IRS Can Do More To Identify Tax Return Processing Problems and Reduce Processing Costs
GGD-83-8
Published: Oct 14, 1982. Publicly Released: Oct 14, 1982.
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Highlights
GAO reviewed Internal Revenue Service (IRS) procedures to determine how well it processes individual income tax returns and whether improvements can be made in the tax return processing system.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Internal Revenue Service | The Commissioner of Internal Revenue should have the quality monitoring activity gather more specific data on types of errors made, who made the errors, why the errors occurred, and where the errors occurred. These data should then be analyzed at both the service center and national office levels to determine the corrective action that can be taken to prevent similar future errors. |
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
|
| Internal Revenue Service | The Commissioner of Internal Revenue should change procedures for correcting tax returns with multiple error conditions so that all readily identifiable independent errors can be corrected when they first appear on the error register. |
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
|
| Internal Revenue Service | The Commissioner of Internal Revenue should require taxpayers who want IRS to compute their tax for them to enter their income tax withholding on their returns. IRS should change its processing procedures so that these returns do not automatically appear on the errors register. |
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
|
| Internal Revenue Service | The Commissioner of Internal Revenue should clarify for taxpayers the difference between FICA tax withheld and federal income tax withheld by changing the wording on the form W-2, clarifying tax booklet instructions, and revising the math error notice message presently sent to taxpayers who mistakenly enter the amount of FICA tax withheld instead of the amount of federal income tax withheld. |
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
|
| Internal Revenue Service | The Commissioner of Internal Revenue should determine the cost effectiveness of providing new direct data entry equipment with the capability to prompt transcribers when they fail to key certain tax data into the computer. If cost-effective, he should ensure that the new direct data entry equipment includes this prompting feature. |
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
|
| Internal Revenue Service | The Commissioner of Internal Revenue should determine the merits of having data transcribers key into the computer the money amounts and line numbers from tax returns. |
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
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Topics
Accounting errorsElectronic data processingData collectionPersonal income taxesTax administration systemsTax returnsData errorsTaxpayersData entrySocial security numbers