Special IRS Examination Procedures Are Needed for Certain Returns Containing International Tax Issues
GGD-82-77
Published: Aug 27, 1982. Publicly Released: Aug 27, 1982.
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Highlights
GAO reviewed the Internal Revenue Service's (IRS) Office Audit Program for returns containing international tax issues. Under this program, IRS selects and examines certain tax returns filed by U.S. citizens residing overseas and nonresident aliens.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Internal Revenue Service | The Commissioner of Internal Revenue should, to improve domestic district offices' examinations of individual income tax returns containing international issues, provide a limited number of tax auditors in selected domestic district offices with training in these issues. This should be done in those district offices which have a case workload sufficient to justify expenditures on such training. |
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 provide each IRS domestic district office with Foreign Operations District training manuals and other appropriate reference documents for use by tax auditors conducting examinations of returns containing international issues. |
IRS partially implemented the recommendation by giving training manuals to the tax auditors who attended training courses. However, it will not provide the manuals to districts whose tax auditors do not receive international training.
|
| Internal Revenue Service | The Commissioner of Internal Revenue should revise return assignment procedures to provide tax auditors the experience and preparation time needed to examine returns transferred by the Foreign Operations District. Specifically, returns should be assigned to selected tax auditors designated to examine returns containing international issues. Also, returns should be assigned in advance of scheduled taxpayer interviews to allow tax auditors the time to research issues and to review examination work already performed. |
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 require that the Foreign Operations District develop and make effective use of standard summary information reports for returns transferred to domestic district offices. The reports should clearly explain the international tax issues involved, the work done, and the conclusions reached, and they should describe any special circumstances concerning the transferred return. Also, the summary report should contain the name and telephone number of an appropriate Foreign Operations District contact. Finally, the Commissioner should require that Foreign Operations District group managers ensure that case files contain summaries before the files are transferred to domestic district offices. |
IRS disagrees with GAO that existing information in the case files does not adequately summarize the work done.
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