Taxpayers (11 - 20 of 726 items)
Refundable Tax Credits: Comprehensive Compliance Strategy and Expanded Use of Data Could Strengthen IRS's Efforts to Address Noncompliance
GAO-16-475: Published: May 27, 2016. Publicly Released: Jun 27, 2016.
The Earned Income Tax Credit (EITC), the Additional Child Tax Credit (ACTC), and the American Opportunity Tax Credit (AOTC) provide tax benefits to millions of taxpayers—many of whom are low-income—who are working, raising children, or pursuing higher education. These credits are refundable in that, in addition to offsetting tax liability, any excess credit over the tax liability is refunded t...
Identity Theft and Tax Fraud: IRS Needs to Update Its Risk Assessment for the Taxpayer Protection Program
GAO-16-508: Published: May 24, 2016. Publicly Released: Jun 23, 2016.
Taxpayer Protection Program (TPP). While the Internal Revenue Service (IRS) has made efforts to strengthen TPP—a program to authenticate the identities of suspicious tax return filers and prevent identity theft (IDT) refund fraud—fraudsters are still able to pass through and obtain fraudulent refunds. TPP authenticates taxpayers by asking questions only a real taxpayer should know; however, fr...
Management Report: Improvements Are Needed to Enhance the Internal Revenue Service's Internal Control over Financial Reporting
GAO-16-457R: Published: May 18, 2016. Publicly Released: May 18, 2016.
During its audit of the Internal Revenue Service’s (IRS) fiscal years 2015 and 2014 financial statements, GAO identified several deficiencies in IRS’s internal control over financial reporting that while not considered to be material weaknesses or significant deficiencies either individually or collectively, nonetheless warrant IRS management’s attention. These control deficiencies relate to...
Tax Filing: IRS Needs a Comprehensive Customer Service Strategy and Needs to Better Combat Identity Theft Refund Fraud and Protect Taxpayer Data
GAO-16-578T: Published: Apr 19, 2016. Publicly Released: Apr 19, 2016.
The Internal Revenue Service (IRS) improved phone service to taxpayers during the 2016 filing season compared to last year. According to IRS, this is due in part to the additional $290 million in funding Congress provided to improve customer service, identity theft (IDT) refund fraud, and cybersecurity efforts. However, IRS expects its performance for the entire fiscal year will not reach the leve...
Corporate Income Tax: Most Large Profitable U.S. Corporations Paid Tax but Effective Tax Rates Differed Significantly from the Statutory Rate
GAO-16-363: Published: Mar 17, 2016. Publicly Released: Apr 13, 2016.
In each year from 2006 to 2012, at least two-thirds of all active corporations had no federal income tax liability. Larger corporations were more likely to owe tax. Among large corporations (generally those with at least $10 million in assets) less than half—42.3 percent—paid no federal income tax in 2012. Of those large corporations whose financial statements reported a profit, 19.5 percent p...
Information Security: IRS Needs to Further Improve Controls over Taxpayer Data and Continue to Combat Identity Theft Refund Fraud
GAO-16-589T: Published: Apr 12, 2016. Publicly Released: Apr 12, 2016.
In March 2016, GAO reported that the Internal Revenue Service (IRS) had instituted numerous controls over key financial and tax processing systems; however, it had not always effectively implemented other controls intended to properly restrict access to systems and information, among other security measures. In particular, while IRS had improved some of its access controls, weaknesses remained in...
Internal Revenue Service: Preliminary Observations on the Fiscal Year 2017 Budget Request and 2016 Filing Season Performance
GAO-16-459R: Published: Mar 8, 2016. Publicly Released: Apr 7, 2016.
The Internal Revenue Service’s (IRS) fiscal year 2016 appropriation increased by $290 million to $11.2 billion over fiscal year 2015 but is about $900 million (7 percent) lower than fiscal year 2011. IRS allocated the funds across 3 appropriation accounts: Taxpayer Services ($176.8 million), Operations Support ($108.2 million), and Enforcement ($4.9 million). For fiscal year 2017, the President...
Information Security: IRS Needs to Further Improve Controls over Financial and Taxpayer Data
GAO-16-398: Published: Mar 28, 2016. Publicly Released: Mar 28, 2016.
The Internal Revenue Service (IRS) made progress in implementing information security controls; however, weaknesses in the controls limited their effectiveness in protecting the confidentiality, integrity, and availability of financial and sensitive taxpayer data. During fiscal year 2015, IRS continued to devote attention to securing its information systems that process sensitive taxpayer and fina...
IRS Referral Programs: Opportunities Exist to Strengthen Controls and Increase Coordination across Overlapping Programs
GAO-16-155: Published: Feb 23, 2016. Publicly Released: Mar 24, 2016.
Information referrals from the public alleging tax noncompliance must be submitted on paper forms by mail to the Internal Revenue Service (IRS). These referrals are manually screened by clerical staff and routed by mail to units across IRS for further action, as shown in the figure.Process for Screening and Routing Information Referrals for Further ReviewIneffective internal controls undercut IRS...
Small Employer Health Tax Credit: Limited Use Continues Due to Multiple Reasons
GAO-16-491T: Published: Mar 22, 2016. Publicly Released: Mar 22, 2016.
Claims of the small employer health tax credit have continued to be lower than thought eligible by government agency and small business group estimates, limiting the effect of the credit on expanding health insurance coverage through small employers. In 2014, about 181,000 employers claimed the credit, down somewhat from 2010 (see figure). These numbers are relatively low compared to the number of...