The Most Expensive Missed Patch in History?

By Deane Barker on July 16, 2006

IRS loses $200-$300 million from outdated computers: Yikes. Curious to know how they validated those numbers.

The Internal Revenue Service lost $200 million to $300 million last year because a contractor failed to provide the agency with an updated computer program to catch fraudulently filed requests for tax refunds […]

Since 1996, Computer Sciences has provided the IRS with an automated Web-based program to screen tax returns requesting refunds. The IRS planned to use an updated program from Computer Sciences to screen 2005 tax filings.

But when the contractor did not deliver it on time, the IRS had to tell the company to revert to the old screening program, resulting in the distribution of millions of dollars in unearned refunds.