Tax Administration: IRS Needs to Assess Options to Make Faster Deposits of Large Tax Payments
GGD-90-120
Published: Aug 31, 1990. Publicly Released: Oct 02, 1990.
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Highlights
Pursuant to a congressional request, GAO reviewed the timeliness of Internal Revenue Service (IRS) deposits of tax payments to determine the lost interest associated with delays in depositing individual income tax payments around April 15 each year.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Internal Revenue Service | To reduce the time it takes to deposit large tax payments and increase the government's interest earnings, the Commissioner of Internal Revenue should assess various options, including the ones discussed in this report, and adopt one that strikes an appropriate balance between administrative costs, taxpayer impact, and potential benefits. That assessment should be completed in time to allow IRS to implement the adopted approach in time for the filing season beginning January 1, 1992. |
Closed – Not Implemented
GAO recently issued a report (GGD-93-64) that provided an update on this issue. That report noted inadequate IRS progress in implementing the 1990 GAO recommendation and has its own recommendations. Those recommendations will, in effect, supersede the 1990 recommendation.
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