Tax administration (1 - 10 of 145 items)
2012 Tax Filing: IRS Faces Challenges Providing Service to Taxpayers and Could Collect Balances Due More Effectively
GAO-13-156: Published: Dec 18, 2012. Publicly Released: Jan 17, 2013.
While there have been efficiency gains and efforts to improve service, the Internal Revenue Service (IRS) faced challenges providing telephone service and responding to correspondence, continuing trends experienced in recent years. In 2012, 82 percent of individual taxpayers filed their returns electronically (e-filed), reducing IRS's processing costs. IRS also increased calls answered using autom...
Low-Income Housing Tax Credits: Agencies Implemented Changes Enacted in 2008, but Project Data Collection Could Be Improved
GAO-13-66: Published: Dec 6, 2012. Publicly Released: Dec 6, 2012.
What GAO FoundFederal and state agencies implemented changes made in 2008 to the Low-Income Housing Tax Credit (LIHTC) program by revising program guidance and modifying plans for allocating tax credits. The Internal Revenue Service (IRS) implemented the changes made by the Housing and Economic Recovery Act of 2008 (HERA) by, among other things, issuing notices and revenue procedures. Program st...
Tax Gap: Complexity and Taxpayer Compliance
GAO-11-747T: Published: Jun 28, 2011. Publicly Released: Jun 28, 2011.
Taxes are necessary because they fund the services provided by government. Several years ago, the Internal Revenue Service (IRS) estimated that the gross tax gap--the difference between taxes owed and taxes paid on time--was $345 billion for 2001. In the face of large and growing deficits, it is important to seek out potential causes and solutions to the tax gap. Achieving high levels of voluntary...
Tax Compliance: Opportunities Exist to Improve Tax Compliance of Applicants for State Business Licenses
GAO-09-569: Published: Jun 15, 2009. Publicly Released: Jul 16, 2009.
The California Department of Industrial Relations, Division of Labor Standards Enforcement (DLSE), requires applicants for California business licenses in three industries--farm labor contracting, garment manufacturing, and car washing and polishing--to be in compliance with federal employment tax obligations to qualify. Based on questions about whether the Internal Revenue Service (IRS) is fully...
Tax Administration: Possible Implications of Expanding Refund Offset Provisions
GAO-09-571R: Published: May 7, 2009. Publicly Released: May 7, 2009.
Millions of federal taxpayers receive billions of dollars in income tax refunds every year. Many of these refunds are paid to taxpayers who owe money to the federal government or to their state or local government. The law allows certain types of debts to be collected through offsets of federal income tax refunds before payments are issued to taxpayers--in calendar year 2008, over $5 billion was d...
Tax Gap: IRS Could Do More to Promote Compliance by Third Parties with Miscellaneous Income Reporting Requirements
GAO-09-238: Published: Jan 28, 2009. Publicly Released: Feb 27, 2009.
Third party payers, often businesses, reported $6 trillion in miscellaneous income payments to IRS in tax year 2006 on Form 1099- MISC information returns. Payees are to report this income on their tax returns. Even a small share of payers failing to submit 1099-MISCs could result in billions of dollars of unreported payments. IRS data suggest that payees are more likely to report income on their...
International Taxation: Large U.S. Corporations and Federal Contractors with Subsidiaries in Jurisdictions Listed as Tax Havens or Financial Privacy Jurisdictions
GAO-09-157: Published: Dec 18, 2008. Publicly Released: Jan 16, 2009.
Many U.S. corporations operate globally and have foreign subsidiaries. The subsidiaries may be created, for example, to take advantage of sales opportunities or favorable labor conditions. In some cases they may be used to reduce taxes. GAO was asked to update its 2004 report on large federal contractors with subsidiaries in countries sometimes called tax havens because of low taxes and a general...
Tax Administration: IRS Needs to Strengthen Its Approach for Evaluating the SRFMI Data-Sharing Pilot Program
GAO-09-45: Published: Nov 7, 2008. Publicly Released: Dec 8, 2008.
The State Reverse File Match Initiative (SRFMI) is one of the Internal Revenue Service's (IRS) data-sharing strategies to reduce the estimated $345 billion gross federal tax gap. SRFMI matches federal and state taxpayer data to identify noncompliant taxpayers--individuals and businesses who do not file tax returns or do not report all of their income. IRS's document-matching program has proven to...
Financial Audit: IRS's Fiscal Years 2008 and 2007 Financial Statements
GAO-09-119: Published: Nov 10, 2008. Publicly Released: Nov 10, 2008.
Because of the significance of Internal Revenue Service (IRS) collections to overall federal receipts and, in turn, to the consolidated financial statements of the U.S. government, which GAO is required to audit, and Congress's interest in financial management at IRS, GAO audits IRS's financial statements annually to determine whether (1) the financial statements are fairly stated, and (2) IRS man...
Tax Gap: Actions That Could Improve Rental Real Estate Reporting Compliance
GAO-08-956: Published: Aug 28, 2008. Publicly Released: Sep 29, 2008.
As part of its most recent estimate of the tax gap, for tax year 2001, the Internal Revenue Service (IRS) estimated that individuals underreported taxes related to their rental real estate activities by as much as $13 billion. Given the magnitude of underreporting, even small improvements in taxpayer compliance could result in substantial revenue. GAO was asked to provide information on rental rea...