Income taxes (1 - 10 of 82 items) in Custom Date Range
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...
Partnerships and S Corporations: IRS Needs to Improve Information to Address Tax Noncompliance
GAO-14-453: Published: May 14, 2014. Publicly Released: Jun 13, 2014.
The full extent of partnership and S corporation income misreporting is unknown. The Internal Revenue Service's (IRS) last study of S corporations, using 2003-2004 data, estimated that these entities annually misreported about 15 percent (an average of $55 billion for 2003 and 2004) of their income. IRS does not have a similar study for partnerships. Using IRS data and the study results, GAO deriv...
Corporate Tax Expenditures: Evaluations of Tax Deferrals and Graduated Tax Rates
GAO-13-789: Published: Sep 16, 2013. Publicly Released: Nov 6, 2013.
Deferral: Both deferral tax expenditures confer the benefit of effectively reducing taxes by delaying the taxation of certain income of foreign subsidiaries of U.S. corporations until it is repatriated to the U.S. parent as dividends.1. While views on the purpose of deferral have changed over time, currently, it is often viewed by experts as promoting the competitiveness of U.S. multinational corp...
Tax Gap: Complexity and Taxpayer Compliance
GAO-11-747T: Published: Jun 28, 2011. Publicly Released: Jun 28, 2011.
Taxes are necessary because they fund the services provided by government. Several years ago, the Internal Revenue Service (IRS) estimated that the gross tax gap--the difference between taxes owed and taxes paid on time--was $345 billion for 2001. In the face of large and growing deficits, it is important to seek out potential causes and solutions to the tax gap. Achieving high levels of voluntary...
Tax Administration: Information on Selected Foreign Practices That May Provide Useful Insights
GAO-11-439: Published: May 24, 2011. Publicly Released: Jun 23, 2011.
The Internal Revenue Service (IRS) and foreign tax administrators face similar issues regardless of the particular provisions of their laws. These issues include, for example, helping taxpayers prepare and file returns, and assuring tax compliance. Understanding how other tax administrators have used certain practices to address common issues can provide insights to help inform deliberations about...
Tax Administration: Preliminary Information on Selected Foreign Practices That May Provide Useful Insights
GAO-11-540T: Published: Apr 12, 2011. Publicly Released: Apr 12, 2011.
The Internal Revenue Service (IRS) and foreign tax administrators face similar issues regardless of the particular provisions of their laws. These issues include, for example, helping taxpayers prepare and file returns, and assuring tax compliance. GAO was asked to describe (1) how foreign tax administrators have approached issues that are similar to those in the U.S. tax system and (2) whether an...
2011 Tax Filing: IRS Dealt with Challenges to Date but Needs Additional Authority to Verify Compliance
GAO-11-481: Published: Mar 29, 2011. Publicly Released: Mar 31, 2011.
Every tax filing season is a large-scale undertaking during which the Internal Revenue Service (IRS) interacts with taxpayers by processing returns, issuing refunds, answering telephone calls, and providing other services, both face-to-face and on its Web site. As part of processing returns and before refunds are issued, IRS uses its statutory authority to automatically correct errors. This allows...
Tax Gap: IRS Has Modernized Its Business Nonfiler Program but Could Benefit from More Evaluation and Use of Third-Party Data
GAO-10-950: Published: Aug 31, 2010. Publicly Released: Sep 30, 2010.
The Internal Revenue Service (IRS) does not know how many businesses failed to file required returns, nor does it have an estimate of the associated lost tax revenue--the business nonfiling tax gap. Many cases it does investigate are unproductive because the business does not owe the return IRS expects. GAO was asked to assess (1) the data challenges of estimating the business nonfiler tax gap, (2...
Tax Administration: Opportunities Exist for IRS to Enhance Taxpayer Service and Enforcement for the 2010 Filing Season
GAO-09-1026: Published: Sep 23, 2009. Publicly Released: Oct 16, 2009.
Preparing for the tax filing season is a significant undertaking for Internal Revenue Service (IRS). The filing season is when most individuals file their tax returns, receive refunds, and contact IRS if they have questions. As returns are received, IRS begins a series of automated compliance checks to correct errors on tax returns and ensure that refunds are justified. For example, IRS rejects el...
Tax Administration: Interim Results of IRS's 2009 Filing Season
GAO-09-640: Published: Jun 3, 2009. Publicly Released: Jun 4, 2009.
Every tax filing season, the Internal Revenue Service (IRS) must quickly and accurately process Americans' tax returns, issue refunds, and answer taxpayers' questions. The 2009 filing season, when 2008 tax returns are filed, was especially challenging because of stimulus-related tax law changes and IRS's expanded assistance to financially distressed taxpayers, such as adding flexibility for taxpay...