

Return on Investment: 

In Calendar Year (CY) 2017, SCRIPS scanned 64,000,000 taxpayer documents, and is on track 

to complete 65,000,000 in CY2018. Considering the total cost to operate SCRIPS per year, the 

point at which the gain equals the costs incurred for SCRIPS is about 5.5 million documents. By 

the end of February of each year, SCRIPS has processed more than 15 million documents. Thus, 

the point at which the gain equals the costs incurred for SCRIPS is achieved before the end of the 

2nd month of the Filing Season.

Requirements/ Benefits/ Mandates: 

Legislative mandates, Outstanding audit findings or Material weakness, Presidential 

Directive: N/A.
46

Accomplishments and Future Objectives: 

Accomplishments and Future Objectives:

Current Year FY 2018:

SCRIPS to successfully implemented additional ACA changes.

Deliver legislatively mandated Tax Year Changes to keep SCRIPS up-to-date.

Budget Year FY 2019:

Capture data from Schedules K-1 arriving near or after the December Program Completion Date 

that causes them to not be processed. 

ABLE Act Certified Professional Employer Organization Database and Compliance Monitoring: 

SCRIPS Schedule R Stand-Alone Processing for Forms 940, 941, and 943-P. L. 

Submission Processing Consolidation: Initial work required to ready OCS and FSC to support 

both IMF and BMF.

Consider proposals and options to leverage functionality between the ISRP and SCRIPS systems 

to improve efficiency and continue to reduce costs. 

Continue migration of the SCRIPS Technical Requirements Documents (TRDs) currently in 

WORD format to the Rational Requirements Composer (RRC) system.

The refresh of SCRIPS hardware, both server infrastructure and workstations. 

Transfer of desktop support from Enterprise Operations (EOps) to User and Network Services 

(UNS).

Details of Useful Life Period: 

Year the investment began: 1991

End Year of the current planning cycle: 2024

Description of why the investment is not consistent with life cycle model defined in OMB 

Circular A-131.: This investment covers ongoing functionality with no clear retirement date. We 

are using 5 year standard Period of Performance (POP) - Lifecycle not applicable to overall 

investment.

Performance Evaluation and Metrics: 

Metric Description

Performance 

Measurement 

Category Mapping

Measurement 

Condition

Reporting 

Frequency

Unit Of 

Measure

CY 

Target

Latest 

Actual 

Result

Date of Latest 

Actual Result

The percentage of time the SCRIPS 

system is available per month for 

processing (system up-time).

Financial Performance Over target Monthly percentage 99.00 100.00 01/31/2018

Percent of tax return image print 

requests fulfilled within 2 days.

Customer Satisfaction 

(Results) Over target Monthly percent 95.00 100.00 01/31/2018

Maintain a character recognition error 

rate on scanned forms of no more than 

6% per month.

Strategic and Business 

Results Under target Monthly percent 6.00 3.45 01/31/2018

Number of Moderate Priority (P2) 

trouble tickets not closed within 24 

hours.

Strategic and Business 

Results Under target Monthly numeric 1.00 0.00 01/31/2018

Number of High Priority (P1) trouble 

tickets not closed within 4 hours.

Strategic and Business 

Results Under target Monthly numeric 1.00 0.00 01/31/2018

Average number of tax return-related 

documents processed per hour (for all 

sites). This is a seasonal metric.

Strategic and Business 

Results Over target Quarterly numeric 200.00 257.74 12/31/2017
47

Investment Name: Web Applications

Type of Investment: Major IT Investment

Description:

Web Applications will simplify the taxpayer's online experience by providing secure digital 

communications and more interactive capabilities. Components include: Online Account; 

Authorization; Third Party; and Mobile.

Investment Anticipated Outlay: ($000,000s): 

Type 2016 and 

Prior 

Actual

2017 

Actual

2018 

Enacted

2019 

Estimated

2020 

Estimated

2021 

Estimated

2022 

Estimated

2023 and 

Beyond 

Estimated

Total

Sub-Total 

DME 

(Including 

Internal labor 

(Govt. FTE) 

Costs)

40.43 36.36 57.90 25.12 25.42 25.72 210.95

Sub-Total 

O&M Costs 

(Including 

Internal Labor 

(Govt. FTE) 

Costs)

2.67 2.67 2.70 2.73 2.76 2.80 16.32

Total Costs 40.43 36.36 60.57 27.78 28.12 28.45 2.76 2.80 227.27

Number of FTE 51.23 67.85 96.00 96.00 311.08

Summary of Purpose, Goals, and Benefits: 

The FY 2019 request will lead the IRS to achieving enterprise themes of facilitating voluntary 

compliance by empowering taxpayers with innovative tools and support and driving more agility 

and efficiency in IRS operations. The Web Applications investment is a digital-first approach 

that enhances the taxpayer's online experience, provides secure digital communications, and adds 

more interactive capabilities to existing web self-service products. 

To keep pace with increasing taxpayer demand for IRS service, the IRS must create and enhance 

online, self-service capabilities for taxpayers, tax practitioners, and internal IRS stakeholders. 

This allows taxpayers the ability to easily access both public and personal information from their 

computers, smart phones and tablets and interact digitally with the IRS within a secure 

framework. Web Applications will drive the IRS transition to digital government and supports 

the long-term vision of migrating services from expensive traditional channels to the internet. 

Web Applications will continue to enhance the taxpayer's experience by providing additional 

self-service options within a secure communications infrastructure.
48

The IRS goal is to deliver new digital communication channels and migrate service delivery 

from offline channels to the Internet by implementing Online Account, Advanced Mobile 

projects; developing Platform services; providing Taxpayer Digital Communications Outbound 

Notices and expanding the Third Party Application Programming Interfaces (APIs).

Return on Investment: 

Online Account is a multi-phase effort that provides single sign-on capability to offer taxpayers 

easy access account-related information. It will provide a consolidated view of taxpayer 

capabilities with access to applications including Online Payment Agreement, IRS Direct Pay, 

and Where's My Refund? as well other tools. Online Account will continue to implement 

additional individual taxpayer capabilities and integrate with other IRS projects that need to 

interact with Web Apps to provide better online access for taxpayers. 

The IRS2Go Mobile Application will continue to evolve, allowing taxpayers to increase their use 

of multiple mobile digital devices such as smart phones and tablets as a primary source for 

accessing information and conducting business. By offering new services tailored for mobile 

devices, taxpayers will be able to find tax-related information and meet their filing obligations 

with added convenience and flexibility. Developing a framework for mobile applications to 

leverage many of the features developed for Online Account provides taxpayers with a new 

generation of faster and more feature-rich mobile applications. 

New Authorization services provide the Centralized Access File (CAF) Registration feature and 

lay the ground work for the Third Party Access Tool (TPAT) capabilities. CAF Registration will 

allow third-parties to claim their previously assigned CAF numbers online. This is a pre-requisite 

to TPAT which will allow third-party practitioners the ability to submit Disclosure 

Authorizations (Form8828), Powers of Attorney (Form2848) and potentially other authorization 

forms online. 

In the future, expansion of Third Party Application Programming Interfaces (APIs) will increase 

the number of tax services available to third parties and broaden the definition of third party to 

include other federal and state government agencies, as well as commercial tax preparers.

Requirements/ Benefits/ Mandates: 

Legislative mandates, Outstanding audit findings or Material weakness, Presidential 

Directive: N/A.

Accomplishments and Future Objectives: 

In FY 2017, three Online Account (OLA) Federated Delivery Teams (FDTs) were established 

and completed 6 Program Increments, totaling 24 sprints to develop Balance Due, Make A 

Payment, See Payments, and Tax Records capabilities as well as Foundational Capabilities and 

Production Support. During FY17, Web Apps added a platform delivery team to manage the 

environments associated with multiple product deliveries, allowing other products to leverage the 

Web Apps infrastructure. 

In FY 2018, Web Applications will continue provide further enhancements to current taxpayer 
49

services and develop new capabilities including Taxpayer Protection Program Identity 

Verification Service (TPP ID Verify). ID Verify will allow taxpayers who receive a 5071C ( 

Potential Identity Theft) letter to verify their information online and determine whether they are a 

victim of identity theft. Additionally, foundational platform services will expand to 

accommodate additional applications. Taxpayer Digital Communication integration with Online 

Account may begin in late FY 2018/early FY 2019.

In FY 2019, IRS will expand the Web Apps capacity to deliver new features such as the Third 

Party Access Tool (TPAT) and Third Party Refund API. TPAT will permit access for third 

parties to view and manage a taxpayer's online account. Third Party Refund API will increase the 

number of tax services available to third parties and broaden the definition of third party to 

include other federal and state government agencies, as well as commercial tax preparers. In the 

future, Web Applications will continue striving to provide a user-centric, data-informed 

approach in order to ensure that taxpayer information is being presented and provided in a way 

that is easy for a taxpayer to interpret. This will include the release of new and continuing 

applications providing a wide variety of services to the taxpayer that will provide a better user 

experience, clearer content, an enhanced portal, and more robust analytics to continuously 

improve the taxpayer experience. 

In the budget out-years, Web Applications plans to expand the ability communicate digitally to a 

wider variety of users including, individual taxpayers, business taxpayers, tax practitioners, and 

internal IRS stakeholders. The IRS will achieve significant savings through fewer help desk and 

informational calls and walk-ins and deliver a greater level of service.

Details of Useful Life Period: 

Year the investment began: 2015

End Year of the current planning cycle: 2023

Description of why the investment is not consistent with life cycle model defined in OMB 

Circular A-131: This investment covers ongoing functionality with no clear retirement date. We 

are using 5 year standard Period of Performance (POP) - Lifecycle not applicable to overall 

investment.

Performance Evaluation and Metrics: 

Metric Description

Performance 

Measurement 

Category Mapping

Measurement 

Condition

Reporting 

Frequency

Unit Of 

Measure

CY 

Target

Latest 

Actual 

Result

Date of 

Latest 

Actual 

Result

Total Sessions - tracks traffic into the application 

over time to help analyze trends and measure 

application adoption.

Strategic and 

Business Results Over target Monthly Number 266000.00

% Service Unavailable Events - records unavailable 

events due to system issues as well as unavailable 

events during regular offline hours. This measure is 

intended to show overall user experience during 

both planned and unplanned downtime.

Customer 

Satisfaction 

(Results)

Under target Monthly Percent 8.00

% Cumulative Balance Due Displayed - the 

percentage of sessions in which a visitor was 

displayed their Cumulative Balance Due. This 

includes visitors with a balance due equal to or 

greater than zero.

Strategic and 

Business Results Over target Monthly Percent 0.00
50

Post-Authentication Continuation Rate - tracks 

clicks to IRS applications connected to Account to 

measure a visitor's successful navigation to the 

various payment applications to work toward the

goal of increasing taxpayer compliance.

Strategic and 

Business Results Over target Monthly Percent 0.00

Average Page Load Time - tracks average page 

load time of the application to bring to light spikes 

that indicate issues with backend systems such as

servers and data services.

Customer 

Satisfaction 

(Results)

Under target Monthly Seconds 5.00

Investment Name: IRS End User Systems and Services (EUSS)

Type of Investment: Major IT Investment

Description:

The EUSS investment provides desktops, laptops, mobile devices, software, incident 

management services, and asset management services to all end users in the IRS.

Investment Anticipated Outlay: (In Millions of $): 

Type

2016 and 

Prior 

Actual

2017

Actual

2018

Enacted

2019

Estimated

2020

Estimated

2021

Estimated

2022

Estimated

2023 and 

Beyond 

Estimated

Total

Sub-Total DME 

(Including Internal 

labor (Govt. FTE) 

Costs)

47.03 29.70 30.50 20.09 0.09 0.09 127.51

Sub-Total O&M 

Costs (Including 

Internal Labor (Govt. 

FTE) Costs)

1272.68 201.29 229.20 232.82 236.56 240.37 244.24 248.18 2905.33

Total Costs 1319.72 230.99 259.70 252.91 236.65 240.46 244.24 248.18 3032.84

Number of FTE 

represented by costs 4216.22 872.18 849.29 856.29 856.29 856.29 856.29 856.29 10219.14

Summary of Purpose, Goals, and Benefits: 

The End User Systems and Services (EUSS) Investment supports the IRS day-to-day end user 

products and services for IRS employees at headquarters and field sites. The products and 

services provided are such things as desktops, laptops, mobile devices, software, incident 

management services, and asset management services.

The investment goal is to provide reliable, secure, innovative and cost effective computer 

hardware, software and services that enable communication, collaboration and business 

capabilities in support of the IRS mission.

The EUSS investment provides operations and maintenance support delivering a secure and 

stable IT infrastructure provisioning and managing assets by improving existing utilization,
51

streamlining processes, and delivering services consistent with industry trends and long term 

investment planning in the IRS production environment. The investment provides desktops, 

laptops, mobile devices, software, incident management services, and asset management services 

to all end users in the IRS. The investment will implement enterprise-wide analytics and research 

capabilities to ensure that timely and informed decisions/strategies are made. In support of 

improving efficiency and productivity for all IRS employees the investment continues to 

implement World Class Service strategies to deliver exceptional performance and service by 

meeting or exceeding industry performance standards. Meeting or exceeding industry 

performance standards will be accomplished through enhanced customer experience and 

innovation, driving to a transformative culture of self-sufficiency through tools and pro-active 

education and services, drive efficiency through channel segmentation, demand management, 

performance measures and to implement where budget allows, new technologies and interactions 

to enable more frequent and effective user communication.

Return on Investment: 

The EUSS Investment is an Operation & Maintenance investment therefore does not provide a 

ROI. EUSS is constantly integrating new technologies into the infrastructure to provide cost 

benefits and service improvements to the environment.

Requirements/ Benefits/ Mandates: 

Legislative mandates, Outstanding audit findings or Material weakness, Presidential 

Directive: GAO audit GAO-17-395 requires the regular updates of configuration standards and 

guidelines for network devices to incorporate recommendations from industry leaders, security 

agencies, and key practices from IRS partners to address known vulnerabilities applicable to 

IRS's environment. 

Corrective action: The User and Network Services organization has enhanced the existing 

process and continues efforts to ensure the GSS-1 inventory of information system components 

are appropriately maintained. Implementation date is April 15, 2018. Using United States 

Government Configuration Baseline (USGCB) Compliance - which measures the percentage of 

workstations that have settings configured that are compliant to pass baseline security scans. 

GAO audits GAO-16-397SU & GAO-16-398 requires UNS to enforce memory safeguard 

protections using specific programs to protect the Windows operating system against 

unauthorized code execution. 

This finding pertains to protection memory from remote code execution; the mitigation for which 

is the SONAR option of our Symantec endpoints. UNS is currently mitigating issues with any 

IRS workstations that do not have SONAR option active. UNS is addressing this item 

specifically as it pertains to IRS workstations. Enterprise Operations is addressing this as it 

pertains to servers.

GAO audit GAO-14-401SU requires UNS to enforce FIPS 140-2 Kerberos encryption. 

UNS continues testing and validation using the SONAR option of our Symantec endpoints.

Accomplishments and Future Objectives: 

Accomplishments:
52

* Furnishing current industry compatible IT equipment hardware/software including laptops, 

desktops, peripherals, and their associated system, security and productivity software (e.g., 

laptops/desktops compliant with published OMB standards, Microsoft Windows 10, Symantec 

Endpoint Encryption/Protection, Microsoft Office 365 Pro Plus, etc.) 

* Furnishing and maintaining internal and external capabilities for sharing documents which 

allows collaborating in real time with peers and taxpayers (i.e., Microsoft Lync collaboration, 

Microsoft Office Communications Server instant messaging, and Cisco Web-Ex collaboration) * 

Blackberry Next Generation developed and deployed required infrastructure (production, testing 

and deployment components) to successfully transition current N-2 environment and N-2 

customer facing devices to N and N-1 levels

* Bring Your Own Device transition away from the traditional use of Government Furnished 

Devices (GFD) by taking advantage of a broad national trend - the rising acceptance of the use of 

personal smartphones and tablets in the workplace

Future Objectives:

* Continue Operations and Maintenance requirements 

* Continue to furnish current and compatible IT equipment hardware/software including laptops, 

desktops, peripherals and their associated system, security and productivity software 

* Continue to evolve a digital workplace to support collaboration, flexibility and business 

innovation

* Expand Wi-Fi access points throughout post of duties to help support a more mobile workforce

* Continue to develop virtualization and cloud based solutions to reduce desktop/laptop costs 

and support requirements 

* Identify Cloud Computing / Software as a Service (SaaS) offerings to evaluate as solutions for 

common services (e.g., email, collaboration, etc.) and identify best candidates for technology 

demonstration and evaluation 

* Utilize PC-on-a-Stick technologies (i.e., Windows 10 To Go) to provisional users (with 

applicable use-cases) with lower cost technology thereby reducing expenditures for outfitting 

those users with more expensive equipment (i.e., laptops and desktops)

* Leverage virtualization technologies to redefine and improve the user experience across 

multiple end-user device platforms (e.g., desktop, laptop, tablet, mobile/smart devices, etc.).

Details of Useful Life Period: 

Year the investment began: 2002

End Year of the current planning cycle: 2024

Description of why the investment is not consistent with life cycle model defined in OMB 

Circular A-131: This investment covers ongoing functionality with no clear retirement date. We 

are using a 5 year standard Period of Performance (POP) - Lifecycle not applicable to overall 

investment.

Performance Evaluation and Metrics: 

Metric Description

Performance 

Measurement 

Category Mapping

Measurement 

Condition

Reporting 

Frequency

Unit Of 

Measure

CY 

Target

Latest 

Actual 

Result

Date of Latest 

Actual Result

Speed of Answer (Service Desk) - measures the average amount of time a 

customer waits in the Service Desk queue before reaching a Service Desk 

Representative. The time does not include the time an employee spends 

listening to the Front End Message (FEM)

Strategic and Business 

Results Under target Monthly Minutes 8.00 54.57 01/31/2018
53

USGCB Compliance - Measures the percentage of workstations that have 

settings configured that are compliant to pass United States Government 

Configuration Baseline (USGCB) security scans

Strategic and Business 

Results Over target Monthly Percentage 95.00 98.07 01/31/2018

EUSS Percent on Time Priority 3 - measures the timeliness of resolution for 

Priority 3 incidents worked by End User Systems and Services assignment 

groups against the standards contained in the Master Service Level 

Agreement (MSLA), two business days.

Customer Satisfaction 

(Results) Over target Monthly Percentage 90.00 91.37 01/31/2018

Call Handle Time - measures the average amount of time it takes an 

Enterprise Service Desk Specialist to complete an inbound service call

Strategic and Business 

Results Under target Monthly Minutes 25.00 22.03 01/31/2018

First Level Resolution (Telephone) - measures the percentage of IT nonescalated interactions, incidents and requests closed at the First Level (i.e. 

Enterprise Service Desk (ESD)) with a method reported of telephone.

Financial Performance Over target Monthly Percentage 75.00 79.51 01/31/2018

Investment Name: IRS Main Frames and Servers Services and Support (MSSS)

Type of Investment: Major IT Investment

Description:

Provides for the design, development and deployment of server, middleware and large systems 

and enterprise storage infrastructures, including systems software products, databases and 

operating systems for these platforms.

Investment Anticipated Outlay: (In Millions of $): 

Type

2016 and 

Prior 

Actual

2017

Actual

2018

Enacted

2019

Estimated

2020

Estimated

2021

Estimated

2022

Estimated

2023 and 

Beyond 

Estimated

Total

Sub-Total 

DME 

(Including 

Internal labor 

(Govt. FTE) 

Costs)

68.14 31.05 21.99 90.17 76.82 77.74 365.91

Sub-Total 

O&M Costs 

(Including 

Internal Labor 

(Govt. FTE) 

Costs)

6036.78 442.61 563.12 594.04 601.17 608.38 615.68 623.07 10084.84

Total Costs 6104.92 473.66 585.11 684.21 677.99 686.13 615.68 623.07 10450.75

Number of 

FTE 10000.87 1546.10 1595.02 1630.62 1630.62 1630.62 1630.62 1630.62 21295.09

Summary of Purpose, Goals, and Benefits: 

Provides for the development and deployment of server, middleware and large systems and 

enterprise storage infrastructures, including systems software products, databases and operating 

systems for these platforms. Represents 25% of the IRS IT Budget. Provides 24x7 IT Operations 

and Maintenance to all Tier I and Tier II production systems responsible for the daily operation 

of the IRS batch and online processing environments.
54

Return on Investment: 

Benefits from infrastructure are derived from on-going and improved tax systems usage. The 

Return on Investment (ROI) for the MSSS infrastructure relates to filing season and submission 

processing, Disaster Recovery (DR) and Alternate Site Processing (ASP), and monitoring and 

health of all infrastructure and applications on the infrastructure. 

It includes more than: 

*14,000 physical & virtual servers 

*12 mainframes 

*3,000 databases 

*400 applications 

*Over 15 petabytes of storage *Refresh of (2) Automated Tape Library (ATL) Virtual Engines 

located at the in Martinsburg, WV and Memphis, TN. 

*Refresh and consolidation of IBM Direct Access Storage Drives (DASD) Acquiring (3) new 

IBM DASD subsystems to replace (6 ) older DASD subsystems to reduce hardware failures and 

delays in tax processing or unplanned outages 

*Coupling Facility Memory upgrade adding 32 GB of memory to each of the two coupling 

facility systems located at the Enterprise Computing Center in Martinsburg, WV. In support of 

Filing Season 2017 to handle more transactions.

*Windows Operating System Upgrades that have upgraded +200 servers and hosted 

applications/services, 

*Retired or refreshed +1200 aged Wintel Servers to save infrastructure costs 

*Reduced the upgrade durations by 22 months 

*The infrastructure can now accept future upgrades with minimal impact

*Decreased downtime and increased resiliency 

*Future proofed to adapt to increase storage needs with minimal costs 

*Increased security posture.

Requirements/ Benefits/ Mandates: 

Legislative mandates, Outstanding audit findings or Material weakness, Presidential 

Directive: No.

Accomplishments and Future Objectives: 

The Mainframes and Servers, Services and Support (MSSS) investment plans to deliver a 

successful filing season through the efficient management and maintenance of infrastructure 

operations. The MSSS investment will accomplish this by ensuring continued support for the 

design, development and deployment of servers, middleware and large systems as well as 

enterprise storage infrastructures, including software products, databases and operating systems 

for these platforms.

Details of Useful Life Period: 

Year the investment began: 1970

End Year of the current planning cycle: 2023

Description of why the investment is not consistent with life cycle model defined in OMB 

Circular A-131.: This investment covers ongoing functionality with no clear retirement date. We 
55

are using a 5 year standard Period of Performance (POP) - Lifecycle not applicable to overall 

investment.

Performance Evaluation and Metrics: 

Metric Description

Performance 

Measurement Category 

Mapping

Measurement 

Condition

Reporting 

Frequency

Unit Of 

Measure

CY 

Target

Latest 

Actual 

Result

Date of Latest 

Actual Result

Percentage of Uptime for the ACS, ICS and IDRS Databases Strategic and Business 

Results Over target Monthly percentage 98.00 100.00 02/01/2018

Percentage of Server Environment Virtualized Strategic and Business 

Results Over target Monthly percentage 62.00 69.50 02/02/2018

Success Rate Percentage for Automated Deployment of 

Infrastructure Component Packages to Production - Using the 

Package Based Promotion Tool

Strategic and Business 

Results Over target Monthly percentage 95.00 80.65 02/02/2018

Number of Standard Employee IDs with Elevated Access are 

Reduced Financial Performance Under target Quarterly Number 3000.00 669.00 02/02/2018

The percent (%) of the KISAM P1/P2 tickets assigned to the 

ITOCC for Server, Mainframe and Network branch triaged and 

resolved.

Customer Satisfaction

(Results) Over target Monthly Percentage 70.00 64.90 02/02/2018

Investment Name: IRS Telecommunications Systems and Support (TSS)

Type of Investment: Major IT Investment

Description:

The TSS investment supports the voice and data network infrastructure services, video services 

and engineering throughout the IRS.

Investment Anticipated Outlay: (In Millions of $): 

Type

2016 and 

Prior 

Actual

2017

Actual

2018

Enacted

2019

Estimated

2020

Estimated

2021

Estimated

2022

Estimated

2023 and 

Beyond 

Estimated Total

Sub-Total DME 

(Including 

Internal labor 

(Govt. FTE) 

Costs)

9.35 12.12 6.19 13.76 13.93 14.10 69.44

Sub-Total O&M 

Costs (Including 

Internal Labor 

(Govt. FTE) 

Costs)

1905.50 322.78 325.32 360.59 338.56 344.63 350.82 357.12 4305.31

Total Costs 1914.85 334.90 331.51 374.35 352.48 358.73 350.82 357.12 4374.75

Number of FTE 1972.02 429.12 425.29 438.29 438.29 438.29 438.29 438.29 5017.88

Summary of Purpose, Goals, and Benefits: 

The TSS investment supports the IRS's broad and local network infrastructure services such as 

WANs, LANs, routers, switches, video conference service, enterprise fax service, and voice 

service for IRS employees at approximately 577 IRS locations.
56

The goal of the investment is to provide the IRS with reliable, secure, innovative, cost-effective 

technology and services that enable robust communication, collaboration and business 

capabilities in support of the IRS mission.

The investment provides operations & maintenance support and projects which provide remote 

access, voice telephony, voicemail, contact center support and video conferencing. The 

investment is responsible for secure management of voice and data networks, video services and 

engineering throughout the IRS and in remote locations in support of the IRS mission. The 

investment continues to implement enterprise wide analytics and research capabilities to ensure 

that timely and informed decisions/strategies are made which will allow for delivery of 

exceptional performance and service by meeting or exceeding industry performance standards. 

TSS invests in innovative, secure technology needed to protect taxpayer data and support 

taxpayer, partner and IRS business needs. The investment realizes operational efficiencies and 

effectively manages costs by improving enterprise-wide resource allocation and streamlining 

processes. TSS continues delivery of services and products to IRS employees which translates 

into service to taxpayers. Consistent and well-coordinated planning throughout the investment 

results in improved customer service that leads to higher quality, improved system stability, and 

reliability for all stakeholders.

Requirements/ Benefits/ Mandates: 

Legislative mandates, Outstanding audit findings or Material weakness, Presidential 

Directive: GAO-17-395 Regularly update configuration standards and guidelines for network 

devices to incorporate recommendations from industry leaders, security agencies, and key 

practices from IRS partners to address known vulnerabilities applicable to IRS's environment. 

Corrective action: The User and Network Services organization enhanced the existing process 

and continue efforts to ensure the GSS-1 inventory of information system components are 

appropriately maintained. Implementation date April 15, 2018. 

* Using Guidelines Standards and Procedures (GSP) Compliance (Network Rules) - which 

measures the percentage of network rules that meet GSP standards. 

* Using GSP Compliance (Network Devices) - which measures the percentage of network 

devices that meet GSP standards.

Accomplishments and Future Objectives: 

Accomplishments:

* Providing a world class VoIP and video solution to the enterprise. This is an all in one solution 

that combines multiple phone related services such as voice, chat, fax, video and web 

conferencing onto a common converged network

* Partnering with IRS Cybersecurity to ensure the highest level of user network data security by 

safeguarding our internal network using the latest technology diagnostic tools and technologies 

(i.e., Einstein 3A, ForeScout, Cisco Identity Services Engine) 

* Providing user workstation data security by delivering security tools to ensure that workstation 

environment is scanned and weaknesses mitigated, permitting encryption capabilities and 

enhancing zero-day activities for rapid response to high vulnerabilities events
57

* Strengthening and Modernizing our data center network infrastructure by:

o Ensuring all devices are capable of supporting application centric software defined networking

o Ensuring standardization at Enterprise Computing Center -Martinsburg and Enterprise 

Computing Center - Memphis (Engineering)

* Modernizing our capability to assist taxpayers on the phone by improving technology 

infrastructure and security by 

o Maintaining call center capabilities

o Conducting an Infrastructure Upgrade Project (Endpoint Replacement) to replace the Aspect 

Automated Call Distributors with an IP-based endpoint

Enhancing and maintaining users telework experience by facilitating a secure connection to the 

IRS Virtual Private network while working remotely utilizing Enterprise Remote Access Project, 

using Cisco AnyConnect

Future Accomplishments:

* Implement Application Centric Software Defined Networking at the Enterprise Computing 

Center data centers

* Provide secure and robust network connectivity for off-premise Cloud initiatives (Engineering)

* Implement Enterprise Infrastructure Solutions (EIS) as the Treasury Networx re-compete 

acquisition vehicle for Treasury Wide network managed services

* Continue External e-Learning & Collaboration to allow the IRS workforce to connect securely 

to external partners

* Continue Refreshment of Automated Call Distributors (ACDs) endpoints by Infrastructure 

Upgrade Project- Endpoint Replacement

* Continue Unified Access & Network Segmentation to implement a (TrustSec) solution to a 

2012 Chief Technology Officer (CTO) Cyber Penetration Finding. 

* Integrate Unified Communications across multiple user environments/clients (Windows, 

virtual, Cloud, mobile).

Details of Useful Life Period: 

Year the investment began: 2001

End Year of the current planning cycle: 2024

Description of why the investment is not consistent with life cycle model defined in OMB 

Circular A-131.: This investment covers ongoing functionality with no clear retirement date. We 

are using 5 year standard Period of Performance (POP) - Lifecycle not applicable to overall 

investment.

Performance Evaluation and Metrics: 

Metric Description

Performance 

Measurement Category 

Mapping

Measurement 

Condition

Reporting 

Frequency

Unit Of 

Measure

CY 

Target

Latest 

Actual 

Result

Date of Latest 

Actual Result

GSP Compliance (Network Devices) - measures the percentage 

of network devices that meet GSP (Guidelines Standards and 

Procedures) standards

Strategic and Business 

Results Over target Monthly Percentage 95.00 98.13 01/31/2018

WAN Availability - measures the percentage of availability of 

Wide Area Network (WAN) Services

Customer Satisfaction 

(Results) Over target Monthly Percentage 99.95 99.98 01/31/2018

LAN Availability - measures the percentage of availability of 

Local Area Network (LAN) Services

Strategic and Business 

Results Over target Monthly Percentage 99.95 99.98 01/31/2018

Internet Access Availability - measures the percentage of 

internet availability through the three CCGs (Common 

Communication Gateways)

Customer Satisfaction 

(Results) Over target Monthly Percentage 99.80 100.00 01/31/2018

GSP Compliance (Network Rules) - measures the percentage of 

network rules that meet GSP (Guidelines Standards and 

Strategic and Business 

Results Over target Monthly Percentage 95.00 99.98 01/31/2018
58

Procedures) standards