Voluntary compliance (1 - 10 of 143 items)
Inland Waterways Fuel Tax: Additional Data Could Enhance IRS's Efforts to Ensure Taxpayer Compliance
GAO-16-682: Published: Jul 29, 2016. Publicly Released: Jul 29, 2016.
Based on results of audits, the Internal Revenue Service (IRS) views vessel operators to be substantially in compliance with requirements to report and pay the Inland Waterways Fuel Tax (fuel tax). IRS seeks to ensure compliance by auditing quarterly excise-tax returns filed by these operators, as well as identifying operators that failed to file (nonfilers).Audits of filed returns: IRS data show...
IRS 2017 Budget: IRS Could Improve Presentation of Budget Data in Its Congressional Justification
GAO-16-695: Published: Jul 21, 2016. Publicly Released: Jul 21, 2016.
Congressional justification data. The Internal Revenue Service (IRS) has taken steps to manage its budget more strategically but did not make linkages between priorities and appropriations accounts. IRS prioritized a subset of its 19 strategic objectives for action and established six themes that represent its “future state” vision for tax administration. In the fiscal year 2017 congressional...
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...
IRS Return Selection: Certain Internal Controls for Audits in the Small Business and Self-Employed Division Should Be Strengthened
GAO-16-103: Published: Dec 16, 2015. Publicly Released: Jan 13, 2016.
The Small Business/Self-Employed (SB/SE) division of the Internal Revenue Service (IRS) uses over 30 methods, called workstreams, to identify and review tax returns that may merit an audit. These returns were initially identified through seven sources which include referrals; computer programs that run filters, rules, or algorithms to identify potentially noncompliant taxpayers; and related return...
IRS Case Selection: Collection Process Is Largely Automated, but Lacks Adequate Internal Controls
GAO-15-647: Published: Jul 29, 2015. Publicly Released: Jul 29, 2015.
The Internal Revenue Service's (IRS) collection program largely uses automated processes to categorize and route unpaid tax or unfiled tax return cases for potential selection. The automated Inventory Delivery System (IDS) categorizes and routes cases based on many factors, such as type of tax and amount owed. Outside of IDS, collection managers set goals for closing cases in priority areas, such...
IRS Examination Selection: Internal Controls for Exempt Organization Selection Should Be Strengthened
GAO-15-514: Published: Jul 13, 2015. Publicly Released: Jul 23, 2015.
The Exempt Organizations (EO) unit within the Tax Exempt and Government Entities (TE/GE) division at the Internal Revenue Service (IRS) reviews organizations' applications for tax-exempt status to determine whether to grant status and oversees existing exempt organizations' compliance with the tax code. To identify exempt organizations for possible examination, EO uses a variety of information sou...
Small Businesses: IRS Considers Compliance Burden in Tax Administration, but Needs a Plan to Evaluate Its Payment Card Information Pilot
GAO-15-754T: Published: Jul 22, 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...
Internal Revenue Service: Observations on IRS's Operations, Planning, and Resources
GAO-15-420R: Published: Feb 27, 2015. Publicly Released: Mar 3, 2015.
The Internal Revenue Service’s (IRS) fiscal year 2015 appropriation ($10.9 billion) and staffing levels (81,279 full-time equivalents, or FTE) continue a decline that has occurred over several years and are now below fiscal year 2009 levels. Since fiscal year 2010, IRS’s annual appropriation has declined by $1.2 billion, and staffing has fallen by about 11,000 FTEs since fiscal year 2009 while...
Tax-Exempt Organizations: Better Compliance Indicators and Data, and More Collaboration with State Regulators Would Strengthen Oversight of Charitable Organizations
GAO-15-164: Published: Dec 17, 2014. Publicly Released: Dec 17, 2014.
Charitable organizations play a major role in our economy and provide critical services and resources to families and individuals in need. Although charitable organizations vary considerably in size and purpose, in 2011 the largest number of organizations was in the human services sector, providing services such as employment and housing assistance. The highest concentration of assets was in the h...
Identity Theft: Additional Actions Could Help IRS Combat the Large, Evolving Threat of Refund Fraud
GAO-14-633: Published: Aug 20, 2014. Publicly Released: Sep 22, 2014.
Based on preliminary analysis, the Internal Revenue Service (IRS) estimates it paid $5.2 billion in fraudulent identity theft (IDT) refunds in filing season 2013, while preventing $24.2 billion (based on what it could detect). The full extent is unknown because of the challenges inherent in detecting IDT refund fraud.IDT refund fraud takes advantage of IRS's “look-back” compliance model. Under...