IG flags problems with IRS modernization program

"We observed that without proper controls to monitor and resolve the MeF system security vulnerabilities and findings, unauthorized access to taxpayer information would continue to be available and possibly go undetected," the report states.

The report also notes the new e-filing system was expected to process more than 9 million tax returns this tax season, but problems with the application reduced the actual number of returns processed to about 750,000.

“Further, management of the project costs and schedules has improved since our previous report, but the IRS has not always effectively implemented planned processes or delivered all planned system capabilities to achieve the Modernization Program’s expectations,” Mr. George added.

The IG avoiding making additional recommendations in the report, but stressed that effective management would be necessary for the success of BSM.