Internal Revenue Service: Review of the Fiscal Year 2010 Budget Request

GAO-09-754 Published: Jun 03, 2009. Publicly Released: Jun 04, 2009.
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Highlights

The financing of the federal government depends largely on the Internal Revenue Service's (IRS) ability to administer the tax laws, which includes providing service to taxpayers and enforcing the law so that individuals and businesses pay the taxes they owe. The President's fiscal year 2010 budget request details how IRS intends to allocate its resources to achieve these goals while also continuing its investment modernizing its tax processing systems. GAO was asked to (1) describe budget trends, including dollars and full time equivalents; (2) describe legislative proposals that, if enacted, could result in savings or increased revenues; (3) describe the requested increases in funding for new initiatives; (4) assess return on investment (ROI) information; and (5) assess and the status of the Business Systems Modernization (BSM) program. To do this, GAO compared the budget request to prior years, analyzed key documents, and interviewed IRS officials

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Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Internal Revenue Service The Commissioner of the IRS should take steps to develop ROIs for IRS's enforcement programs using actual revenue and full cost data and compare the actual ROIs to the projected ROIs included in the budget requests.
Closed – Implemented
Although not at the program initiative level, IRS made a significant step forward in beginning to calculate actual ROIs for major enforcement programs. IRS captured actual revenues and costs for each of its enforcement programs - Examination, Collection, and Automated Underreporter (AUR) - from fiscal years 2009 through 2012. IRS reported this information in its fiscal year 2014 budget justification.

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