Tax violations (31 - 40 of 58 items)
Tax Gap: Multiple Strategies, Better Compliance Data, and Long-Term Goals Are Needed to Improve Taxpayer Compliance
GAO-06-208T: Published: Oct 26, 2005. Publicly Released: Oct 26, 2005.
Long-term budget simulations by GAO and others show that we face large and growing structural deficits due primarily to known demographic trends and rising health care costs. Reducing the annual tax gap--the difference between what taxpayers timely and accurately pay in taxes and what they should pay under the law--could help the nation cope with these long-term fiscal challenges. The tax gap aris...
Tax Administration: Systematic Information Sharing Would Help IRS Determine the Deductibility of Civil Settlement Payments
GAO-05-747: Published: Sep 15, 2005. Publicly Released: Oct 18, 2005.
Although some civil settlement payments are deductible, their deterrence factor could be lessened if companies can deduct certain settlement payments from their income taxes. GAO was asked to (1) identify federal agencies that negotiated some of the largest dollar civil settlements, (2) determine whether selected federal agencies take tax consequences into account when negotiating settlements and...
Tax Compliance: Better Compliance Data and Long-term Goals Would Support a More Strategic IRS Approach to Reducing the Tax Gap
GAO-05-753: Published: Jul 18, 2005. Publicly Released: Aug 17, 2005.
According to the Internal Revenue Service (IRS), a gap arises each year between what taxpayers pay accurately and on time in taxes and what they should pay under the law. The tax gap is composed of underreporting of tax liabilities on tax returns, underpaying of taxes due from filed returns, and nonfiling of required tax returns altogether or on time. GAO was asked to provide information on (1) th...
Tax Administration: IRS Needs to Consider Options for Revising Regulations to Increase the Accuracy of Social Security Numbers on Wage Statements
GAO-04-712: Published: Aug 31, 2004. Publicly Released: Oct 5, 2004.
Inaccurate social security numbers (SSN) on wage statements contribute to growth in the Social Security Administration's (SSA) Earnings Suspense File, increase the Internal Revenue Service's (IRS) workload to ensure that wages are properly identified for those earning them, and burden individuals who must work with SSA and IRS to resolve disputes that may affect their social security benefits and...
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...
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...
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 Administration: IRS's Efforts to Improve Compliance With Employment Tax Requirements Should Be Evaluated
GAO-02-92: Published: Jan 15, 2002. Publicly Released: Feb 19, 2002.
Employers are required to withhold amounts from their employees' salary to cover individual federal income tax, Social Security, and Medicare taxes; match the amounts for Social Security and Medicare taxes; and deposit these amounts with the U.S. Treasury. In fiscal year 2000, the Internal Revenue Service (IRS) collected $1.3 trillion in this manner. Most employers withhold and deposit these taxes...
Federal Taxes: Information on Payroll Taxes and Earned Income Tax Credit Noncompliance
GAO-01-487T: Published: Mar 7, 2001. Publicly Released: Mar 7, 2001.
This testimony discusses (1) how payroll taxes fund Social Security and the Medicare Hospital Insurance (HI) programs and (2) noncompliance associated with the Earned Income Tax Credit (EITC) and efforts to deal with that noncompliance. Payroll taxes fund the Social Security Program and the Medicare HI program. These taxes are paid in equal portions by employees and their employers. Employees and...
Earned Income Credit: IRS' Tax Year 1994 Compliance Study and Recent Efforts to Reduce Noncompliance
GGD-98-150: Published: Jul 28, 1998. Publicly Released: Aug 27, 1998.
Pursuant to a congressional request, GAO reviewed the Internal Revenue Service's (IRS) 1994 Earned Income Credit (EIC) compliance study, focusing on: (1) evaluating IRS' study methodology to determine if the reported results were reasonably accurate; (2) identifying the primary sources of EIC noncompliance found in the study; and (3) determining whether recent IRS compliance efforts are designed t...