Pursuant to a legislative requirement, GAO summarized its work on tax policy and administration issues during fiscal year (FY) 1994, including: (1) actions federal agencies took in response to its recommendations as of December 31, 1994; (2) recommendations made to Congress before and during FY 1994 that remain open; and (3) assignments for which GAO received authorized access to tax information.

GAO noted that its recommendations addressed specific actions that Congress and the administration could take to: (1) improve compliance with tax laws; (2) increase accounts receivable collections; (3) simplify the tax system; (4) modernize the Internal Revenue Service (IRS); (5) strengthen IRS management practices; and (6) enhance the effectiveness of tax incentives.