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Tax Policy and Administration (121 - 130 of 1,532 items)
Small Employer Health Tax Credit: Factors Contributing to Low Use and Complexity
GAO-12-549: Published: May 14, 2012. Publicly Released: May 21, 2012.
Fewer small employers claimed the Small Employer Health Insurance Tax Credit in tax year 2010 than were estimated to be eligible. While 170,300 small employers claimed it, estimates of the eligible pool by government agencies and small business advocacy groups ranged from 1.4 million to 4 million. The cost of credits claimed was $468 million. Most claims were limited to partial rather than full pe...
Foreign Account Reporting Requirements: IRS Needs to Further Develop Risk, Compliance, and Cost Plans
GAO-12-484: Published: Apr 16, 2012. Publicly Released: May 16, 2012.
IRS has taken initial steps to implement FATCA requirements in line with leading implementation practices, including establishing a team to manage the implementation process and issuing guidance and proposed regulations. IRS has involved external stakeholders in the implementation process, which has helped inform IRSs implementation plans and regulations. IRS has also communicated initial in...
Community Development Financial Institutions and New Markets Tax Credit Programs in Metropolitan and Nonmetropolitan Areas
GAO-12-547R: Published: Apr 26, 2012. Publicly Released: Apr 26, 2012.
The policies and procedures of the CDFI and NMTC Programs help ensure that awards and allocations generally are proportionate to the numbers of qualified applicants that serve metropolitan and nonmetropolitan areas. The CDFI Programs authorizing legislation and regulations require that award recipients constitute a geographically diverse group, serving metropolitan and nonmetropolitan areas...
Internal Revenue Service: Opportunities to Improve the Taxpayer Experience and Voluntary Compliance
GAO-12-652T: Published: Apr 26, 2012. Publicly Released: Apr 26, 2012.
The Internal Revenue Service (IRS) has made improvements in processing tax returns, and electronic filing (e-filing), which provides benefits to taxpayers including faster refunds, continues to increase. However, IRSs performance in providing service over the phone and responding to paper correspondence has declined in recent years. For 2012, as with previous years, IRS officials attribute t...
Tax Gap: Sources of Noncompliance and Strategies to Reduce It
GAO-12-651T: Published: Apr 19, 2012. Publicly Released: Apr 19, 2012.
Noncompliance does not have a single source but occurs across different types of taxes and taxpayers. For example, individual income tax accounts for the largest portion of the tax gap, but corporate income tax and employment tax are also significant. Further, misreporting by individuals involves business income, non-business income, deductions, and credits. The extent of misreporting depends on t...
Tobacco Taxes: Large Disparities in Rates for Smoking Products Trigger Significant Market Shifts to Avoid Higher Taxes
GAO-12-475: Published: Apr 18, 2012. Publicly Released: Apr 18, 2012.
Large federal excise tax disparities among tobacco products, which resulted from the Childrens Health Insurance Program Reauthorization Act (CHIPRA) of 2009, created opportunities for tax avoidance and led to significant market shifts by manufacturers and price sensitive consumers toward the lower-taxed products. Monthly sales of pipe tobacco increased from approximately 240,000 pounds in Ja...
Community Development: Limited Information on the Use and Effectiveness of Tax Expenditures Could Be Mitigated through Congressional Attention
GAO-12-262: Published: Feb 29, 2012. Publicly Released: Mar 30, 2012.
GAO identified 23 community development tax expenditures available in fiscal year 2010. For example, five ($1.5 billion) targeted economically distressed areas, and nine ($8.7 billion) supported specific activities such as rehabilitating structures for business use. The design of each community development tax expenditure appears to overlap with that of at least one other tax expenditure in terms...
Reporting Foreign Accounts to IRS: Extent of Duplication Not Currently Known, but Requirements Can Be Clarified
GAO-12-403: Published: Feb 28, 2012. Publicly Released: Mar 29, 2012.
Some of the information requested on the Form 8938 and FBAR is duplicative. Both forms ask for the same or similar information on the filer, foreign financial accounts, and financial institutions where accounts are held. Form 8938 asks for additional information not required by the FBAR, such as other foreign financial assets and income. Since the Form 8938 is a new requirement beginning after 201...
Internal Revenue Service: Interim Results of 2012 Tax Filing Season and Summary of the Fiscal Year 2013 Budget Request
GAO-12-566: Published: Mar 20, 2012. Publicly Released: Mar 22, 2012.
In summary, so far this filing season, IRSexperienced an increase in total call volume (mostly for automated calls about taxpayer's refunds), and a reduction in IRS's level of service resulted in wait times of about 17 minutes;has processed almost 68 million returns, and electronic filing continues to increase; andexperienced problems, since resolved, that delayed refunds for about a week for mill...
Information Security: IRS Needs to Further Enhance Internal Control over Financial Reporting and Taxpayer Data
GAO-12-393: Published: Mar 16, 2012. Publicly Released: Mar 16, 2012.
IRS implemented numerous controls and procedures intended to protect key financial and tax-processing systems; nevertheless, control weaknesses in these systems continue to jeopardize the confidentiality, integrity, and availability of the financial and sensitive taxpayer information processed by IRSs systems. Specifically, the agency continues to face challenges in controlling access to its...