Incident: IRS Tax Filing System Crash on Tax Day 2018

Published Date: 2018-04-17

Postmortem Analysis
Timeline 1. The software failure incident happened on April 17, 2018 [69992, 70133].
System 1. IRS website system for accepting online tax returns [69992, 70133] 2. IRS online payment system [69992, 70133]
Responsible Organization 1. The software failure incident at the Internal Revenue Service (IRS) was caused by a systemwide computer failure that advised taxpayers to come back on Dec. 31, 9999, leading to the malfunction of the website for filing tax returns and making tax payments [69992]. 2. The IRS officials did not specify the exact cause of the failure but mentioned that it was likely hardware-related [70133].
Impacted Organization 1. Taxpayers who were unable to file their tax returns and make payments through the Internal Revenue Service's website [69992, 70133] 2. The Internal Revenue Service (IRS) itself, as its ability to process tax returns filed electronically was knocked offline [70133]
Software Causes 1. The software failure incident at the Internal Revenue Service (IRS) was caused by a systemwide computer failure that advised taxpayers to "come back on Dec. 31, 9999" when trying to file their tax returns and make payments online [69992]. 2. The IRS experienced a computer glitch that knocked offline the agency's ability to process many tax returns filed electronically, leading to confusion and frustration among taxpayers [70133].
Non-software Causes 1. Budget cuts leading to a deteriorated computer system [69992, 70133] 2. Antiquated computer system due to neglect [69992] 3. Increased strain ahead of the filing deadline [69992] 4. Lack of Republican funding for the IRS [70133]
Impacts 1. The software failure incident at the IRS caused a systemwide computer failure that advised last-minute filers to come back on Dec. 31, 9999, leading to the inability of taxpayers to file returns electronically and make tax payments directly through their bank accounts [69992]. 2. The failure essentially brought the nation's tax machinery to a halt on a crucial day when millions of Americans were expected to file their tax returns, undermining the Trump administration's plan to promote its recent tax overhaul [69992]. 3. Taxpayers faced confusion and frustration as they were unable to make payments online ahead of the midnight deadline, with the website displaying a message stating that the service was unavailable [69992]. 4. The IRS had to extend the tax filing deadline by a day, allowing taxpayers to submit their returns without penalty through the following day [70133]. 5. The incident raised concerns about the IRS's preparedness for the massive overhaul mandated by the recent tax law and highlighted the agency's long-standing complaints about antiquated computer systems and budget cuts [70133]. 6. The breakdown left agency officials flummoxed and millions of Americans bewildered, with senior government officials unable to explain what had happened [70133].
Preventions 1. Upgrading the IRS's IT infrastructure to ensure reliable and modern taxpayer services, as well as to mitigate risks to the system [69992]. 2. Providing more resources to the IRS to upgrade its systems and bolster its defenses against cyberattacks [69992]. 3. Investing in updating the IRS's computing hardware and software to prevent system failures due to increased strain and aging infrastructure [69992]. 4. Ensuring adequate funding for the IRS to protect and operate its IT systems effectively [70133]. 5. Implementing changes required by the overhaul of the tax code to modernize the IRS's technology and processes [70133].
Fixes 1. Upgrading the I.R.S.'s I.T. infrastructure to ensure reliable and modern taxpayer services and mitigate risks to the system [69992]. 2. Providing more resources to upgrade the I.R.S.'s systems and bolster its defenses against cyberattacks [69992]. 3. Replacing the aging I.R.S. IT infrastructure, which is at high risk of a catastrophic system failure [70133].
References 1. Internal Revenue Service (IRS) officials 2. David Kautter, acting IRS commissioner 3. Congressional aides 4. Treasury Secretary Steven Mnuchin 5. John Koskinen, former IRS commissioner 6. Mark W. Everson, former IRS commissioner 7. Pete Sepp of the National Taxpayers Union 8. Members of Congress 9. Sen. Rob Portman 10. Rep. Greg Gianforte 11. Sen. Ron Wyden 12. Larry Kudlow, President Trump’s top economic adviser 13. Intuit, the company that owns TurboTax software 14. Jeffrey Tribiano, IRS deputy commissioner for operations support 15. Silvana Gina Garza, IRS chief information officer 16. Erica Werner, Ellen Nakashima, and Anne Gearan (contributors to the report) [69992, 70133]

Software Taxonomy of Faults

Category Option Rationale
Recurring one_organization, multiple_organization (a) The software failure incident having happened again at one_organization: - The IRS experienced a significant software failure incident that led to the system being unable to process tax returns filed electronically, causing confusion and frustration among taxpayers [69992, 70133]. - The incident was described as a stunning breakdown that left agency officials flummoxed and millions of Americans bewildered [70133]. - Former IRS commissioner John Koskinen mentioned that he was not aware of the agency having to extend the tax filing deadline nationally due to software glitches on Tax Day in the past three decades [70133]. - The IRS has faced challenges with its antiquated computer systems and budget cuts, which have impacted its ability to handle such high-volume operations smoothly [69992, 70133]. (b) The software failure incident having happened again at multiple_organization: - The incident at the IRS is reminiscent of other high-profile government technology breakdowns, such as the challenging launch of the Affordable Care Act marketplaces in 2013 [70133]. - The IRS software failure raised questions about the agency's preparedness for the massive overhaul mandated by the sweeping tax law passed the previous year [70133]. - The IRS's budget cuts over the years have affected its ability to serve taxpayers effectively, with only about 60% of calls from tax filers being answered due to staffing reductions [70133]. - Members of Congress expressed frustration with the IRS's performance and its technological shortcomings, highlighting the need for reforms and adequate funding to prevent such incidents in the future [70133].
Phase (Design/Operation) operation (a) The software failure incident reported in the articles seems to be primarily related to the operation phase rather than the design phase. The failure was attributed to a "computer glitch" at the IRS that knocked offline the agency's ability to process tax returns filed electronically, leading to a breakdown in the system [70133]. The IRS officials mentioned that the issue was hardware-related, indicating a problem with the operation or functioning of the system rather than a design flaw [70133]. Additionally, the IRS spokeswoman stated that "all indications point to this being hardware-related" and that they were not aware of any other external issues [70133]. (b) The articles do not provide specific information indicating that the software failure incident was due to contributing factors introduced by the design phase. The focus of the reports is more on the operational issues faced by the IRS in processing tax returns electronically, with references to hardware-related problems and technical glitches [70133].
Boundary (Internal/External) within_system (a) The software failure incident reported in the articles was primarily within the system. The failure was attributed to a systemwide computer failure that affected the Internal Revenue Service's ability to process tax returns filed electronically [69992, 70133]. The IRS officials mentioned that the issue was hardware-related, indicating an internal system problem [70133]. Additionally, the IRS had been facing challenges with its antiquated computer systems and had been warned about the potential for a catastrophic system failure due to aging IT infrastructure [69992]. The incident was described as a stunning breakdown that left agency officials flummoxed and millions of Americans bewildered [70133]. The IRS had to undertake a "hard reboot" of their systems to address the issue [70133].
Nature (Human/Non-human) non-human_actions (a) The software failure incident occurring due to non-human actions: - The software failure incident at the IRS was attributed to a systemwide computer failure that advised taxpayers to come back on Dec. 31, 9999, which essentially brought the tax machinery to a halt [Article 69992]. - IRS officials mentioned that the glitch was hardware-related, and they were not aware of any other external issues contributing to the failure [Article 70133]. (b) The software failure incident occurring due to human actions: - The failure was not explicitly attributed to human actions in the articles. The IRS officials did not specify what went wrong, and there was no mention of any human error contributing to the system failure [Article 69992, Article 70133].
Dimension (Hardware/Software) hardware (a) The software failure incident occurring due to hardware: - The IRS officials mentioned that the system issue was hardware-related, and they were aware of no other external issues [70133]. - Former IRS commissioner John Koskinen stated that he was not aware of the agency having to extend the tax filing deadline nationally due to software glitches on Tax Day, indicating a hardware-related issue [70133]. (b) The software failure incident occurring due to software: - The articles did not specifically mention the software failure incident being caused by contributing factors originating in software.
Objective (Malicious/Non-malicious) non-malicious (a) The software failure incident reported in the articles does not indicate any malicious intent behind the failure. The incident was attributed to a systemwide computer failure at the Internal Revenue Service (IRS) that caused a breakdown in the agency's ability to process tax returns filed electronically [69992, 70133]. The IRS officials mentioned that the issue was most likely hardware-related and there were no indications of external issues or cyberattacks [70133]. Additionally, former IRS commissioners highlighted the deteriorated state of the IRS computer system due to neglect and increased strain ahead of the filing deadline as the primary reasons for the failure [69992]. (b) The software failure incident was non-malicious in nature, stemming from technical problems and hardware issues within the IRS systems, rather than any deliberate attempt to harm the system [69992, 70133]. The IRS officials mentioned that they would undertake a "hard reboot" of their systems to address the issue [70133]. The incident raised concerns about the IRS's preparedness for handling the massive overhaul mandated by the recent tax law and highlighted the agency's longstanding complaints about antiquated computer systems [70133].
Intent (Poor/Accidental Decisions) poor_decisions (a) The software failure incident related to the IRS tax filing system on Tax Day was primarily due to poor decisions made over the years that contributed to the failure. The incident was a result of an antiquated computer system that has deteriorated due to budget cuts, leading to a high-volume technical issue that caused the systemwide computer failure [69992]. The IRS has faced steady budget cuts for nearly a decade, resulting in a reduction in staff size and outdated computer systems that struggled to handle the millions of last-minute tax filers [70133]. Former IRS officials and lawmakers have warned about the risks of a catastrophic system failure due to neglecting the need to upgrade the IRS's IT infrastructure and software [69992]. Additionally, the lack of adequate funding for the IRS to modernize its systems and address cybersecurity vulnerabilities has been highlighted as a significant concern [70133]. The incident underscored the consequences of poor decisions related to funding, modernization, and neglecting the necessary upgrades to the IRS's technology infrastructure.
Capability (Incompetence/Accidental) development_incompetence, accidental (a) The software failure incident reported in the articles seems to be more related to development incompetence. The incident was attributed to a systemwide computer failure that caused the IRS website to malfunction, advising taxpayers to come back on Dec. 31, 9999 [69992]. The malfunction lasted for several hours, leading to a halt in the tax filing process and causing confusion among taxpayers. The incident was described as a "high-volume technical issue" by Treasury Secretary Steven Mnuchin, and it was mentioned that the IRS needed to upgrade its IT infrastructure to ensure reliable services and mitigate risks [69992]. Additionally, former IRS officials highlighted the deteriorated state of the IRS computer system due to neglect and budget cuts, emphasizing the need for modernization and upgrades to prevent catastrophic system failures [69992]. (b) The software failure incident could also be considered accidental as there was no clear explanation provided for what went wrong. IRS officials mentioned that they would undertake a "hard reboot" of their systems to address the issue, and it was stated that the malfunction was hardware-related [70133]. The incident left senior government officials at a loss to explain what happened, indicating that the failure was not intentional but rather a result of unexpected technical problems. The lack of clarity on the cause of the breakdown and the need for a system reboot suggest that the failure was accidental rather than deliberate.
Duration temporary (a) The software failure incident reported in the articles was temporary. The incident caused a systemwide computer failure at the Internal Revenue Service (IRS) that advised taxpayers to come back on Dec. 31, 9999, when they tried to file their tax returns and make payments online [69992]. The IRS announced that taxpayers could submit tax returns without penalty through the following day after the technical problems occurred, indicating a temporary disruption in the system's functionality [70133]. The IRS mentioned that the issue was hardware-related and that a "hard reboot" of their systems was undertaken to resolve the problem [70133]. The temporary nature of the software failure incident is further supported by the fact that the IRS systems were back online by late Tuesday, allowing taxpayers to proceed with filing returns through the end of the following day [70133]. Additionally, the IRS spokeswoman stated that they were aware of no other external issues contributing to the incident, suggesting that the failure was contained within the system and not a permanent issue [70133].
Behaviour crash, omission, other (a) crash: The software failure incident in the IRS system resulted in a crash, where the system lost its state and was unable to perform its intended functions, leading to a systemwide computer failure that advised taxpayers to come back on Dec. 31, 9999 [69992]. The IRS system experienced a stunning breakdown that left agency officials flummoxed and millions of Americans bewildered, with close to 5 million Americans expected to file their taxes before the midnight deadline [70133]. (b) omission: The software failure incident also involved omission, as the system omitted to perform its intended functions at an instance(s), specifically in processing many tax returns filed electronically, leading to confusion and frustration among taxpayers [70133]. (c) timing: The timing of the software failure incident was crucial, as it occurred on the busiest tax day of the year, disrupting the filing process for millions of taxpayers who were expected to file their tax returns on time [69992]. (d) value: The software failure incident did not involve a failure due to the system performing its intended functions incorrectly, but rather due to a systemwide computer failure that prevented taxpayers from filing returns electronically and making tax payments directly through their bank accounts [69992]. (e) byzantine: The software failure incident did not exhibit behavior of a byzantine failure, which involves the system behaving erroneously with inconsistent responses and interactions [69992]. (f) other: The software failure incident also led to confusion and frustration among taxpayers, with the IRS system experiencing a breakdown that left agency officials at a loss to explain what happened [70133].

IoT System Layer

Layer Option Rationale
Perception None None
Communication None None
Application None None

Other Details

Category Option Rationale
Consequence property, delay The consequence of the software failure incident described in the articles is primarily related to the delay in tax filings and payments due to the IRS website malfunction. Taxpayers were unable to file their tax returns electronically and make payments through their bank accounts as the system was down, leading to confusion and frustration among millions of Americans. The IRS extended the deadline for filing tax returns to alleviate the impact of the technical issue [69992, 70133].
Domain government The failed system in the reported incident was related to the (l) government industry, specifically the Internal Revenue Service (IRS) system for processing tax returns and payments. The software failure incident affected millions of taxpayers who were unable to file their tax returns electronically through the IRS website, leading to a systemwide computer failure on Tax Day [69992, 70133]. The malfunction disrupted a crucial part of the agency's website that allows taxpayers to file returns and make tax payments directly through their bank accounts [69992]. The IRS system failure was attributed to a hardware issue and not a cyberattack, with the agency needing to reboot its entire computer system to resolve the problem [69992]. The incident highlighted the challenges faced by the IRS due to budget cuts, an antiquated computer system, and increased strain on the system as the tax code grows more complex and the population filing electronically increases [69992]. The IRS officials mentioned that the breakdown was a hardware-related issue, and the agency had been facing steady budget cuts over the years, affecting its ability to serve taxpayers efficiently [70133].

Sources

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