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IRS under fire
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February 3, 1997: 3:50 p.m. ET
Outgoing commissioner Richardson defends agency's service record
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NEW YORK (CNNfn) -- Outgoing Internal Revenue Service Commissioner Margaret Milner Richardson said Monday delays in implementing a new computer system would not delay return or refund processing.
Richardson's agency has been under fire in recent days as some in Congress and watchdog agencies have attacked the IRS' track record on modernizing its 1960s era technology.
The National Taxpayers Union recently criticized the agency's $4 billion in technology upgrades that it said had the makings of a full-blown train wreck.
Richardson called that characterization "erroneous" and said taxpayers have already benefited from the modernization plan.
"I want to correct a misconception that tax returns and refunds are in jeopardy because of the computer problems. We've gotten off to a good start and are processing returns and refunds. Taxpayers need have no fear," she said.
The $4 billion already spent allowed 3 million taxpayers to file by telephone last year and made it possible for an array of information and publications to be posted on the World Wide Web for download, the commissioner said.
"Our computer systems were designed in the 1960s, but the hardware and software has been replaced over the years. However, it would need to be replaced again if we don't move forward with a new system," Richardson said.
Richardson, who served as commissioner during the Clinton administration's first term, has already submitted her resignation to Treasury Secretary Robert Rubin, who supervises her agency. However, she has committed to stay on through tax season.
She said her decision to leave had nothing to do with any problems at the agency. After four years as commissioner, Richardson said she thought it was time to hand the job over to someone who could stay through Clinton's second term.
Richardson said modernizing an agency that handles and catalogs as much information as the IRS is an enormous undertaking. However, she said the agency does a much better job of handling that than is often characterized.
Congress asked the IRS to study whether it should contract out data input and processing. Already, several states who collect income tax outsource those tasks.
Before any changes are made, however, Richardson said the IRS would take steps to ensure it would be cost effective and would not compromise the confidentiality of returns and information.
Asked about some of the misconceptions the public holds about the IRS, she said people don't realize the agency does a difficult job with few resources. (293K WAV) or (293K AIFF)
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