Internal Revenue Service 

FY 2017 

Capital Investment Plan 

 
Table of Contents 

IT INVESTMENTS .................................................................................................................... 3

Account Management Services (AMS) .......................................................................................... 3

Achieving A Better Life Experience (ABLE) ................................................................................ 7

Affordable Care Act Administration .............................................................................................. 9

Customer Account Data Engine 2 (CADE 2) ............................................................................... 12

e-Services (e-SVS) ........................................................................................................................ 16

Electronic Fraud Detection System (EFDS) ................................................................................. 18

Enterprise Case Management (ECM) ........................................................................................... 21

Event Driven Architecture ............................................................................................................ 24

Foreign Account Tax Compliance Act (FATCA) ........................................................................ 27

Health Coverage Tax Credit (HCTC) ........................................................................................... 30

Individual Master File (IMF) ........................................................................................................ 32

Integrated Customer Communication Environment (ICCE) ........................................................ 34

Integrated Data Retrieval System (IDRS) ..................................................................................... 37

Integrated Financial System/CORE Financial System (IFS) ........................................................ 41

Integrated Submission and Remittance Processing System (ISRP) ............................................. 44

IRS End User Systems and Services (EUSS) ............................................................................... 46

IRS Main Frames and Servers Services and Support (MSSS) ..................................................... 49

IRS Telecommunications Systems and Support (TSS) ................................................................ 51

IRS.GOV - Portal Environment .................................................................................................... 54

Modernized e-File (MeF) .............................................................................................................. 56

Return Review Program (RRP) (Previously Implement RRP - Replaces EFDS) ........................ 59

Service Center Recognition/Image Processing System (SCRIPS) ............................................... 62

Web Applications (formerly Online Services (OLS)) .................................................................. 65

NON-IT INVESTMENTS ........................................................................................................ 68

Criminal Investigations Capital Assets ......................................................................................... 68

Leasehold Improvements .............................................................................................................. 69

Security Equipment ....................................................................................................................... 70

 
IT INVESTMENTS

Account Management Services (AMS) 

Type of Investment: Major IT Investment 

Description: 

AMS is a major strategic investment that delivers improved customer service to over 41,000 

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

Investment Anticipated Outlay: (In Millions of $): 

Type PY-1 and Prior PY 

2015

CY 

2016

BY 

2017

BY+1 

2018

BY+2 

2019

BY+3 

2020 BY+4 and Beyond Total 

DME Sub Total (Including Gov FTE) Costs 20.27 3.00 2.99 3.57 3.62 3.68 3.74 3.79 44.66 

Total DME funding 3.00 2.99 3.57 9.56 

Unallocated DME funding 0.00 0.00 0.00 0.00 

O&M Sub Total (Including Gov FTE) Costs 100.08 12.01 11.96 14.27 14.49 14.71 14.94 15.17 197.64 

Total O&M funding 12.01 11.96 14.27 38.24 

Unallocated O&M funding 0.00 0.00 0.00 0.00 

Total Cost (Including Gov FTE) 120.36 15.01 14.95 17.84 18.11 18.39 18.68 18.96 242.31 

Total Gov FTE Cost 73.44 10.48 10.68 10.84 10.98 11.12 11.27 11.41 150.22 

Number of FTE represented by costs 576.83 76.57 71.50 71.50 72.93 74.39 75.88 77.39 1096.98 

Summary of Purpose, Goals, and Benefits: 

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

support for managing taxpayer accounts by leveraging existing Internal Revenue Service (IRS) 

applications. As part of the 2006 Modernization Vision and Strategy process, IRS developed a 

strategy to use, retain, and provide real-time access to account data regardless of location in 

the current processing environment (CPE) or modernized data sources. Using a phased release 

strategy, AMS was able to validate this approach during its initial deployment in October 2007 

using a service-oriented architecture implementation to access both CPE and Customer 

Account Data Engine (CADE). In 2009 the Desktop Integration (DI) system was integrated into 

AMS and the Correspondence Imaging System (CIS) became an inventory within AMS. AMS 

was fully deployed in December 2010 and is now in Operations and Maintenance. 

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

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

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

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

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

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

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

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

and many other taxpayer account-related functions required for customer service and 

compliance. 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. In the toll-free telephone arena, IRS customer service 

representatives (CSRs) utilized AMS while answering over 18.2 million taxpayer phone calls for 

FY2015 (Oct 1, 2014 - July 27, 2015). 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 January 2015- July 2015, there 

were approximately 6,163,569 images scanned into the AMS system providing employees with 

electronic copies of taxpayer correspondences. AMS created 6,798,190 CIS cases and closed 

6,763,948 CIS Cases. 

AMS has several electronic inventories providing IRS business organizations with case 

workflow automation and mobility. The electronic inventories are systemically delivered to all ten 

IRS campuses allowing the IRS to manage taxpayer accounts and to balance employees' 

workload. There were 6,457,086 million electronic cases worked, managed and controlled via 

AMS during the period of January 2015 - July 2015. The ability to work transcripts electronically 

via AMS, rather than via paper is more efficient and provides a means to monitor programs in 

real-time. 

Requirements/ Benefits/ Mandates: 

Legislative Mandate: Patient Protection and Affordable Care Act, Public Law 111-148 (124 

Stat. 119 (2010)), 

AMS will provide support for ACA Account Management Customer Service for individual 

mandates. 

Audit Finding or Material Weakness: N/A 

Agency Strategic Plan / Annual Performance Plan: Goal I in the IRS Strategic Plan 2014-

2017 is to deliver high quality and timely service to reduce taxpayer burden and encourage 

voluntary compliance. Objective 3 states that the IRS will provide timely assistance through a 

seamless, multichannel service environment to encourage taxpayers to meet their tax 

obligations and accurately resolve their issues. 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 account-related functions required for 

customer service and compliance. 

Presidential Priority: N/A 

Other Requirement: N/A 

Accomplishments and Future Objectives: 

Fiscal Year (FY) 2015 

- The project delivered Health Coverage Tax Credit in support of Filing Season 2016. In 
November 2015, AMS Imaging implemented multiple Health Care Tax Credit 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. 

BY 2016 

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

- Deliver modifications to support the Affordable Care Act R 7.0 and 7.1, 

- Maintain investment to keep assets functioning as designed. 

BY 2017 

- 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. 

- Deliver annual modifications in support of the Affordable Care Act (ACA) Premium Tax Credit 

(PTC) and Individual Compliance Coverage (ICC) Calculators. 

- 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: 2022 

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

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

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

investment. 
Performance Evaluation and Metrics: 

Metric Description 

Performance 

Measurement 

Category 

Mapping 

Measurement 

Condition 

Reporting 

Frequency

Unit Of 

Measure 

CY 

Target 

Latest 

Actual 

Result 

Date of 

Latest 

Actual 

Result 

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 89.70 01/31/2016 

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 96.00 100.00 01/31/2016 

AMS Imaging Inventory Application Availability - The AMS Imaging 

Inventory is used by over 8000 users to respond to taxpayer 

correspondence. This measure indicates the percentage of scheduled 

up-time that the application is available to customer service 

representatives. This technical measure considers the availability of 

the application servers, workflow system and content management 

system components of the Imaging Inventory. 

Strategic and 

Business Results Over target Monthly Percentage 96.00 100.00 01/31/2016 

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 96.00 100.00 01/31/2016 

The projects actual costs will not exceed the budget allocation in each 

quarter. 

Financial 

Performance Under target Quarterly Percentage. 0.00 1.00 01/31/2016 

 
Achieving A Better Life Experience (ABLE) 

Type of Investment: Major IT Investment 

Description: 

The IRS will implement the ABLE Act provisions by creating and/or updating the IT systems 

necessary to administer the legislation related to the receipt and processing of the new 

information returns for the new 529 accounts. 

Investment Anticipated Outlay: (In Millions of $): 

Type PY-1 and Prior PY 

2015

CY 

2016

BY 

2017

BY+1 

2018

BY+2 

2019

BY+3 

2020 BY+4 and Beyond Total 

DME Sub Total (Including Gov FTE) Costs 0.00 0.00 30.00 6.00 7.88 7.94 0.00 0.00 51.81 

Total DME funding 0.00 30.00 6.00 36.00 

Unallocated DME funding 0.00 0.00 0.00 0.00 

O&M Sub Total (Including Gov FTE) Costs 0.00 0.00 0.00 0.00 7.88 7.94 8.09 8.24 32.14 

Total O&M funding 0.00 0.00 0.00 0.00 

Unallocated O&M funding 0.00 0.00 0.00 0.00 

Total Cost (Including Gov FTE) 0.00 0.00 30.00 6.00 15.76 15.87 8.09 8.24 83.96 

Total Gov FTE Cost 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 

Number of FTE represented by costs 0.00 0.00 0.00 0.00 0.00 

Summary of Purpose, Goals, and Benefits: 

H.R. 5771 was enacted on December 19, 2014. The creation of the new code section 529A 

(qualified ABLE programs). New Code section 529A (Qualified ABLE Programs), tax-favored 

savings accounts for individuals with disabilities for tax years beginning after December 31, 

2014. The program authorizes States to create an ABLE Program (similar to Code Sec. 529 

college savings programs). Defines the term qualified ABLE program as a program established 

and maintained by a State agency under which a person may make cash contributions to an 

ABLE account to pay for the qualified disability expenses of an eligible individual (the 

designated beneficiary). The ABLE Act 529A project will use the InFlowSuite modernized 

framework environment to process paper and electronic ABLE Act Information Returns (ABLEIR). The InFlowSuite system adopts an event-driven, service-based, and data-centric 

architectural approach to build the new intake platform for ingesting and processing ABLE-IR 

data. 

- ABLE Act 529A Information Returns 

- Form 1099-QA data for Distributions from ABLE Act 529A Accounts 

- Form 5498-QA data for ABLE Act 529A Account Contribution Information 

- Other Supporting / Shared ABLE Act 529A Forms 

- Form 8809 data Application for Extension of Time to File Information Returns 

- Form 8508 data Request for Waiver from Filing Information Returns. 

Return on Investment: 

Internal IRS Benefits 

- Provide near real time service to customers and IRS personnel. 

- Leverage IEP for entryways and enhance security for IR data submission and processing. 

- Reduce end to end process lifecycle for Information Returns. 

- Enable early detection of erroneous data and reduce amount of erroneous, questionable and 

fraudulent Information Returns data. 
- Improve IR data access for downstream systems. 

- Increase in data quality translates to fewer resources needed to support operation, 

maintenance and downstream processes. 

- Reduce legacy system dependencies and technology constraints. 

Benefits external to the IRS 

- Tax-favored savings accounts for individuals with disabilities. 

- Authorizes States to create an ABLE Program similar to Code Sec. 529 college savings 

programs. 

- Individuals can make cash contributions to an ABLE account to pay for the qualified disability 

expenses of an eligible individual. 

Requirements/ Benefits/ Mandates: 

Legislative Mandate: The Stephen Beck, Jr., Achieving a Better Life Experience Act of 2014 

(ABLE Act) was enacted on December 19, 2014, as part of The Tax Increase Prevention Act of 

2014 (P.L. 113ï-295). The ABLE Act creates a new section 529A of the Internal Revenue Code 

that permits a state (or a state agency or instrumentality) to establish and maintain a new type 

of tax-advantaged savings program, a qualified ABLE program, under which contributions may 

be made to an account (an ABLE account) that is established for the purpose of meeting the 

qualified disability expenses of the designated beneficiary of the account who is a resident of 

that state and who is disabled (as defined in section 529A). 

Audit Finding or Material Weakness: N/A 

Agency Strategic Plan / Annual Performance Plan: To be determined. 

Presidential Priority: N/A 

Other Requirement: N/A 

Accomplishments and Future Objectives: 

This investment will promote strong program ownership, clear communication, close 

collaboration, focused workforce development, appropriate resource allocation, and continued 

legislative support. 

- Provide near real time service to customers and IRS personnel. 

- Leverage IEP for entryways and enhance security for IR data submission and processing. 

- Reduce end to end process lifecycle for Information Returns. 

- Enable early detection of erroneous data and reduce amount of erroneous, questionable and 

fraudulent Information Returns data. 

- Improve IR data access for downstream systems. 

- Increase in data quality translates to fewer resources needed to support operation, 

maintenance and downstream processes. 

- Reduce legacy system dependencies and technology constraints. 

Details of Useful Life Period: 

Year the investment began: 2016 

End Year of the current planning cycle: 2022 

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

Circular A-131.: This is a new investment, still in the planning stage. It is expected to continue 

with no clear end date. 

This investment covers ongoing functionality with no clear retirement date. We are using 5 year 

standard Period of Performance (POP) - Lifecycle not applicable to overall investment.
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: (In Millions of $): 

Type PY-1 and Prior PY 

2015 

CY 

2016 

BY 

2017 

BY+1 

2018 

BY+2 

2019 

BY+3 

2020 BY+4 and Beyond Total 

DME Sub Total (Including Gov FTE) Costs 959.90 268.87 202.38 92.03 93.37 94.73 96.12 97.52 1904.92 

Total DME funding 268.87 202.38 92.03 563.28 

Unallocated DME funding 0.00 0.00 0.00 0.00 

O&M Sub Total (Including Gov FTE) Costs 32.29 80.13 100.82 166.27 169.22 172.24 175.30 178.43 1074.69 

Total O&M funding 80.13 100.82 166.27 347.21 

Unallocated O&M funding 0.00 0.00 0.00 0.00 

Total Cost (Including Gov FTE) 992.19 349.00 303.20 258.30 262.60 266.97 271.42 275.95 2979.61 

Total Gov FTE Cost 257.29 102.10 99.67 101.18 102.49 103.82 105.17 106.54 978.28 

Number of FTE represented by costs 1776.56 692.54 670.60 670.60 670.60 670.60 670.60 670.60 6492.70 

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 6.1, already in production, include 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. 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, and ACA Compliance Validation. 

Current work centers on ACA 6.2 through 7.1. ACA 6.2 will support acceptance and validation of 

new ACA Information Returns 1094/1095 B/Cs, while ACA 7.0 expands information return 

processing and capabilities needed for compliance processing. ACA 7.1 will support additional 

PTC reconciliation compliance and identification/evaluation of employer and individual shared 

responsibility payment compliance. 

Return on Investment: 

This investment allows the IRS to fulfill its responsibilities under the Affordable Care Act. ACA 

has built systems that will allow the IRS to collect the Branded Prescription Drug (BPD) Industry 
Fee and the Insurance Provider Fee (IPF). These fees totaled $11.3 billion for BPD and $3 

billion for IPF in 2015; the same amounts will be collected in 2016. Other taxes and fees include 

the Excise Tax on Indoor Tanning Services, Excise Tax on Medical Device Manufacturers, and 

Hospital Insurance Tax. 

The ACA investment also supports the federal and state Health Insurances Marketplaces and 

their ability to enroll individuals in affordable health care plans. During Open Enrollment 2016 

(11/1/2015 through 1/31/2016), the IRS processed 22.2 million income and family size 

verification transactions and 11.3 million advance Premium Tax Credit transactions. 

In addition, the ACA investment has led to the development of new technologies and 

innovations that have been applied across the IRS. These include common web services, which 

enable consistent performance results; the ability for individuals and preparers to estimate 

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

leads to better reporting; a common infrastructure for data access; standardized methodology 

for secure, stable connectivity between IRS and HHS; and an integrated customer service 

experience that includes ACA within normal delivery channels. 

Requirements/ Benefits/ Mandates: 

Legislative Mandate: The work of the IRS IT Affordable Care Act Program Management Office 

(ACA PMO) addresses specific legislative mandates in the Patient Protection and Affordable 

Care Act (Public Law 111-148) and the Health Care and Education Reconciliation Act of 2010 

(Public Law 111-152), commonly referred to as the Affordable Care Act (ACA). This legislation 

was signed into law in March 2010. Specifically, the law calls for the IRS to institute numerous 

changes to the Tax Code and build/modify IT systems to support State and Federal Health 

Insurance Marketplaces. 

Audit Finding or Material Weakness: Affordable Care Act Information Sharing and Reporting 

Project (Audit # 201420326) 

Affordable Care Act Coverage Data Repository: Risks with System Development and 

Deployment (Audit # 201420310). 

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 Patient Protection and Affordable Care Act (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 Previous Year (FY 2015), ACA focused on Releases 5.0 through 6.1. The objectives 

include: 

-ACA 5.0 enabled at-filing checks of a tax return for reporting a premium tax credit, leveraging 

third-party data from the Insurance Marketplaces. This is achieved by modifications to existing 

systems and by implementing a new ACA system, ACA Verification Service. 

-ACA 6.0 focused on collections and Premium Tax Credit (PTC) pre-refund compliance 

processing, including balance due liabilities reported by taxpayers and processing of Problem 
Reporting Control System errors identified at filing. 

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

Compliance Validation. 

For the Current Year (FY 2016), ACA focuses on Releases 6.2 through 7.1 

-ACA 6.2 enables the acceptance and validation of ACA Information Returns 1094/1095 B/Cs. 

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

processing, including integrated business analytics and data certification. 

-ACA 7.1 supports additional PTC reconciliation compliance and identification/evaluation of 

employer and individual shared responsibility payment compliance candidates. It also includes 

additional web services between systems, increased data analytics capabilities, and a new 

system, ACA Case Management, which focuses on the assessment and management of 

employer shared responsibility payments. 

For Budget Out Years (FY 2017 and beyond): 

- Additional ACA releases in coming years will provide the capability required for the IRS to 

integrate ACA-related post-filing compliance case management for examination, audit, 

collections, and appeals, as well as the implementation of the Excise Tax on High-Cost Health 

Plans. 

Details of Useful Life Period: 

Year the investment began: 2010 

End Year of the current planning cycle: 2022 

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

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

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

investment. 

Performance Evaluation and Metrics: 

Metric Description 

Performance 

Measurement 

Category Mapping 

Measurement 

Condition 

Reporting 

Frequency 

Unit Of 

Measure 

CY 

Target 

Latest 

Actual 

Result 

Date of Latest 

Actual Result

Percent of successful transactions. Strategic and 

Business Results Over target Monthly Percentage 95.00 99.79 12/31/2015 

Response Time Performance - Average Response Time in 

Seconds. 

Customer 

Satisfaction (Results) Under target Monthly Seconds 5.00 0.47 12/31/2015 

ACA applications in production requiring software code 

changes via P1/P2 defects. Note: Applications in production 

requiring no more than three P2 defects and zero P1 defects. 

Yellow Threshold is 4 P2 Defects and Red Threshold is 8 P2 

defects or any P1 defect. 

Customer 

Satisfaction (Results) Under target Monthly Number 3.00 0.00 12/31/2015 

Branded Prescription Drug Feeï-Statutory "Allocated Amount" 

Collected. 

Strategic and 

Business Results Over target Annual Percentage 100.00 100.00 09/30/2015 

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

Business Results Over target Monthly Percentage 97.00 99.99 12/31/2015 

Annual Overall Cost Variance Financial 

Performance Under target Annual Percentage 5.00 -6.56 09/30/2015 
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, 

data-centric solution which provides daily processing of taxpayer accounts and addresses 

financial material weaknesses to maintain IRS' clean audit opinion. 

Investment Anticipated Outlay: (In Millions of $): 

Type PY-1 and Prior PY 

2015 

CY 

2016 

BY 

2017 

BY+1 

2018 

BY+2 

2019 

BY+3 

2020 BY+4 and Beyond Total 

DME Sub Total (Including Gov FTE) Costs 778.13 138.18 129.74 131.58 133.89 136.25 138.65 141.09 1727.51 

Total DME funding 138.18 129.74 131.58 399.50 

Unallocated DME funding 0.00 0.00 0.00 0.00 

O&M Sub Total (Including Gov FTE) Costs 11.16 4.94 5.61 5.84 5.95 6.07 6.18 6.30 52.05 

Total O&M funding 4.94 5.61 5.84 16.39 

Unallocated O&M funding 0.00 0.00 0.00 0.00 

Total Cost (Including Gov FTE) 789.29 143.13 135.34 137.42 139.85 142.32 144.83 147.39 1779.56 

Total Gov FTE Cost 215.31 24.47 30.12 31.06 31.46 31.87 32.28 32.70 429.27 

Number of FTE represented by costs 1457.08 152.87 183.00 186.50 186.50 186.50 186.50 186.50 2725.45 

Summary of Purpose, Goals, and Benefits: 

CADE 2 was chartered in 2009 to implement 21st century technology and services to enable the 

IRS business to provide digital services to the taxpayer and more timely compliance. The datacentric solution is critical for the IRS to achieve its Strategic Goals. The heart of the CADE 2 

solution is an authoritative database for individual taxpayers that will transform the way the IRS 

approaches tax administration into the future. CADE 2 goals are to establish a solid data 

foundation for the future by leveraging a relational database and daily processing capability; 

continue the focus on moving away from 1960's technology so business processes can be 

realigned to enable better services and more timely compliance (i.e., aging infrastructure, 

applications and sequential flat file processing); address the Financial Material Weakness 

(FMW), demonstrate compliance with Federal Financial Management System Requirements 

(FFMSR) and maintain our clean audit opinion; improve security and privacy posture by 

addressing identified weaknesses; and create one authoritative source of taxpayer data. 

Transition State 1 (TS1) and Transition State 1.5 (TS1.5) built and initialized the CADE 2 

database in production. In doing so, the IRS took a 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 1960's sequential flat-files stored on magnetic tapes to 

state-of-the-art database technology. Individual taxpayer account data is now updated 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. TS1offers faster refunds and notices, faster payment postings and 

improved service for taxpayers. 

In TS2 the IRS will make system enhancements to address the longstanding Unpaid 

Assessments FMW for individual accounts. The Service is reengineering core components of 

IMF by applying modern programming languages; establishing CADE 2 as the authoritative data 

source for financial and legal purposes; and implementing functionality to address the IRS FMW 

over unpaid tax assessments for individual taxpayer accounts. The final phase, known as the 
Target State, will complete the reengineering of the legacy IMF architecture by updating 

upstream/downstream technology and focus on aligning business processes. 

Return on Investment: 

With this investment, the IRS will modernize its tax processing capabilities so they are more in 

line with industry standards. The full Return on Investment (ROI) is not currently available, as 

the investment is only partially implemented. Once all facets of the investment have been 

actualized, a true ROI can be determined. However, there are many internal and external 

expected benefits of the program: Taxpayer benefits are already being realized. As of 

November 2015: 

Taxpayers receive faster refunds. Year-to date, CADE 2 processed 49.99 percent (70 million) of 

individual tax returns daily, equating to faster refunds for millions of taxpayers. 

Taxpayers receive information faster. Over 25.27 million notices were generated using CADE 2 

Daily Processing by June 26, 2014 compared with 284,335 total daily notices generated during 

the entire Filing Season 2011. This allows taxpayers to address issues closer to the event that 

generated the notice 

Taxpayer issues are more efficiently resolved: 

Account information is now available to IRS Customer Service Representatives 77 percent 

faster 

100 percent posted transactions are viewable in IDRS within 48 hours of processing in 2014 

compared with 216+ hours (over 9 days in 2011) 

Additional taxpayer benefits: 

Reduced taxpayer burden to make compliance easier by enabling self-service tools and realtime access to account information 

Better access to data and analytical tools by leveraging a relational database, which provides 

more granular, historic and timely data and increases the IRS' ability to analyze, research and 

respond to fraud and identity theft 

Work is aligned around data, not forms, by completing the data-centric foundation to better 

manage U.S. taxpayers' dollars, track taxpayer relationships, and store and report on more 

accurate account balances 

Benefits to the IRS include: 

Increased agility of response to changing taxpayer priorities and legislation 

Reduced IT costs and complexity and address workforce risk 

Enhanced analytics and reporting to greatly improve compliance and issue resolution 

Reduced burden of manually intensive processes on IRS employees, enabling automated 

calculations that currently are not possible 

Fiduciary Benefits: 

Addresses the Unpaid Assessments FMW, retains the clean audit opinion, and complies with 

Federal Financial System Requirements 

Completion of the data-centric foundation to better manage over $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 (TS2), the IRS will rewrite its core 

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

database. Once that is done, CADE 2 will become the authoritative source for individual 
taxpayer account data for the IRS. This will address IRS's longstanding unpaid assessments 

financial material weakness, and will ensure 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 

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: 

For FY16, FY17 and budget out years, the IRS continues to modernize its core taxpayer 

account processing systems. CADE 2 will deploy new capabilities into Production through 

multiple projects in FY16. Database Conversion was deployed into production for Filing Season 

(FS)16, enabling the CADE 2 database to maintain taxpayer history for auditing and analytical 

purposes. The additional historical information stored within CADE 2 will be available to improve 

IRS financial reporting as well as business functions across Customer Service, Compliance and 

Fraud Detection. 

The Penalty and Interest Adjusted Refundable Credits project will go live in FS16, making 

substantial improvements to the accuracy of penalty and interest calculations for millions of 

taxpayers. This capability will eliminate costly manual calculations and will save approximately 

$14.2 million annually in lost collections. 

Pending Payment Transactions will go live in FS16 and make substantial progress towards 

addressing the Unpaid Assessment FMW by enabling accurate financial reporting on financial 

transactions received by the IRS but not yet posted to accounts. An operational data store will 

be established and lay the foundation for advanced reporting and analytics using the 

modernized CADE 2 data model, greatly enhancing the capability to detect issues, resolve 

cases and improve overall compliance. 

In FY17, CADE 2 will make substantial progress toward modernization by moving dozens of 

financial reports and data feeds from the legacy IMF system to the modernized CADE 2 

database, including utilizing the CADE 2 database to support IRS Customer Service and 

Compliance (through a new interface to the Integrated Data Retrieval System) and establishing 

CADE 2 as the Authoritative Data Source for IRS financial and legal purposes. At the end of 

FY17, the GAO will begin to conduct the annual Financial Statement audit using the CADE 2 

database as the source of all individual taxpayer financial transactions. This is a prerequisite 

and major step toward addressing the Unpaid Assessment FMW . 

During FY18 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 1960's technology will be retired and replaced with 21st 

century state-of-the-art Java applications. 

Details of Useful Life Period: 

Year the investment began: 2009 

End Year of the current planning cycle: 2022 

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 

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

overall investment. 
Performance Evaluation and Metrics: 

Metric Description 

Performance 

Measurement 

Category Mapping 

Measurement 

Condition 

Reporting 

Frequency 

Unit Of 

Measure 

CY 

Target 

Latest 

Actual 

Result 

Date of Latest 

Actual Result 

Faster Refunds. The percentage of refunds posted 

daily by CADE 2. Seasonal metric. 

Customer Satisfaction 

(Results) Over target Monthly percentage 30.00 24.02 01/28/2015 

Increased percentage of tax returns processed daily. 

Seasonal metric. 

Strategic and Business 

Results Over target Monthly percentage 65.00 12.95 01/28/2015 

Daily Updates to IDRS. The percentage of business 

days in which updates to IDRS are processed within 

48 hours by CADE 2. 

Strategic and Business 

Results Over target Monthly percentage 100.00 100.00 01/28/2015 

Faster Notices. The percentage of notices generated 

for daily processing by CADE 2. Seasonal metric. 

Strategic and Business 

Results Over target Monthly percentage 1.00 2.04 01/28/2015 

Faster Updates to account information. Percentage of 

taxpayer refund information processed daily and 

updated to the Web with in 24 hours. Seasonal metric. 

Financial Performance Over target Monthly percentage 30.00 24.42 01/28/2015 
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: (In Millions of $): 

Type PY-1 and Prior PY 

2015

CY 

2016

BY 

2017

BY+1 

2018

BY+2 

2019

BY+3 

2020 BY+4 and Beyond Total 

DME Sub Total (Including Gov FTE) Costs 53.23 1.22 0.44 0.44 0.45 0.46 0.46 0.47 57.17 

Total DME funding 1.22 0.44 0.44 2.10 

Unallocated DME funding 0.00 0.00 0.00 0.00 

O&M Sub Total (Including Gov FTE) Costs 129.82 10.99 8.86 9.01 9.15 9.30 9.46 9.61 196.21 

Total O&M funding 10.99 8.86 9.01 28.86 

Unallocated O&M funding 0.00 0.00 0.00 0.00 

Total Cost (Including Gov FTE) 183.06 12.21 9.30 9.45 9.60 9.76 9.92 10.08 253.38 

Total Gov FTE Cost 45.81 4.54 4.37 4.43 4.49 4.55 4.61 4.67 77.47 

Number of FTE represented by costs 403.20 35.37 29.30 29.30 0.00 0.00 0.00 0.00 497.17 

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 FY 2004 through June 30, 2014 from the IRS IT Business Value Chart: 

e-Services Registration: More than 654,000 individuals registered via the IEP. 

e-file Application: Processed more than 363,112 Electronic Return Originator Applications for eFile via the IEP and EUP. 

TIN Matching: Processed more than 1.3 billion bulk requests and more than 87.0 million 

interactive requests. 

Transcript Delivery System: Processed more than 46 million requests for transcripts via the IEP 

and more than 210.8 million requests via the EUP. 

Total estimated operational savings (print/mail/labor costs) in excess of $968.7 million for e-File 

Application, TDS, and address change via the IEP and EUP. 

TIN Matching uncovered more than $856.3 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: Strategic Goal 4: Pursue Comprehensive 

Tax and Fiscal Reform and Objective 2: Increase voluntary tax compliance. 

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: 

2014 SiteMinder R12 Upgrade in the internal portal and Business Objects Enterprise Upgrade 

and server migration. 

2014 SiteMinder R12 Upgrade in the external portal. 

2014 Deploy Registration updates that include TIGTA suggestion updates. 

2014 Support server replacement of AEF servers and upgrade AEF software. 

2014 Deploy the ACA Information Returns Registration application to provide electronic filer and 

transmitter numbers to externals required under the ACA to submit Information Returns to the 

IRS. 

2014 Complete WebSphere Application Server Upgrades. 

2015 Deliver Annual Filing Season changes. 

2015 Virtualize Third Party Data Store file extract servers. 

2015 Deliver second phase of the ACA Information Returns Registration application. 

2015 ESAM 1.5 (June 2015) 

2016 Re-engineer the current e-File application into Java. 

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

Information Returns Registration Applications). 

2017 eFile Application capabilities migrated to 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: 2022 

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

Circular A-131.: Investment uses a rolling 5 year standard Period of Performance (POP) and 

on-going functionality model in which the out-years are calculated using an inflation rate. 

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 6701.84 12/30/2015 

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 12/30/2015 

Number of Priority 2 tickets opened and are related 

to eServices applications. 

Strategic and Business 

Results Under target Monthly Number 10.00 0.00 12/30/2015 

Number of defect transmittals to the production 

environment. Financial Performance Under target Monthly Number 3.00 0.00 12/30/2015 

Number of TIN Matching Requests processed 

through the TIN Matching application 

Strategic and Business 

Results Over target Quarterly Number 3500.00 4276.58 12/31/2015 
Electronic Fraud Detection System (EFDS) 

Type of Investment: Major IT Investment 

Description: 

Electronic Fraud Detection System (EFDS) is a major, automated client server-based system 

used to maximize revenue protection and fraud detection at the time that tax returns are filed to 

eliminate the issuance of fraudulent tax refunds. 

Investment Anticipated Outlay: (In Millions of $): 

Type PY-1 and Prior PY 

2015

CY 

2016

BY 

2017

BY+1 

2018

BY+2 

2019

BY+3 

2020 BY+4 and Beyond Total 

DME Sub Total (Including Gov FTE) Costs 11.45 4.01 5.01 5.02 5.20 0.00 0.00 0.00 30.68 

Total DME funding 4.01 5.01 5.02 14.03 

Unallocated DME funding 0.00 0.00 0.00 0.00 

O&M Sub Total (Including Gov FTE) Costs 116.89 11.53 8.06 8.29 8.33 0.00 0.00 0.00 153.11 

Total O&M funding 11.53 8.06 8.29 27.88 

Unallocated O&M funding 0.00 0.00 0.00 0.00 

Total Cost (Including Gov FTE) 128.34 15.53 13.07 13.30 13.54 0.00 0.00 0.00 183.79 

Total Gov FTE Cost 30.61 4.44 2.81 2.85 2.85 0.00 0.00 0.00 43.56 

Number of FTE represented by costs 223.54 31.00 17.00 17.00 17.00 0.00 0.00 0.00 305.54 

Summary of Purpose, Goals, and Benefits: 

The Electronic Fraud Detection System (EFDS) is a major, automated client server-based 

system used to maximize fraud detection at the time that tax returns are filed to eliminate the 

issuance of fraudulent tax refunds. EFDS provides the capability for IRS Criminal Investigation 

(CI) Investigative Aides/Analysts (IA/As) and Wage and Investment (W&I), Business 

Performance Solutions (BPX), Return Integrity and Compliance Services (RICS) Tax Examiners 

(TEs) and Small Business Self-Employed (SB/SE) to protect government revenue by detecting 

potentially fraudulent tax refund claims and stopping the issuance of fraudulent tax refunds. 

- EFDS Filing Season (FS) 2016 will incorporate legislative changes associated with the Filing 

Season (FS16). 

- EFDS Calendar Year 2016 Maintenance Build (CY16 MB) will incorporate infrastructure 

upgrades. 

- EFDS Filing Season (FS) 2017 will incorporate legislative changes associated with the Filing 

Season (FS17). 

- EFDS Retirement Release 1.0 will transition the functionality of each EFDS Core Fraud Data 

Mining (DM) model to RRP Data Analytics. 

Return on Investment: 

Revenue protection is an important element in managing the government's finances; fraudulent 

tax refund claims are a major cause of revenue loss to the Federal Government. 

As of December 7, 2015, EFDS (FS15): 

- Processed a total of 142,242,288 returns. 

- Total number of returns identified as fraud is over 1.71 million (1,711,178). 

- Total refund amount stopped is $11.09 billion ($11,086,750,527). 

Requirements/ Benefits/ Mandates: 

Legislative Mandate: The following are legislative mandates and citations supporting 
applicable EFDS requirements: 

1) Hiring Initiatives to Restore Employment (HIRE) Act: HR-2847, Provision 101 requires EFDS 

loads and database updates of Business Master File (BMF) record layouts for Forms 943, 

943PR, 944, 944PR, 944SS and CT1. 

2) Patient Protection and Affordable Care Act (ACA): HR-3590, Provisions 1421 (Forms 1041, 

1065, 1120, 1120S, 3800); 10909 (Forms 8839, 3468, and additional Referral categories); and 

9023 (Form 1040) requires updates to record layouts for all impacted forms. 

3) Small Business Jobs Act (SBJA): 1040 e-File Program TY 2010 SBJA Provision 2012/13 

1040 requires EFDS loads updates for record layout changes to Form 3800. 

Audit Finding or Material Weakness: N/A 

Agency Strategic Plan / Annual Performance Plan: EFDS aligns to the following Treasury 

strategic goal and objective for FY 2014-2017. Goal 3: Fairly and effectively reform and 

modernize federal financial management, accounting, and tax systems. 

Goal 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. 

EFDS also supports FY 2014-2017 IRS Strategic Goal 2: Effectively enforce the law to ensure 

compliance with tax responsibilities and combat fraud. 

Goal 2:2: Deter and promptly resolve noncompliance by protecting revenue from refund fraud 

and ensuring appropriate revenue collection. 

Goal 2:4: Identify trends, detect high-risk areas of noncompliance and prioritize enforcement 

approaches by applying research and advanced analytics. 

Presidential Priority: N/A 

Other Requirement: N/A 

Accomplishments and Future Objectives: 

FS 2016 Annual Release and CY15 MB Accomplishments: 

- Annual maintenance (O&M) upgrades to sustain system operations. 

- Annual updates to loads for Individual Master File (IMF), Business Master File (BMF), 

Questionable Return Program (QRP), Information Returns Master File (IRMF), Modernized eFile (MeF), and Prison/Prisoner File to sustain system operations. 

- Annual IMF, BMF, and QRP legislative changes and record layout updates. 

- Annual Data Mining Model updates to sustain and improve system performance. 

- Updated user interface architecture via Workload Management System (WMS) Web 

Integration. 

- Enhanced revenue protection/fraud detection functionality of EFDS. 

- Migrated Solaris to Linux Operation Platform. 

- Integrated components of the Return Review Program (RRP) Non-ID Theft model. 

Future Objectives / Planned Accomplishments: 

- Annual Release for Filing Season (FS) 2017 and Calendar Year 2016 Maintenance Build 

(CY16 MB). 

- Retirement Release 1.0 - EFDS Retirement Core Fraud Data Mining (DM) Models. 

- Deliver legislative and filing season tax year changes, including Affordable Care Act (ACA) 

activities funded by EFDS. 

- Annual maintenance (O&M) upgrades to sustain system operations. 

- Annual updates to loads for Individual Master File (IMF), Business Master File (BMF), 

Questionable Return Program (QRP), Information Returns Master File (IRMF), Modernized eFile (MeF) schemas, and Prison/Prisoner File to sustain system operations. 

- Upgrade to Informatica 9.6.1 and Oracle 11.2.0.4.5, per N/N-1 infrastructure currency. 

- Prepare delivery of EFDS Program Retirement/Shutdown in Calendar Year 2017. 
Details of Useful Life Period: 

Year the investment began: 1996 

End Year of the current planning cycle: 2018 

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

Circular A-131.: EFDS investment expected to fully retire in 2018. 

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 completed verifications 

which are potentially fraudulent. 

Customer Satisfaction 

(Results) Over target Quarterly percentage 70.00 84.00 12/31/2015 

The percentage of scheduled system 

availability per the approved Service Level 

Agreement. 

Strategic and 

Business Results Over target Monthly Percentage 99.00 100.00 01/31/2016 

The percentage of primary investigations that 

are accepted as subject criminal investigations 

(CIs). 

Strategic and 

Business Results Over target Quarterly Percentage 65.00 67.00 12/31/2015 

The percentage of Questionable Refund 

Program (QRP) refunds identified as false that 

are stopped by Return Integrity and 

Compliance Services (RICS). 

Strategic and 

Business Results Over target Quarterly Percentage 85.00 92.00 12/31/2015 

The number of confirmed fraudulent returns 

identified by the data models. Financial Performance Over target Quarterly 

Number of 

confirmed 

fraudelent returns

700000.00 721220.00 12/31/2015 

 
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: (In Millions of $): 

Type PY-1 and Prior PY 

2015

CY 

2016

BY 

2017

BY+1 

2018

BY+2 

2019

BY+3 

2020 BY+4 and Beyond Total 

DME Sub Total (Including Gov FTE) Costs 0.00 4.13 30.11 41.62 42.42 43.18 43.97 44.76 250.19 

Total DME funding 4.13 30.11 41.62 75.86 

Unallocated DME funding 0.00 0.00 0.00 0.00 

O&M Sub Total (Including Gov FTE) Costs 0.00 0.00 0.00 0.25 4.00 6.00 8.00 12.00 30.25 

Total O&M funding 0.00 0.00 0.08 0.08 

Unallocated O&M funding 0.00 0.00 0.17 0.17 

Total Cost (Including Gov FTE) 0.00 4.13 30.11 41.87 46.42 49.18 51.97 56.76 280.44 

Total Gov FTE Cost 0.00 1.86 4.99 6.30 6.38 6.46 6.55 6.63 39.17 

Number of FTE represented by costs 0.00 11.08 32.00 41.00 59.75 59.75 59.75 59.75 323.08 

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. 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: 

- Streamlined operations that reduce costs 

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

- Integration amongst programs 

- Increasing process and case management efficiencies 

- Reduce training needs 

- Reducing redundancies through reuse of common services and infrastructure 

External Benefits: 

- Reduces cost of operations and maintenance of IRS 

- Improved 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: 

The IRS ECM team performed analysis to determine the legacy case management portfolio, 

including information on costs associated with legacy systems. They also presented a high level 

approach and next steps, which received approval by the Commissioner. 

July 2015 focused on developing the initial ECM Strategic Plan and Road Map and establishing 

ECM Program Management Office (PMO). Detailed activities included: establishing ECM as a 

formal program; performing analysis to incorporate existing efforts (E-Trak, ACA Compliance 

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

Business; Establishing design patterns, identifying data sources/connectors; Conducting 

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

the Road Map (12-24-36 months). 

Future: 
Upcoming activities include Performing Detailed Road Map Analysis and Executing the Road 

Map. The details for each are outlined below: 

Perform Detailed Road Map Analysis: 

- Initial ECM PMO Stand Up 

- Prioritize business capabilities and application retirement sequence 

- Define legacy retirement strategy 

- Validate future capabilities, threads, and business needs 

- Identify Rapid Prototype and tech demo candidates 

- Design the ECM technology platform 

- Finalize acquisition strategy to support multi-thread delivery 

- Execute Road Map (Continuously Refine) 

- Deploy functionality against Legacy Retirement Strategy 

- Install and configure base platform 

- Implement and assess Entellitrak design patterns 

- Deploy, assess and refine multi-thread approach 

- Enhance Program maturity 

- Execute E-trak upgrades 

- Continue to develop & release ECM Capabilities 

- Continue updating Road Map to support agile methodology and multi-thread deployment. 

Details of Useful Life Period: 

Year the investment began: 2016 

End Year of the current planning cycle: 2022 

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

Circular A-131.: ECM utilizes a life cycle approach that involved an initial period of 

development followed by a period of operational spending, with periodic legislative and/or 

regulatory updates, and no pre-determined end point. Our alternatives analysis is adapted to 

our life cycle by following the IRS-managed Enterprise Life Cycle process. 

 
Event Driven Architecture 

Type of Investment: Major IT Investment 

Description: 

Event Driven Architecture will provide common Enterprise Services as well as the infrastructure 

needed to publish, consume, coordinate, and manage these services following service-oriented 

architecture design paradigm. 

Investment Anticipated Outlay: (In Millions of $): 

Type PY-1 and Prior PY 

2015

CY 

2016

BY 

2017

BY+1 

2018

BY+2 

2019

BY+3 

2020 BY+4 and Beyond Total 

DME Sub Total (Including Gov FTE) Costs 0.00 0.00 4.35 34.62 35.20 13.00 2.00 0.00 89.17 

Total DME funding 0.00 4.35 34.62 38.97 

Unallocated DME funding 0.00 0.00 0.00 0.00 

O&M Sub Total (Including Gov FTE) Costs 0.00 0.00 0.00 0.00 0.14 3.27 5.75 5.30 14.45 

Total O&M funding 0.00 0.00 0.00 0.00 

Unallocated O&M funding 0.00 0.00 0.00 0.00 

Total Cost (Including Gov FTE) 0.00 0.00 4.35 34.62 35.34 16.27 7.75 5.30 103.62 

Total Gov FTE Cost 0.00 0.00 1.81 4.15 4.20 2.20 1.00 0.80 14.16 

Number of FTE represented by costs 0.00 0.00 11.00 25.50 25.50 13.00 6.00 4.50 85.50 

Summary of Purpose, Goals, and Benefits: 

An Event Driven Architecture (EDA) refers to software architecture patterns and components 

that produce, consume, detect, and react to events associated with individual transactions, such 

as returns, payments, account updates, and other common transaction types. 

An EDA framework will enable IRS strategic goals of improving taxpayer service, enhancing 

enforcement of the tax law and modernization of the IRS through its people, processes and 

technology. It also supports the modernization strategy approach and business domain goals by 

extending the architecture and design of IRS modernized and current production systems to 

better align business and IT strategies, leverage functionality available in current production 

systems, enable the co-existence of modernized and legacy applications during multi-year 

transitions, and support high maintainability and lower costs through separation of concerns, 

decoupling, and reuse. 

This framework will provide common Enterprise Services as well as the infrastructure needed to 

publish, consume, coordinate, and manage these services following service-oriented 

architecture design paradigm including event-driven individual transactions and workflow 

centric, rule-based, service-oriented, and transformation-enabled processing. Infrastructure will 

include a Rules Engine, a Service Orchestration layer and an Enterprise Service Bus (ESB) 

supporting Core Application Services (i.e., business application functionality). 

Projects will include Individual Return Electronic Adjustment (IREA) as a modern Data Centric 

solution for taxpayer corrections/adjustments to specific line items on a Return. IREA will 

provide online capability for a taxpayer to correct select line items on an existing tax return 

either directly through a self-service portal or through a third party provider using a Registered 

User API. Reusable Account Research and Adjustment services will be event-driven based on 

business process rules and workflow. 
Return on Investment: 

The infrastructure components of an Event Driven Architecture will provide the back end 

services and service orchestration that enables third party and online taxpayer account selfservice including self-correction. For example, by accepting, validating, and processing return 

adjustments electronically the IRS will enhance operations, increase detection of fraud, noncompliance, and identity theft, enable automated and efficient 1040X processing, improve 

inventory and case management, and allow detailed data capture and reporting, and enrich 

customer service. Self-service capabilities through online accounts and Registered User 

Application Program Interfaces (API) will reduce operating costs by automating current manual 

tasks while improving taxpayer service. 

- Approximately 542 employees in Submission Processing (SP) handle roughly 66 percent of 

the amended return claims at an estimated annual direct labor cost of $28 million. We anticipate 

that an initial automated solution addressing simple amended returns will project a 25 percent 

savings resulting in excess of $7 million a year in Submission Processing labor alone. 

- Accounts Management works the remaining more complex amended returns. Those claims 

are imaged in AMS-CIS and worked in Accounts Management where processing costs are 

higher due to imaging costs, higher graded employees and the more complex issues. As 

iterative releases are deployed more complex issues will become automated increasing the 

return on investment. 

- Document perfection, research, and adjustments performed in Submission Processing and 

Accounts Management are also performed for other issues in return processing, examination, 

and other business areas. Event Driven Architecture will provide the foundation for further 

automation of transaction processing across IRS business functions. 

Requirements/ Benefits/ Mandates: 

Legislative Mandate: N/A 

Audit Finding or Material Weakness: N/A 

Agency Strategic Plan / Annual Performance Plan: EDA supports the IRS Strategic Plan 

2014- 2017 Goal to "Deliver high quality and timely service to reduce taxpayer burden and 

encourage voluntary compliance". Specifically, Event Driven Architecture enables Objective 1 of 

this goal to "design tailored service approaches with a focus on digital customer service to meet 

taxpayer needs, preferences, and compliance behaviors in order to facilitate voluntary 

compliance." Event Driven Architecture will provide the infrastructure to enable online taxpayer 

services and electronic filing options. Event Driven Architecture demonstrates forward progress 

on IRS Strategic Goals by "broadening taxpayers' access to secure digital services and 

innovating our service delivery model to provide better assistance to those seeking to comply". 

Presidential Priority: N/A 

Other Requirement: N/A 

Accomplishments and Future Objectives: 

Event Driven Architecture (EDA) has completed a Proof of Concept (POC), demonstrating 

process on arrival capability for an electronic tax return with a document specific issue requiring 

correction by an IRS Tax Examiner. This POC was conducted in Treasury Amazon Web 

Services solution lab using an open source technology stack. As the next step, the IRS chose 

an existing investment proposal for automation of electronically filed 1040X as a candidate use 

case for production implementation in an Event Driven Architecture environment with reusable 

common services that would be necessary for the modernization and/or automation of many 

taxation management processes. A solution concept has been developed as the IREA proposal. 
The IRS has begun planning for a prototype of IREA beginning in Fiscal Year 2016 with initial 

production release development projected to begin in Fiscal Year 2017. In the future, the IRS 

envisions scaling the EDA infrastructure and shared services to provide the same process 

immediately on arrival capability for all tax returns and related taxpayer submissions that are 

constrained today by an aging batch oriented pipeline processing infrastructure. 

Details of Useful Life Period: 

Year the investment began: 2016 

End Year of the current planning cycle: 2022 

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

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

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

investment. 
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: (In Millions of $): 

Type PY-1 and Prior PY 

2015 

CY 

2016 

BY 

2017 

BY+1 

2018 

BY+2 

2019 

BY+3 

2020 BY+4 and Beyond Total 

DME Sub Total (Including Gov FTE) Costs 56.05 59.16 72.23 22.29 72.85 66.88 64.17 61.48 475.11 

Total DME funding 59.16 72.23 22.29 153.68 

Unallocated DME funding 0.00 0.00 0.00 0.00 

O&M Sub Total (Including Gov FTE) Costs 2.08 4.86 16.86 5.20 18.27 21.34 24.41 26.48 119.51 

Total O&M funding 4.86 16.86 5.20 26.93 

Unallocated O&M funding 0.00 0.00 0.00 0.00 

Total Cost (Including Gov FTE) 58.13 64.02 89.09 27.50 91.12 88.22 88.58 87.96 594.62 

Total Gov FTE Cost 21.83 22.21 27.09 27.50 27.86 28.22 28.58 28.96 212.25 

Number of FTE represented by costs 129.47 153.75 180.22 180.22 180.22 180.22 180.22 180.22 1364.54 

Summary of Purpose, Goals, and Benefits: 

The Foreign Account Tax Compliance Act (FATCA) is an investment designed to improve tax 

compliance by identifying U.S. taxpayers that attempt to shield/divert assets by depositing funds 

in foreign accounts. The legislation requires reporting by U.S. taxpayers holding foreign financial 

assets with aggregate values exceeding certain thresholds to report information on those assets 

to the IRS each year. It also requires Foreign Financial Institutions (FFIs) with U.S. taxpayer 

accounts to register, report annually to the IRS, and withhold and pay over to the IRS 30 

percent of certain payments of selected U.S. source income. 

Treasury has also been working with foreign governments to negotiate Intergovernmental 

Agreements (IGAs) that address certain 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 HCTAs, 

under agreements intended to facilitate FATCA adoption. 

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

systems needed to support IRS' tax administration responsibilities associated with key 

provisions of the FATCA 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. 

Return on Investment: 

The primary beneficiaries of this investment are the federal government and the U.S. taxpayers. 

FATCA will allow the agency to increase International service and enforcement through 

examinations of employment tax; specialty program audits, individual audits, business audits, 

and criminal investigation case closures ensuring taxpayers meet their tax obligations. 
FATCA Release 2.0; launched in 2015 delivered the functionality to support negotiated IGAs. 

This release introduced the International Data Exchange System (IDES) which receives forms 

from FFIs and HCTA's through IGAs and transmits forms in XML format; the International 

Compliance Management Model (ICMM) which receives, processes, stores, and manages data 

received from various sources for future compliance activities, and; the Withholding and Refund 

(W&R) system which enables taxpayers to file refund requests against withholding; captures 

1042-S recipient copy and freeze Chapter 3 and 4 refunds to individuals and entities. 

FATCA Release 2.1, deploying in August of 2015, will enhance ICMM functionality expanding 

on the IRS' ability to process, store and manage FATCA forms received via IDES as well as 

other sources (e.g., ISRP). The release provides capabilities in preparation of upcoming 

legislative requirements to provide reciprocal data back through the data exchange. 

FATCA Release 3.0 will expand on the FATCA 2.0 and 2.1 Reciprocal Data management 

functionality; document matching; Registration Bulk Upload capability; and enhance other 

application aspects to include Registration, IDES, ICMM, and W&R. 

FATCA Release 4.0 will provide additional functionality relative to the modernization of 

international reporting and application of FATCA data to compliance. 

FATCA Release 4.1 is an extension of Release 4.0 and is providing the business data elements 

in ICMM for Forms 8938, 8966, and 1042S-Recipient Copy for matching and refunds. The 

objective of Release 4.1 is to process the existing and prior year forms changes made in 

Release 4.0 through ICMM. 

FATCA Release 5.0 will provide additional functionality in meeting legislative requirements. The 

project has performed gap analysis on program requirements to identify decomposed impacted 

program requirements, monitored the receipt of cost and impact assessments for UWRs 

submitted for scope consideration, and completed initial analysis of cost and impact 

assessments submitted. The scope and requirements for the release have not yet been 

finalized. 

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 Department of Treasury has negotiated Intergovernmental Agreements (IGA) with over 100 

governments worldwide. To accomplish this, the following projects have been implemented: 

Foreign Financial Institutions (FFI) Registration currently enables FFIs to electronically register 

and sign agreements with the IRS to report on their US-held accounts as specified by the 

Foreign Account Tax Compliance Act. An enhancement will be made in FY16 to allow 

sponsored entities to upload bulk account information. 

International Data Exchange Service (IDES) receives Forms 8966 and 1042-S/T input from FFIs 

and host country taxing authorities through Intergovernmental Agreements and transmits forms 

in XML format to ICMM deployed in 2015. 

International Compliance Management Model (ICMM) receives, processes, stores, and 

manages FATCA data received from various sources and makes it available for future 

compliance activities. 

Taxpayer Reporting will capture data from the Form 8938. 

Compliance will select cases and conduct compliance activities. 

Withholding and Refund will receive, process and track withholding payments. 

Details of Useful Life Period: 

Year the investment began: 2011 

End Year of the current planning cycle: 2022 

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

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

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

investment. 

Performance Evaluation and Metrics: 

Metric Description 

Performance 

Measurement 

Category Mapping

Measurement 

Condition 

Reporting 

Frequency 

Unit Of 

Measure 

CY 

Target 

Latest 

Actual 

Result 

Date of 

Latest 

Actual 

Result 

Speed of Processing Submitted Registrations - This measure 

indicates the number of days the IRS used to process a submitted 

registration from a status of Submitted to a status of Approved, 

Limited Conditional, or Terminated). 

Customer 

Satisfaction 

(Results) 

Under target Monthly Days 30.00 0.36 11/30/2015 

Encouraging Electronic Tax Administration - The percentage of 

registrations submitted electronically. This measure demonstrates 

the customer choice for interacting with the IRS by electronic means 

as opposed to submitting a paper form. 

Strategic and 

Business Results Over target Monthly Percentage 95.00 99.64 11/30/2015 

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 11/01/2015 

System Response Time - This measure indicates the amount of 

time an individual user can expect to see results from any action 

taken via a "submit" or clicking a "next" button from the user 

interface. This is a measurement of: The percentage of all requests 

processed in less than 5 seconds. ( % =Transactions < 5 seconds / 

All Transaction ) 

Strategic and 

Business Results Over target Monthly Percentage 95.00 99.05 11/30/2015 

Request Processing Errors - This measure indicates the percentage 

of transactions that were not processed due to errors by the FI 

Registration System. This is a measurement of: Errors as a 

Percentage of Total Transactions ( Number of Errors/Transactions )

Strategic and 

Business Results Under target Monthly Percentage 1.00 0.40 11/30/2015 
Health Coverage Tax Credit (HCTC) 

Type of Investment: Major IT Investment 

Description: 

HCTC, extended and modified by Public Law 114-27 enacted June 2015, provides a solution to 

process any claims both current and retroactive for a tax credit equal to a percent of certain 

health coverage costs and provide support for external stakeholders. 

Investment Anticipated Outlay: (In Millions of $): 

Type PY-1 and Prior PY 

2015

CY 

2016

BY 

2017

BY+1 

2018

BY+2 

2019

BY+3 

2020 BY+4 and Beyond Total 

DME Sub Total (Including Gov FTE) Costs 0.00 0.00 24.90 6.37 1.30 1.32 0.00 0.00 33.89 

Total DME funding 0.00 24.90 6.37 31.27 

Unallocated DME funding 0.00 0.00 0.00 0.00 

O&M Sub Total (Including Gov FTE) Costs 0.00 0.00 0.00 0.00 5.19 5.29 5.39 5.50 21.38 

Total O&M funding 0.00 0.00 0.00 0.00 

Unallocated O&M funding 0.00 0.00 0.00 0.00 

Total Cost (Including Gov FTE) 0.00 0.00 24.90 6.37 6.49 6.62 5.39 5.50 55.27 

Total Gov FTE Cost 0.00 0.00 7.28 0.00 0.00 0.00 0.00 0.00 7.28 

Number of FTE represented by costs 0.00 0.00 72.80 0.00 72.80 

Summary of Purpose, Goals, and Benefits: 

The Health Coverage Tax Credit (HCTC) investment provides the planning, development and 

implementation of an IT system to support IRS's tax administration responsibilities in addressing 

the Trade Preferences Extension Act of 2015 enacted June 29, 2015. HCTC will process any 

taxpayer claims both current and retroactive for the federally funded tax credit equal to a 

percent of certain health coverage costs to allow individuals to pay only a portion of their 

qualified health insurance. This solution will include re-use of existing systems wherever 

possible as well as develop new functionality to support the required business capabilities as 

mandated by the law. 

The Act, which reauthorized the expired 2013 tax credit and retroactively extended it for six 

years, prohibits individuals from claiming the HCTC and certain other premium subsidies for the 

same coverage period, and to prevent use of the HCTC to purchase insurance through an 

Affordable Care Act Exchange. 

HCTC helps to make health coverage more affordable for those Department of Labor (DOL)-

certified, displaced workers eligible to receive Trade Readjustment Allowances under the Trade 

Adjustment Assistance program or those eligible individuals receiving benefits from the Pension 

Benefit Guaranty Corporation (PBGC) by paying a significant portion of qualified health 

insurance premiums. 

HCTC is anticipated to have 3 Releases deploying functionality to meet key legislative dates. 

The investment delivered Release 1 which provides for processing of Tax Year 2014 amended 

returns and 2015 filing season returns. The investment is currently in the planning phase for 

Release 2 and Release 3. Release 2 will develop a Registration Database with User Interface to 

manually input paper registration form data as well as develop functionality to perform eligibility 
validation and monthly payment processing. Release 3 will focus on functionality to support 

compliance and reporting. 

Return on Investment: 

The HCTC is a refundable federal tax credit that was first made available in 2002 to subsidize 

the cost of qualified health insurance coverage for certain individuals and their qualifying family 

members (generally an individual's spouse and dependent children). The HCTC's subsidy level 

varied over time, but it currently covers 72.5 percent of the premium for qualifying coverage. 

The HCTC is generally available to an individual who satisfies each of the following conditions: 

1) the individual meets the general eligibility requirements; 2) the individual pays 27.5 percent or 

more of the cost of coverage for qualified health insurance; 3) the individual does not have other 

specified coverage; and 4) the individual is not incarcerated or claimed as a dependent by 

another person. 

Requirements/ Benefits/ Mandates: 

Legislative Mandate: HCTC was enacted by the TAA Act of 2002, Public Law 107-210, and 

became effective August 2003. The Trade Act of 2002 (P.L. 107-210) authorized a federal 

income tax credit the HCTC for workers who had experienced job loss and for retirees whose 

private pension plans were taken over by the Pension Benefit Guaranty Corporation. The 

purpose of the tax credit was to make the purchase of health insurance more affordable for such 

individuals. The HCTC tax credit program terminated on January 1, 2014. On June 29, 2015, 

H.R. 1295, the Trade Preferences Extension Act of 2015 became law. This act reauthorized the 

HCTC, which expired at the end of 2013, and retroactively extended it for six years, from 2014 

through 2019. The Act of 2015 also modified the HCTC requirements to prohibit individuals from 

claiming the HCTC and certain other premium subsidies for the same coverage period, and to 

prevent use of the HCTC to purchase insurance through an ACA Exchange. 

Audit Finding or Material Weakness: N/A 

Agency Strategic Plan / Annual Performance Plan: N/A 

Presidential Priority: N/A 

Other Requirement: N/A 

Accomplishments and Future Objectives: 

HCTC successfully stood up the HCTC PMO, delivered Release 1 functionality to process Tax 

Year 2014 amended returns, process 2015 tax forms claiming the HCTC credit, provide an 

intake solution for external stakeholders (DOL and PBGC) to receive eligibility data for calendar 

year 2014 and 2015 for the 2016 Filing Season through existing systems and provide a solution 

to input a Masterfile indicator on eligible taxpayers from the DOL and PBGC eligibility files. The 

investment plans to finalize Release 2 and Release 3 requirements and develop functionality to 

create a registration database, perform eligibility validation, and monthly payment processing. 

Details of Useful Life Period: 

Year the investment began: 2015 

End Year of the current planning cycle: 2022 

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

Circular A-131.: This is a new investment, still in the planning stage. It is expected to continue 

with no clear end date. 

This investment covers ongoing functionality with no clear retirement date. We are using 5 year 

standard Period of Performance (POP) - Lifecycle not applicable to overall investment. 
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: (In Millions of $): 

Type PY-1 and Prior PY 

2015

CY 

2016

BY 

2017

BY+1 

2018

BY+2 

2019

BY+3 

2020 BY+4 and Beyond Total 

DME Sub Total (Including Gov FTE) Costs 24.63 4.34 4.86 4.95 5.03 5.12 5.20 5.29 59.43 

Total DME funding 4.34 4.86 4.95 14.16 

Unallocated DME funding 0.00 0.00 0.00 0.00 

O&M Sub Total (Including Gov FTE) Costs 70.12 8.87 8.74 8.87 9.00 9.13 9.26 9.40 133.40 

Total O&M funding 8.87 8.74 8.87 26.49 

Unallocated O&M funding 0.00 0.00 0.00 0.00 

Total Cost (Including Gov FTE) 94.75 13.21 13.61 13.83 14.04 14.25 14.47 14.68 192.83 

Total Gov FTE Cost 80.01 8.87 8.74 8.87 9.00 9.13 9.26 9.40 143.29 

Number of FTE represented by costs 535.02 61.25 58.00 58.00 46.71 48.11 49.55 51.04 907.68 

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. IMF also provides taxpayer customer service by 

providing refund information for Treasury. 

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 FY2015(PY) the Individual Master File continued to be leveraged to fill the functional needs of 

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

-Specific segments of IMF Posting and Analysis runs were evaluated in order to develop JAVA 

software version of the programs. 

- 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. 

In FY2016(CY) the 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: 2022 

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

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

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

investment. 

Performance Evaluation and Metrics: 

Metric Description 

Performance 

Measurement 

Category 

Mapping 

Measurement 

Condition 

Reporting 

Frequency

Unit Of 

Measure 

CY 

Target 

Latest 

Actual 

Result 

Date of 

Latest 

Actual 

Result 

Interest paid on taxpayer refunds per 1 Million Dollars. This figure 

represents total Refund Interest divided by total refund dollars 

issued on original settlement. Measurement data is provided by W&I 

and SB/SE in the SMART database. The Business target for this 

measure is established by CAS every January, with a yearly goal 

and cummulative planned projection for each month. The results 

report the variance against the target, and the monthly cummulative 

target is reported in the comments. 

Customer 

Satisfaction 

(Results) 

Under target Monthly 

Dollars per 

Million Paid in 

Refunds 

60.00 50.94 12/31/2015 

Percent of Taxpayer refunds (paper returns only) issued within 40 

days. Timeliness measured by sampling taxpayers receiving 

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

Submission Processing (SMART) database. The Business target for 

this measure is established by CAS every January, with a yearly 

goal and cummulative planned projection for each month. The 

results report the variance against the target, and the monthly 

cummulative target is reported in the comments 

Strategic and 

Business Results Over target Monthly 

Percent of 

Refund Issued 

Within 40 Days 

94.00 97.80 12/31/2015 

Refund Error rate with Systemic Errors- The error rate is the ratio of 

total incorrect refunds compared to the total number of refunds. 

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

database. Systemic errors (errors attributed to incorrect 

programming, less than ideal products from properly working 

systems, and incorrect IRM procedures) are also included in the 

rates which indicatewith 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 12/31/2015 

IMF completes planned processing schedule (e.g., daily, weekly) to 

meet refund, notice and on-line access deadlines. Measurement 

available on Enterprise Operations weekly reports. 

Strategic and 

Business Results Over target Monthly Percent 95.00 100.00 12/31/2015 

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 12/31/2015 

 
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: (In Millions of $): 

Type PY-1 and Prior PY 

2015

CY 

2016

BY 

2017

BY+1 

2018

BY+2 

2019

BY+3 

2020 BY+4 and Beyond Total 

DME Sub Total (Including Gov FTE) Costs 182.89 3.60 0.00 0.00 0.00 0.00 0.00 0.00 186.49 

Total DME funding 3.60 0.00 0.00 3.60 

Unallocated DME funding 0.00 0.00 0.00 0.00 

O&M Sub Total (Including Gov FTE) Costs 313.40 9.24 11.71 11.90 12.08 12.27 12.46 12.65 395.70 

Total O&M funding 9.24 11.71 11.90 32.84 

Unallocated O&M funding 0.00 0.00 0.00 0.00 

Total Cost (Including Gov FTE) 496.29 12.84 11.71 11.90 12.08 12.27 12.46 12.65 582.19 

Total Gov FTE Cost 87.35 8.45 7.00 7.11 7.20 7.29 7.39 7.48 139.27 

Number of FTE represented by costs 686.53 52.90 47.50 47.50 47.50 47.50 47.50 47.50 1024.43 

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. 

- 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 Address change allows taxpayers who have had their check returned from the 

post office as undeliverable to change their address of record. 

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

amount of time to initiate a refund trace. 

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

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

session. 

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

with their accounts. Consolidating logic for telephone applications reduces overall costs as 
standard solutions are applied to what was a specialize arena. 

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

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

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

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

Income Tax Assistance (VITA) and Search). 

Return on Investment: 

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 handling. 

Estimates show a cost of approximately $0.71 per completed toll-free automated call compared 

to the cost for live Customer Service Representative and a cost of $0.13 per web inquiry 

compared to the cost of CSR's. 

The ICCE Alternatives Analysis estimates benefits for FY16, (mainly from Productivity 

Improvement) at $539 million. The Return on the Investment (ROI) for ICCE in FY16 is derived 

by dividing this number by FY16 costs. It calculates to the return of 3400 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 PursueComprehensive Tax and Fiscal Reform by improving service to 

increase voluntary compliance. 

Presidential Priority: N/A 

Other Requirement: N/A 

Accomplishments and Future Objectives: 

FY15 

- Prioritize and gain approval for 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 of Foreign Account Tax Compliance Act application Release 1.1, Drop 2. 

- Deployment of updates to the Federal Student Aid Datashare application. 

- Deployment of updates and enhancements to the Get Transcript application. 

- Deployment of updates and enhancements to the Online Payment Agreement. 

FY16 

- Prioritize and gain approval for 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 of updates to the Federal Student Aid Datashare application. 

Details of Useful Life Period: 

Year the investment began: 1992 

End Year of the current planning cycle: 2022 

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

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

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

investment. 

Performance Evaluation and Metrics: 

Metric Description 

Performance 

Measurement 

Category Mapping 

Measurement 

Condition 

Reporting 

Frequency 

Unit Of 

Measure 

CY 

Target 

Latest 

Actual 

Result 

Date of Latest 

Actual Result

Reduction in the number of Transmittals or requests for 

corrective changes to production environment, as evidence 

of improved efficiency. 

Financial 

Performance Under target Quarterly Number of transmittals 45.00 17.00 12/31/2015 

Customer Satisfaction (IRS.gov American Customer 

Satisfaction Index (ACSI Score) 

Customer 

Satisfaction (Results) Over target Monthly number 52.00 68.00 01/31/2016 

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 01/31/2016 

Percentage of taxpayers utilizing IRS web applications and 

automated Phone Service vs. Customer Service 

Representatives in order find solutions and answer questions 

related to tax matters. This is a periodic metric. 

Strategic and 

Business Results Over target Monthly percentage 50.00 83.83 01/31/2016 

The number of times taxpayers access IRS web applications 

to request refund status and other web services. (Internet 

Refund Fact of Filing (IRFOF), Internet Employee 

Identification Number (IEIN), Online Payment Agreement 

(OPA)). 

Strategic and 

Business Results Over target Monthly Number (in millions) 10.00 103.40 01/31/2016 

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 4.80 01/31/2016 

The number of times the ICCE overall schedule slips each 

quarter. 

Strategic and 

Business Results Under target Quarterly integer 3.00 0.00 01/31/2016 

 
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: (In Millions of $): 

Type PY-1 and Prior PY 

2015 

CY 

2016 

BY 

2017 

BY+1

2018 

BY+2 

2019 

BY+3 

2020 BY+4 and Beyond Total 

DME Sub Total (Including Gov FTE) Costs 27.70 3.96 3.95 4.01 4.06 4.12 4.17 4.22 56.20 

Total DME funding 3.96 3.95 4.01 11.93 

Unallocated DME funding 0.00 0.00 0.00 0.00 

O&M Sub Total (Including Gov FTE) Costs 189.40 12.34 12.32 12.50 12.64 12.84 13.01 13.18 278.22 

Total O&M funding 12.34 12.32 12.50 37.16 

Unallocated O&M funding 0.00 0.00 0.00 0.00 

Total Cost (Including Gov FTE) 217.10 16.31 16.27 16.51 16.70 16.95 17.18 17.40 334.42 

Total Gov FTE Cost 198.32 15.86 15.81 16.05 16.25 16.47 16.68 16.90 312.33 

Number of FTE represented by costs 1859.70 113.22 105.50 105.50 108.60 111.90 115.20 118.70 2638.32 

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 200 million taxpayers ask 

Where's-my-refund at irs.gov annually and over 3 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 340 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 three million 

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

copies. 

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

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

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

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

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

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

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

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

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

of the nation's tax system. 

e. Collected over $202 million in Installment Agreement (IA) User Fees and over $2.8 billion in 

Direct Deposit Installment Agreement payments in FY2015. 

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

automatically update the accounting system for stolen refunds. In FY2015, there were 301,758 

ID theft transactions, crediting victims over $1.174 billion. 

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 (26 USC), 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. A few examples of the statutes that have required updates to IDRS follow: 

H.R. 5552, Firearms Excise Tax Improvement Act of 2010, Hiring Incentives to Restore 

Employment (HIRE) Act of 2010 (PL 111-147), Foreign Account Tax Compliance Act within 

Hiring Incentive to Restore Employment Act (PL 111-147), Patient Protection and Affordable 

Care Act (ACA) (PL 111-148), American Recovery and Reinvestment Act (ARRA) (PL 111-5), 

Economic Stimulus Act of 2008 (PL 110-185), Small Business and Work Opportunity Tax Act 

(PL 110-28). 

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. 

Current Year FY2016: 

Development for legislatively mandated tax law changes and customer requested modernization 

and enhancement and FY2016 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: 

- Implement additional functionality for key provisions of the Patient Protection and Affordable 

Care Act (PL 111-148): enable split spousal assessments of the individual shared responsibility 

payment for provision 5000A; also extend implementation of Provision 4980H to include 

maintenance of an Applicable Large Employer code originating from new ACA information 

returns; 

- Further improve 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. 

Budget Year FY2017: 

FY17 Development for legislatively mandated tax law changes and customer requested 

modernization and enhancement and FY17 maintenance (for example, incorporate format and 

validation changes). 

- Patient Protection and Affordable Care Act (PL 111-148): 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. 

Details of Useful Life Period: 

Year the investment began: 1973 
End Year of the current planning cycle: 2022 

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 retirement date. We are 

using 5 year standard Period of Performance (POP). 

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 97.40 09/30/2015 

Percentage of IDRS system availability, per an approved service 

level agreement, as documented by IRS Information Technology 

Enterprise Services for "Essential Business Systems". 

Customer 

Satisfaction 

(Results) 

Over target Monthly 

Percentage of 

system 

availability 

95.00 100.00 12/31/2015 

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

through www.irs.gov, IRS2Go smartphone application or 

automated, toll-free telephone number. This feature allows 

taxpayers to find out the status of their refunds without the 

assistance of a Federal employee. The target for this steady state 

performance metric is usage equal to 100 percent of the average 

usage during typical processing years. 

Strategic and 

Business Results Over target Monthly 

Pct; Usage 

equal to avg. 

typical 

processing 

years 

9.20 38.10 01/31/2016 

Business taxpayer usage of www.irs.gov to obtain Employer 

Identification Numbers (EINs). This feature lets taxpayers obtain 

EINs on-line instead of mailing form SS-4 "Application for EIN", 

which requires assistance of an IRS employee. It reduces the 

expense and difficulty of doing business with the Government and 

has environmental impact. The target for this steady state 

performance metric is usage equal to 100 percent of the average 

usage during typical processing years. 

Strategic and 

Business Results Over target SemiAnnual 

Pct; Usage 

equal to avg. 

typical 

processing 

years. 

100.00 136.60 09/30/2015 

IRS staff usage of IDRS. The Command Code TXMOD allows 

approximately 60,000 taxpayer-facing IRS employees to retrieve 

taxpayer records quickly, accurately, and securely when 

responding to taxpayer inquiries and conducting examinations. 

TXMOD displays tax data for specific taxpayers for specific 

periods. The target for this steady state performance metric is 

TXMOD usage equal to 100 percent of the average usage during 

typical processing years. 

Strategic and 

Business Results Over target Monthly 

Pct; Usage 

equal to avg. 

typical 

processing 

years 

17.40 16.60 12/31/2015 

 
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: (In Millions of $): 

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 accounts for how the 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. The most immediate quantifiable benefit from the recent 

IFS update is the time spent in system configuration. The old method used to derive a General 

Ledger account was tedious and error prone. The upgraded method is part of the budgetary 

ledger and will cause far fewer posting errors. 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. 

Type PY-1 and Prior PY 

2015

CY 

2016

BY 

2017

BY+1 

2018

BY+2 

2019

BY+3 

2020 BY+4 and Beyond Total 

DME Sub Total (Including Gov FTE) Costs 228.05 0.00 0.00 0.00 0.00 0.00 0.00 0.00 228.05 

Total DME funding 0.00 0.00 0.00 0.00 

Unallocated DME funding 0.00 0.00 0.00 0.00 

O&M Sub Total (Including Gov FTE) Costs 201.26 8.39 2.81 4.23 4.29 4.36 4.42 4.49 234.25 

Total O&M funding 8.39 2.81 4.23 15.42 

Unallocated O&M funding 0.00 0.00 0.00 0.00 

Total Cost (Including Gov FTE) 429.31 8.39 2.81 4.23 4.29 4.36 4.42 4.49 462.30 

Total Gov FTE Cost 38.54 3.14 2.61 2.65 2.68 2.72 2.75 2.79 57.87 

Number of FTE represented by costs 101.39 20.56 17.67 17.67 17.67 17.67 17.67 0.00 210.30 
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: IFS supports Treasury's Strategic Goal to 

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

core financial system and standardizing our accounting practices while continuously improving 

our operations and processes to generate efficiency savings. 

Presidential Priority: N/A 

Other Requirement: N/A 

Accomplishments and Future Objectives: 

During PY2015, IFS supported a new data interface to support the transition from GovTrip to EGov Travel Service 2.0 (ETS2). IFS completed standard maintenance patches, year-end close, 

and supported the GAO audit. During BY2016, IFS will be updating its Business Warehouse 

(BW) software to the current SAP COTS version as well as migrating the BW infrastructure to 

Virtual Linux. 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 

FY2016 IFS will be making system updates to support the Federal Data Act and enhance Fixed 

Asset Accounting. 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: 2022 

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

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

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

investment. 
Performance Evaluation and Metrics: 

Metric Description 

Performance 

Measurement 

Category Mapping 

Measurement 

Condition 

Reporting 

Frequency 

Unit Of 

Measure 

CY 

Target 

Latest 

Actual 

Result 

Date of Latest 

Actual Result 

The percentage of scheduled system availability per the 

approved Service Level Agreement, as documented 

monthly by IRS Enterprise Services. 

Strategic and Business 

Results Over target Monthly Percentage 99.00 100.00 01/31/2016 

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 3.00 01/31/2016 

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 90.00 01/31/2016 

Percentage of timely implementation per IFS 

maintenance schedule (i.e. deployment) of IFS server 

patches including Solaris, Veritas, Oracle, SAP and 

Informatica 

Strategic and Business 

Results Over target Quarterly percentage 100.00 100.00 01/31/2016 

Percentage of interface failures requiring transmition to 

system Financial Performance Over target Monthly percentage 95.00 95.00 01/31/2016 

Timely availability of environments for Mocks and testing Customer Satisfaction 

(Results) Over target Quarterly Percentage 100.00 100.00 01/31/2016 

 
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: (In Millions of $): 

Type PY-1 and Prior PY 

2015

CY 

2016

BY 

2017

BY+1 

2018

BY+2 

2019

BY+3 

2020 BY+4 and Beyond Total 

DME Sub Total (Including Gov FTE) Costs 1.32 0.13 0.23 0.23 0.23 0.23 0.23 0.23 2.82 

Total DME funding 0.13 0.23 0.23 0.59 

Unallocated DME funding 0.00 0.00 0.00 0.00 

O&M Sub Total (Including Gov FTE) Costs 152.26 10.47 10.87 11.07 11.27 11.48 11.68 11.89 231.00 

Total O&M funding 10.47 10.87 11.07 32.42 

Unallocated O&M funding 0.00 0.00 0.00 0.00 

Total Cost (Including Gov FTE) 153.58 10.60 11.10 11.30 11.50 11.70 11.91 12.12 233.82 

Total Gov FTE Cost 15.08 2.42 1.65 1.67 1.70 1.72 1.74 1.76 27.75 

Number of FTE represented by costs 112.81 18.13 11.00 11.00 11.00 11.00 11.00 11.00 196.94 

Summary of Purpose, Goals, and Benefits: 

The Integrated Submission and Remittance Processing (ISRP) system is a mission critical 

operations and maintenance project that processes tens of millions of tax returns and deposits 

billions of dollars to the U.S. Treasury on a yearly basis. ISRP is an integrated suite of 

hardware, software and network components that provides the interfaces for data entry 

perfection and transmission of data to IRS Corporate data storage. ISRP Data Entry Operators 

enter the information from various paper documents, which are then converted into electronic 

data used by downstream operations such as Financial Information Systems. ISRP also 

updates tax forms to comply with legislative changes in tax laws. There is a system dependence 

on various IRS applications such as Generalized Mainline Framework (GMF), Enhanced Entity 

Index File (EEIF), Integrated Data Retrieval System (IDRS), and Enterprise File Transfer Utility 

(EFTU). 

Return on Investment: 

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

U.S. Department of the Treasury, as tens of millions of returns and billions of dollars in receipts 

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

been reduced by more than 40 percent since 2010. Part of Treasury's Mission for Fiscal Years 

2012-2015 is to "operate and maintain systems that are critical to the Nation's financial 

infrastructure, such as disbursing payments to the American public, and collecting taxes". 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. 

The service that ISRP provides to taxpayers is strategic and imperative. 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. 
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: 

Developed changes required by legislative tax law mandates. ISRP deployed ACA Changes. 

ISRP Image Capture Server (ICS) installs were completed at all sites. ISRP completed the 

deployment of MS Server 2008 and SQL 2008. Captured Form 8938 data for FATCA and 

transferred downstream to the Compliance Data Warehouse (CDW). 

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

Program, test, and deploy new Affordable Care Act (ACA) functionality. Deploy security 

patches, maintenance and firmware updates. Consider proposals and options to leverage 

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

reduce costs. ISRP will send FATCA information from Forms 8938, 8966, and 1042-S 

(Recipient copy) to the International Compliance Management Model (ICCM). 

Details of Useful Life Period: 

Year the investment began: 1998 

End Year of the current planning cycle: 2022 

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

Circular A-131.: ISRP utilizes a life cycle approach that involved an initial period of 

development followed by a period of operational spending, with periodic legislative and/or 

regulatory updates. This investment covers ongoing functionality with no clear retirement date. 

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

investment. 

Performance Evaluation and Metrics: 

Metric Description 

Performance 

Measurement Category 

Mapping 

Measurement 

Condition 

Reporting 

Frequency 

Unit Of 

Measure 

CY 

Target 

Latest 

Actual 

Result 

Date of Latest 

Actual Result 

Scanner/ Transport HARDWARE Response 

Timeliness Percentage of Priority Trouble Tickets 

(P1) Maintenance Response within 2 hours. 

Strategic and Business 

Results Over target Monthly Percent 97.00 99.98 12/31/2015 

Production Problem Resolution and Reporting - 

Number of high priority trouble tickets (P1) not closed 

within 4 hours. 

Strategic and Business 

Results Under target Monthly numeric 0.00 0.00 12/31/2015 

System Availability (Uptime) - Percent of up time 

hours (actual uptime hours/planned uptime hours). Financial Performance Over target Monthly Percent 99.00 100.00 12/31/2015 

Production Problem Resolution and Reporting - 

Number of priority trouble tickets (P2) not closed 

timely within 24 hours 

Customer Satisfaction 

(Results) Under target Monthly Numeric 1.00 0.00 12/31/2015 

Percentage of daily ISRP deposits made in 

accordance with IRM 3.0.275. 

Strategic and Business 

Results Over target Monthly Percent 70.00 95.50 12/31/2015 
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: (In Millions of $): 

Type PY-1 and Prior PY 

2015 

CY 

2016 

BY 

2017 

BY+1 

2018 

BY+2 

2019 

BY+3 

2020 BY+4 and Beyond Total 

DME Sub Total (Including Gov FTE) Costs 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 

Total DME funding 0.00 0.00 0.00 0.00 

Unallocated DME funding 0.00 0.00 0.00 0.00 

O&M Sub Total (Including Gov FTE) Costs 883.14 198.57 213.84 193.36 196.21 199.09 202.02 204.99 2291.22 

Total O&M funding 198.57 213.84 193.36 605.78 

Unallocated O&M funding 0.00 0.00 0.00 0.00 

Total Cost (Including Gov FTE) 883.14 198.57 213.84 193.36 196.21 199.09 202.02 204.99 2291.22 

Total Gov FTE Cost 523.06 115.93 130.99 138.85 140.66 142.48 144.34 146.21 1482.52 

Number of FTE represented by costs 2224.97 1018.07 1014.65 1057.15 1057.15 1057.15 1057.15 1057.15 9543.44 

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 85,000 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 will implement 

enterprise-wide analytics and research capabilities to ensure timely informed decisions 

strategies are made. In support of improving efficiency and productivity for all IRS employees, 

the investment is implementing World Class Service strategies to deliver exceptional 

performance and service by meeting or exceeding industry performance standards through 

enhanced customer experience and innovation, driving to a transformative culture of selfsufficiency through tools and pro-active education and service, and to drive efficiency through 

channel segmentation, demand management, and 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. 

Presidential Priority: The Investment supports Executive Order (EO) 13693, Planning for 

Federal Sustainability in the Next Decade (previous EO was 13423), signed by President 

Obama on 19 March 2015. eiPower is an initiative to comply with the EO. 

Other Requirement: N/A 

Accomplishments and Future Objectives: 

FY16 (CY): Continue providing customers with all required hardware, software and maintenance 

support needed. Complete the networking of Copy/Multifunction Devices and standup network 

print management operations; BYOD expand to more users and offer proven secure COTS 

apps as appropriate. Implement initial solution for BYO computer to target use cases, based on 

evaluations and technology demonstrations. Continue implementing the Desktop Virtualization 

Technology Demonstrations. 

FY17 (BY): Continue to provide customers with all required hardware, software and 

maintenance support needed. Use Cloud Computing software as a service to evaluate solutions 

for common services (email, collaboration, etc.) and identify best candidates. Windows 10 for 

the going forward desktop strategy and leverage virtualization to redefine user experience. 

Continue upgrading clients to Win10 and Office 2013. 

BY+1: Operations and Maintenance requirements are expected to continue. Continue to 

complete Windows upgrades, with diminished footprint due to reduced need for full desktop. 

The virtualization and cloud based solutions will change desktop/laptop service model. Use 

Cloud Computing software as a service to expand evaluation of chosen candidate to larger 

technology demonstration then initiate business case analysis. . 

BY+2: Operations and Maintenance requirements are expected to continue. Continue to 

complete Windows upgrades, with diminished footprint due to reduced need for full desktop. 

The virtualization and cloud based solutions will change desktop/laptop service model. Use 

Cloud Computing software as a service to expand evaluation of chosen candidate to larger 

technology demonstration then initiate business case analysis. . 

BY+3: Operations and Maintenance requirements are expected to continue. 

BY+4 and beyond: Operations and Maintenance requirements are expected to continue. 

Details of Useful Life Period: 

Year the investment began: 2002 

End Year of the current planning cycle: 2022 

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

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

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

investment. 
Performance Evaluation and Metrics: 

Metric Description 

Performance 

Measurement 

Category Mapping 

Measurement 

Condition 

Reporting 

Frequency 

Unit Of 

Measure 

CY 

Target 

Latest 

Actual 

Result 

Date of 

Latest Actual 

Result 

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 61.99 01/31/2016 

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 5.62 01/31/2016 

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 90.00 99.85 01/31/2016 

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 87.00 97.55 01/31/2016 

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 19.62 01/31/2016 

 
IRS Main Frames and Servers Services and Support (MSSS) 

Type of Investment: Major IT Investment 

Description: 

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

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

operating systems for these platforms. 

Investment Anticipated Outlay: (In Millions of $): 

Type PY-1 and Prior PY 

2015 

CY 

2016 

BY 

2017 

BY+1 

2018 

BY+2 

2019 

BY+3 

2020 BY+4 and Beyond Total 

DME Sub Total (Including Gov FTE) Costs 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 

Total DME funding 0.00 0.00 0.00 0.00 

Unallocated DME funding 0.00 0.00 0.00 0.00 

O&M Sub Total (Including Gov FTE) Costs 4649.28 478.50 417.02 468.18 536.84 545.66 554.62 563.73 8213.84 

Total O&M funding 478.50 417.02 468.18 1363.71 

Unallocated O&M funding 0.00 0.00 0.00 0.00 

Total Cost (Including Gov FTE) 4649.28 478.50 417.02 468.18 536.84 545.66 554.62 563.73 8213.84 

Total Gov FTE Cost 433.48 225.13 224.48 228.32 231.29 234.30 237.34 240.43 2054.77 

Number of FTE represented by costs 5088.90 1668.75 1601.28 1604.78 1604.78 1604.78 1604.78 1604.78 16382.83 

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: N/A 

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: 2022 

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

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

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

investment. 

Performance Evaluation and Metrics: 

Metric Description 

Performance 

Measurement 

Category Mapping 

Measurement 

Condition 

Reporting 

Frequency 

Unit Of 

Measure 

CY 

Target 

Latest 

Actual 

Result 

Date of Latest 

Actual Result 

Percentage of Uptime for the ACS, ICS and IDRS 

Databases 

Strategic and Business 

Results Over target Monthly percentage 98.00 100.00 12/18/2015 

Percentage of Priority Tickets Triaged in 30 minutes 

by ITOCC Server/Network & Mainframe 

Monitoring/Triage Branch Systems Administrators 

Customer Satisfaction 

(Results) Over target Monthly percentage 90.00 100.00 01/07/2016 

Percentage of Server Environment Virtualized Strategic and Business 

Results Over target Monthly percentage 62.00 63.97 12/22/2015 

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 99.03 12/29/2015 

Number of Standard Employee IDs with Elevated 

Access are Reduced Financial Performance Under target Quarterly Number 3000.00 2166.00 11/30/2015 

 
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: (In Millions of $): 

Type PY-1 and Prior PY 

2015 

CY 

2016 

BY 

2017 

BY+1 

2018 

BY+2 

2019 

BY+3 

2020 BY+4 and Beyond Total 

DME Sub Total (Including Gov FTE) Costs 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 

Total DME funding 0.00 0.00 0.00 0.00 

Unallocated DME funding 0.00 0.00 0.00 0.00 

O&M Sub Total (Including Gov FTE) Costs 1279.14 299.32 276.18 286.04 291.03 296.18 301.42 306.76 3336.07 

Total O&M funding 299.32 276.18 286.04 861.54 

Unallocated O&M funding 0.00 0.00 0.00 0.00 

Total Cost (Including Gov FTE) 1279.14 299.32 276.18 286.04 291.03 296.18 301.42 306.76 3336.07 

Total Gov FTE Cost 264.08 66.16 61.11 62.69 63.50 64.33 65.16 66.01 713.05 

Number of FTE represented by costs 988.24 505.07 476.15 481.15 481.15 481.15 481.15 481.15 4375.21 

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 85,000 IRS employees at about 1,000 

IRS locations. 

The goal of the investment is to provide the IRS with reliable, secure, innovative, and costeffective technology and services that enable communication, collaboration and business 

capabilities in support of the IRS mission. 

The TSS 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 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. The investment 

continues delivery of services and products to IRS employees which directly translates into 

service to taxpayers. Consistent and well-coordinated planning of 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 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. 

Presidential Priority: This investment supports the Office of Management and Budget (OMB) 

mandate dated September 28, 2010 for all federal agencies to transition from Internet Protocol 

Version 4 (IPv4) to Internet Protocol Version 6 (IPv6) operationally in two phases over the next 

few years. 

Other Requirement: N/A 

Accomplishments and Future Objectives: 

FY16 (CY): Continue to provide customers with all required operation & maintenance support 

needed. Transition to native IPv6 in production. Implement TNET Hub redesign phase 2 and 

WAN acceleration proof of concept. IUP will begin the Phase 2 enterprise-wide replacement of 

the ACDs. 

FY17 (BY): Continue to provide customers with all required operation & maintenance support 

needed. Unified Communications nears completion, providing quality video and voice over IP. 

Implement video strategy. Procure TNET replacement WAN services. Implement TNET native 

IPv6. 

FY 18 (BY+1): Continue to provide customers with all required operation & maintenance support 

needed. Complete Unified Access & Segmentation rollout. Leverage new capabilities to support 

remote workforce and case management. Integrate Unified Communications across multiple 

user environments/clients (Windows, virtual, Cloud, mobile). Evaluate and demonstrate next 

generation Unified Communications and SDN technologies. 

FY19 (BY+2): Continue to provide customers with all required operation & maintenance support 

needed. Complete Unified Access & Segmentation rollout. Leverage new capabilities to support 

remote workforce and case management. Integrate Unified Communications across multiple 

user environments/clients (Windows, virtual, Cloud, mobile). Evaluate and demonstrate next 

generation Unified Communications and SDN technologies. 

FY20 (BY+3): Continue to provide customers with all required operation & maintenance support 

needed. 

FY21 (BY+4): Continue to provide customers with all required operation & maintenance support 

needed. 

Details of Useful Life Period: 

Year the investment began: 2001 

End Year of the current planning cycle: 2022 

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

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

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

investment. 
Performance Evaluation and Metrics: 

Metric Description 

Performance 

Measurement 

Category Mapping 

Measurement 

Condition 

Reporting 

Frequency 

Unit Of 

Measure 

CY 

Target 

Latest 

Actual 

Result 

Date of Latest 

Actual Result 

GSP Compliance (Network Devices) - measures the 

percentage of network devices that meet GSP 

(Guidelines Standards and Procedures) standards 

Strategic and Business 

Results Over target Monthly Percentage 95.00 95.51 01/31/2016 

WAN Availability - measures the percentage of 

availability of Wide Area Network (WAN) Services Financial Performance Over target Monthly Percentage 99.95 100.00 01/31/2016 

LAN Availability - measures the percentage of 

availability of Local Area Network (LAN) Services 

Strategic and Business 

Results Over target Monthly Percentage 99.95 99.96 01/31/2016 

Internet Access Availability - measures the 

percentage of internet availability through the three 

CCGs (Common Communication Gateways) 

Customer Satisfaction 

(Results) Over target Monthly Percentage 99.80 100.00 01/31/2016 

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 99.95 01/31/2016 

 
IRS.GOV - Portal Environment 

Type of Investment: Major IT Investment 

Description: 

IRS portal will provide seamless one-stop web-based services to internal and external users, 

such as taxpayers, business partners, IRS employees, and other government agencies. 

Investment Anticipated Outlay: (In Millions of $): 

Type PY-1 and Prior PY 

2015

CY 

2016

BY 

2017

BY+1 

2018

BY+2 

2019

BY+3 

2020 BY+4 and Beyond Total 

DME Sub Total (Including Gov FTE) Costs 114.58 1.00 1.00 1.00 1.00 1.00 1.00 1.00 121.58 

Total DME funding 1.00 1.00 1.00 3.00 

Unallocated DME funding 0.00 0.00 0.00 0.00 

O&M Sub Total (Including Gov FTE) Costs 444.55 67.56 59.61 67.88 69.18 70.52 71.88 73.26 924.45 

Total O&M funding 67.56 59.61 67.88 195.05 

Unallocated O&M funding 0.00 0.00 0.00 0.00 

Total Cost (Including Gov FTE) 559.13 68.56 60.61 68.88 70.18 71.52 72.88 74.26 1046.02 

Total Gov FTE Cost 36.64 4.11 0.00 0.00 0.00 0.00 0.00 0.00 40.75 

Number of FTE represented by costs 183.23 24.92 0.00 0.00 0.00 0.00 0.00 0.00 208.15 

Summary of Purpose, Goals, and Benefits: 

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

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

all. 

Return on Investment: 

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

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

receive cost savings. 

Requirements/ Benefits/ Mandates: 

Legislative Mandate: N/A 

Audit Finding or Material Weakness: N/A 

Agency Strategic Plan / Annual Performance Plan: N/A 

Presidential Priority: N/A 

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 2015 Planned Accomplishment for PUP / RUP /EUP 

- Operations and Maintenance 

- Filing Season Updates. 
FY 2016 Planned Accomplishment for IEP 

- Operations and Maintenance 

- Filing Season Updates. 

FY 2017 Planned Accomplishment for IEP 

- Operations and Maintenance 

- Filing Season Updates. 

Details of Useful Life Period: 

Year the investment began: 1996 

End Year of the current planning cycle: 2022 

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

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

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

investment. (Questions T2.b &T2.C). 

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 

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 01/31/2016 

Percentage of system response time of search 

queries completed in less than 3 seconds. 

Strategic and Business 

Results Over target Monthly Percentage 99.00 99.99 01/31/2016 

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 93.59 01/31/2016 

Providing the percentage of Formal O&M 

deliverables submitted timely. Financial Performance Over target Monthly Percentage 90.00 100.00 01/31/2016 

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 01/31/2016 

 
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: (In Millions of $): 

Type PY-1 and Prior PY 

2015 

CY 

2016 

BY 

2017 

BY+1 

2018 

BY+2 

2019 

BY+3 

2020 BY+4 and Beyond Total 

DME Sub Total (Including Gov FTE) Costs 301.76 8.94 10.07 14.60 14.87 15.13 15.40 15.68 396.45 

Total DME funding 8.94 10.07 14.60 33.61 

Unallocated DME funding 0.00 0.00 0.00 0.00 

O&M Sub Total (Including Gov FTE) Costs 123.15 54.30 44.66 45.45 46.23 47.03 47.84 48.66 457.33 

Total O&M funding 54.30 44.66 45.45 144.41 

Unallocated O&M funding 0.00 0.00 0.00 0.00 

Total Cost (Including Gov FTE) 424.91 63.23 54.74 60.05 61.10 62.16 63.24 64.34 853.78 

Total Gov FTE Cost 76.82 17.15 15.67 16.10 16.31 16.52 16.74 16.96 192.28 

Number of FTE represented by costs 524.40 116.98 113.00 115.00 115.00 115.00 115.00 115.00 1329.38 

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 (2015): 

- Deploy MeF Release 9.6 which will include changes due to Foreign Account Tax Compliance 

Act (FATCA), Infrastructure currency activities and maintenance of MeF, including hardware, 

software, security, helpdesk, training, etc. 

- Develop MeF Release 10 which will allow electronic processing of 1040NR and 1040NREZ 

forms and changes due to ACA, FATCA and maintenance of MeF including hardware, software, 

security, helpdesk, training, etc. 

BY (2016): 

Deploy MeF Release 10 which will allow electronic processing of 1040NR and 1040NREZ forms 

and changes due to ACA, FATCA and maintenance of MeF including hardware, software, 
security, helpdesk, training, etc. 

Develop MeF Release 11 which will allow electronic processing of Estate Forms 706, 706N, Gift 

Forms 708, 709 and 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, 2014 since over 20.5M BMF returns have been accepted 

this translates to a cost savings of $41M. For individual returns the cost savings are $3.13 per 

return. As of December 31,2014 over 238M IMF returns have been accepted. The total IMF cost 

savings are $745M. Total cost savings for MeF program are therefore $786M. For FY2014 the 

total cost expended for MeF is $49M. As a result the MeF Return on investment is 1604%. 

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. 

2. Worker, Homeownership, and Business Assistance Act of 2009 (H.R. 3548) Section 17 - 

Requires tax return preparers who expect to file more than 10 tax returns to file such returns 

electronically. 

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 (2015): 

- Deploy MeF Release 9.6 which will include changes due to Foreign Account Tax Compliance 

Act (FATCA), Infrastructure currency activities and maintenance of MeF, including hardware, 
software, security, helpdesk, training, etc. 

- Develop MeF Release 10 which will allow electronic processing of 1040NR and 1040NREZ 

forms and changes due to ACA, FATCA and maintenance of MeF including hardware, software, 

security, helpdesk, training, etc. 

BY (2016): 

Deploy MeF Release 10 which will allow electronic processing of 1040NR and 1040NREZ forms 

and changes due to ACA, FATCA and maintenance of MeF including hardware, software, 

security, helpdesk, training, etc. 

Develop MeF Release 11 which will allow electronic processing of Estate Forms 706, 706N, Gift 

Forms 708, 709 and 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: 2022 

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

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

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

investment. 

Performance Evaluation and Metrics: 

Metric Description 

Performance 

Measurement 

Category Mapping 

Measurement 

Condition 

Reporting 

Frequency 

Unit Of 

Measure 

CY 

Target 

Latest 

Actual 

Result 

Date of Latest 

Actual Result 

Error rate for electronically filed tax returns Financial Performance Under target Quarterly percentage 8.00 8.00 12/31/2015 

The percentage of scheduled system availability per the 

approved Service Level Agreement, as documented 

monthly by IRS Enterprise Operations. 

Customer Satisfaction 

(Results) Over target Monthly percentage 99.00 99.00 01/31/2016 

The average number of minutes within which electronic 

filers receive acknowledgement of their electronically 

filed tax returns. 

Customer Satisfaction 

(Results) Under target Monthly minutes 5.00 5.00 01/31/2016 

Percent of business tax returns processed electronically 

by MeF. 

Strategic and Business 

Results Over target Monthly percentage 40.00 52.79 01/31/2016 

Percent of individual tax returns processed 

electronically. 

Strategic and Business 

Results Over target Quarterly percentage 80.00 85.45 12/31/2015 

Total quarterly cost savings derived from electronically 

filed tax returns. Savings achieved is based on an 

average of $10M target savings per quarter. This a 

periodic metric. 

Strategic and Business 

Results Over target Quarterly Millions of Dollars. ($M) 3.00 6.24 12/31/2015 

 
Return Review Program (RRP) (Previously Implement RRP - Replaces EFDS) 

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: (In Millions of $): 

Type PY-1 and Prior PY 

2015

CY 

2016 

BY 

2017 

BY+1 

2018 

BY+2 

2019 

BY+3 

2020 BY+4 and Beyond Total 

DME Sub Total (Including Gov FTE) Costs 150.99 30.29 41.45 41.57 54.49 55.47 56.47 57.48 488.21 

Total DME funding 30.29 41.45 41.57 113.31 

Unallocated DME funding 0.00 0.00 0.00 0.00 

O&M Sub Total (Including Gov FTE) Costs 0.00 11.32 50.44 51.35 52.29 53.24 54.22 55.21 328.07 

Total O&M funding 11.32 50.44 51.35 113.11 

Unallocated O&M funding 0.00 0.00 0.00 0.00 

Total Cost (Including Gov FTE) 150.99 41.61 91.90 92.91 106.78 108.71 110.68 112.69 816.28 

Total Gov FTE Cost 26.24 10.96 15.01 15.21 15.41 15.61 15.81 16.01 130.24 

Number of FTE represented by costs 180.82 70.83 100.50 100.50 100.50 100.50 100.50 100.50 854.65 

Summary of Purpose, Goals, and Benefits: 

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

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 United States Treasury revenue. Using 

the analytics capability provided by RRP, the goal is to create predictive fraud and noncompliance detection models, which will seek out subtle data patterns to determine reliability of 

return data, including the filer's identity. 

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

scalable and adaptable manner. 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, emerging fraud schemes, and research. In addition, RRP will improve workload 

management for the business divisions, RRP will develop rules and models that flag potential 

cases to facilitate case selection and to dynamically route anomalies/exceptions to different 

treatment streams, thus increasing efficiencies to assist in prioritization of workload. 

The future state of RRP will have an expanded role beyond fraud detection. RRP will perform 

the function of correlating data across multiple data sources. Currently, RRP supports IRS 

enforcement of international compliance with the Foreign Account Tax Compliance Act (FATCA) 

through its matching and analysis of withholding data reported by foreign financial institutions to 

prevent fraudulent refund requests from being paid. 

Return on Investment: 

The ROI for the RRP Identity (ID) Theft Pilot for Filing Season 2015 was quite impressive. RRP 

selected 721,000 potential ID Theft Returns that have a refund dollar value of $4.4 Billion. 

Other qualitative benefits both internal and external to the Federal Government that RRP will 
provide are as follows: 

- RRP will result 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 

- Off-line simulation of rule and model analytics-based changes using production data to reduce 

risk 

- 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: Bureau Strategic Plan: 

Goal 2: Effectively enforce the law to ensure compliance with tax responsibilities and combat 

fraud. 

Objective 2: Deter and promptly resolve noncompliance by protecting revenue from refund fraud 

and ensuring appropriate revenue collection. 

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 has successfully deployed Transition State (TS) 1 and Filing Season 2015 (FS15) changes 

to production and exited the TS1 Deployment Phase (Milestone 5). The Identity Theft Pilot has 

been deployed to production; this increased the number of ID theft cases. RRP has completed 
Data Computing Appliance (DCA) realignment to ensure better performance for end users using 

Business Objects for reporting. RRP has completed development of the Restart Plan; it has 

been approved by the Revenue Protection Technology (RPT) Executive Steering Committee 

(ESC). The Restart Plan focuses on establishing RRP as the analytics platform leveraging 

enterprise initiatives. RRP implemented the Non-Identity (ID) Theft anomaly detection pilot in 

September 2015; it is included in RRP FS16 scope. RRP now provides results from analytics as 

well as taxpayer identification data to the Electronic Authentication system. For FS16, the 

system will also receive and analyze early W-2 data from several large employers to improve its 

pre-refund capabilities. 

The Withholding and Refund Release 2 functionality will be deployed. Disaster Recovery (DR) 

will be implemented in quarter one of Fiscal Year 2016. The Release Plan is complete; it 

identifies the cost, scope and schedule for Phase 1 of RRP. It has been approved by the 

Governance Board and is scheduled to be approved by the Executive Steering Committee in 

January 2016. FS17 planning, design, and development efforts will start in Q2 of Fiscal Year 

2016 and will include annual and legislative changes. 

Details of Useful Life Period: 

Year the investment began: 2010 

End Year of the current planning cycle: 2022 

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

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

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

investment. 

 
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: (In Millions of $): 

Type PY-1 and Prior PY 

2015

CY 

2016

BY 

2017

BY+1 

2018

BY+2 

2019

BY+3 

2020 BY+4 and Beyond Total 

DME Sub Total (Including Gov FTE) Costs 2.80 0.30 0.75 7.85 0.75 0.75 0.75 0.75 14.70 

Total DME funding 0.30 0.75 7.85 8.90 

Unallocated DME funding 0.00 0.00 0.00 0.00 

O&M Sub Total (Including Gov FTE) Costs 164.87 9.43 9.77 9.96 10.15 10.33 10.52 10.72 235.76 

Total O&M funding 9.43 9.77 9.96 29.17 

Unallocated O&M funding 0.00 0.00 0.00 0.00 

Total Cost (Including Gov FTE) 167.67 9.73 10.52 17.81 10.90 11.08 11.27 11.47 250.46 

Total Gov FTE Cost 18.96 1.34 0.82 0.84 0.85 0.86 0.87 0.88 25.43 

Number of FTE represented by costs 99.27 9.77 5.50 5.50 5.50 5.50 5.50 5.50 142.04 

Summary of Purpose, Goals, and Benefits: 

The Service Center Recognition/Image Processing System (SCRIPS) is a major paper input 

processing system specifically designed to automate the processing of Information Return 

Processing (IRP) forms, Schedule K-1's (Forms 1041 K-1, 1065 K-1, and 1120 K-1), Form 941 

(and associated Schedules B and Schedule R), and Form 940 (and associated Schedule A and 

Schedule R). In addition, beginning in 2016, 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 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 up-to-date. 

Program, test, and deploy new Affordable Care Act (ACA) functionality. SCRIPS processed 

more than 66 million tax forms in 2015 and expects to process 66 million tax forms in 2016. 

Goal 3: Strategic Objectives 
Objective 3.1: Improve the efficiency and transparency of federal financial management and 

government-wide accounting 

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

payments made by the U.S. government 

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 

SCRIPS provides top quality service to all taxpayers through fair and uniform application of the 

law. 

Return on Investment: 

The average cost-per-page to process documents on SCRIPS is between 1/15 and 1/20th the 

cost that it is on its sister system, the Integrated Submission and Remittance Processing 

System (ISRP). Even though the cost of maintaining and updating the software is more 

expensive to perform on SCRIPS than it is on ISRP, especially the Annual Legislative and 

Forms Changes, the cost savings are realized very early in the Filing Season. In Calendar Year 

(CY) 2015, SCRIPS scanned 63,193,360 taxpayer documents, and is on track to complete 

66,000,000 in CY2016. Considering the total cost to operate SCRIPS per year, including IRS 

FTE's in the program office, the contract with the vendor for maintenance and support, the cost 

of Enterprise Operations to support SCRIPS, etc., the break-even point 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 break-even point for SCRIPS is achieved before the end of the 

2nd month of the Filing Season. 

If the ROI is based on the following assumptions, then the ROI for SCRIPS is between 8 and 

15. 

Assumption 1 - 5 year cost of operations on SCRIPS is roughly $50,000,000. 

Assumption 2 - 5 years of scanned documents, at 90,000,000 per year is 450,000,000. 

Assumption 3 - Cost Per Page of processing on SCRIPS is $1.00 less than ISRP (actual 

amount is higher). 

Assumption 4 - Cost saved for 5 years is $450,000,000. 

Then ($450,000,000 - $50,000,000)/$50,000,000 = 8. 

If the Cost Per Page for Information Returns (IRP) on SCRIPS is $.08 versus $1.90 on ISRP, 

then: 

((450,000,000 * $1.82)-$50,000,000)/$50,000,000 = 15.38. 

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 as SCRIPS will begin processing ACA 

forms 1094-x and 1095-x in Calendar Year 2016. 

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 (2015). 

Deliver legislatively mandated Tax Year Changes to keep SCRIPS up-to-date (2016). 

Deployed updated Symantec Endpoint Protection (SEP) Version 12 (2014). 

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

systems to improve efficiency and reduce costs (2016). 

Deploy Affordable Care Act (ACA) functionality (2016). 

Deploy new Data Perfection Operator workstations (2017). 

Details of Useful Life Period: 

Year the investment began: 1991 

End Year of the current planning cycle: 2022 

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

Circular A-131.: SCRIPS utilizes a life cycle approach that involved an initial period of 

development followed by a period of operational spending, with periodic legislative and/or 

regulatory updates. This investment covers ongoing functionality with no clear retirement date. 

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

investment. 

Performance Evaluation and Metrics: 

Metric Description 

Performance 

Measurement Category 

Mapping 

Measurement 

Condition 

Reporting 

Frequency 

Unit Of 

Measure 

CY 

Target 

Latest 

Actual 

Result 

Date of Latest 

Actual Result 

The percentage of time the SCRIPS system is 

available per month for processing (system uptime). Financial Performance Over target Monthly percentage 99.00 100.00 01/31/2016 

Percent of tax return image print requests 

fulfilled within 2 days. 

Customer Satisfaction 

(Results) Over target Monthly percent 100.00 100.00 01/31/2016 

Maintain a character recognition error rate on 

scanned forms of no more than 4% per month. 

Strategic and Business 

Results Under target Monthly percent 4.00 4.28 01/31/2016 

Number of Moderate Priority (P2) trouble 

tickets not closed within 24 hours. 

Strategic and Business 

Results Under target Monthly numeric 1.00 0.00 01/31/2016 

Number of High Priority (P1) trouble tickets not 

closed within 4 hours. 

Strategic and Business 

Results Under target Monthly numeric 0.00 0.00 01/31/2016 

Average number of tax return-related 

documents processed per hour (for all sites). 

This is a seasonal metric. 

Strategic and Business 

Results Over target Quarterly numeric 200.00 247.64 12/31/2015 

 
Web Applications (formerly Online Services (OLS)) 

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; 

eAuthentication; Authorization; Third Party; and Mobile. 

Investment Anticipated Outlay: (In Millions of $): 

Type PY-1 and Prior PY 

2015

CY 

2016

BY 

2017

BY+1 

2018

BY+2 

2019

BY+3 

2020 BY+4 and Beyond Total 

DME Sub Total (Including Gov FTE) Costs 2.15 11.07 19.19 23.29 27.27 27.87 28.05 49.84 188.73 

Total DME funding 11.07 19.19 23.29 53.55 

Unallocated DME funding 0.00 0.00 0.00 0.00 

O&M Sub Total (Including Gov FTE) Costs 0.00 0.00 0.00 0.00 4.35 4.44 4.46 9.64 22.90 

Total O&M funding 0.00 0.00 0.00 0.00 

Unallocated O&M funding 0.00 0.00 0.00 0.00 

Total Cost (Including Gov FTE) 2.15 11.07 19.19 23.29 31.62 32.31 32.52 59.48 211.63 

Total Gov FTE Cost 0.00 2.52 6.06 6.14 6.75 7.43 8.17 18.87 55.94 

Number of FTE represented by costs 0.00 15.48 36.00 36.00 36.00 36.00 36.00 36.00 231.48 

Summary of Purpose, Goals, and Benefits: 

The FY 2017 request will lead the IRS to achieving enterprise themes of facilitating voluntary 

compliance by empowering taxpayers with innovative tools and support and driving more agility 

and efficiency in IRS operations. The Web Applications investment is a digital-first approach that 

enhances the taxpayer's online experience, provides secure digital communications, and adds 

more interactive capabilities to existing web self-service products. 

To keep pace with increasing taxpayer demand for IRS service, the IRS must create and 

enhance online, self-service capabilities for taxpayers, tax practitioners, and internal IRS 

stakeholders. This allows taxpayers the ability to easily access both public and personal 

information from their computers, smart phones and tablets and interact digitally with the IRS 

within a secure framework. Web Applications will drive the IRS transition to digital government 

and supports the long-term vision of migrating services from expensive traditional channels to 

the internet. Web Applications will continue to enhance the taxpayer's experience by providing 

additional self-service options within a secure communications infrastructure. 

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; upgrading the eAuthentication Platform; 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. 

Upgrade of the eAuthentication system provides more advanced tools and techniques to 

confirm the identity of taxpayers, which will assist in the registration of individuals, businesses, 

and tax professionals who wish to use the IRS online digital services. The eAuth upgrade 

supports externally-hosted applications, providing the IRS with more flexible development 

options and continued migration of legacy applications to the upgraded platform. The 

enhancements will also include automated reporting and improve user interface for mobile 

browsers and 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. 

Third Party Expansion of Application Programming Interface (API) will increase the number of 

tax services available to third parties and broaden the definition of third party to include other 

federal and state government agencies, as well as commercial tax preparers. 

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 15, the Web Applications PMO was established providing a single IT point of contact for 

business partners and establishing foundational capabilities that enable IT to deliver on the 

Service's vision for Web Applications. Short and long-term scope and requirements for Online 

Account capabilities were developed and the acquisition and configuration of Dev and Test 

technical environments was completed. 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. 

This will include Third Party Secure Access by APIs, online taxpayer accounts, and Power of 

Attorney that will provide a better user experience, clearer content, an enhanced portal, and 

more robust analytics to continuously improve the taxpayer experience. 

In the future Web Applications will continue working to enhance online services by enhancing 

the taxpayer's online experience, providing secure digital communications and add more 

interactive capabilities. This will include providing enhanced online capabilities and services to 

tax payers, tax practitioners, and internal IRS stakeholders. Web Applications will provide new 

taxpayer services by implementing Online Account, Advanced Mobile. Web Applications will be 

upgrading the eAuthentication Platform and Third Party to provide an expansion of API. These 

efforts will help provide a better user experience, clearer content, an enhanced portal and more 

robust analytics to continuously improve the taxpayer's experience. 

In the budget out years, Web Applications hopes to continue providing taxpayers the option to 

communicate digitally. 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: 2022 

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

Circular A-131.: Web Applications utilizes a life cycle approach that involved an initial period of 

development followed by a period of operational spending, with periodic legislative and/or 

regulatory updates, and no pre-determined end point. Our alternatives analysis is adapted to 

our life cycle by following the IRS-managed Enterprise Life Cycle process. This investment 

covers ongoing functionality with no clear retirement date. We are using 5 year standard Period 

of Performance (POP) - Lifecycle not applicable to overall investment. 
NON‐IT INVESTMENTS

Criminal Investigations Capital Assets 

Type of Investment: Major Non-IT Investment 

Description: 

This investment is managed by Criminal Investigations 

Investment Anticipated Outlay: (In Millions of $): 

Type PY-1 and Prior PY 

2015

CY 

2016

BY 

2017

BY+1 

2018

BY+2 

2019

BY+3 

2020 BY+4 and Beyond Total 

DME Sub Total (Including Gov FTE) Costs 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 

Total DME funding 0.00 0.00 2.96 2.96 

Unallocated DME funding 0.00 0.00 -2.96 -2.96 

O&M Sub Total (Including Gov FTE) Costs 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 

Total O&M funding 1.00 3.84 2.50 7.34 

Unallocated O&M funding -1.00 -3.84 -2.50 -7.34 

Total Cost (Including Gov FTE) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 

Total Gov FTE Cost 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 

Number of FTE represented by costs 0.00 0.00 0.00 0.00 0.00 

Summary of Purpose, Goals, and Benefits: 

This investment is managed by Criminal Investigations. These assets are used to protect CI 

special agents from threats and bodily injury while performing their law enforcement duties 

including conducting investigations concerning alleged criminal tax fraud violations, financial 

crimes, and other related offenses. 

Return on Investment: 

Ensure the safety and security of IRS personnel and property. 

Requirements/ Benefits/ Mandates: 

Legislative Mandate: N/A 

Audit Finding or Material Weakness: N/A 

Agency Strategic Plan / Annual Performance Plan: N/A 

Presidential Priority: N/A 

Other Requirement: N/A 

Accomplishments and Future Objectives: 

N/A. 
Leasehold Improvements 

Type of Investment: Major Non-IT Investment 

Description: 

Leasehold Improvements managed in AWSS 

Investment Anticipated Outlay: (In Millions of $): 

Type PY-1 and Prior PY 

2015

CY 

2016

BY 

2017

BY+1 

2018

BY+2 

2019

BY+3 

2020 BY+4 and Beyond Total 

DME Sub Total (Including Gov FTE) Costs 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 

Total DME funding 0.00 0.00 2.96 2.96 

Unallocated DME funding 0.00 0.00 -2.96 -2.96 

O&M Sub Total (Including Gov FTE) Costs 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 

Total O&M funding 1.00 3.84 2.50 7.34 

Unallocated O&M funding -1.00 -3.84 -2.50 -7.34 

Total Cost (Including Gov FTE) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 

Total Gov FTE Cost 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 

Number of FTE represented by costs 0.00 0.00 0.00 0.00 0.00 

Summary of Purpose, Goals, and Benefits: 

Many projects undertaken by IRS entail the design, alteration, and furnishing of space either 

upon acquisition, at lease renewal, or for other purposes, such as supporting space 

consolidation or reduction. The portion of the project that is captured as a capital asset is 

reflected in OMB Object Class 3200, Land and Structures, and includes alterations to buildings; 

fixtures such as elevators, plumbing, power-plant boilers, fire-alarm systems, lighting, heating 

systems, air-conditioning systems, flooring, and carpeting. The total figure is a sum of the 

expenditures in that object class for all IRS projects in that particular year. 

The benefit of these alterations is that they provide the means for the business unit occupants to 

perform their mission efficiently and in user-friendly space. 

Return on Investment: 

The benefit of these alterations is that they provide the means for the business unit occupants to 

perform their mission efficiently and in user-friendly space. In addition to space reduction 

associated rent savings, a portion of the investment may provide a savings such as in the area 

of energy consumption. 

Requirements/ Benefits/ Mandates: 

Legislative Mandate: N/A 

Audit Finding or Material Weakness: N/A 

Agency Strategic Plan / Annual Performance Plan: N/A 

Presidential Priority: N/A 

Other Requirement: N/A 

Accomplishments and Future Objectives: 

N/A. 
Security Equipment 

Type of Investment: Major Non-IT Investment 

Description: 

Security Equipment is managed in AWSS 

Investment Anticipated Outlay: (In Millions of $): 

Type PY-1 and Prior PY 

2015

CY 

2016

BY 

2017

BY+1 

2018

BY+2 

2019

BY+3 

2020 BY+4 and Beyond Total 

DME Sub Total (Including Gov FTE) Costs 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 

Total DME funding 0.00 0.00 2.19 2.19 

Unallocated DME funding 0.00 0.00 -2.19 -2.19 

O&M Sub Total (Including Gov FTE) Costs 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 

Total O&M funding 0.00 0.00 0.00 0.00 

Unallocated O&M funding 0.00 0.00 0.00 0.00 

Total Cost (Including Gov FTE) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 

Total Gov FTE Cost 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 

Number of FTE represented by costs 0.00 0.00 0.00 0.00 0.00 

Summary of Purpose, Goals, and Benefits: 

The IRS purchases security equipment such as cameras, digital video recorder system (DVRs), 

access control panels, and card readers. The IRS uses facility-specific security assessments to 

prioritize asset needs and develop criteria for replacing equipment in a given facility. 

Additionally, emergency needs arise over the course of the year. These needs are ranked and 

funded according to the effect the equipment has on the overall security posture. 

The need for equipment can arise at any time, such as when employees are moved into a new 

building, during internal moves, or intermittently when equipment needs to be replaced. The 

benefit of this capital asset investment is that it supports the IRS priority to provide a safe and 

secure environment for its employees, equipment, and facilities. 

Return on Investment: 

Supports the IRS priority to provide a safe and secure environment for its employees, 

equipment, and facilities. 

Requirements/ Benefits/ Mandates: 

Legislative Mandate: N/A 

Audit Finding or Material Weakness: N/A 

Agency Strategic Plan / Annual Performance Plan: N/A 

Presidential Priority: N/A 

Other Requirement: N/A 

Accomplishments and Future Objectives: 

N/A.