Tax Policy: Options for Speeding Tax Refunds and Reducing IRS' Interest Costs
GGD-86-72
Published: Jul 28, 1986. Publicly Released: Jul 28, 1986.
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Highlights
GAO examined the requirements under which the Internal Revenue Service (IRS) pays taxpayers interest on tax refunds to determine whether changes to the requirements for paying interest on various types of refunds or to IRS operating procedures could speed up the payment of tax refunds and reduce the government's interest costs.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Internal Revenue Service | The Commissioner of Internal Revenue should amend IRS procedures to provide for issuing certain refunds before making a detailed examination of the refund claim. The criteria for making these refunds should recognize the need for IRS to continue to hold certain refunds having a high potential for disallowance. |
IRS has revised its criteria for claims, which the examination will review and may claim before issuing the refund. This should result in more refunds being issued before examination of the refund claim.
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Topics
Federal taxesInterestLate paymentsTax administration systemsTax refundsTaxesTaxpayersTax returnsInterest ratesExcise taxes