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Saturday, April 5, 2014

IRS Wasted $11.6 Million of Computer Software -- TIGTA: ‘Software license management at the IRS is not being adequately performed’ -- By Elizabeth Harrington, The Washington Free Beacon

APThe Internal Revenue Service (IRS) bought $11.6 million worth of computer software the agency never used, according to the Treasury Inspector General for Tax Administration (TIGTA).

TIGTA attributed the error to poor management and a lack of inventory of more than $200 million in software purchased by the IRS, according to an audit released Thursday.

“Software license management at the IRS is not being adequately performed,” the audit said. “Efficient and cost-effective management of the IRS’s software assets is crucial to ensuring that information technology services continue to support the IRS’s business operations and help it to provide services to taxpayers efficiently.”

Upon reviewing the IRS’ software contracts, TIGTA found 11 products that were bought by the IRS but never installed.

“The original compliance review determined that the IRS did not deploy, i.e., purchased but did not use, mainframe licenses and software support, resulting in the IRS wasting an estimated $11.6 million,” the audit said.

The $11.6 million in wasted software was part of a 5-year contract with IBM worth $239 million, which was awarded in September 2007.

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