Tax credit (21 - 30 of 91 items)
Tax Administration: Information Is Not Available to Determine Whether $5 Billion in Liberty Zone Tax Benefits Will Be Realized
GAO-03-1102: Published: Sep 30, 2003. Publicly Released: Oct 6, 2003.
The President pledged a minimum of $20 billion in assistance to New York for response and recovery efforts after the September 11, 2001, terrorist attacks. This includes tax benefits, commonly referred to as the Liberty Zone tax benefits, that the Joint Committee on Taxation (JCT) estimated would reduce federal tax revenues by about $5 billion. The actual amount of benefits realized, however, will...
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...
Tax Administration: IRS Should Reassess the Level of Resources for Testing Forms and Instructions
GAO-03-486: Published: Apr 11, 2003. Publicly Released: Apr 11, 2003.
Taxpayers rated the Internal Revenue Service's (IRS) ability to provide clear and easy-to-use forms and instructions among the lowest of 27 indicators of service in 1993. Due to continuing concerns about unclear forms and instructions, GAO was asked to determine (1) whether and how often IRS tests the clarity of new and revised individual income tax forms and instructions; (2) the benefits, if an...
IRS's Budget Justification: Options for Structure and Content
GAO-02-711R: Published: Jul 8, 2002. Publicly Released: Aug 7, 2002.
The Internal Revenue Service (IRS) submits an annual congressional justification for the funds and number of staff positions requested. For fiscal year 2002, IRS asked for $9.4 billion and 101,000 full-time-equivalent (FTE) staff positions. Congress expressed concerns about the information in IRS's justification and asserted that other types of information and presentations would better help Congr...
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...
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...
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...
Alternative Minimum Tax: An Overview of Its Rationale and Impact on Individual Taxpayers
GGD-00-180: Published: Aug 15, 2000. Publicly Released: Sep 19, 2000.
Pursuant to a congressional request, GAO provided information on the alternative minimum tax (AMT) system, focusing on: (1) the rationale for establishing AMT; (2) how AMT affects taxpayers' tax liability; (3) the expected increase in AMT coverage and additional tax liability and the major reasons for the increase; and (4) the impact of the projected increase in AMT coverage on taxpayers' complian...
Tax Administration: IRS' Low-Income Taxpayer Clinic Program
GGD-00-83: Published: Mar 24, 2000. Publicly Released: Mar 24, 2000.
Pursuant to a congressional request, GAO provided information on the Internal Revenue Service's (IRS) implementation of the Low-Income Taxpayer Clinic program, focusing on: (1) the steps IRS has taken to implement the Low-Income Taxpayer Clinic program; (2) the key tax problems facing low-income taxpayers served by the clinics and the reasons for these problems; (3) the role that the program plays...
Management Letter: IRS' Accounting Procedures and Internal Controls
AIMD-98-211R: Published: Sep 2, 1998. Publicly Released: Sep 2, 1998.
GAO provided information on additional matters it identified in its audit of the Internal Revenue Service's (IRS) custodial financial statements for fiscal year 1997 regarding accounting procedures and internal controls that could be improved.GAO noted that: (1) it found errors in deriving the financial statement balances; (2) yearend closing journal entries and schedules prepared to support the c...