Taxes (11 - 20 of 51 items)
IRS Case Selection: Automated Collection System Lacks Key Internal Controls Needed to Ensure the Program Fulfills Its Mission
GAO-15-744: Published: Sep 10, 2015. Publicly Released: Sep 10, 2015.
The Internal Revenue Service's (IRS) Automated Collection System (ACS) has a multistep, automated process to prioritize and select cases of unpaid taxes and unfiled tax returns to pursue. ACS assesses cases to determine the order to work cases based on IRS's collection program priorities, the likelihood the case will be resolved, and the type of tax and amount owed. ACS also reviews cases to deter...
Small Businesses: IRS Considers Taxpayer Burden in Tax Administration, but Needs a Plan to Evaluate the Use of Payment Card Information for Compliance Efforts
GAO-15-513: Published: Jun 30, 2015. Publicly Released: Jul 22, 2015.
According to estimates produced by government tax researchers using 2010 taxpayer data, small businesses (defined in the research as individuals or entities with substantive business activity but with less than $10 million in total income and deductions) make up 99 percent of all businesses. Approximately 69 percent of small businesses (about 16 million) are individual taxpayers who report busines...
Identity Theft and Tax Fraud: Enhanced Authentication Could Combat Refund Fraud, but IRS Lacks an Estimate of Costs, Benefits and Risks
GAO-15-119: Published: Jan 20, 2015. Publicly Released: Feb 19, 2015.
Identity Theft (IDT) Refund Fraud Cost Estimates. The Internal Revenue Service's (IRS) fraud estimates met several GAO Cost Guide best practices, such as documenting data sources and detailing calculations. However, the estimates do not reflect the uncertainty inherent in measuring IDT refund fraud because they are presented as point estimates. Best practices suggest that agencies assess the effec...
Financial Audit: IRS's Fiscal Years 2014 and 2013 Financial Statements
GAO-15-173: Published: Nov 12, 2014. Publicly Released: Nov 12, 2014.
In GAO's opinion, the Internal Revenue Service's (IRS) fiscal years 2014 and 2013 financial statements are fairly presented in all material respects. However, in GAO's opinion, IRS did not maintain effective internal control over financial reporting as of September 30, 2014, because of a continuing material weakness in internal control over unpaid tax assessments. GAO's tests of IRS's compliance w...
Large Partnerships: With Growing Number of Partnerships, IRS Needs to Improve Audit Efficiency
GAO-14-732: Published: Sep 18, 2014. Publicly Released: Sep 18, 2014.
The number of large partnerships has more than tripled to 10,099 from tax year 2002 to 2011. Almost two-thirds of large partnerships had more than 1,000 direct and indirect partners, had six or more tiers and/or self reported being in the finance and insurance sector, with many being investment funds.The Internal Revenue Service (IRS) audits few large partnerships. Most audits resulted in no chang...
IRS Correspondence Audits: Better Management Could Improve Tax Compliance and Reduce Taxpayer Burden
GAO-14-479: Published: Jun 5, 2014. Publicly Released: Jul 7, 2014.
The notices the Internal Revenue Service (IRS) sends during correspondence audits have misled taxpayers by providing unrealistic time frames on when IRS would respond to their correspondence. For example, notices stated that IRS would respond within 30 to 45 days when it has consistently taken several months to do so. Further, as of early 2014, IRS data show that it had not responded timely to mor...
Financial Audit: IRS's Fiscal Years 2013 and 2012 Financial Statements
GAO-14-169: Published: Dec 12, 2013. Publicly Released: Dec 12, 2013.
In GAOs opinion, the Internal Revenue Services (IRS) fiscal years 2013 and 2012 financial statements are fairly presented in all material respects. However, in GAOs opinion, IRS did not maintain effective internal control over financial reporting as of September 30, 2013, because of a continuing material weakness in internal control over unpaid tax assessments. GAOs tests o...
Virtual Economies and Currencies: Additional IRS Guidance Could Reduce Tax Compliance Risks
GAO-13-516: Published: May 15, 2013. Publicly Released: Jun 17, 2013.
Transactions within virtual economies or using virtual currencies could produce taxable income in various ways, depending on the facts and circumstances of each transaction. For example, transactions within a "closed-flow" virtual currency system do not produce taxable income because a virtual currency can be used only to purchase virtual goods or services. An example of a closed-flow transaction...
Information Security: IRS Has Improved Controls but Needs to Resolve Weaknesses
GAO-13-350: Published: Mar 15, 2013. Publicly Released: Mar 15, 2013.
IRS continued to make progress in addressing information security control weaknesses, improving its internal control over financial reporting. During fiscal year 2012, IRS management devoted attention and resources to addressing information security controls, and resolved a significant number of the information security control deficiencies that GAO previously reported. Notable among these efforts...
Opportunities to Reduce Potential Duplication in Government Programs, Save Tax Dollars, and Enhance Revenue
GAO-11-441T: Published: Mar 3, 2011. Publicly Released: Mar 3, 2011.
This testimony discusses our first annual report to Congress responding to a new statutory requirement that GAO identify federal programs, agencies, offices, and initiatives--either within departments or governmentwide--that have duplicative goals or activities. This work will inform government policymakers as they address the rapidly building fiscal pressures facing our national government. Our...