Tax administration (41 - 50 of 145 items)
Earned Income Credit: Qualifying Child Certification Test Appears Justified, but Evaluation Plan Is Incomplete
GAO-03-794: Published: Sep 30, 2003. Publicly Released: Sep 30, 2003.
The Earned Income Credit (EIC), a tax credit available to the working poor, has experienced high rates of noncompliance. Unlike many benefit programs, EIC recipients generally receive payments without advance, formal determinations of eligibility; the Internal Revenue Service (IRS) checks some taxpayers' eligibility later. IRS estimated that tax year 1999 EIC overclaim rates, the most recent data...
Reliability of Information on Taxpayers Claiming Many Withholding Allowances or Exemption from Federal Income Tax Withholding
GAO-03-913R: Published: Sep 15, 2003. Publicly Released: Sep 15, 2003.
When taxpayers claim more withholding allowances than they are entitled to or improperly claim exemption from withholding, either no tax or too little tax is withheld from their wages. As a result, some taxpayers end up owing the Internal Revenue Service (IRS) additional taxes, and if the taxes are not paid on time, they become delinquent. This report responds to a Congressional request for inform...
Tax Administration: IRS Is Implementing the National Research Program as Planned
GAO-03-614: Published: Jun 16, 2003. Publicly Released: Jul 16, 2003.
The Internal Revenue Service (IRS) needs up-to-date information on voluntary compliance in order to assess and improve its programs. IRS's last detailed study of voluntary compliance was done in the late 1980s, so the compliance information IRS is using today is not current. IRS is now carrying out the National Research Program (NRP), through which IRS auditors are reviewing about 47,000 randomly...
Tax Administration: Federal Payment Levy Program Measures, Performance, and Equity Can Be Improved
GAO-03-356: Published: Mar 6, 2003. Publicly Released: Mar 6, 2003.
According to the Internal Revenue Service (IRS), taxpayers currently owe about $249 billion in delinquent taxes. At the same time, the government pays billions of dollars in Social Security, retirement, and other federal payments to thousands of these individuals. To help IRS administer tax laws fairly and collect delinquent taxes effectively, Congress included a provision authorizing the Federal...
Minimizing Inappropriate Levies in IRS's Federal Payment Levy Program
GAO-03-318R: Published: Jan 3, 2003. Publicly Released: Jan 3, 2003.
Each year, thousands of taxpayers who owe delinquent federal taxes receive billions of dollars in federal payments. To help the Internal Revenue Service (IRS) collect these delinquent taxes more effectively, the Congress passed the Taxpayer Relief Act of 1997, the provisions of which authorized the establishment of the Federal Payment Levy Program (FPLP), which allows IRS to continuously levy up t...
Tax Administration: New Compliance Research Effort Is on Track, but Important Work Remains
GAO-02-769: Published: Jun 27, 2002. Publicly Released: Jul 30, 2002.
The U.S. tax system is based on taxpayers voluntarily complying with the tax laws. However, the Internal Revenue Service (IRS) last measured taxpayers' rate of compliance using 1988 tax returns. As time has passed, IRS has become concerned that its ability to understand the effectiveness of its programs and target audits on noncompliant returns has deteriorated, potentially resulting in poorer ser...
Internal Revenue Service: Unpaid Taxes of Federal Workers and Annuitants
GAO-01-195: Published: Jun 14, 2001. Publicly Released: Jun 14, 2001.
Voluntary compliance with tax laws, the foundation of the U.S. tax system, could be undermined if the public perceives that federal workers and former federal workers successfully evade their tax obligations. Internal Revenue Service (IRS) records indicate that federal workers and annuitants, and IRS workers in particular, appear to be more compliant in meeting their tax responsibilities than the...
Alternative Minimum Tax: Overview of Its Rationale and Impact on Individual Taxpayers
GAO-01-500T: Published: Mar 8, 2001. Publicly Released: Mar 8, 2001.
This testimony focuses on the Alternative Minimum Tax (AMT), its interaction with the regular tax system, and its projected growth in coverage. GAO found that (1) AMT was designed to ensure that high-income individuals do not avoid significant income tax liabilities--for tax year 1997, about 14,000 taxpayers would not have paid any income taxes absent AMT, (2) AMT operates as a separate tax system...
Tax Administration: IRS' Levy of Federal Payments Could Generate Millions of Dollars
GGD-00-65: Published: Apr 7, 2000. Publicly Released: May 8, 2000.
Pursuant to a congressional request, GAO reviewed the status of the Internal Revenue Service's (IRS) continuous levy program, focusing on: (1) the number of taxpayers that could be subject to a continuous levy, the revenue that might be generated, and the cost to IRS to have the Financial Management Service (FMS) levy the federal payments of those taxpayers; (2) issues that could delay program imp...
Internal Revenue Service: Preparing Substitute for Returns for Individuals
GGD-00-60R: Published: Feb 17, 2000. Publicly Released: Mar 3, 2000.
Pursuant to a congressional request, GAO provided information on the Substitute for Return (SFR) program at the Internal Revenue Service (IRS).GAO noted that: (1) IRS prepares a substitute for return for certain individuals classified as potential nonfilers for whom: (a) it has what it considers to be adequate information about income; and (b) the estimated tax liability is at or above a certain l...