Terence V. "Terry" Milholland has taken on the newly created role of chief technology officer at the Internal Revenue Service.

A Maryland and George Washington University alumnus, Milholland arrives with extensive technology leadership experience.

He most recently served as executive vice president and CTO at Visa International.

Before that he held the dual CIO/CTO roles at EDS during the period that bridged into the EDS–HP merger.

His career also includes 21 years at Boeing, where he left in 1999 as the company’s chief information officer.

While at Visa, Milholland oversaw infrastructure that processed tens of billions of transactions.

Over the last four quarters Visa handled roughly 43.67 billion payment transactions, moving about $4.188 trillion in value.

During his tenure the company helped advance payment security standards, published a global contactless-payment specification for RFID-enabled cards, and marked the rollout of its one-millionth ATM.

The IRS runs some 400 separate systems to process about 200 million tax returns each year, and Milholland is the agency’s first person to hold the CTO title.

A major item on his to-do list will be stabilizing and securing the troubled CADE (Customer Account Data Engine) program.

An independent review of CADE and related account management systems exposed numerous security design problems and raised concerns that vulnerability reports had been overlooked during the program’s long, nine-plus-year development.

The agency’s overall security posture has been a recurring problem: the House Committee on Government Reform’s annual federal security compliance report has typically placed the IRS near the bottom, with the agency’s best marks being a string of D‑minuses in 2003–2005.

Milholland is reported to answer directly to James P. Falcone, the acting deputy commissioner for operations support.

The IRS’s Modernization and IT Services division — including CIO Arthur Gonzales, who reportedly opposed the public release of the CADE report and tried to have it classified as “sensitive but unclassified” — will now fall under Milholland’s oversight.

Meanwhile, in Washington there is active speculation about who might fill an anticipated federal CTO role in the incoming Obama administration.

Names frequently mentioned include Vint Cerf, Princeton computer scientist and e-voting researcher Ed Felten, former FCC chair Reed Hundt, Creative Commons co-founder Lawrence Lessig, and Amazon founder Jeff Bezos.

Reports indicate that Google CEO Eric Schmidt has already signaled he is not interested in the position.

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