Tax Administration: The Internal Revenue Service Can Improve Its Management of Paper Case Files
GAO-07-1160
Published: Sep 28, 2007. Publicly Released: Oct 11, 2007.
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Highlights
Proper paper case file management is a significant issue for the Internal Revenue Service (IRS) because its staff investigate and close millions of case files every year. In addition, IRS employees depend heavily on case files when pursuing enforcement actions. GAO was asked to review IRS's case file storage, tracking, and documentation processes to determine whether IRS has (1) an effective process to ensure that paper case files can be located timely and (2) sufficient data to assess the performance of its paper case file processes. To review these processes, GAO interviewed staff who request case files and case file managers.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Internal Revenue Service | To ensure that paper case files are readily available for examination, the Acting Commissioner of Internal Revenue should ensure that case files are managed in accordance with Federal Records Act and internal control standards including tracking the number of paper case files that cannot be located or are received untimely and the reasons why and developing performance measures to monitor the effectiveness of the paper case file process to assist in determining which options for improving paper case file management are the most beneficial for IRS. |
Closed – Implemented
In April 2010, IRS collected data at one Submission Processing Center on the number of unfulfilled document requests and reasons for failures, including data on requests for case files. IRS's analysis of this data identified several areas for improvement one of which included requests for case files. In addition, IRS collected data to determine a Files service rate which IRS established as a performance measure at that center, and collected data on other performance measures that were already in the Internal Revenue Manual.
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| Internal Revenue Service | To ensure that paper case files are readily available for examination, the Acting Commissioner of Internal Revenue should ensure that case file performance is monitored across IRS's compliance programs by clearly defining responsibility for doing so. |
Closed – Implemented
In February 2008, IRS established a Records and Files Coordination Team, which meets quarterly or as needed to coordinate efforts to improve IRS's management of case files.
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| Internal Revenue Service | To ensure that paper case files are readily available for examination, the Acting Commissioner of Internal Revenue should establish clearer responsibility for coordinating large samples of case files to provide specific reasons why case files cannot be located. |
Closed – Implemented
In March 2008, IRS developed procedures for expediting large case file requests from GAO and TIGTA and subsequently performed training on these procedures. In addition, IRS developed a job aid for interpreting charge out information; developed a files informational tips document; and revised document request forms to improve IRS staff requests for case files. Also, IRS subsequently developed special procedures to expedite Freedom of Information Act (FOIA), Ex Parte, and 6103D case file requests.
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| Internal Revenue Service | To ensure that paper case files are readily available for examination, the Acting Commissioner of Internal Revenue should reiterate to staff who the campus coordinators and Area Records Managers are for requesting paper case files. |
Closed – Implemented
By November 2009, IRS had placed current contact listings for campus coordinators and Area Records Managers on its website and changed one of its Files Activity phone numbers.
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| Internal Revenue Service | To ensure that paper case files are readily available for examination, the Acting Commissioner of Internal Revenue should ensure that paper case files are sent to storage areas as soon as the cases are closed; include with the Integrated Data Retrieval System Transaction Record documentation that indicates whether a case file was sent to storage; and track the number and location of paper case files that have not been sent to storage. |
Closed – Implemented
In October 2008, the Director, Collection Policy sent out a memorandum reminding Collection field offices to ship closed case files as soon as the respective cases are closed in accordance with the Internal Revenue Manual. In addition, IRS has developed briefing materials for new employees on record responsibilities which include case files. In April 2010, IRS collected data at one Submission Processing Center on the number of unfulfilled document requests and reasons for failures, such as when no source document was received. IRS's analysis of this data identified several areas for improvement one of which included developing a method to identify missing source documents. In addition, IRS developed a stamp which is to be used in Files Activities to indicate when a source document is not received.
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Topics
DocumentationFinancial recordsInformation accessInformation securityInformation storage and retrievalInternal controlsProgram managementRecordsRecords managementTax administrationTax administration systems