Tax Administration: IRS' Plans to Measure Tax Compliance Can Be Improved
GGD-93-52
Published: Apr 05, 1993. Publicly Released: Apr 05, 1993.
Skip to Highlights
Highlights
GAO: (1) discussed the uses of the Internal Revenue Service's (IRS) Taxpayer Compliance Measurement Program (TCMP) data; (2) evaluated the merits of IRS concerns with TCMP; and (3) identified ways to improve TCMP while it continues to meet user needs.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Internal Revenue Service | The Commissioner of Internal Revenue should not implement the three currently proposed TCMP changes. |
Closed – Implemented
IRS agreed not to implement the proposed changes in its January 1993 letter (see report).
|
| Internal Revenue Service | The Commissioner of Internal Revenue should ensure that any proposed changes to TCMP meet the four criteria GAO discussed. |
Closed – Not Implemented
On the basis of congressional complaints and budget concerns, IRS dropped plans to do another TCMP. That TCMP was to start in fall 1995. GAO issued a report in April 1996 on ways to replace TCMP.
|
| Internal Revenue Service | The Commissioner of Internal Revenue should shorten the time needed to produce final TCMP results. |
Closed – Not Implemented
IRS agrees with the idea of shortening the time to get results, yet IRS now plans to triple the number of audits. With over 100,000 more audits, IRS cannot shorten the time.
|
| Internal Revenue Service | The Commissioner of Internal Revenue should not postpone the next TCMP beyond tax year 1993 returns. |
Closed – Not Implemented
Given the lead time necessary to adequately redesign TCMP and plan the next cycle, IRS could not meet the 1993 target. IRS will do a TCMP cycle for 1994.
|
Full Report
Office of Public Affairs
Topics
Data collectionMathematical analysisStatistical dataTax administrationTax administration systemsTax return auditsTaxpayersVoluntary complianceTax returnsRegulatory noncompliance