Social Security: IRS Tax Identity Data Can Help Improve SSA Earnings Records
HRD-93-42
Published: Mar 29, 1993. Publicly Released: Mar 29, 1993.
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Highlights
Pursuant to a congressional request, GAO reviewed whether the Internal Revenue Service's (IRS) collection of additional taxpayer identification information would help the Social Security Administration (SSA) identify owners of uncredited earnings.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Social Security Administration | The Commissioners of Social Security and Internal Revenue should work together to conduct a study evaluating the extent to which additional uncredited earnings reports can be resolved by using data taxpayers send to IRS to obtain the release of their tax returns. |
Closed – Implemented
SSA conducted a study that indicated that about 1 percent of uncredited earnings could be reinstated to individual earnings accounts using IRS data. This projects to 21,000 wage items per year worth $136 million in earnings. On March 13, 1997, SSA obtained access to the necessary identity data. SSA expects to use IRS data in its Suspense Reinstatement Process when it processes tax year 1997 earnings reports.
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| Internal Revenue Service | The Commissioners of Social Security and Internal Revenue should work together to conduct a study evaluating the extent to which additional uncredited earnings reports can be resolved by using data taxpayers send to IRS to obtain the release of their tax returns. |
Closed – Implemented
IRS holds up tax refunds owed taxpayers when problems exist with their identity (name and social security number on tax return do not match official identity records). When taxpayers reply to secure release of tax refunds, IRS updates its National Account Profile with new identity information. IRS provided SSA access to this file to test its value in resolving earnings items recorded in its suspense file. SSA studied 1000 randomly selected cases in the suspense file and found that the IRS data could increase wage postings by an estimated 21,000 items per year. These items have an estimated worth of $136 million. IRS has advised SSA that it will be able to provide access to this file by 1998.
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| Social Security Administration | SSA should use the spouse name information IRS currently provides to SSA to supplement ongoing efforts to resolve unidentified earnings cases. |
Closed – Implemented
IRS provides SSA spousal name information in its Individual Master Ferret File. On March 13, 1997, IRS authorized SSA to access spousal name information from this ferret file for use in resolving unidentified wage items. SSA's Office of Systems Requirements has implemented procedures to use spousal names to resolve unidentified wage items received in the annual wage reporting process.
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Topics
Data collectionIncome taxesInformation disclosureInteragency relationsRecords managementSocial security benefitsSocial security numberTax administration systemsTax returnsTaxpayers