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February 18, 1993
Grumman Wins IRS Tax
Systems Modernization Contract
WASHINGTON - The IRS tax systems modernization took an
important step forward today with the award of a contract for
character recognition and imaging systems to Grumman Data Systems.
The systems provided by Grumman will be used to electronically
process tax information from single sided paper tax forms.
The Internal Revenue Service said that under terms of the
contract, known as the Service Center Recognition/Image Processing
Systems (SCRIPS) contract, it can acquire as many as 13 of the
systems. IRS said it plans on acquiring the systems it needs within
four years. Grumman also will provide maintenance and support
service under terms of the SCRIPS contract.
IRS said SCRIPS will replace optical character recognition
systems it has used over the past decade for processing federal tax
deposit forms, information returns, employment tax forms and Forms
1040EZ. The current systems are not compatible with each other or
with the information processing system IRS is building for the
future.
The SCRIPS contract is in effect for eight years and has a
maximum estimated value of $87.7 million. Five firms bid on the
contract. Grumman 's proposal was the highest rated technically and
the lowest priced, clearly representing the best overall value to
the public.
When its modernization program is fully implemented, IRS said
that most taxpayers should be able to file their tax forms
electronically. Taxpayers who do not file electronically will
continue to file paper tax forms. Character recognition is the most
efficient format with a high degree of accuracy. These systems
create an image of the paper document from which the tax data can be
processed electronically.
IRS said that creating an integrated electronic environment
for tax data processing is the key to IRS' modernization effort.
Ready access to current and accurate data in electronic format by
IRS employees will result in improved IRS operations and service to
taxpayers.
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