Tax administration (61 - 70 of 397 items)
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...
Internal Revenue Service: Review of the Fiscal Year 2010 Budget Request
GAO-09-754: Published: Jun 3, 2009. Publicly Released: Jun 4, 2009.
The financing of the federal government depends largely on the Internal Revenue Service's (IRS) ability to administer the tax laws, which includes providing service to taxpayers and enforcing the law so that individuals and businesses pay the taxes they owe. The President's fiscal year 2010 budget request details how IRS intends to allocate its resources to achieve these goals while also continuin...
Tax Administration: Possible Implications of Expanding Refund Offset Provisions
GAO-09-571R: Published: May 7, 2009. Publicly Released: May 7, 2009.
Millions of federal taxpayers receive billions of dollars in income tax refunds every year. Many of these refunds are paid to taxpayers who owe money to the federal government or to their state or local government. The law allows certain types of debts to be collected through offsets of federal income tax refunds before payments are issued to taxpayers--in calendar year 2008, over $5 billion was d...
Tax Administration: Many Taxpayers Rely on Tax Software and IRS Needs to Assess Associated Risks
GAO-09-297: Published: Feb 25, 2009. Publicly Released: Apr 2, 2009.
Individual taxpayers used commercial tax software to prepare over 39 million tax returns in 2007, making it critical to the tax administration system. The majority were then filed electronically, resulting in fewer errors and reduced processing costs compared to paper returns. GAO was asked to assess what is known about how pricing of tax software influences electronic filing, the extent to which...
Tax Gap: IRS Could Do More to Promote Compliance by Third Parties with Miscellaneous Income Reporting Requirements
GAO-09-238: Published: Jan 28, 2009. Publicly Released: Feb 27, 2009.
Third party payers, often businesses, reported $6 trillion in miscellaneous income payments to IRS in tax year 2006 on Form 1099- MISC information returns. Payees are to report this income on their tax returns. Even a small share of payers failing to submit 1099-MISCs could result in billions of dollars of unreported payments. IRS data suggest that payees are more likely to report income on their...
Financial Audit: IRS's Fiscal Years 2008 and 2007 Financial Statements
GAO-09-119: Published: Nov 10, 2008. Publicly Released: Nov 10, 2008.
Because of the significance of Internal Revenue Service (IRS) collections to overall federal receipts and, in turn, to the consolidated financial statements of the U.S. government, which GAO is required to audit, and Congress's interest in financial management at IRS, GAO audits IRS's financial statements annually to determine whether (1) the financial statements are fairly stated, and (2) IRS man...
Tax Gap: Actions That Could Improve Rental Real Estate Reporting Compliance
GAO-08-956: Published: Aug 28, 2008. Publicly Released: Sep 29, 2008.
As part of its most recent estimate of the tax gap, for tax year 2001, the Internal Revenue Service (IRS) estimated that individuals underreported taxes related to their rental real estate activities by as much as $13 billion. Given the magnitude of underreporting, even small improvements in taxpayer compliance could result in substantial revenue. GAO was asked to provide information on rental rea...
Tax Preparers: Oregon's Regulatory Regime May Lead to Improved Federal Tax Return Accuracy and Provides a Possible Model for National Regulation
GAO-08-781: Published: Aug 15, 2008. Publicly Released: Sep 15, 2008.
Millions of taxpayers use paid tax return preparers and many of these paid preparers are not subject to any qualification requirements. Paid preparers in California and Oregon are exceptions in that these states have set paid preparer qualification standards. Additionally, two bills before Congress would require national paid preparer regulations. To help Congress better understand the potential c...
Individual Retirement Accounts: Additional IRS Actions Could Help Taxpayers Facing Challenges in Complying with Key Tax Rules
GAO-08-654: Published: Aug 14, 2008. Publicly Released: Sep 15, 2008.
Individual retirement accounts (IRA) allow individuals to save for retirement in a tax-preferred way. Traditional IRA contributions, subject to certain limitations, can be deducted from taxable earnings and taxes on earnings are deferred until distribution. In contrast, Roth IRA contributions are made after tax and distributions are tax-free. Faced with a myriad of rules covering IRA contributions...
U.S. Multinational Corporations: Effective Tax Rates Are Correlated with Where Income Is Reported
GAO-08-950: Published: Aug 12, 2008. Publicly Released: Sep 8, 2008.
U.S. and foreign tax regimes influence decisions of U.S. multinational corporations (MNC) regarding how much to invest and how many workers to employ in particular activities and in particular locations. Tax rules also influence where corporations report earning income for tax purposes. The average effective tax rate, which equals the amount of income taxes a business pays divided by its pretax ne...