Income taxes (111 - 120 of 360 items)
Tax Administration: IRS Should Continue to Expand Reporting on Its Enforcement Efforts
GAO-03-378: Published: Jan 31, 2003. Publicly Released: Feb 28, 2003.
Reported declines in the rate at which the Internal Revenue Service (IRS) audits (also referred to as "examines") individual income tax returns have raised concerns that taxpayers may have a false perception of the true level of IRS's tax enforcement efforts. In addition, many observers are concerned these reported declines may reduce taxpayers' motivation to voluntarily pay their taxes. Because o...
District of Columbia: Fiscal Structural Balance Issues
GAO-02-1001: Published: Sep 4, 2002. Publicly Released: Sep 4, 2002.
The District of Columbia has historically faced many challenges due to its unique circumstances and role as the nation's capital. After several years of struggling with financial crises and insolvency in the early 1990s, the District has significantly improved its financial condition by achieving five consecutive balanced budgets, an upgraded bond rating, and unqualified or "clean" opinions on its...
Tax Administration: Advance Tax Refund Program Was a Major Accomplishment, but Not Problem Free
GAO-02-827: Published: Aug 2, 2002. Publicly Released: Aug 2, 2002.
The Economic Growth and Tax Relief Reconciliation Act of 2001 replaced the 15-percent tax rate for individual taxpayers with a 10-percent rate. To stimulate the economy quickly, the act provided for an advance refund in 2001. Between July and December 2001, the Internal Revenue Service (IRS), working with the Department of the Treasury's Financial Management Service (FMS), mailed out 86 million ad...
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: Efforts to Identify and Combat Abusive Tax Schemes Have Increased, but Challenges Remain
GAO-02-733: Published: May 22, 2002. Publicly Released: May 22, 2002.
The Internal Revenue Service (IRS) characterizes an abusive tax scheme as any plan or arrangement created and used to obtain tax benefits not allowable by law. According to IRS, abusive tax schemes fall into four categories: frivolous returns, frivolous refunds, abusive domestic trusts, and offshore schemes. IRS estimates the potential revenue loss from abusive tax schemes to be in the tens of bil...
Tax Administration: IRS's Innocent Spouse Program Performance Improved; Balanced Performance Measures Needed
GAO-02-558: Published: Apr 24, 2002. Publicly Released: May 16, 2002.
By law, married persons who file joint tax returns are each fully responsible for the accuracy of the tax return and for the full tax liability. This is true even though only one taxpayer may have earned the wages or income shown on the tax return. Under the Internal Revenue Service's (IRS) Innocent Spousal Program, IRS can relieve taxpayers of tax debts on the basis of equity considerations, such...
Tax Administration: Continued Progress Modernizing IRS Depends on Managing Risks
GAO-02-715T: Published: May 14, 2002. Publicly Released: May 14, 2002.
In light of the fourth anniversary of the Internal Revenue Service (IRS) Restructuring and Reform Act of 1998, which established Congress' expectation that IRS modernize to better meet taxpayer needs, GAO gave an overview of IRS's current performance and resources and then assessed the progress that IRS has made modernizing and the risks to continued progress. Overall, IRS has seen increased workl...
Income Ranges of Taxpayers Who May Have Overpaid Federal Taxes by Not Itemizing
GAO-02-638R: Published: Apr 11, 2002. Publicly Released: Apr 11, 2002.
This report provides information on the income ranges of taxpayers who may have overpaid federal taxes by not itemizing. GAO found that of the returns filed for tax year 1998, 53 percent of taxpayers who may have overpaid federal taxes by not itemizing, had adjusted gross incomes of $50,000 or less. Eleven percent showed adjusted gross incomes of more than $75,000. The median adjusted gross income...
Internal Revenue Service: Enhanced Efforts to Combat Abusive Tax Schemes--Challenges Remain
GAO-02-618T: Published: Apr 11, 2002. Publicly Released: Apr 11, 2002.
Estimating the extent of abusive tax schemes used by individual taxpayers is difficult because they are often hidden. Nevertheless, the Internal Revenue Service (IRS) believes that the number and dollar consequences of these schemes has grown recently. IRS estimates that 740,000 taxpayers used abusive schemes in tax year 2000. IRS caught $5 billion in improper tax avoidance or tax credit and refun...
Tax Deductions: Further Estimates of Taxpayers Who May Have Overpaid Federal Taxes by Not Itemizing
GAO-02-509: Published: Mar 29, 2002. Publicly Released: Apr 11, 2002.
When computing their federal taxes, taxpayers either claim a standard or itemized deduction. In recent years, about 70 percent of taxpayers have claimed the standard deduction. GAO found that on 948,000 tax returns for tax year 1998, taxpayers did not itemize their deductions yet had payments for mortgage interest and points and for state and local income tax that exceeded the standard deductions...