IRS Computer Modernization Faces New Multi Billion Dollar Push
Washington reports the IRS plans a new, sprawling tax administration system after a $3.3 billion failed upgrade. Lockheed Martin and others seek a stake in the PRIME Integration Services Contract, with phase one estimated at $709 million. The 15 year project promises shared risk, while past audits cite planning flaws and cost overruns.
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Tax bill error creates break for rich estates
A drafting mistake in the tax law allowed a misleading inheritance tax break that benefits only about a hundred estates worth over 17 million dollars. The government faces about 880 million dollars in revenue loss over ten years as Rep. Bill Archer blocks corrections to oppose inheritance taxes.
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Clinton signs bipartisan IRS reform package
President Clinton plans to sign a $13 billion 10 year overhaul of the Internal Revenue Service after a two year congressional push. The bill strengthens taxpayer rights, shifts burden of proof in certain cases, and allows higher salaries to attract talent, with provisions aiding innocent spouses and broad agency powers.
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