Tax Administration: Improving IRS' Business Nonfiler Program
GGD-89-39
Published: Mar 08, 1989. Publicly Released: Mar 08, 1989.
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Highlights
GAO reviewed the Internal Revenue Service's (IRS) efforts to detect business tax nonfilers, focusing on whether: (1) state employment tax information data could aid IRS in investigating business nonfilers; and (2) IRS continued to send business tax forms to known invalid addresses.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Office of the Assistant Commissioner (Collection) | The Assistant Commissioner for Collections should direct IRS collection staffs in the California district offices to use California state employment tax information in business nonfiler investigations and explore similar opportunities for using other states' tax information in the business nonfiler program. |
Closed – Implemented
IRS' Western Region is exchanging information with the State of California. Also, IRS is considering using Virginia's State Taxation Accounting Reporting System to better identify unproductive cases.
|
| Office of the Assistant Commissioner (Collection) | The Assistant Commissioner for Collections should direct appropriate collection staff to work with computer services staff to correct the computer coding problem so that Publication 393 is not mailed to invalid addresses. |
Closed – Implemented
As of March 31, 1990, IRS modified the master file extract, which generates mail labels so Publication 396 is not mailed to invalid addresses.
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Topics
Federal formsGovernment publicationsIncome taxesInformation disclosureMailing listsState programsTax administrationTax evasionTax nonpaymentTax returns