Tax Administration: Increasing EFT Usage for Installment Agreements Could Benefit IRS

Pursuant to a congressional request, GAO reviewed the best practices being used by delinquent debt collectors, and if they offer the Internal Revenue Service (IRS) any prospects for improving collection efforts, focusing on the: (1) uses and benefits of electronic funds transfer (EFT); (2) experiences of two states that use EFT in their tax installment agreement programs and the benefits they have obtained; and (3) potential benefits IRS might realize by increasing EFT usage in its installment agreement program.