The Treasury Inspector General for Tax Administration (TIGTA) recently audited the Sustaining Infrastructure Program of the Internal Revenue Service (IRS) and found that, since 2013, the percentage of information technology hardware the IRS is using that is beyond its useful life has increased from 40% to its current rate of 64%. Aged hardware is more likely to fail, negatively impacting employee productivity, information security, and customer service.
The Sustaining Infrastructure Program spends most of its budget (99.7% on average) each year, but has not been able to meet its goal of reducing the stock of aged hardware to an acceptable 25% level. The current replacement cost for the outdated hardware, the IRS estimates, is about $430 million. There is a process in place for the IRS to potentially capture surplus funds from other units to fill part of this gap, but it is not certain.
To read the full report and the IRS’ response, click here.