Tax Administration: Congress Needs More Information on Compliance Initiative Results
GGD-92-118
Published: Jul 31, 1992. Publicly Released: Jul 31, 1992.
Skip to Highlights
Highlights
Pursuant to a congressional request, GAO monitored the Internal Revenue Service's (IRS) tracking of three compliance initiatives funded as part of the IRS fiscal year (FY) 1991 appropriation.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Internal Revenue Service | The Commissioner of Internal Revenue should report the net revenue effect of the staffing increases that Congress authorized in FY 1991 to congressional oversight, budget, and appropriation committees. In doing so, IRS needs to revise its tracking approach so that it: (1) compares the total examination and collection staffing levels that Congress authorized in FY 1991 and the total revenue Congress expected from that authorization to the total examination and collection staffing levels and revenue that IRS actually achieved; and (2) explains the reasons for the differences in what Congress expected and what IRS actually achieved. |
Closed – Implemented
IRS revised its tracking approach in an attempt to address GAO's recommendation. Although GAO still has some problems with IRS' approach, this recommendation is being closed. GAO's focus, and IRS', is now on the compliance initiatives authorized for fiscal year 1995. IRS will apparently be developing a new methodology for tracking the results of those initiatives. GAO will be monitoring that tracking.
|
| Internal Revenue Service | The Commissioner of Internal Revenue should direct the Assistant Commissioner for Collection to review the revenue estimation methodology for the collection function to ensure that its assumptions and the data that are used for computing revenue estimates are valid and adequately documented. |
Closed – Implemented
IRS said that Collection had revised and validated its revenue-estimating methodology and was continuing to work with the Finance Division to improve documentation. GAO reviewed the revised methodology as described in the FY 1993 second quarter tracking report for 1991 initiatives. The methodology did not fully explain how IRS had derived some of the revenue estimates. In addition, GAO found errors in the narrative description. According to an IRS official, Finance was continuing to work with the functions to improve revenue estimation methodology. GAO subsequently looked at some of the documentation behind the revenue estimates associated with the fiscal year 1995 compliance initiatives and saw enough evidence of methodological improvement to warrant closing this recommendation. That does not mean, however, that there may not be lingering problems.
|
Full Report
Office of Public Affairs
Topics
Accounting proceduresAppropriation accountsexecutive relationsFuture budget projectionsGovernment collectionsStaff utilizationLabor forcePresidential budgetsReporting requirementsTax administration