The IRS has started to process tax returns on a daily basis through its Customer Account Data Engine 2 (CADE 2) program, but key developmental processes need improvement, especially with requirements management, testing and security, the Treasury Inspector General for Tax Administration has said.
It said that since last January, CADE 2 has provided the IRS with the ability to update taxpayer account information on a daily basis and the program is now in the initial stage of implementing its centralized database of individual taxpayer accounts, which will provide the basis for future real time tax processing and enhanced customer service functions.
TIGTA said that while the IRS conducted extensive system development testing, planned risks reduction, and implemented new controls over the CADE 2 program, enhancements to system development controls are needed to better verify that all of the IRS’s voluminous requirements are adequately addressed by the new system.
It also said program testing did not provide assurance that CADE 2 database data are consistently accurate and complete and that security weaknesses and poor coding practices in the CADE 2 database could result in the loss of taxpayer data.
