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Internal Revenue Service: IRS Initiatives to Resolve Disputes Over Tax Liabilities

GGD-97-71 Published: May 09, 1997. Publicly Released: May 09, 1997.
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Highlights

GAO reviewed the Internal Revenue Service's (IRS) initiatives to resolve tax liabilities disputes without litigation, focusing on IRS': (1) design of these initiatives and taxpayers' use of them; and (2) plans for evaluating the impacts of its new initiatives on the stated goals.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Internal Revenue Service The Commissioner of Internal Revenue should hold the IRS functions accountable, in conjunction with the special measures task force, for completing the development of performance measures that directly gauge the impacts of the dispute resolution initiatives on their stated goals.
Closed – Implemented
IRS' Large and Mid-Size Business (LMSB) Division completed the development of a set of balanced performance measures for its Fast Track Appeals Dispute Resolution pilot program in November 2001. LMSB has been analyzing the measures results throughout the pilot, and the data confirms that reductions in time, cost, and burden are accruing to both taxpayers and the IRS as a result of the pilot program. In November 2002, LMSB completed an analysis of the results and assessed the overall effectiveness and usefulness of these measures. Measures have been established for use with the permanent Fast Track Appeals Dispute Resolution Program.
Internal Revenue Service The Commissioner of Internal Revenue should hold the IRS functions accountable, in conjunction with the special measures task force, for setting milestones to measure these impacts.
Closed – Implemented
IRS's LMSB (Large & Mid-Sized Business) Division completed the development of a set of balanced performance measures for its Fast Track Appeals Dispute Resolution pilot program in November 2001. LMSB has assessed the effectiveness and usefulness of these measures and has recommended a final set of measures for use with the permanent Fast Track Appeals Dispute Resolution Program.
Internal Revenue Service Using these measures, the functions should, after sufficient data are available over a period of time, analyze whether each initiative reduces the time, cost, and taxpayer burden of dispute resolution.
Closed – Implemented
LMSB completed the development of a set of balanced performance measures for its Fast Track Appeals Dispute Resolution pilot program in November 2001. LMSB has been analyzing the measures results throughout the pilot, and the data confirms that reductions in time, cost, and burden are accruing to both taxpayers and the IRS as a result of the pilot program. LMSB has completed an analysis of the results and assessed the overall effectiveness and usefulness of these measures. A final set of measure has been established for use with the permanent Fast Track Appeals Dispute Resolution Program. LMSB will then consider similar approaches for other dispute resolution initiatives.

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Topics

Administrative remediesCorporationsGovernment collectionsIncome taxesMediatorsTax administrationTax return auditsTaxpayersAlternative dispute resolutionAppeals