Noncompliance (21 - 30 of 44 items)
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...
IRS Restructuring Act Implementation
GGD-00-71R: Published: Feb 28, 2000. Publicly Released: Feb 28, 2000.
Pursuant to a congressional request, GAO provided information on the Internal Revenue Service's (IRS) efforts to implement provisions of the IRS Restructuring and Reform Act of 1998, focusing on: (1) what can be done to ensure that levies and seizures are done in accordance with the law; (2) IRS' balanced performance measurement system of evaluating employees; (3) the misuse of enforcement statist...
Earned Income Credit: Noncompliance Relative to Other Components of the Income Tax Gap
GGD-97-120R: Published: Jun 13, 1997. Publicly Released: Jun 13, 1997.
GAO compared noncompliance and associated Internal Revenue Service (IRS) enforcement issues for Earned Income Credit (EIC) claimants and other taxpayer groups, such as the self-employed.GAO noted that: (1) IRS estimated that 25.8 percent of EIC, or $4.4 billion, was overclaimed in tax year 1994; (2) this is a relatively high error rate, but the gross dollar amount is lower than that of some other...
Taxpayer Compliance: Analyzing the Nature of the Income Tax Gap
T-GGD-97-35: Published: Jan 9, 1997. Publicly Released: Jan 9, 1997.
GAO discussed the income tax gap, the difference between income taxes owed and those voluntarily paid. GAO noted that: (1) the Internal Revenue Service's (IRS) data suggest that U.S. taxpayers voluntarily pay about 83 percent of the income taxes they owe and ultimately pay about 87 percent after IRS enforcement programs; (2) this compliance level, in combination with economic growth, translates in...
Tax Administration: Issues in Classifying Workers as Employees or Independent Contractors
T-GGD-96-130: Published: Jun 20, 1996. Publicly Released: Jun 20, 1996.
GAO discussed the classification of workers as employees or independent contractors for federal tax purposes. GAO noted that: (1) the Internal Revenue Service (IRS) has adopted 20 common law rules to help employers classify workers; (2) the rules require employers to withhold and deposit income and social security taxes, and pay the unemployment and social security taxes for workers determined to...
Tax Administration: Issues Involving Worker Classification
T-GGD-95-224: Published: Aug 2, 1995. Publicly Released: Aug 2, 1995.
GAO discussed the classification of workers either as employees or independent contractors for federal tax purposes. GAO noted that: (1) the Internal Revenue Service (IRS) has maintained an active audit presence despite the high levels of income tax noncompliance involving independent contractors; (2) from 1988 through 1994, IRS completed 11,380 Employment Tax Examination Program audits, resulting...
Taxpayer Compliance: Reducing the Income Tax Gap
T-GGD-95-176: Published: Jun 6, 1995. Publicly Released: Jun 6, 1995.
GAO discussed the income tax gap. GAO noted that: (1) taxpayers voluntarily pay 83 percent of the taxes they owe and 87 percent after Internal Revenue Service (IRS) audits; (2) although the compliance level is relatively high, tax compliance is not uniform among groups of taxpayers; (3) IRS estimates that wage earners report 97 percent of their wages, self-employed report 36 percent of their incom...
Reducing the Tax Gap: Results of a GAO-Sponsored Symposium
GGD-95-157: Published: Jun 2, 1995. Publicly Released: Jun 2, 1995.
GAO presented the results of its symposium on key taxpayer compliance issues.GAO found that: (1) the federal tax system does not ensure uniform compliance among various groups of taxpayers; (2) major modifications in the current tax system would be required to substantially improve taxpayer compliance with tax laws, such as reducing tax law complexity and extending income tax withholding requireme...
Tax Administration: Estimates of the Tax Gap for Service Providers
GGD-95-59: Published: Dec 28, 1994. Publicly Released: Dec 28, 1994.
Pursuant to a congressional request, GAO provided information about the income tax gap for self-employed individuals for tax year 1992, focusing on: (1) nonfarm sole proprietors who provided services; and (2) service providers who may have been misclassified as self-employed.GAO found that: (1) the Internal Revenue Service (IRS) considered about 9.2 million to 11.5 million nonfarm sole proprietors...
Tax Administration: Compliance Measures and Audits of Large Corporations Need Improvement
GGD-94-70: Published: Sep 1, 1994. Publicly Released: Oct 17, 1994.
Pursuant to a congressional request, GAO reviewed the Internal Revenue Service's (IRS) Coordinated Examination Program (CEP) to audit the largest corporations' tax returns, focusing on: (1) whether large corporations pay all the taxes they owe; (2) the amount of additional taxes collected after appeals and litigation; (3) factors that reduce the amounts collected; and (4) the status of ongoing cha...