IRS Performance Measures

Pursuant to a legislative requirement, GAO reviewed the Internal Revenue Service's (IRS) performance indicators and measures for its first annual financial statement under the Chief Financial Officers Act. GAO found that IRS: (1) sought to link performance measures to its three primary business objectives of increasing voluntary compliance, reducing taxpayers' burden, and improving customer satisfaction, productivity, and quality, which was consistent with legislative requirements; (2) needed to establish a common understanding of the meanings of key terms in its business objectives; and (3) planned to focus on the most meaningful indicators for its required report. GAO also found that: (1) it expected that IRS would report limitations in data availability and its ability to link financial and performance information; and (2) report information will become more useful as financial systems are improved and better integrated with program systems.