Internal Revenue Service

FY 2018

Capital Investment Plan
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 what 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 in this 

document.

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 IRS 

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

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

Type 2015 and 

Prior 

Actual

2016 

Actual

2017 

Enacted

2018 

Estimated

2019 

Estimated

2020 

Estimated

2021 

Estimated

2022 and 

Beyond 

Estimated

Total

DME Costs 23.27 0.00 0.00 0.00 0.00 0.00 N/A N/A 23.27

O&M Costs 112.09 17.21 16.46 16.80 16.80 16.80 N/A N/A 196.16

Total Costs 135.36 17.21 16.46 16.80 16.80 16.80 N/A N/A 219.43

Number of 

FTE 653.40 83.21 79.30 79.30 79.30 79.30 N/A N/A 1053.81

Summary of Purpose, Goals, and Benefits: 

Account Management Services (AMS) is a program that delivers improved customer support for 

managing taxpayer accounts by leveraging existing IRS applications. In 2006, 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 interfaces to multiple systems for employees at 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. It also 

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

actions.

AMS supports Goal 3 of the strategic goals Treasury set forth for fiscal years 2014-2017: Fairly 

and effectively reform and modernize federal financial management, accounting, and tax 

systems; Strategic Objective 3.3: Pursue tax reform, implement the Patient Protection and 

Affordable Care Act and Foreign Account Tax Compliance Act, and improve the execution of 

the tax code.

Return on Investment: 

The Account Management Services (AMS) application provides a variety of research and case 

management tools for approximately 37,500 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. IRS customer service representatives (CSRs) utilized 

AMS while answering over 5.13 million taxpayer phone calls from Oct 1, 2015 - Jan 31, 2016. 

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. Further, from 1,629,000 documents were scanned into the AMS system during from 

Oct 1, 2015 - Jan 31, 2016 providing employees with electronic copies of taxpayer 

correspondence. AMS created 3,126,243 CIS cases and users closed 3,092,127 CIS cases during 

this period.

IRS has begun work to identify other legacy systems for possible retirement within the next 5 

years; these systems include those associated with case types Pre-Refund, Examinations, and 

Collections. 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. 

Requirements/ Benefits/ Mandates: 

Legislative Mandate: N/A

Audit Finding or Material Weakness: N/A

Agency Strategic Plan / Annual Performance Plan: Treasury Strategic Plan 2014-2017 Goal 3: 

Fairly and effectively reform and modernize federal financial management, accounting, and tax 

systems: Strategic Objective 3.3 - Pursue tax reform, implement the Affordable Care Act and 

Foreign Account Tax Compliance Act, and improve the execution of the tax code. AMS provides 

IRS employees the ability to access and update taxpayer accounts quickly and accurately on 

demand, providing data presentation services to display and validate changes/updates for 

taxpayer accounts, and making case information readily available for decision making and 

reporting. AMS 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 accountrelated functions required for customer service and compliance.

Presidential Priority: N/A

Other Requirement: N/A
Accomplishments and Future Objectives: 

(PY) 2016

- The project delivered Health Coverage Tax Credit (HCTC) in support of Filing Season 2016. In 

November 2015, AMS Imaging implemented multiple HCTC changes related to the HCTC 

Category Code. The changes were to remove HCTC logic on IMF document types, IMF 

Carrybacks, and at the same time add new HCTC logic related to 1040X amended returns, IMF 

Correspondence and 4442 document types. 

- The Filing Season 2016 release, including ACA 7.0 functionality, completed Systems 

Acceptability Test (SAT) and User Acceptance Test (UAT) and was deployed to Production 

timely. 

- Lifecycle activities for the AMS 2016 Midyear release started on time. Maintenance support to 

keep the investment functioning as designed is ongoing.

FY 2017 Current Year

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

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

product software upgrades.

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

record.

BY 2018 

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

- 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: 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. 

IRS uses the 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

Accuracy of 

adjustments and 

responses to Taxpayer 

Correspondence. 

Percent of adjustments 

to taxpayer accounts 

and answers to 

taxpayer issues 

provided by 

correspondence units 

which are accurate.

Customer 

Satisfaction 

(Results)

Over target Monthly percent 89.00 88.00 04/07/2017

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 up-time that 

the application is 

available to IRS 

employees. This 

technical measure 

considers the 

application servers and 

the infrastructure 

components of the 

AMS Core 

Application.

Strategic and 

Business 

Results

Over target Monthly percent 96.00 95.30 04/07/2017

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 

Strategic and 

Business 

Results

Over target Monthly Percentage 96.00 100.00 03/08/2017
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.

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 99.00 04/07/2017

The projects’ actual 

costs will not exceed 

the budget allocation 

in each quarter.

Financial 

Performance Under target Quarterly Percentage. 0.00 0.00 12/31/2016
Investment Name: Affordable Care Act 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 2015 and 

Prior 

Actual

2016 

Actual

2017 

Enacted

2018 

Estimated

2019 

Estimated

2020 

Estimated

2021 

Estimated

2022 and 

Beyond 

Estimated

Total

DME Costs 1228.77 142.52 32.88 0.00 0.00 0.00 N/A N/A 1404.17

O&M Costs 112.42 110.52 203.61 226.06 217.02 208.34 N/A N/A 1077.96

Total Costs 1341.19 253.04 236.48 226.06 217.02 208.34 N/A N/A 2482.13

Number of 

FTE 2469.10 514.01 454.40 387.40 371.90 357.03 N/A N/A 4553.84

Summary of Purpose, Goals, and Benefits: 

The Affordable Care Act (ACA) Administration investment encompasses the planning, 

development, and implementation of IT systems needed to support IRS tax administration 

responsibilities associated with key provisions of the ACA legislation. The work is organized 

into releases that deploy functionality to meet key legislative dates. Each release encompasses 

multiple projects that need to be delivered at a specific point in time.

ACA 1.0 through 7.0, already in production, includes the design and deployment of new 

systems, along with changes to existing IRS IT infrastructure. These releases support 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 ACA Information Returns 1094/1095 A/B/Cs.

Current work focuses on ACA 7.1 which will provide expanded post-filing compliance of 

Applicable Large Employers (ALEs) who have failed to offer coverage to full time employees. 

To ensure consistent treatment of taxpayers for these compliance activities, this release will 

develop a new enterprise common service to perform data reconciliation and perfection activities 

of the ACA Information Returns.
Return on Investment: 

This investment allows the IRS to fulfill its responsibilities under the ACA legislation. However, 

there are many internal and external benefits of the program. IRS has the ability to verify 

household income and family size to support calculation of Premium Tax Credit (PTC); the 

ability for individuals and preparers to estimate potential penalties for non-coverage; a single, 

consistent source for all ACA-related data; 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 Mandate: The work of the IRS IT ACA Program Management Office (ACA PMO) 

addresses specific legislative mandates in ACA.

Audit Finding or Material Weakness: N/A

Agency Strategic Plan / Annual Performance Plan: IRS supports the Department of Treasury 

Strategic Goal #3: Fairly and effectively reform and modernize federal financial management, 

accounting, and tax systems. One of the strategic objectives of this goal centers on the 

implementation of the ACA. Strategies to carry out this objective include developing and 

publishing guidance on ACA tax provisions, including tax credits, revenue provisions, and 

market reforms; strengthening refund fraud prevention through advancements in automation and 

providing prompt assistance to support victims of identity theft; strengthening partnerships with 

tax practitioners, tax preparers, and other third parties to ensure effective tax administration; and 

providing taxpayers with targeted, timely guidance and outreach.

Presidential Priority: N/A

Other Requirement: N/A

Accomplishments and Future Objectives: 

For the Prior Year (FY 2016), 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 expands 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 2017), ACA will continue to focus on Release 7.1.

For FY 2018 and beyond IRS will continue to support the operations of ACA 1.0 through 7.1, 
already in production, along with maintenance and enhancements to existing IRS IT 

infrastructure. In addition, the IRS will integrate ACA-related post-filing compliance case 

management for examination, audit, collections, and appeals.

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. 

IRS uses 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

Percent of successful 

transactions.

Strategic and 

Business 

Results

Over target Monthly Percentage 95.00 98.99 02/28/2017

Response Time 

Performance -

Average Response 

Time in Seconds.

Customer 

Satisfaction 

(Results)

Under target Monthly Seconds 5.00 0.31 02/28/2017

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 02/28/2017

Branded Prescription 

Drug Fee - Statutory 

"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 99.99 02/28/2017

Annual Overall Cost 

Variance

Financial 

Performance Under target Annual Percentage 5.00 -13.96 09/30/2016
Investment Name: Customer Account Data Engine 2 (CADE 2)

Type of Investment: Major IT Investment

Description:

The Customer Account Data Engine (CADE 2) Program's purpose is to implement a single, datacentric 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

2015 

and 

Prior 

Actual

2016 

Actual

2017 

Enacted

2018 

Estimated

2019 

Estimated

2020 

Estimated

2021 

Estimated

2022 and 

Beyond 

Estimated

Total

DME Costs 916.32 176.63 121.85 30.00 30.51 31.04 31.57 32.11 1370.02

O&M Costs 16.08 5.99 13.08 13.35 13.49 13.64 13.79 13.94 103.35

Total Costs 932.39 182.61 134.93 43.35 44.01 44.68 45.36 46.05 1473.37

Number of 

FTE 1609.95 175.83 223.50 123.41 123.41 123.41 123.41 123.41 2626.33

Summary of Purpose, Goals, and Benefits: 

CADE 2 was chartered in 2009 to enable the IRS business to provide 21st century technology 

and digital services to the taxpayer and more timely compliance. This data-centric solution is 

critical for the IRS to achieve its Strategic Goals. The CADE 2 solution is an authoritative 

database for individual taxpayer data that will transform the way the IRS approaches tax 

administration into the future. 

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 

opinion; and 4) improve the IRS' 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 took a major leap forward from a technology standpoint, accelerating the 

returns processing cycle from weekly to daily, and moving the management of individual 

taxpayer account data from 1960s sequential flat-files stored on magnetic tapes to state-of-the-art 

database technology. This is 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 

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 current schedule for TS 

2 has multiple releases over the next three years with the final release slated to begin in January 

2019.

Return on Investment: 

Through CADE 2, the IRS is modernizing its tax processing capabilities so they are more in line 

with industry standards. As IRS' data-centric foundation, CADE 2 will enable better 

management of taxpayer dollars, tracking of taxpayer relationships and storage and reporting of 

accurate account balances. This Return on Investment is being realized incrementally as each 

piece of functionality within the transition states is deployed. CADE 2 will bring about many 

expected benefits for Taxpayers and the IRS, many of which are already being realized. As of 

July 2016, CADE 2 posted 145 million returns and issued more than 111 million refunds totaling 

$304 billion. CADE 2 also enabled those refunds to be issued more rapidly. Since the conclusion 

of Transition State 1, daily processing of data has allowed for more efficient taxpayer issue 

resolution by making data available to IRS Customer Service Representatives faster and allowing 

taxpayers to address issues faster. Additional taxpayer benefits include: reduced compliance 

burden by enabling increased web-based self-service tools over time to provide taxpayers realtime access to up-to-date 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' ability to analyze, research, and respond to fraud and identity theft.

CADE 2 will benefit the IRS by enabling increased agility in 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 have 

never before been possible. CADE 2 will yield fiduciary benefits by enabling the IRS to address 

the Unpaid Assessments FMW for individual taxpayers, demonstrate compliance with Federal 

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

establish a data-centric foundation to better manage more than $3 trillion in revenue.

Requirements/ Benefits/ Mandates: 

Legislative Mandate: N/A

Audit Finding or Material Weakness: TIGTA Audit (201010022) to address an unpaid 

assessments material weakness. As part of Transition State 2, the IRS will transition its core 

taxpayer account processing applications to leverage the benefits of the new CADE 2 relational 

database. Upon completion of TS2, CADE 2 will become the authoritative source for individual 

taxpayer account data for the IRS, providing the processing platform to mitigate the IRS's longstanding Unpaid Assessments FMW and ensuring long-term viability of IRS tax processing 

systems.

Agency Strategic Plan / Annual Performance Plan: This investment supports Treasury 

Strategic Goal 3: Fairly and effectively reform and modernize federal financial management, 

accounting, and tax systems; Objective 3.3 Pursue tax reform, implement the Patient Protection, 
Affordable Care Act, Foreign Account Tax Compliance Act, and improve the execution of the 

tax code.

Presidential Priority: N/A

Other Requirement: N/A

Accomplishments and Future Objectives: 

The CADE 2 database now retains expanded history starting from FS2015 for approximately two 

billion taxpayer records. The program is currently moving dozens of financial reports and data

feeds from the IMF to the CADE 2 database. In addition, the program recently launched the 

Operational Data Store (ODS), which makes historical and up-to-date taxpayer data more readily 

available. The program also continued efforts to improve penalty and interest calculation 

consistency and accuracy, resulting in the Government Accountability Office (GAO) identifying 

no projectable errors during the penalty and interest audit for FY 2016. 

IRS has several projects underway in FY 2017. Feed to Integrated Production Model Phase 2 

will enhance CADE 2 to IPM interface and data model to update the CADE 2 Operational Data 

Store (ODS) on a daily basis, improve performance, and enable additional reporting capabilities. 

The Data Services Framework (DSF) is a set of sharable and reusable IRS-developed common 

services used to perform data selection, transformation, and output generation. DSF establishes 

the framework to provide the CADE 2 data to downstream systems in legacy and modernized 

data. During FY 2018 and beyond, CADE 2 will calculate, store, and leverage enhanced 

financial information to improve IRS Unpaid Assessment Financial Reporting and address the 

Unpaid Assessment FMW. The core tax processing business logic that post taxpayer transactions 

and settle taxpayer accounts utilizing 1960s technology will be retired and replaced with 21st 

century state-of-the-art Java applications. The CFO Critical Reports project will enable financial 

and legal interfaces currently reliant on IMF data provided by the 701 program to instead 

leverage data provided by the CADE 2 database. The Feed to Integrated Data Retrieval System 

(IDRS) will establish two interfaces between CADE 2 and IDRS, the first creating the daily 

taxpayer information file extract to IDRS and the second supporting the master file 

requests/response interface to send individual taxpayer accounts to IDRS. The Refunds Project 

will establish 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, thus allowing CADE 2 data to 

be used for refund generation.

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. 

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 95.34 100.00 03/30/2017

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 98.00 100.00 03/30/2017

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 98.00 100.00 03/30/2017

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 03/30/2017
Investment Name: e-A3 (Authentication, Authorization, Access)

Type of Investment: Major IT Investment

Description:

eA3 provides Secure Access to IRS Web based applications and data. eA3 is a new program that 

combines the eAuth (in Production), eAuth (in design phase), and eAccess (in conceptual phase) 

projects. Will manage secure access, application and data.

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

Type 2015 and 

Prior 

Actual

2016 

Actual

2017 

Enacted

2018 

Estimated

2019 

Estimated

2020 

Estimated

2021 

Estimated

2022 and 

Beyond 

Estimated

Total

DME Costs 0.00 0.86 7.22 13.00 13.15 13.30 13.45 13.60 74.56

O&M Costs 0.00 0.03 0.97 0.99 1.00 1.02 1.03 1.05 6.10

Total Costs 0.00 0.89 8.19 13.99 14.15 14.32 14.48 14.65 80.66

Number of 

FTE 0.00 0.91 7.34 7.34 7.34 7.34 7.34 7.34 44.95

Summary of Purpose, Goals, and Benefits: 

The IRS has been increasing using the Internet as a channel to provide services to the taxpayers 

and other stakeholder entities. The IRS requires that these services be delivered in such a manner 

that security and privacy risk is minimized. The primary objective of eA3 is to manages the risk 

of Identity Theft, fraudulent activity, and improper use of IRS information by enhancing 

detection and remediation capabilities within the IT Security environment. A key component of 

security and privacy risk is the manner in which individual users identify (proof) themselves to 

the system, how they subsequently re-authenticate and access the system. The eA3 Program 

consists of three projects, eAuthentication (in production), eAccess (in planning) and 

eAuthorization (in planning).

eAuthentication created one authentication system that all IRS applications can use, eAccess will 

manage and control the ways in which entities are granted or denied access to the resources of 

the IRS and verifies if they are authorized to perform a specific action within the system. 

eAuthorization will provide a mechanism for IRS systems to determine which role a user has and 

which applications they are allowed access to.

Return on Investment: 

eA3 provides a shared Enterprise Service/platform that can be used by new and existing, internal 

and external applications to provide both coarse grain (role based) and fine grain (attribute 

based) authorization to users and services. 

Internal Benefits:

Standardizes authentication and authorization patterns across an Enterprise shared infrastructure

Reduces the cost because separate authentication systems no longer have to be developed for 

each application
Reduces overall maintenance cost of infrastructure through development and use of Common 

Services and APIs

eA3 does not develop application requirements, however testing with applications will take place 

as they integrate 

External Benefits:

eA3 provides Identify Proofing services to Taxpayers and entities that wish to access their IRS 

information.

Confirms that the individual requesting access is who they say they are, thereby protecting 

taxpayer's information and privacy.

Reduces cost of operations and maintenance of the IRS by facilitating online services, which will 

help shift from more costly channels to less expensive self-service ones.

Improve customer experience by standardizing access to IRS applications and enabling more 

taxpayers to use online applications, such as Online Account, Taxpayer Digital Communications 

and IRS2Go mobile registration.

Decrease fraud and tax-related crimes.

Requirements/ Benefits/ Mandates: 

Legislative Mandate: N/A

Audit Finding or Material Weakness: Improved Tax Return Filing and Tax Account Access 

Authentication Processes and Procedures are needed, Audit Finding #20152000

Agency Strategic Plan / Annual Performance Plan: Service - Deliver high quality and timely 

service to reduce taxpayer burden and encourage voluntary compliance.

Enforcement - Effectively enforce the law to ensure compliance with tax responsibilities and 

combat fraud.

Presidential Priority: N/A

Other Requirement: N/A

Accomplishments and Future Objectives: 

eAuth Release 1 (R1) was deployed in production in August 2012 as an enterprise identity 

proofing/authentication framework service with a high-quality customer experience. The IRS 

procured the Commercial-Off-The-Shelf (COTS) product CA Technologies (CA)-

SiteMinder(SM) / IdentityManager (IDM) suite for this purpose. This COTS product suite 

enables IRS applications to authenticate (ID proof and credential) individual taxpayers in a 

secure manner consistent with National Institute of Standards and Technology (NIST) Special 

Publication (SP) 800-63 assurance levels 2 and 3. Additional releases were: R2 which included 

enhancements to include Out of Wallet verification and protected the initial releases of 

GetTranscripts Online and IPPIN in January 2014. R2.1 included infrastructure stability 

improvements, improved validation and Spanish support. R2.2 allowed 3rd party vendors, 

expanded the capacity to meet business volume, security enhancements and added Online 

Payment Agreement. R2.3 included more business volume capacity and security and fraud 

prevention enhancements. 

In 2016 the project transitioned to Application Development where it adopted an agile 

development and implementation approach. Builds in 2016 added phone verification, second 
factor SMS tokens, fraud analysis, protection for Federation, ePostcard, Online Account, 

FATCA QI and Taxpayer Digital Communications, as well as the relaunch of GetTranscripts 

with a higher level of security. 

Future Objectives are: Improving the security and capacity of the enterprise authentication 

framework. Protecting additional applications, including eServices, ModIEIN, Federal 

Investigative Service (FIS) and Online Account products. Provide the suite of discrete 

authentication schemes and their associated workflows that will help deliver full compliance 

with NIST SP 800.63 Levels 1, 2 and 3 levels of assurance. Generate repeatable integration 

templates for the common components framework so that the component framework can be 

utilized across IRS Internet applications where needed with minimum of development cycles. 

Perform planning and design on eAccess. eAccess works integrally with eAuth to execute the 

delivery of data and services through specified and authoritative sources. Perform planning and 

design on eAuthorization. eAuthorization is the function of specifying access rights to resources 

related to information security and computer security in general and to access control.

Details of Useful Life Period: 

Year the investment began: 2012

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. 

The IRS uses a 5-year standard Period of Performance Lifecycle not applicable to overall 

investment.
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 2015 and 

Prior 

Actual

2016 

Actual

2017 

Enacted

2018 

Estimated

2019 

Estimated

2020 

Estimated

2021 

Estimated

2022 and 

Beyond 

Estimated

Total

DME Costs 54.45 0.00 0.00 0.00 0.00 0.00 N/A N/A 54.45

O&M Costs 140.82 9.49 9.99 10.19 10.19 10.19 N/A N/A 190.86

Total Costs 195.27 9.49 9.99 10.19 10.19 10.19 N/A N/A 245.31

Number of 

FTE 438.57 33.36 32.80 32.80 32.80 32.80 N/A N/A 603.13

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, 2015 through September 30, 2016 current IRS IT Business 

Value Chart is as follows:

- e-Services Registration: More than 752,129 individuals registered via the Integrated Enterprise 

Portal (IEP).

- e-file Application: Processed more than 415,989 Electronic Return Originator Applications for 

e-File via the IEP and Enterprise User Portal (EUP).

- TIN Matching: Processed more than 196,888,974 bulk requests and more than 15,797,893 

interactive requests.

- Transcript Delivery System: Processed more than 34,391,759 requests for transcripts via the 

IEP and more than 32,424,204 requests via the EUP

Total estimated operational savings (print/mail/labor costs) in excess of $1,687.1 million for eFile Application, TDS, and address change via the IEP and EUP. 

- TIN Matching uncovered more than $1,213.8 million in potentially unpaid taxes on 1099 

income.
Requirements/ Benefits/ Mandates: 

Legislative Mandate: The Restructuring and Reform Act of 1998 stated that the Internal 

Revenue Service (IRS) should set goals to have a minimum of 80 percent of all Federal tax and 

information returns filed electronically by calendar year (CY) 2007. eServices provides 

capabilities for the IRS to manage the process of registering and adjudicating third parties to file 

electronically federal tax returns and federal tax and ACA information returns.

Audit Finding or Material Weakness: N/A

Agency Strategic Plan / Annual Performance Plan: The Treasury Strategic Plan 2014-2017: 

Goal 3: Fairly and effectively reform and modernize federal financial management, accounting, 

and tax systems. Strategic Objective 3.3 - Pursue tax reform, implement the Patient Protection 

and Affordable Care Act and Foreign Account Tax Compliance Act, and improve the execution 

of the tax code. eServices will support the IRS Strategic Goal of pursuing comprehensive tax and 

fiscal reform along with increasing voluntary tax compliance by offering electronic services in a 

web-based environment conducting most of the Internal Revenue Service's transactions with 

authorized individuals electronically.

Presidential Priority: N/A

Other Requirement: N/A

Accomplishments and Future Objectives: 

As part of Organization and Business Systems Modernization programs, the Internal Revenue 

Service has reinforced the importance of leveraging the indirect channel of third party 

relationships to meet its strategic goals of service to each taxpayer, service to all taxpayers, and 

productivity. Accomplishments: 2016 Re-engineered the current e-File application into Java; 

2016 Registration to eAuthentication capabilities migration, ESAM 2.0 (suitability for ACA 

Information Returns Registration Applications). Future Objectives: 2017 eFile Application 

capabilities migrated to External Services Authorization Management (ESAM) 3.0 and 

elimination of PeopleSoft from eServices Infrastructure.

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. 

IRS uses 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 10763.60 03/31/2017

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 03/31/2017

Number of 

Priority 2 tickets 

opened and are 

related to 

eServices 

applications.

Strategic and 

Business 

Results

Under target Monthly Number 10.00 0.00 03/31/2017

Number of defect 

transmittals to the 

production 

environment.

Financial 

Performance Under target Monthly Number 3.00 0.00 03/31/2017

Number of TIN 

Matching 

Requests 

processed through 

the TIN Matching 

application

Strategic and 

Business 

Results

Over target Quarterly Number 3500.00 7461.99 03/31/2017
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 2015 and 

Prior 

Actual

2016 

Actual

2017 

Enacted

2018 

Estimated

2019 

Estimated

2020 

Estimated

2021 

Estimated

2022 and 

Beyond 

Estimated

Total

DME Costs 4.13 38.11 46.32 0.00 N/A N/A N/A N/A 88.56

O&M Costs 0.00 0.00 0.00 0.00 N/A N/A N/A N/A

Total Costs 4.13 38.11 46.32 0.00 N/A N/A N/A N/A 88.56

Number of 

FTE 11.08 59.71 92.00 0.00 N/A N/A N/A N/A 162.79

Summary of Purpose, Goals, and Benefits: 

Enterprise Case Management (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. 

Preliminary results from the ECM Summit Series identified legacy systems for possible 

retirement within the next 5 years; these systems include those associated with case types PreRefund, Examinations, and Collections. The ECM program will provide the following benefits: 

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:

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 man hours for reporting due to implementing a common repository

- Integrate across programs

- Increase process and case management efficiencies

- Reduce training needs

- Reduce redundancies through reuse of common services and infrastructure

External Benefits:

- Reduce cost of operations and maintenance of IRS

- 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 Mandate: N/A

Audit Finding or Material Weakness: N/A

Agency Strategic Plan / Annual Performance Plan: ECM will support the higher-level strategic 

goals and objectives of the Department of the Treasury as shown below: 

Goal 3: Fairly and effectively reform and modernize federal financial management, accounting, 

and tax systems 

- 3.2: Improve the disbursement and collection of federal funds and reduce improper payments 

made by the U.S. government

- 3.3: Pursue tax reform, implement the Patient Protection and Affordable Care Act and Foreign 

Account Tax Compliance Act, and improve the execution of the tax code

Goal 5: Create a 21st century approach to government by improving efficiency, effectiveness, 

and customer interaction 

- 5.1: Increase workforce engagement, performance, and diversity by instilling excellence, 

innovation, and inclusion in Treasury's organizational culture and business practices 

- 5.2: Support effective, data-driven decision-making and encourage transparency through 

intelligent gathering, analysis, sharing, use, and dissemination of information.

Presidential Priority: N/A

Other Requirement: N/A
Accomplishments and Future Objectives: 

Focused on continuing development of the ECM Strategic Plan and Road Map in addition to 

standing up and stabilizing ECM Program Management Office (PMO). Detailed activities 

included: performing analysis to incorporate existing efforts (E-Trak, ACA Compliance 

Management, Return Review Program (RRP); Refining Capabilities Definition with IT and the 

Business; Continuing to develop design patterns, and data sources/connectors; Reviewing 

analysis on E-Trak and previous tech demos to identify reusability for ECM; Establishing Multithread approach toward ECM delivery and; Continuing integrated working sessions to establish 

the Road Map. 

ECM Foundational Capabilities - Conducted a series of integrated working sessions to identify 

scope, critical milestones, and dependencies that will inform comprehensive planning; Initiated 

market research study for service-wide case management solutions; Completed assessment of 

COTS product to meet IRS operational requirements.

ECM Correspondence - Completed upgrades and configuration for promoting the technology 

solution from development to testing; Work performed to date satisfies the intent of 

Correspondence as an Early Delivery for letter generation capabilities; Completed close-out 

activities, including a lessons learned report.

ECM Tracking - Completed requirements and development for two administrative tracking tools; 

Paused development of Release 1 in December 2016; final steps for pause activities were 

completed.

ECM Fraud Case Management - Completed Program Increment 2 with no defects outstanding; 

Concluded development work on functionality centered on user profiles and roles over a 12-

week timeframe via six Agile sprints; Evaluated alternatives to deliver ECM Fraud Case 

Management; Made decision to halt development using the current COTS product due to 

technical limitations and initiated efforts to identify new products for ECM.

Future Objectives: Upcoming activities include developing and executing a strategy to conduct 

an ECM COTS product assessment and procure an ECM software solution. There will be a 

collaborative effort to drive the assessment strategy and the product acquisition, with a focus on 

products that will seamlessly integrate into the IRS ecosystem. Efforts will continue to develop

technical requirements and develop a comprehensive plan based on business customer 

assessments on the current case management capabilities.

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. 

IRS uses 5 year standard Period of Performance (POP) - Lifecycle not applicable to overall 

investment.
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 2015 and 

Prior 

Actual

2016 

Actual

2017 

Enacted

2018 

Estimated

2019 

Estimated

2020 

Estimated

2021 

Estimated

2022 and 

Beyond 

Estimated

Total

DME Costs 115.21 54.05 31.55 29.11 29.11 29.11 N/A N/A 288.14

O&M Costs 6.94 10.31 40.46 43.38 43.38 43.38 N/A N/A 187.85

Total Costs 122.15 64.36 72.02 72.49 72.49 72.49 N/A N/A 475.98

Number of 

FTE 283.22 145.51 144.66 144.66 144.66 144.66 N/A N/A 1007.37

Summary of Purpose, Goals, and Benefits: 

The purpose and goal of the Foreign Account Tax Compliance Act (FATCA) is to promote 

disclosure of foreign accounts held by U.S. taxpayers and to integrate this information into 

current IRS compliance activities. To accomplish this goal, 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 will 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 also been working 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 be assembling and transmitting Bank Deposit and Interest 

(BDI) data on accounts held by foreign nationals from U.S. FIs to foreign government Host 

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

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

systems needed to support IRS' tax administration responsibilities in response to FATCA 

provisions. The work is organized into Releases that deploy functionality to meet key legislative 

dates. Major application components fall under the FATCA Program: Financial Institution (FI) 

Registration, International Data Exchange Service (IDES), International Compliance 
Management Model (ICMM), and Withholding and Refund (W&R). Release details are 

explained in further detail below.

Return on Investment: 

Through FATCA implementation initiatives, the IRS will improve international service and 

enforcement practices via specialty audits (program, individual and business); and criminal 

investigations. The FATCA Program Management Office plans, manages, integrates, and 

delivers IT solutions that enable the IRS to meet business responsibilities and legislative 

mandates. Since 2012 the IRS has deployed major releases to ensure Return on Investments. 

Prior to Release 1.0, the agency designed & delivered Form 8938 to capture reporting data from 

individual taxpayers with foreign assets. Release 1.0 & 1.1 focused on the capability to register 

FIs worldwide & create/publish a Participating FI List with a search/download functionality. 

Release 2.0 deployed the International Data Exchange Service (IDES), introducing a secure data 

exchange, allowing FIs & HCTAs to submit FATCA data (via Form 8966 XML); deployed the 

International Compliance Management Model (ICMM) for file ingestion, transcription, & 

storage from IDES; and improved Withholding & Refund (W&R) compliance via updates to 

legacy systems (to receive/process withholding payments & forms). 

Release 2.1 included a Competent Authority Request capability allowing for formal 

communication with HTCAs, 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. In addition, Release 3.0 supported the 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.

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

limited status; updates to existing forms submitted electronically & via paper, for ICMM 

processing; matching & comparison of Withholding Agents' and Recipients' Form 1042-S filings 

& deposits; and refund and reciprocal data available to Model 1 IGAs. 

Release 5.0 is in flight and addresses the following legislative requirements: Reciprocal Data 

Exchanges to include Form 1042S-Withholding Agent changes for TY2015; Application 

submission, renewal, & termination of QI (Qualified Intermediary)/WP (Withholding Foreign 

Partnerships)/WT (Withholding Foreign Trust) Agreements; and Renewal of FI Agreements.

Requirements/ Benefits/ Mandates: 

Legislative Mandate: Public Law 111-147 - The Hiring Incentives to Restore Employment 

(HIRE) Act of 2010 requires that the IRS provide an IT solution to support this mission. FATCA 

will expand coverage of International tax return filings as required by the legislation.

Audit Finding or Material Weakness: N/A

Agency Strategic Plan / Annual Performance Plan: FATCA supports the Treasury Strategic 

Plan, specifically the following goal and objective:

Goal 3: Fairly and effectively reform and modernize federal financial management, accounting, 

and tax systems

Strategic Objective 3.3 Pursue tax reform, implement the Patient Protection and Affordable Care 

Act and Foreign Account Tax Compliance Act, and improve the execution of the tax code
FATCA also supports the IRS Strategic Plan, specifically: 

Strategic Goal I: Deliver high quality and timely service to reduce taxpayer burden and 

encourage voluntary compliance. 

Objective 6: Improve service delivery and support effective tax administration by fostering 

strong relationships with our tax community and government partners.

Strategic Goal II: Effectively enforce the law to ensure compliance with tax responsibilities and 

combat fraud.

Objective 5: Address noncompliance by improving data, information and knowledge sharing 

with tax community and government partners.

Presidential Priority: N/A

Other Requirement: N/A

Accomplishments and Future Objectives: 

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

despite political challenges, regulatory flux, resource constraints, and compressed timelines.

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

worldwide, establishing a streamlined environment to register, ensuring data security; 191,409 

FIs have registered to-date (as of September 20, 2016)

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

the IRS (the GIIN will allow the U.S. and IGA partners to identify FIs with associated filing 

data)

* Deployed FI List, which is electronically searchable/downloadable (e.g., withholding 

agents/external stakeholders will need to confirm the status of an FI for FATCA purposes)

* 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 

Environment Service (IDES) - successfully enabling reporting and the electronic exchange of 

information

* Launched the International Compliance Management Model (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 Intergovernmental Agreements (IGAs) with over 100 governments worldwide, on 

behalf of The Department of Treasury

FATCA's long-term goals will be achieved through the FATCA Program Release Plan, which 

serves as a roadmap to deliver the future scope for upcoming releases. This plan outlines a 

recommended 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. Future releases will focus on 
prioritized Program Capabilities and associated Technical Debt items - be delivered in three 12-

18 month phases - supported by Organizational Readiness strategies.

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. 

IRS uses 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 0.52 03/31/2017

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.

Financial 

Performance Under target Monthly Hours 24.00 3.00 03/01/2017

System 

Availability: 

Percentage of 

scheduled 

system 

availability. To 

Strategic and 

Business 

Results

Over target Monthly Percentage 90.00 100.00 03/31/2017
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'

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 90.00 09/30/2016

Number of 

Form 8966 

"FATCA 

Reports" 

received: This 

helps to measure 

how FATCA's 

implementation 

influences 

taxpayer 

behavior and 

shines light on 

Strategic and 

Business 

Results

Over target Quarterly Number 200000.00 1293680.00 03/31/2017
often previously 

undisclosed 

offshore 

financial 

accounts, aiding 

in treaty-based 

efforts to 

systematically 

identify 

fraudulent or 

erroneous tax 

refunds and 

credit claims
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 2015 and 

Prior 

Actual

2016 

Actual

2017 

Enacted

2018 

Estimated

2019 

Estimated

2020 

Estimated

2021 

Estimated

2022 and 

Beyond 

Estimated

Total

DME Costs 28.97 0.00 0.00 0.00 0.00 0.00 0.00 0.00 28.97

O&M Costs 78.99 14.27 14.29 14.58 14.84 15.10 15.37 14.68 182.12

Total Costs 107.96 14.27 14.29 14.58 14.84 15.10 15.37 14.68 211.09

Number of 

FTE 596.27 63.82 62.40 62.40 62.40 62.40 62.40 62.40 1034.49

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: 

Legislative Mandate: N/A

Audit Finding or Material Weakness: N/A

Agency Strategic Plan / Annual Performance Plan: IMF supports the Treasury Strategic Plan, 

specifically the following goal:

Strategic Objective 3.3 - Pursue tax reform, implement the Patient Protection and Affordable 

Care Act and Foreign Account Tax Compliance Act, and improve the execution of the tax code.

Presidential Priority: N/A

Other Requirement: N/A

Accomplishments and Future Objectives: 

In FY2016 the Individual Master File continued to fill the functional needs of the individual 
taxpayer account processing and to perform Operations & Maintenance for tax law changes. 

- IMF continued interacting with the CADE2 Database Implementation project for technical 

support staff and programmatic modifications; and interacted with the individual compliance 

(i.e., health insurance mandate, FATCA) when it impacted IMF.

- 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. 

IRS uses 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

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

60.00 61.72 02/28/2017

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 

Strategic and 

Business 

Results

Over target Monthly

Percent of 

Refund 

Issued 

Within 40 

Days

94.00 99.60 02/28/2017
month. The results 

report the variance 

against the target, and 

the monthly 

cummulative target is 

reported in the 

comments

Refund Error rate 

with Systemic ErrorsThe 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

3.00 1.80 02/28/2017

IMF completes 

planned processing 

schedule (e.g., daily, 

weekly) to meet 

refund, notice and online access deadlines. 

Measurement 

available on 

Enterprise Operations 

weekly reports.

Strategic and 

Business 

Results

Over target Monthly Percent 95.00 100.00 02/28/2017

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 Monthly Percentage 95.00 100.00 02/28/2017
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 2015 and 

Prior 

Actual

2016 

Actual

2017 

Enacted

2018 

Estimated

2019 

Estimated

2020 

Estimated

2021 

Estimated

2022 and 

Beyond 

Estimated

Total

DME Costs 186.49 10.88 0.02 1.00 1.00 N/A N/A 199.39

O&M Costs 322.64 11.62 11.30 11.58 11.55 11.69 N/A N/A 380.38

Total Costs 509.13 22.50 11.30 11.60 12.55 12.69 N/A N/A 579.77

Number of 

FTE 739.43 44.98 42.90 42.90 48.43 48.43 N/A N/A 967.07

Summary of Purpose, Goals, and Benefits: 

Integrated Customer Communication Environment (ICCE) directly supports the IRS Strategic 

Goal of improving service to make voluntary compliance easier. 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 

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 phone 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 

(FACTA 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: 

Due to the automation of taxpayer services, the government and taxpayers 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 (loadedcost) 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 2017, (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 

the Investment (ROI) for ICCE in FY17 is derived by dividing this number by FY 2017 costs. It 

calculates to the return of 3720 percent.

Requirements/ Benefits/ Mandates: 

Legislative Mandate: N/A

Audit Finding or Material Weakness: N/A

Agency Strategic Plan / Annual Performance Plan: ICCE directly supports the Treasury 

Strategic Goal to Pursue Comprehensive Tax and Fiscal Reform by improving service to 

increase voluntary compliance.

Presidential Priority: N/A

Other Requirement: N/A

Accomplishments and Future Objectives: 

FY16 Accomplishments

- Prioritized and gained approval for Enhancement and Operations & Maintenance Unified Work 
Requests for the application suite;

- Maintained security standards by performing reviews and scans and correcting any findings;

- Corrected application defects in accordance with business rules; 

- Deployed and updated the following ICCE applications:

o Federal Student Aid - Datashare 

o Prefix 81 to be incorporated into Modernized Internet Employer Identification Number 

(Mod IEIN) 

o Contact Center Support Division - User and Network Services (CCSD/UNS) - Teletax 

Tax Topic Retirement CR2015-111

o Online Services - IRS2Go version 5.2.1

o eAuthentication (eAuth) | Automated ICCE ID Proofing data transfer for Fraud and ID 

Theft detection

o Online Services (OLS) - Expand 3rd Party Refund Status Retrieval

o Revision of Computer Paragraph (CP) 575E (MOD-IEIN)

FY 2017 Goals

- Prioritize Enhancement and Operations & Maintenance Unified Work Requests for the 

application suite

- Maintaining security standards by performing reviews and scans and correcting any findings

- Correcting application defects in accordance with business rules

- Deployment and updates to the following ICCE applications:

o Federal Student Aid-Datashare application

o IRS2GO Versions 5.3 and 6.0 For Filing Season 17

o Free Tax Prep (VITA) Locator- Filing Season 2017 Enhancements

o Submission address changes for IRTRC

o The Path Act Refund Freeze

o Identity Theft - IP PIN Application reporting changes

o Identity Theft - IP PIN Application change to functionality

o Identity Theft - IP PIN Application additions to IP PIN criteria

o Affordable Care Act (ACA)-2016-5000A-MFT43-OPA(BMF) Online Payment Agreement -

Business Master File

o Installment Agreement User Fee Update, Increase existing fees, add 3 new fees

o Web Apps / Allow Secondary Filer to establish agreement in OPA

o Web Apps - Online Payment Agreement (OPA) Enhancements

o Deployment of OPA-IMF PreAssessed Account on TIF

o Deployment of Web Apps - Update Centralized Authorization File (CAF) Schema and 

Command Codes

o Deployment of the WMAR - WMX003 Programming Change

o Update the Directory of Federal Tax Return Preparers with Credentials and Select 

Qualifications.

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. 
IRS uses 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 16.00 03/31/2017

Customer 

Satisfaction (IRS.gov 

American Customer 

Satisfaction Index 

(ACSI Score)

Customer 

Satisfaction 

(Results)

Over target Monthly number 52.00 67.00 03/31/2017

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 98.00 100.00 03/31/2017

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 60.00 87.20 03/31/2017

The number of times 

taxpayers access IRS 

web applications to 

request refund status 

and other web 

services. (Internet 

Strategic and 

Business 

Results

Over target Monthly Number (in 

millions) 80.00 298.79 03/31/2017
Refund Fact of Filing 

(IRFOF), Internet 

Employee 

Identification 

Number (IEIN), 

Online Payment 

Agreement (OPA)).

ICCE Health 

Assessment measures 

Cost Variance, the 

difference between 

planned and actual 

costs for ICCE DME 

work.

Financial 

Performance Under target Monthly percentage 10.00 4.40 03/31/2017

The number of times 

the ICCE overall 

schedule slips each 

quarter.

Strategic and 

Business 

Results

Under target Quarterly integer 3.00 0.00 03/31/2017
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 2015 and 

Prior 

Actual

2016 

Actual

2017 

Enacted

2018 

Estimated

2019 

Estimated

2020 

Estimated

2021 

Estimated

2022 and 

Beyond 

Estimated

Total

DME Costs 31.67 0.00 0.00 0.00 0.00 0.00 0.00 0.00 31.67

O&M Costs 201.74 15.83 15.22 15.52 15.99 16.47 16.96 17.47 315.21

Total Costs 233.40 15.83 15.22 15.52 15.99 16.47 16.96 17.47 346.88

Number of 

FTE 1972.92 107.52 97.03 97.03 97.03 97.03 97.03 97.03 2662.62

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 

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 tax legislation (that mandates form creation or 

revision. Without yearly 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 

automatically update the accounting system for stolen refunds. Thus far in FY2016, there are 

155,752 ID theft transactions, crediting victims over $583 million.

Requirements/ Benefits/ Mandates: 

Legislative Mandate: 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 

Government's tax system and subsequent legislation. Each year legislation is enacted that 

impacts the Internal Revenue Code mandating the creation or revision of forms and/or systems 

used to collect and process the mandated information, which in turn requires updates to IDRS. 

Audit Finding or Material Weakness: N/A

Agency Strategic Plan / Annual Performance Plan: The Treasury Strategic Plan for FY 2014-

2017 has one goal and related objective that IDRS supports. Goal 3: Fairly and effectively 

reform and modernize federal financial management, accounting, and tax systems. Objective 3.3: 

Pursue tax reform, implement the Patient Protection and Affordable Care Act and Foreign 

Account Tax Compliance Act, and improve the execution of the tax code. IDRS supports the 
"IRS Strategic Plan 2014- 2017", under "Strategic Foundations: Invest for Organization 

Excellence", Goal One, "Deliver high quality & timely service to reduce taxpayer burden & 

encourage voluntary compliance." Objective one is to "design tailored service approaches with a 

focus on digital customer service to meet taxpayers' needs, preferences & compliance behaviors 

in order to facilitate voluntary compliance".

Presidential Priority: N/A

Other Requirement: 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 FY2016:

- Implemented additional functionality for key ACA provisions: enabling split spousal 

assessments of the individual shared responsibility payment for provision 5000A; also extended 

implementation of Provision 4980H to include maintenance of an Applicable Large Employer 

code originating from new ACA information returns;

- Further improved efforts to fight identity theft including credits to the taxpayer's account to 

restore child support offsets from fraudulent refunds; and,

-Correction of Failure To Pay penalty computation when refundable credit reversals are 

involved.

Current Year FY2017: 

Development for tax law changes and customer requested modernization and enhancement and 

FY2017 Maintenance (for example, incorporate filing season format and validation changes). 

Examples of currently planned changes to IDRS include, but are not limited to, the following:

- ACA: Extend provision 4980H implementation to include assessments of the employer shared 

responsibility payment and collection of the assessment.

- Receive individual master file data from the CADE2 database as the authoritative source for 

IDRS.

- Analysis and design of a new CADE2 TS2 process to extract IDRS specific status, notice 

history, and case management data to update the CADE2 database. This will provide an audit 

trail of case management history and address material weaknesses related to financial 

classification.

Budget Year FY2018:

FY 2018 Development for tax law changes and customer requested modernization and 

enhancement and FY18 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: 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. 
IRS uses 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 

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 92.83 03/31/2017

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 99.83 02/28/2017

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 

Strategic and 

Business 

Results

Over target Monthly

Pct; Usage 

equal to 

avg. typical 

processing 

years

72.20 157.00 03/31/2017
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.

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.

52.20 119.22 03/31/2017

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 

Strategic and 

Business 

Results

Over target Monthly

Pct; Usage 

equal to 

avg. typical 

processing 

years

31.50 29.80 02/28/2017
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.
Investment Name: Integrated Financial System/CORE Financial System (IFS)

Type of Investment: Major IT Investment

Description:

IFS is the IRS' 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 2015 and 

Prior 

Actual

2016 

Actual

2017 

Enacted

2018 

Estimated

2019 

Estimated

2020 

Estimated

2021 

Estimated

2022 and 

Beyond 

Estimated

Total

DME Costs 228.05 9.24 0.86 0.88 0.22 0.92 N/A N/A 240.15

O&M Costs 209.65 9.93 1.97 2.01 10.74 10.74 N/A N/A 245.04

Total Costs 437.70 19.16 2.83 2.89 10.96 11.66 N/A N/A 485.19

Number of 

FTE 121.95 15.06 17.40 17.40 17.67 17.67 N/A N/A 207.15

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 allows 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 Mandate: Federal Financial Management Improvement Act of 1996/OMB Circular 

A-127 prescribes policies and standards for executive departments and agencies to follow when 

managing their financial management systems.

Chief Financial Officers Act of 1990, Sets forth congressional findings with respect to the 
financial management systems of the Federal Government. Requires an audit of each financial 

statement prepared under this Act. 

OMB Circular A-136 Financial Reporting requirements establishes a central point of reference 

for all Federal financial reporting guidance for Executive Branch departments, agencies, and 

entities required to submit audited financial statements, interim financial statements. 

Government Management and Reform Act of 1994 is to improve the efficiency of executive 

branch performance in implementing statutory requirements for reports to Congress and 

committees such as the elimination or consolidation of duplicative or obsolete reporting 

requirements and adjustments.

Audit Finding or Material Weakness: N/A

Agency Strategic Plan / Annual Performance Plan: The Treasury Strategic Plan: Goal 3: Fairly 

and effectively reform and modernize federal financial management, accounting, and tax systems 

--Strategic Objective 3.3 - Pursue tax reform, implement the Patient Protection and Affordable 

Care Act and Foreign Account Tax Compliance Act, and improve the execution of the tax code. 

Treasury's largest bureau, the Internal Revenue Service (IRS), touches every American in its 

efforts to collect taxes fairly and effectively. IRS has a renewed commitment to creating an 

organizational culture where internal controls are consistently reviewed for effectiveness and 

where emerging risks are identified, openly discussed, and swiftly addressed. The IFS goal is to 

Manage the Government's Finances in a Fiscally Responsible Manner by modernizing the IRS' 

core financial system and standardizing our accounting practices and improve our operations and 

processes to generate efficiency savings.

Presidential Priority: N/A

Other Requirement: N/A

Accomplishments and Future Objectives: 

During PY2016, IFS supported a new data interface to support a vendor ï¿1⁄2tax check' for 

procurement to ensure that new awards are not made to vendors with a tax liability. IFS 

completed standard maintenance patches, year-end close, and supported the GAO audit. In 

addition the IFS application enabled the SAP Asset Module (SM) to automate the accounting 

processes for financial reporting of assets, capitalized and expensed amounts, depreciation, 

disposals, other analysis, and reconciliations. Asset categories to be enabled in SAP AM are 

being developed in a phased approach. The IFS application also completed a migration of the 

Informatica, SAP Portal, TWS and Business Warehouse (BW) components from Solaris to 

virtual Linux. During FY2017, IFS completed an ORACLE upgrade for BW, TWS, Informatica 

and Portal to Version 12C. 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 FY2017 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 FY18. 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: 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. 

IRS uses 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 98.60 03/31/2017

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 03/31/2017

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 03/31/2017

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 03/31/2017

Percentage of interface 

failures requiring 

transmition to system

Financial 

Performance Over target Monthly percentage 95.00 100.00 03/31/2017

Timely availability of 

environments for Mocks 

and testing

Customer 

Satisfaction 

(Results)

Over target Quarterly Percentage 100.00 100.00 03/31/2017
Investment Name: Integrated Submission and Remittance Processing System (ISRP)

Type of Investment: Major IT Investment

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 2015 and 

Prior 

Actual

2016 

Actual

2017 

Enacted

2018 

Estimated

2019 

Estimated

2020 

Estimated

2021 

Estimated

2022 and 

Beyond 

Estimated

Total

DME Costs 1.45 0.17 0.00 0.00 0.00 0.00 0.00 0.00 1.62

O&M Costs 162.73 12.82 11.74 11.98 12.14 12.30 12.47 12.64 248.83

Total Costs 164.18 12.99 11.74 11.98 12.14 12.30 12.47 12.64 250.45

Number of 

FTE 130.94 18.13 18.10 18.10 18.10 18.10 18.10 18.10 257.67

Summary of Purpose, Goals, and Benefits: 

The Integrated Submission and Remittance Processing (ISRP) system 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 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. ISRP supports both of these functions by: 

Collecting taxes, duties, and monies paid to and due to the United States and Enforcing Federal 

finance and tax laws.

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 taxpayer requirement. ISRP provides top quality service to taxpayers 

through fair and uniform application of the law.

Requirements/ Benefits/ Mandates: 

Legislative Mandate: N/A

Audit Finding or Material Weakness: N/A
Agency Strategic Plan / Annual Performance Plan: ISRP addresses the U.S. Department 

Treasury Goal 3, Fairly and effectively reform and modernize federal financial management, 

accounting, and tax systems, Objective 3.3, Pursue tax reform, implement the Patient Protection 

and Affordable Care Act (ACA) and Foreign Account Tax Compliance Act (FATCA) improving 

the execution of the tax code.

Presidential Priority: N/A

Other Requirement: N/A

Accomplishments and Future Objectives: 

Investment Accomplishments: 

Developed changes required by tax law. ISRP deployed ACA Changes. ISRP completed the 

deployment of MS Internet Explorer 11 and the associated update to the remittance COTS 

product. Completed the transition to new PRPS Contractor.

Future Objectives:

Deliver Tax Year Changes to keep ISRP up-to-date. ISRP will 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 ACA. 

ISRP will update programs and continue to send FATCA information (Forms 8938, 8966 and 

1042-S (Recipient Copy) to the ICMM system (International Compliance Management Model). 

Begin 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. 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). Consider proposals and options to 

leverage functionality between the ISRP and SCRIPS systems to improve efficiency and 

continue to reduce costs.

Details of Useful Life Period: 

Year the investment began: 1998

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. 

IRS uses 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

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 02/28/2017

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 02/28/2017

System Availability 

(Uptime) - Percent 

of up time hours 

(actual uptime 

hours/planned 

uptime hours).

Financial 

Performance Over target Monthly Percent 99.00 100.00 02/28/2017

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 02/28/2017

Percentage of daily 

ISRP deposits made 

in accordance with 

IRM 3.0.275.

Strategic and 

Business 

Results

Over target Monthly Percent 70.00 93.40 02/28/2017
Investment Name: IRS End User Systems and Services (EUSS)

Type of Investment: Major IT Investment

Description:

The End User Systems and Services (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: ($000,000s): 

Type 2015 and 

Prior 

Actual

2016 

Actual

2017 

Enacted

2018 

Estimated

2019 

Estimated

2020 

Estimated

2021 

Estimated

2022 and 

Beyond 

Estimated

Total

DME Costs 47.03 39.09 42.31 43.20 44.11 45.03 45.98 306.76

O&M Costs 1081.71 190.97 169.47 257.16 260.64 264.17 267.76 271.40 2763.28

Total Costs 1081.71 238.01 208.56 299.47 303.84 308.28 312.79 317.38 3070.05

Number of 

FTE 3243.04 973.18 951.79 984.04 1016.12 1016.12 1016.12 1016.12 10216.53

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 over 84,000 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, 

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 

return on investment. EUSS is constantly integrating new technologies into the infrastructure to 

provide cost benefits and service improvements to the environment.

Requirements/ Benefits/ Mandates: 

Legislative Mandate: N/A

Audit Finding or Material Weakness: N/A

Agency Strategic Plan / Annual Performance Plan: Objective 5 Invest in innovative, secure 

technology needed to protect taxpayer data and support taxpayer, partner and IRS business 

needs.

Other Requirement: N/A

Accomplishments and Future Objectives: 

The investment was able to continue to provide customers with all required hardware, software 

and maintenance support needed. This was accomplished through the efficient management and 

maintenance of infrastructure operations. 

The Investment looks to:

* Continue Operations and Maintenance requirements 

* Expand Wi-Fi access points throughout post of duties to help support a more mobile workforce

* Develop the use of Cloud Computing software as a service to evaluate solutions for common 

services (email, collaboration, etc.) and identify best candidates

* Development of virtualization and cloud based solutions to help change desktop/laptop service 

model

* Windows 10ToGo desktop strategy and leverage virtualization to redefine user experience

* PC on a stick to drive down the demand of laptops and desktops

* Upgrading clients to Win10 and Office Pro Plus.

Details of Useful Life Period: 

Year the investment began: 2002

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. 

IRS uses 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

First Level Resolution 

- Measures the 

percentage of IT 

interactions closed at 

the First Level (i.e. by 

the Enterprise Service 

Desk (ESD)).

Financial 

Performance Over target Monthly Percentage 60.00 60.18 03/31/2017

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 5.67 03/31/2017

USGCB Compliance -

Measures the 

percentage of 

workstations that have 

settings configured 

that are compliant to 

pass baseline security 

scans

Strategic and 

Business 

Results

Over target Monthly Percentage 95.00 99.85 03/31/2017

EUSS Percent on Time 

Priority 3 - measures 

the timeliness of 

resolution against the 

standards contained in 

the Master Service 

Level Agreement 

(MSLA), two business 

days.

Customer 

Satisfaction 

(Results)

Over target Monthly Percentage 90.00 98.47 03/31/2017

Call Handle Time -

measures the average 

amount of time it takes 

a Customer Service 

Representative to 

complete a service call

Strategic and 

Business 

Results

Under target Monthly Minutes 25.00 19.88 03/31/2017
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: ($000,000s): 

Type 2015 and

Prior 

Actual

2016 

Actual

2017 

Enacted

2018 

Estimated

2019 

Estimated

2020 

Estimated

2021 

Estimated

2022 and 

Beyond 

Estimated

Total

DME Costs 43.37 24.77 27.93 39.02 39.84 40.68 41.53 42.41 299.55

O&M Costs 5562.18 474.59 398.66 461.87 468.88 476.02 483.27 490.65 8816.12

Total Costs 5605.56 499.36 426.59 500.89 508.73 516.70 524.80 533.05 8188.20

Number of 

FTE 8388.09 1612.78 1594.83 1583.54 1583.54 1583.54 1583.54 1583.54 19513.40

Summary of Purpose, Goals, and Benefits: 

Provides for the design, development and deployment of server, middleware and large systems 

as well as enterprise storage infrastructures, including systems software products, databases and 

operating systems for these platforms. 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.

Return on Investment: 

Benefits from infrastructure are derived from on-going and improved tax systems usage.

Requirements/ Benefits/ Mandates: 

Legislative Mandate: N/A

Audit Finding or Material Weakness: N/A

Agency Strategic Plan / Annual Performance Plan: Yes. This investment supports the 

Enterprise Operations Strategic Priorities updated June 23rd, 2015. EOps strategic priorities 

ensure focus on the right activities to deliver World Class IT Operations which in turn assists the 

IRS in achieving its goals. EOps Core Mission: Seamless operations support for filing season 

and tax administration. Provide efficient, cost effective, and highly reliable computing (server 

and mainframe) services for all IRS business entities and taxpayers. This investment is supported 

by EOps Priorities 2 - Standardized data centers and data center operations; 3 - Rapid 

provisioning of computing infrastructure for customers; 4 - Common, current, and flexible 

technology infrastructure; 5 - Highly responsive event, incident, and problem management; 6 -

High availability and security.

Presidential Priority: N/A

Other Requirement: N/A
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. 

IRS uses 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 03/30/2017

Percentage of 

Server 

Environment 

Virtualized

Strategic and 

Business 

Results

Over target Monthly percentage 62.00 70.20 04/01/2017

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 99.96 03/30/2017

Number of 

Standard Employee 

IDs with Elevated 

Access are 

Reduced

Financial 

Performance Under target Quarterly Number 3000.00 530.00 11/29/2016

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 80.00 04/02/2017
Investment Name: IRS Telecommunications Systems and Support (TSS)

Type of Investment: Major IT Investment

Description:

The Telecommunications Systems and Support (TSS) investment supports the voice and data 

network infrastructure services, video services and engineering throughout the IRS.

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

Type 2015 and 

Prior 

Actual

2016 

Actual

2017 

Enacted

2018 

Estimated

2019 

Estimated

2020 

Estimated

2021 

Estimated

2022 and 

Beyond 

Estimated

Total

DME Costs 9.35 8.79 8.79 8.98 9.17 9.36 9.55 63.99

O&M Costs 1578.46 327.03 342.61 375.56 380.32 385.14 390.03 394.98 4174.13

Total Costs 1578.46 336.38 351.39 384.35 389.29 394.31 399.39 404.54 4238.12

Number of 

FTE 1493.31 478.71 497.06 553.37 576.93 576.93 576.93 576.93 5330.17

Summary of Purpose, Goals, and Benefits: 

The Telecommunications Systems and Support (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 over 84,000 IRS employees at about 1,000 

IRS locations.

The goal of the investment is to provide the IRS with reliable, secure, innovative, cost-effective 

technology and services that enable 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, 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.

Return on Investment: 

The TSS Investment is an Operation & Maintenance investment so therefore it does not provide 
a return on investment. TSS is constantly upgrading the infrastructure with new technologies 

leading to a more stable, secure, and cost effective environment.

Requirements/ Benefits/ Mandates: 

Legislative Mandate: N/A

Audit Finding or Material Weakness: N/A

Agency Strategic Plan / Annual Performance Plan: Objective 5 Invest in innovative, secure 

technology needed to protect taxpayer data and support taxpayer, partner and IRS business 

needs.

Other Requirement: N/A

Accomplishments and Future Objectives: 

The investment was able to continue to provide customers with all required operation &

maintenance support needed. This was accomplished through the efficient management and 

maintenance of infrastructure operations. 

The Investment looks to:

* Continue to provide Operations and Maintenance requirements 

* Through Network Convergence provide quality video and voice over IP by continuing to move 

all voice, voicemail messaging and video to an IP based transmission capability

* Implement Enterprise Infrastructure Solutions (EIS) as the Treasury TNET re-compete 

acquisition vehicle for Treasury Wide network managed services

* Outbound Virtual Desktop Infrastructure to allow the IRS workforce to connect securely to 

external partners

* Refreshment of Automated Call Distributors (ACDs) endpoints by Infrastructure Upgrade 

Project 

* Unified Access & Network Segmentation rollout

* Leverage new capabilities to support remote workforce and case management

* 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: 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. 

IRS uses 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 95.16 03/31/2017

WAN Availability -

measures the 

percentage of 

availability of Wide 

Area Network 

(WAN) Services

Financial 

Performance Over target Monthly Percentage 99.95 99.98 03/31/2017

LAN Availability -

measures the 

percentage of 

availability of Local 

Area Network 

(LAN) Services

Strategic and 

Business 

Results

Over target Monthly Percentage 99.95 99.97 03/31/2017

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 03/31/2017

GSP Compliance 

(Network Rules) -

measures the 

percentage of 

network rules that 

meet GSP 

(Guidelines 

Standards and 

Procedures) 

standards

Strategic and 

Business 

Results

Over target Monthly Percentage 95.00 99.93 03/31/2017
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 2015 and 

Prior 

Actual

2016 

Actual

2017 

Enacted

2018 

Estimated

2019 

Estimated

2020 

Estimated

2021 

Estimated

2022 and 

Beyond 

Estimated

Total

DME Costs 115.58 20.58 46.89 10.83 25.10 25.10 N/A N/A 244.07

O&M Costs 512.11 55.85 60.47 91.15 62.84 62.84 N/A N/A 845.26

Total Costs 627.69 76.43 107.36 101.98 87.94 87.94 N/A N/A 1089.34

Number of 

FTE 208.15 7.37 14.66 14.66 14.66 14.66 N/A N/A 274.16

Summary of Purpose, Goals, and Benefits: 

The IRS.gov website provides 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. 

Requirements/ Benefits/ Mandates: 

Legislative Mandate: N/A

Audit Finding or Material Weakness: N/A

Agency Strategic Plan / Annual Performance Plan: U.S. Treasury Strategic Plan (FY2014-

2017)

Goal 3: Fairly and effectively reform and modernize federal financial management, accounting, 

and tax systems.

Strategic Objective 3.3 - Pursue tax reform, implement the Patient Protection and Affordable 

Care Act and FACTA, and improve the execution of the tax code

Other Requirement: 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: 

FY 2016 Accomplishment for IEP:

IRS.gov ensured the public had access to IRS information that was current and accurate with 

near real time updates for forms, publications, news items, rules, and articles.

Filing Season updates were implemented by continued planning and technical replacement 

activities for IRS.gov.

FY 2017 Planned Accomplishment for IEP Public User Portal (PUP):

Operations and Maintenance will continue for IRS Web Services Infrastructure so that irs.gov 

provides secure information for the Web portal.

Filing Season 2017 updates will be implemented to ensure accurate tax information for 

taxpayers, tax practitioners, businesses, and electronic return originators

Increase Analytics capacity is a planned accomplishment for irs.gov utilizing web applications 

and Google Analytics.

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. 

IRS uses 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 

system response 

time of search 

queries completed 

in less than 3 

seconds.

Strategic and 

Business 

Results

Over target Monthly Percentage 99.99 99.99 03/31/2017

Percentage of 

system response 

times of User 

requests for 

Website content 

completed less than 

3 seconds.

Strategic and 

Business 

Results

Over target Monthly Percentage 95.00 99.13 03/31/2017

Providing the 

percentage of 

Formal O&M 

deliverables 

submitted timely.

Financial 

Performance Over target Monthly Percentage 90.00 100.00 03/31/2017

Providing a Web 

portal Content 

Management 

System (CMS) that 

allows availablily 

of 99.99% portal 

services to meet 

obligations timely.

Strategic and 

Business 

Results

Over target Monthly Percentage 99.99 100.00 03/31/2017

Providing a public 

facing web Portal 

environment 

availability of 

99.99% that allows 

taxpayers to meet 

their tax 

obligations timely.

Customer 

Satisfaction 

(Results)

Over target Monthly percentage 99.99 100.00 03/31/2017
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 2015 and 

Prior 

Actual

2016 

Actual

2017 

Enacted

2018 

Estimated

2019 

Estimated

2020 

Estimated

2021 

Estimated

2022 and 

Beyond 

Estimated

Total

DME Costs 310.69 17.13 3.51 0.00 0.00 0.00 0.00 0.00 331.33

O&M Costs 177.45 44.02 42.50 43.36 43.95 44.56 45.17 45.79 486.80

Total Costs 488.14 61.14 46.01 43.36 43.95 44.56 45.17 45.79 818.13

Number of 

FTE 641.38 115.95 97.80 74.80 74.80 74.80 74.80 74.80 1229.13

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 

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. 

CY (2017):

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

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 (2018): 

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.

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, 2016 since over 40.5M BMF returns have been accepted this 

translates to a cost savings of $81M. For individual returns the cost savings are $3.13 per return. 

As of December 31,2016 over 140.7M IMF returns have been accepted. The total IMF cost 

savings are $440M. Total cost savings for MeF program are therefore $521M. For FY2016 the

total cost expended for MeF is $61M. As a result the MeF Return on investment is 854%.

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 Mandate: 1. Title II, Section 2001 of the Internal Revenue Service Restructuring and 

Reform Act of 1998 (RRA98) - includes a provision setting a goal of an 80 percent e-file rate for 

all federal tax and information returns. (P.L.105-206)

Audit Finding or Material Weakness: N/A

Agency Strategic Plan / Annual Performance Plan: MeF supports the Treasury Strategic Goal 

of Managing the Government's Finances in a Fiscally Responsible Manner, Objective #2, 

Expand the use of electronic transactions by providing a secure, web platform for electronically 

filing tax and information returns by registered Electronic Return Originators (ERO).

Presidential Priority: N/A

Other Requirement: N/A

Accomplishments and Future Objectives: 

CY (2017):

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

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 (2018): 

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. 

IRS uses 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 03/31/2017

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 03/31/2017

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 03/31/2017

Percent of business 

tax returns processed 

electronically by 

MeF.

Strategic and 

Business 

Results

Over target Monthly percentage 40.00 60.52 03/31/2017

Percent of individual 

tax returns processed 

electronically.

Strategic and 

Business 

Results

Over target Quarterly percentage 80.00 94.34 03/31/2017

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)

18.00 32.00 03/31/2017
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.

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

Type 2015 and 

Prior 

Actual

2016 

Actual

2017 

Enacted

2018 

Estimated

2019 

Estimated

2020 

Estimated

2021 

Estimated

2022 and 

Beyond 

Estimated

Total

DME Costs 181.29 58.81 40.22 51.00 51.63 52.27 52.92 53.57 541.70

O&M Costs 11.32 41.36 44.28 45.18 45.73 46.29 46.86 47.44 328.46

Total Costs 192.61 100.17 84.50 96.18 97.36 98.56 99.78 101.01 870.16

Number of 

FTE 251.65 85.16 85.70 76.70 76.70 76.70 76.70 76.70 806.01

Summary of Purpose, Goals, and Benefits: 

RRP will be the enterprise anomaly detection platform for all anomaly type fraud and 

noncompliance supporting pre and post refund processes. The purpose of RRP is to implement a 

framework that will use leading-edge technologies to advance IRS' effectiveness in detecting, 

addressing, preventing tax refund fraud and protecting revenue. Using the analytics capability 

provided by RRP, the goal is to create predictive fraud and non-compliance detection models, 

which will seek out subtle data patterns to determine reliability of return data. 

In Filing Season 2016, RRP expanded Non-Identity Theft fraud detection by nearly three times 

compared to the legacy fraud detection system Electronic Fraud Detection System (EFDS). RRP 

also detected 64% more Identity Theft at a 31% lower false detection rate compared to the 

EFDS.

RRP is critical for IRS mission success in tackling ever-evolving tax schemes in a sophisticated, 

scalable, and adaptable manner. RRP currently runs individual tax returns through a 

comprehensive set of rules and models to identify potential taxpayer fraud and other 

noncompliance. In the future, RRP will allow the Business Operating Divisions the ability to 

perform analytic self-service to facilitate rapid deployment of new rules and models for noncompliance and emerging fraud schemes. In addition, RRP will perform analytics on business 

returns and improve workload management for the Business Operating Divisions by developing 

rules and models that flag potential cases and dynamically route anomalies/exceptions to 

different treatment streams. This will increase efficiencies to assist in selection and prioritization 

of workload.

RRP will have an expanded role beyond fraud detection in the future. RRP will correlate data 

across multiple data sources. Currently, RRP supports IRS enforcement of international 
compliance with FATCA through its matching and analysis of withholding data reported by 

foreign financial institutions to prevent fraudulent refund requests from being paid.

With increasing fraud sophistication and fraudsters having more information on taxpayers, RRP 

has built models to detect fraud in the most sophisticated cases where the individual Wage and 

Tax statements on the return matched 3rd party data.

Return on Investment: 

Overall in Filing Season 2016, RRP is responsible for identifying over $6.8B in suspicious 

refunds across 845K returns. The actual values for RRP FS2016 are the following: 

444K confirmed fraud returns at $2.5B which is equal to 39% False Detection Rate. This 

includes expanded detection of Non-Identity Theft based schemes. RRP developed and deployed 

Non-Identity Theft Fraud analytics resulting in RRP selecting over 101K suspected cases of 

fraud with refunds totaling $2.3B. RRP developed new analytics which enabled RRP to detect 

over 170K suspected cases of Identity Theft at a false detection rate of only 19% where the 

fraudulent return had significant taxpayer information (beyond Social Security Number (SSN) 

and date of birth). 

Other qualitative benefits both internal and external to the Federal Government that RRP will 

provide are as follows: 

- RRP has resulted in improved tax compliance and revenue protection for the U.S. Department 

of Treasury.

- Pre-refund revenue protection and 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 the IRS and the withholding claimed on taxpayers' returns

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

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

suspicious conditions on returns and react quickly

- Systemic identification of suspected identity theft on tax returns based on entity analytics, 

resulting in greater revenue protection for the Government and reduced impact to the taxpayers 

whose identities were stolen 

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

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

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

view of filer's identity and filing history, enabling systemic detection of new fraud.

Requirements/ Benefits/ Mandates: 

Legislative Mandate: N/A

Audit Finding or Material Weakness: N/A

Agency Strategic Plan / Annual Performance Plan: Agency Strategic Plan:

Goal 3: Fairly and effectively reform and modernize federal financial management, accounting, 

and tax systems.

Objective 3.3: Pursue tax reform, implement the Patient Protection and Affordable Care Act and 

Foreign Account Tax Compliance Act, and improve the execution of the tax code.

Goal 5: Create a 21st century approach to government by improving efficiency, effectiveness, 

and customer interaction.

Objective 5.2: Support effective, data-driven decision-making and encourage transparency 
through intelligent gathering, analysis, sharing, use, and dissemination of information.

Presidential Priority: N/A

Other Requirement: N/A

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 the current 

legacy fraud detection system, Electronic 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 January 2016. RRP RP projects are currently in progress, as 

described below. The RRP is being updated to provide a re-baselined 2017 schedule based on 

increased understanding of scope & complexity of the remaining functionality, & schedule 

alignment with other components needed to retire EFDS.

RRP has recently completed Release Plan projects, Enhancing RRP Analytics (ERA) and 

Reporting and Transactional Processing (RTP). ERA provides increased revenue protection by 

improving the existing Non-Identity Theft (IDT) related anomaly detection for Electronic 

Returns and expanding the system's functionality to provide IDT and Non-IDT related anomaly 

detection for paper returns.

Capabilities introduced with the RTP project increased frequency and reliability of interactions 

with other IRS systems to prevent fraudulent refunds from being issued & minimize manual, 

resource-intensive processes. ERA and RTP improves RRP's ability to detect and send identified 

anomalies for treatment.

RRP completed the Filing Season 2017 project which brings annual improvements to analytical 

rules and models, the ability to process updated tax forms, and additional enhancements. These 

deliveries includes expanded querying for standard reports, expansion of W-2 Verification Code 

Pilot to perform security validation on an estimated 50 million returns, and loading of fraud lead 

data from 3rd party organizations.

Withholding and Refund (W&R) Release (R) 2.0 went live February 2016, enabling the 

aggregation and comparison of Form 1042. Implementation of Denial Letters deployed February 

2017. W&R R4.1 went live June 2016, providing annual tax year updates and performance 

enhancements. Various performance and security enhancements, along with non-critical defect 

fixes found during the June launch, deployed February 2017. Implementation of all new W&R 

functionality is on hold pending a review of business processes and requirements.

RRP's future objectives include providing the remaining EFDS components to retire the anomaly 

detection functionality of EFDS.

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. 
IRS uses 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 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 99.99 03/31/2017

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 50.00 39.00 12/31/2016

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 10.00 78.00 03/31/2017

Total RRP P1 + P2 

Production Tickets 

Opened each Month.

Strategic and 

Business 

Results

Under target Monthly Number 14.00 3.00 03/31/2017

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

14000.00 41029.00 03/31/2017
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 2015 and 

Prior 

Actual

2016 

Actual

2017 

Enacted

2018 

Estimated

2019 

Estimated

2020 

Estimated

2021 

Estimated

2022 and 

Beyond 

Estimated

Total

DME Costs 3.10 0.40 0.00 0.00 0.00 0.00 0.00 0.00 3.50

O&M Costs 174.31 10.61 9.63 9.82 9.94 10.07 10.19 10.32 244.88

Total Costs 177.40 11.01 9.63 9.82 9.94 10.07 10.19 10.32 248.38

Number of 

FTE 109.04 8.04 10.12 10.12 10.12 10.12 10.12 10.12 177.80

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-1s (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 will send 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 63 million tax forms in 2016 and expects to process 
66 million tax forms in 2017. 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 2016, SCRIPS scanned 63.2 million taxpayer documents, and is on track to complete 66

million in 2017. 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 Mandate: N/A

Audit Finding or Material Weakness: N/A

Agency Strategic Plan / Annual Performance Plan: SCRIPS addresses the U.S. Department of 

the Treasury Goal 3, Fairly and effectively reform and modernize federal financial management, 

accounting, and tax systems, Objective 3.3, Pursue tax reform, implement the Patient Protection 

and Affordable Care Act (ACA) and Foreign Account Tax Compliance Act (FATCA), and 

improve the execution of the tax code. SCRIPS also satisfies Treasury Goal 5, Create a 21st 

century approach to government by improving efficiency, effectiveness, and customer 

interaction, Objective 5.3 Promote efficient use of resources through shared services, strategic 

sourcing, streamlined business processes, and accountability when SCRIPS implemented an EA 

compliant system in 2014 that utilizes a Shared Storage platform.

Presidential Priority: N/A

Other Requirement: N/A

Accomplishments and Future Objectives: 

Delivered legislatively mandated Tax Year Changes to keep SCRIPS up-to-date. In FY2017, 

SCRIPS will:

Deliver Tax Year Changes to keep SCRIPS up-to-date.

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

to improve efficiency and reduce costs.

Deploy ACA functionality.

Deploy new Data Perfection Operator workstations.

Details of Useful Life Period: 

Year the investment began: 1991

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. 

IRS uses 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 03/31/2017

Percent of tax 

return image print 

requests fulfilled 

within 2 days.

Customer 

Satisfaction 

(Results)

Over target Monthly percent 95.00 100.00 03/31/2017

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 2.34 03/31/2017

Number of 

Moderate Priority 

(P2) trouble 

tickets not closed 

within 24 hours.

Strategic and 

Business Results Under target Monthly numeric 1.00 0.00 03/31/2017

Number of High 

Priority (P1) 

trouble tickets not 

closed within 4 

hours.

Strategic and 

Business Results Under target Monthly numeric 1.00 0.00 03/31/2017

Average number 

of tax returnrelated documents 

processed per 

hour (for all sites). 

This is a seasonal 

metric.

Strategic and 

Business Results Over target Quarterly numeric 350.00 400.10 03/31/2017
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 2015 and 

Prior 

Actual

2016 

Actual

2017 

Enacted

2018 

Estimated

2019 

Estimated

2020 

Estimated

2021 

Estimated

2022 and 

Beyond 

Estimated

Total

DME Costs 13.22 27.21 29.25 21.28 21.45 21.45 N/A N/A 133.87

O&M Costs 0.00 0.00 0.00 2.72 0.00 0.00 N/A N/A 2.72

Total Costs 13.22 27.21 29.25 24.00 21.45 21.45 N/A N/A 136.59

Number of 

FTE 15.48 35.75 58.00 49.00 36.00 36.00 N/A N/A 230.23

Summary of Purpose, Goals, and Benefits: 

This 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.

The IRS goal is to deliver new digital communication channels and migrate service delivery 

from offline channels to the World Wide Web by implementing Online Account, Advanced 

Mobile projects; developing Authorization services; and expanding the Third Party Application 

Programming Interfaces (API).

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 Mandate: N/A

Audit Finding or Material Weakness: Long-Term Strategy Needed to Improve Interactive 

Services; GAO-13-435: Published: Apr 16, 2013. Publicly Released: Apr 16, 2013.

GAO recommended that IRS develop a long-term strategic plan for its web services. While the 

IRS has already developed a long term strategy on improving web services for taxpayers, we will 

continue to expand the strategy and make improvements as appropriate. This strategy is a living 

document that will evolve as priorities and progress are made over time. Based on the GAO 

recommendations, we will make necessary changes to continue to improve our long term 

strategy.

Agency Strategic Plan / Annual Performance Plan: The IRS' implementation of Web Apps will 

support the strategic goals and objectives of the Department of the Treasury as shown below: 

Goal 3: Fairly and effectively reform and modernize federal financial management, accounting, 

and tax systems 

Strategic Objective 3.2: Improve the disbursement and collection of federal funds and reduce 

improper payments made by the U.S. government

Strategic Objective 3.3: Pursue tax reform, implement the Patient Protection and Affordable Care 

Act and Foreign Account Tax Compliance Act, and improve the execution of the tax code

Goal 5: Create a 21st century approach to government by improving efficiency, effectiveness, 

and customer interaction 

Strategic Objective 5.2: Support effective, data-driven decision-making and encourage 

transparency through intelligent gathering, analysis, sharing, use, and dissemination of 
information

Strategic Objective 5.4: Create a culture of service through relentless pursuit of customer value.

Presidential Priority: N/A

Other Requirement: N/A

Accomplishments and Future Objectives: 

In FY 16, two Online Account (OLA) Federated Delivery Teams (FDTs) were established and 

completed 5 Program Increments, totaling 20 sprints to develop Account Commons and Balance 

Due capabilities for the initial release of OLA. During FY16, WebApps completed the 

acquisition and configuration OLA technical environments including DEV, SAT, PTE and 

PROD. In FY17, Web Applications will provide new taxpayer services by releasing Online 

Account, IRS2Go OLA capabilities for mobile, and an Authorization Framework to support third 

party applications. 

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. 

IRS uses 5 year standard Period of Performance (POP) - Lifecycle not applicable to overall 

investment.