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Crunch Time For IRS Data Centers

1sockchuck writes "It's crunch time for the Internal Revenue Service. As the IRS processes the annual crescendo of returns around today's tax deadline, the state of the agency's infrastructure depends upon who you ask. IT executives at the IRS say it has made huge strides in modernizing its data centers, which processed 139 million returns and issued $298 billion in refunds in 2009. Independent tests say the IRS web site is the fastest US government site, and one of the fastest on the web. But a key government watchdog, the Government Accountability Office, says the modernization effort hasn't moved quickly enough, and continues to fault the IRS for security weaknesses."

43 of 277 comments (clear)

  1. Good for them by Rallias+Ubernerd · · Score: 2, Insightful

    Its crunch time to process their robberies

    1. Re:Good for them by Anonymous Coward · · Score: 3, Insightful

      How 'bout them roads you drove to work on today?

    2. Re:Good for them by Anonymous Coward · · Score: 3, Insightful

      You mean the ones built buy my state?

    3. Re:Good for them by Anonymous Coward · · Score: 5, Insightful

      This morning I was awoken by my alarm clock powered by electricity generated by the public power monopoly regulated by the U.S. Department of Energy. I then took a shower in the clean water provided by a municipal water utility. After that, I turned on the TV to one of the FCC-regulated channels to see what the National Weather Service of the National Oceanographic and Atmospheric Administration determined the weather was going to be like, using satellites designed, built, and launched by the National Aeronautics and Space Administration.

      I watched this while eating my breakfast of U.S. Department of Agriculture-inspected food and taking the drugs which have been determined as safe by the U.S. Food and Drug Administration.

      At the appropriate time, as regulated by the U.S. Congress and kept accurate by the National Institute of Standards and Technology and the U.S. Naval Observatory, I get into my National Highway Traffic Safety Administration-approved automobile and set out to work on the roads build by the local, state, and federal Departments of Transportation, possibly stopping to purchase additional fuel of a quality level determined by the Environmental Protection Agency, using legal tender issued by the Federal Reserve Bank. On the way out the door I deposit any mail I have to be sent out via the U.S. Postal Service and drop the kids off at the public school.

      After spending another day not being maimed or killed at work thanks to the workplace regulations imposed by the Department of Labor and the Occupational Safety and Health administration, enjoying another two meals which again do not kill me because of the USDA, I drive my NHTSA car back home on the DOT roads, to my house which has not burned down in my absence because of the state and local building codes and Fire Marshal's inspection, and which has not been plundered of all its valuables thanks to the local police department. And then I log on to the internet -- which was developed by the Defense Advanced Research Projects Administration and post on Freerepublic.com and Fox News forums about how SOCIALISM in medicine is BAD because the government can't do anything right.

    4. Re:Good for them by Anonymous Coward · · Score: 2, Interesting

      States receiving less Fed money than paid Fed taxes(IE, can legitimately complain about the Fed stealing from them):
      Washington(D)
      Oregon(D)
      California(D)
      Nevada(D)
      Colorado(D)
      Texas(R)
      Minnesota(D)
      Wisconsin(D)
      Michigan(D)
      Illinois(D)
      Florida(D)
      New York(D)
      New Jersey(D)
      Delaware(D)
      New Hampshire(D)
      Massachusetts(D)
      Connecticut(D)

      Hrm... Only red state is Texas. Guess I'll have to move there before I can bitch.

    5. Re:Good for them by mr_mischief · · Score: 4, Interesting

      I don't use thousands of clerks to figure out what could be a flat percentage of people's income. I also don't use nuclear ICBMs and wouldn't want to. I do send money to places like Haiti, already did before the earthquake, and do a lot more good with it without some random number of federal fuck-ups handling the money on the way there and getting paid a salary out of my funds to fill out more paperwork about it.

      Just exactly how much waste, corruption, and antisocial behavior is acceptable? How much of our taxes actually pay for services? How much of our income does the empire deserve, and how much are we willing to give up for stupidity in our name?

  2. Oblig. by T+Murphy · · Score: 5, Funny

    So... the servers are being taxed right now?

    1. Re:Oblig. by level_headed_midwest · · Score: 2, Insightful

      Actually, I bet that they are being overtaxed right now...

      --
      Just "gittin-r-done," day after day.
  3. Always the roads by Anonymous Coward · · Score: 2, Insightful

    Sure, if you want to put it that way, I'll admit that I use about 5-10% of what I pay for when it comes to government. And I'm barely even middle-class.

    Let's put this into perspective: we're talking about the most expensive, most powerful government AND world empire (with military bases in some 150 countries) in history. If you don't think the US government has WAY more money than a government needs to provide useful government services, then either you're not thinking hard enough, or you're in the business of government yourself.

  4. So many billions wasted for nothing by Shivetya · · Score: 4, Insightful

    Because we have a system built on the idea of coercing people to behave a certain way than a system which encourages productivity, savings, and the like. A system which allows petty government bureaucrats to punish or reward particular constituencies on near whim. Hence we are saddled with such a complex system that billions are spent by the government to administer it and billions more by individuals and companies to comply with it.

    and in the end, we still spend nearly 40% more than we take in.

    --
    * Winners compare their achievements to their goals, losers compare theirs to that of others.
    1. Re:So many billions wasted for nothing by MozeeToby · · Score: 2, Informative

      It's not really that complex. Something like 80% of people can get the largest refund possible by filling out the a single form, with around 15 entries on it. The only way this isn't true is if you spend a lot of your paycheck on things like student loans, mortgage interest, charity, or medical bills. All of which encourage things that help to stabalize our society, so I don't really see much of a problem with them personally.

  5. Re:Oopsies! by Hatta · · Score: 2, Interesting

    By those numbers the average refund is $2143.88. WTF.

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  6. Infrastructure by girlintraining · · Score: 2, Insightful

    You know, the first thing I look at when designing IT infrastructure is where to simplify the existing process before converting it to a computer-assisted model. The IRS tax laws, exemptions, and everything else is unnecessarily complicated for what they are charged with. Don't fault the IRS for being slow and making mistakes when you've saddled them with such a dense and overly complex process that people can make a career out of gaming it.

    Processing several hundred million requests is something some web servers do on a daily basis without much problem.

    --
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    1. Re:Infrastructure by FredMenace · · Score: 3, Interesting

      Totally agreed with your first paragraph - increased complexity dramatically increases computing (including development) costs, and the complexity of the system is Congress' fault, not the IRS's.

      While the second point is true in terms of overall visits, I'm not sure how many of those sites are processing that many form submissions (over SSL) with the amount of data submitted with a tax return (including schedules, supporting documents, etc.), that then needs to be validated (one assumes) and inserted into a database (though probably a lot of the business-logic/accounting type validation may occur during later batch processing).

      Plus other high-volume sites use their servers year round (more or less - though to the extent that it's seasonal, some, like Amazon, started renting out their excess capacity at other times), and such infrastructure is certainly not cheap. What happens to all this computing power the rest of the year?

  7. Question by Pojut · · Score: 3, Insightful

    Unless you owe a lot in taxes or back taxes and just need the extra time to come up with the money...why would you wait until the very last day to file? Come on...you are going to have to do it eventually, why not do it early and get it over with?

    We e-filed back in the third week of January...and both of us got our Federal & State returns literally three business days later direct deposited. If you don't owe any money and are due back a tax return, why wouldn't you file as soon as possible?

    1. Re:Question by digsbo · · Score: 3, Insightful

      Simple. Doing taxes is stressful. The tax code is confusing. The IRS is feared. Generally, people will avoid doing things which are unpleasant, and doing taxes is doubly so because of the fear involved. Perhaps you simply don't suffer from any anxiety about the process, or have better-than-average coping skills.

    2. Re:Question by spyder913 · · Score: 2, Informative

      Because procrastination is easy! And some people don't know if they're going to get a refund until they bother to fill out their taxes.

      I had to wait this year until my wife got her Schedule K-1 done, which took forever.

    3. Re:Question by GungaDan · · Score: 2, Informative

      The pedant in me must point out that you file your RETURN and await your REFUND (if due one).

      --
      Eloi are stupid, throw morlocks at them!
  8. It could be easier by Mr_Blank · · Score: 4, Interesting

    ... if it were simpler. Why is the Federal Tax Code 3.7 million words? If the tax code were simpler, then those servers would have a much easier time of it.

          Scanning today's news turns up a lot of good examples for how the code could be simplified.

    The five dumbest parts of the U.S. tax code

    1) Ethanol credits increase the price of food, and give paper manufacturers more money in credits than they make from selling paper.
    2) Exemption for inherited stock-gains.
    3) Mortgage-interest deduction encourages people to buy as much house as they can afford, and encourages owning over renting to the detriment of other investments.
    4) Exemption on employer-provided health insurance encourages employers to give more health insurance instead of wage increases, and discourages health insurers from competing on price.
    5) Municipal-bond-interest exclusion gives more benefit to rich bond owners than it does to the municipalities that issue the bonds.

    Congressman Wyden leads effort to simplify tax code

    Taxes: There is a Better Way by U.S. Sen. Judd Gregg

    1. Re:It could be easier by russotto · · Score: 2, Insightful

      3) Mortgage-interest deduction encourages people to buy as much house as they can afford, and encourages owning over renting to the detriment of other investments.

      That one's the third rail of the tax code. Try to touch that and your political career risks getting zapped into oblivion. Note that Wyden isn't touching it. In principal I dislike it, in practice I've already bought the house and I'd be pretty ticked if it went away. Since its existence contributes to the cost of housing, eliminating it would cause another real-estate crisis, and we're not over the last one yet.

    2. Re:It could be easier by rev_sanchez · · Score: 3, Insightful

      We've reformed the tax code before to simplify it and it bloats back up. The reason it bloats back up has to do with getting those last few votes on a close bill. One of the things the voting public tends to measure the success of representatives and senators by is not only how much federal money they can bring home but by how much money they can keep from going to the feds by adding a few more special provisions to the tax code. You can't just reform the tax code without reforming how changes are made to the tax code later or we'll be right back where we started.

      As for the IT angle, the managers at the IRS are scared of automating a decade’s long process because computers can greatly improve the efficiency of many things like screwing up a couple million tax returns on a bad afternoon. It doesn't help much that the tax code has significant changes every year and the IRS is almost universally demonized so getting resources and good support is probably difficult.

      --
      If you didn't come to party don't bother knocking on my door. Prince '1999'
  9. Website != Datacenter... by nweaver · · Score: 4, Informative

    The IRS's web presence (rather than their back-end data processing) is very good because they are heavily Akamaized: everything is hosted through Akamai's infrastructure, so its very quick to get to the IRS website.

    Additionally, their site design is actually remarkably good and easy to navigate, so its both technically quick and usably quick.

    But this is really orthoginal to the main issue in the article, which is the back-end, in-house infrastructure for processing all the returns.

    --
    Test your net with Netalyzr
  10. Re:Oopsies! by Red+Flayer · · Score: 3, Interesting

    By those numbers the average refund is $2143.88. WTF.

    Not surprising to me. My wife was bitching at me last night because we paid in less than $50 instead of getting a multi-thousand-dollar refund like her friends at work. They're all blowing the cash on down payments for new cars, vacations to the Caribbean, etc. Meanwhile, I continue to budget for the big-ticket items and save for them on a monthly basis.

    So I told her that she wasn't bitching when she was spending the extra $200 she took home each month, and she wasn't bitching when she saw the amount I had put into savings from my pay last year.

    Needless to say, I slept on the couch.

    But the point is that among people who get a refund, a lot of them get a BIG refund. Even when I was a kid, I was getting refunds around $2k because I was a dependent of my parents even though I made less than $20k a year.

    --
    "Trolls they were, but filled with the evil will of their master: a fell race..." -- J.R.R. Tolkien on Olog-hai
  11. Re:Oopsies! by vxice · · Score: 2, Insightful

    or you could just save in a bank account. even your wallet or a shoe box under the bed would work if you don't have access to a bank.

    --
    every anarchist is a baffled dictator. Benito_Mussolini
  12. Re:Oopsies! by smooth+wombat · · Score: 5, Informative

    but we like getting the big honkin' checks when we file.

    So you like giving the government an interest free loan? You do realize you could be getting interest (albeit small) on the money which could then be used to pay for that expensive gadget.

    It's one thing to game the system by using the one-month float on a credit card. It's quite another to float the government a nearly year-long, interest-free loan.

    --
    We will bankrupt ourselves in the vain search for absolute security. -- Dwight D. Eisenhower
  13. Re:Oopsies! by Red+Flayer · · Score: 2, Informative

    I used to do the same thing... but found an easy way to make sure I didn't have easy access to the money, but could still earn interest on it during the year.

    Set up automatic withdrawals from your regular bank account(s), to be deposited into an investment account. It's very cheap to do, and if you seed it with a few thousand when you set it up, you won't get hit with monthly fees for maintaining a low balance. Different banks have different products for this kind of service, so talk to your banker.

    You could also set up rolling CDs to do about the same thing, but I prefer having the separate investment account, since I can tap it in case of emergency without penalty.

    --
    "Trolls they were, but filled with the evil will of their master: a fell race..." -- J.R.R. Tolkien on Olog-hai
  14. Re:Oopsies! by Hatta · · Score: 4, Insightful

    Wow, your marriage is pretty fucked up.

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    Give me Classic Slashdot or give me death!
  15. Re:Oopsies! by MyLongNickName · · Score: 2, Insightful

    you know, i used to agree with you 100%. I aim for a zero refund (which is hard with the way tax rules are changing so quickly). But then I had a change of heart when I realized not everyone is like me.

    Some folks aren't as disciplined with savings, and this is a way they force themselves to save. I think it is wonderful when people realize their areas of relative weakness and work around it. If someone has a drinking problem... is it so bad that they avoid driving by the neighborhood bar? Sure, it might be an incovenience, but they are avoiding a bigger problem.

    So, if someone chooses to use the IRS as their piggy bank... good for them. At least they recognize a problem, and are doing something about it.

    What I would recommend is that GP at least look at some type of savings account that auto deducts. But even if he doesn't, then it is great that he has some type of savings plan.

    --
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  16. Re:Oopsies! by MyLongNickName · · Score: 5, Insightful

    Um, no... no it isn't. The worst way to manage your money is to spend like mad with no correlation to income.

    GP is using a suboptimal savings strategy. But he is saving. In the grand scheme of things, he is on the right side of the savers' bell curve. Most people's idea of savings is to have enough for Friday night's party.

    --
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  17. False dilemma by mahsah · · Score: 3, Interesting

    Your argument is a false dilemma; either the government will provide these things, or they will not be provided. It ignores the alternative of other institutions providing them.

    1. Re:False dilemma by eln · · Score: 5, Insightful

      Mankind has been around for hundreds of thousands of years, and yet these services only became available when the government stepped in and provided them. Read up on working conditions during the Gilded Age before all of the various safe employment laws and agencies were created for one example. You can also read up on the deplorable conditions in meat packing plants before the USDA stepped in.

      So, when exactly were all of these other institutions going to get around to providing any of this stuff? People keep saying if we got rid of the government the private sector would provide, but the fact is the private sector worked without significant government intervention for quite a long time, and it sucked ass for anyone not belonging to the moneyed elite.

    2. Re:False dilemma by Colonel+Korn · · Score: 3, Insightful

      Your argument is a false dilemma; either the government will provide these things, or they will not be provided. It ignores the alternative of other institutions providing them.

      He doesn't imply that they wouldn't be otherwise provided. He states that they are provided as a justification for taxes. Some of those agencies do things that I think would be better done through other means, but I recognize that the money I pay actually does go to something, or many somethings.

      --
      "I zero-index my hamsters" - Willtor (147206)
    3. Re:False dilemma by Anonymous Coward · · Score: 2, Insightful

      I know I'd just love it if I had several different competing police departments to choose from. What could go wrong there?

  18. Re:Oopsies! by Red+Flayer · · Score: 5, Funny

    Wow, your marriage is pretty fucked up.

    There may have been some exaggeration of the relationship details for humor purposes... but the facts of the cash etc are the same.

    The truth is, I don't have a wife. The only person I sleep with in my bed is an inflatable doll I call Sally, and she doesn't complain much about money.

    I slept on the couch last night because I couldn't be bothered getting the Cheetos crumbs out of my sheets, and the night before last they scratched me up something fierce.

    --
    "Trolls they were, but filled with the evil will of their master: a fell race..." -- J.R.R. Tolkien on Olog-hai
  19. Only website I've ever seen "closed" by J'raxis · · Score: 4, Funny

    Maybe it's so fast because it only has 50-75% uptime. The IRS website is the only website I've ever seen that was "closed." See here.

    This Application Is Available During the Following Hours:

    Monday - Friday: 6:00 a.m. to 12:30 a.m. Eastern time
    Saturday: 6:00 a.m. to 9:00 p.m. Eastern time
    Sunday: 7:00 p.m. to 12:00 a.m. Eastern time

  20. Re:taxation is theft. by snspdaarf · · Score: 2, Funny

    And before anyone says "but wait, they built the roads!"

    And the aqueduct...

    --
    Why, without your clothes, you're naked, Miss Dudley!
  21. You get the todays talking out of your ass award by wsanders · · Score: 3, Interesting

    So I guess the "This Road Is Being Paid by Federal Funds" sign I drove by on the way to work today was all part of a vast conspiracy.

    For years, there's been a pie chart near the end of every for 1040 instruction booklet showing how incoming and outgoing funds are allocated. Interest on the national debt is 8%.

    This year it's on page 100: http://www.irs.gov/pub/irs-pdf/i1040.pdf

    --
    Give a man a fish and you have fed him for today. Teach a man to fish, and he'll say "WHERE'S MY FISH, YOU IDIOT?"
  22. Re:Oopsies! by jr0dy · · Score: 2, Informative

    Particularly when government entities are becoming less and less solvent. Many states are temporarily suspending refund issuance right now because they simply can't cover them; California issued IOU's last year. The IRS actually implemented the option of receiving your refund in the form of U.S. Treasury Bonds this year - somewhat fishy, IMO. Let's hope that next year Treasury Bonds don't become the only option for refunds - even more reason to target your liability and close as possible, and err to the side of owing. You can leave up to $1,000 outstanding until the deadline, and as long as you pay it with your return or extension by 4/15, you won't be subject to any underpayment penalties.

    --
    I heart anarcho-capitalism.
  23. Re:Answer; lowers the chance of an audit by random+coward · · Score: 2, Interesting

    http://articles.moneycentral.msn.com/Taxes/AvoidAnAudit/5waysToAvoidAnAudit.aspx?page=2 "On the other hand, if you are concerned about a potential audit, never file until the last minute. It won't hurt and can only decrease your chances of being selected."

  24. Incorrect Choice of Words by AthleteMusicianNerd · · Score: 2, Insightful

    People always talk about the tax code being too complex. This is non-sense. Complex implies intelligence. There is no intelligence in the tax code. It is CONVOLUTED.

  25. Re:Oopsies! by FlyingBishop · · Score: 2, Informative

    Government IOUs are called money. If the government is handing out something other than money in place of money, your money is worthless anyway.

  26. Staggered Due Dates by Tablizer · · Score: 2, Interesting

    If there was a way to stagger the due dates, such as by state or last name letter, then they wouldn't have such a huge peak to build infrastructure and staffing around. They could split the load over the year. The cost of handling such a huge peak is passed onto us taxpayers in the end[1].

    For example, CA and TX may be due in January, NY and SC in February, etc.

    [1] double entendre

    1. Re:Staggered Due Dates by apoc.famine · · Score: 2, Interesting

      I was just thinking about that the other day. I was wondering how much money we waste on this crunch-day, when we could spread it out over 3/4 of the rest of the year.

      I considered splitting the US into 4 regions, and doing each tax region at a different time. That's an issue if you move. What if you earn income in multiple regions?

      The next idea was to split the population into 4 groups, and file in quarters. Still, how do you do this? Based on SSN? Based on birthday?

      Then it hit me....Happy Birthday! Your taxes are due!

      Make taxes due within 2 weeks of each person's birthday. That would spread them over the entire year, and would spread the workload out accordingly. Not a great birthday present, but I wonder how much money that would save....

      --
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