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Open Recommendations (212 total)

Tax Gap: IRS Should Take Steps to Ensure Continued Improvement in Estimates

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1 Open Recommendations
Agency Affected Recommendation Status
Internal Revenue Service The Commissioner of Internal Revenue should ensure officials in the Research, Applied Analytics and Statistics Division work with officials in the Small Business/Self-Employed and Large Business and International Divisions to develop and report on analyses that could provide stakeholders with more confidence in the methods used to estimate undetected noncompliance, and information on its root causes. (Recommendation 1)
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When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

Tax Gap: IRS Should Take Steps to Ensure Continued Improvement in Estimates

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5 Open Recommendations
Agency Affected Recommendation Status
Internal Revenue Service The Commissioner of Internal Revenue should develop and document a plan for evaluating the redesigned sample selection process, including factors IRS will consider in determining whether or how to continue using it. (Recommendation 6)
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When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Internal Revenue Service The Commissioner of Internal Revenue should ensure IRS has complete documentation on how to update the NRP sample selection process in response to changes in the operating environment, including the performance of its AI models and risk level analysis. (Recommendation 4)
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When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Internal Revenue Service The Commissioner of Internal Revenue should complete documentation on key components of the NRP AI models, such as which model options were considered and chosen for implementation, and how IRS determined risk levels and time frames for risk level updates. (Recommendation 2)
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When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Internal Revenue Service The Commissioner of Internal Revenue should complete documentation on processes for assessing the results of AI model updates, including validating the models. (Recommendation 5)
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When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Internal Revenue Service The Commissioner of Internal Revenue should complete documentation for the NRP AI models on the technical specifications needed to run the model, such as how the data are to be split or divided. (Recommendation 3)
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When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

Tax Enforcement: IRS Audit Selection Processes for Returns Claiming Refundable Credits Could Better Address Equity

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4 Open Recommendations
Agency Affected Recommendation Status
Internal Revenue Service The Commissioner of Internal Revenue should direct W&I officials to develop guidance for considering audit equity research in developing the audit workplan. (Recommendation 2)
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When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Internal Revenue Service The Commissioner of Internal Revenue should direct W&I officials to use additional performance measures, such as revenue protected, to assess the effectiveness of its automated audit selection system for predicting risk of noncompliance. (Recommendation 5)
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When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Internal Revenue Service The Commissioner of Internal Revenue should direct W&I officials to establish a systematic process for ensuring its reviews of audit selection algorithms comprehensively consider data inputs, assumptions, and other model components. (Recommendation 3)
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When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Internal Revenue Service The Commissioner of Internal Revenue should direct W&I officials to calculate multiple no-change rates that include (1) the overall no-change rate, (2) the no-change rate excluding default audits, and (3) the no-change rate excluding taxpayer nonresponse default audits to provide insights into potential equity disparities. (Recommendation 1)
Open
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.