Taxes: Downtime At the Irs

Downtime At the Irs

On the front of this year's federal income tax forms, the Internal Revenue Service printed a letter to taxpayers apologizing for foul-ups that delayed millions of refunds in 1985. About 16,000 taxpayers still have not received their checks.

The IRS is trying to fix the problem by upgrading its computer system, but that effort suffered a setback last week. IRS officials canceled a contract for $73 million worth of new computers and software to be supplied by Virginia-based Computer Systems & Resources, after a Government review panel found that the equipment had serious deficiencies. For one thing, the system's mastery of...

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