Tax Administration: Gas Guzzler Tax Compliance Can Be Increased
GGD-87-85
Published: Jul 16, 1987. Publicly Released: Jul 16, 1987.
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Highlights
GAO: (1) discussed the need for improving taxpayer compliance with the gas guzzler excise tax; (2) evaluated Internal Revenue Service (IRS) efforts to enforce the tax; and (3) identified methods for improving taxpayer compliance.
Recommendations
Matter for Congressional Consideration
| Matter | Status | Comments |
|---|---|---|
| Congress should consider amending Internal Revenue Code section 4064, "Gas Guzzler Tax," to require importers to pay the tax to Customs at the time fuel-inefficient vehicles are imported. | Congress may consider this matter in the future. Since this was not a direct recommendation to Congress, GAO should consider it closed. | |
| Congress should consider amending the bonding requirement for independent importers to require proof of payment of the gas guzzler tax before the bond is released. | Congress is unlikely to consider this matter in the future. Since this recommendation was not a direct recommendation to Congress, GAO should consider it closed. |
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Internal Revenue Service | To promote voluntary compliance through increased taxpayer awareness, the Commissioner of Internal Revenue should arrange for Customs to include information on the gas guzzler tax in the pamphlet it provides to independent importers. |
IRS developed and delivered language for inclusion in Customs' publication on importing a car, as recommended.
|
| Internal Revenue Service | To enhance IRS efforts to improve compliance with the gas guzzler tax and assure itself that the levels of district office enforcement efforts are appropriate, the Commissioner of Internal Revenue should: (1) monitor district office enforcement efforts and identify enforcement problems, as well as effective enforcement approaches; and (2) communicate, IRS-wide, information on effective enforcement approaches and actions needed to solve identified problems. |
IRS believes its current procedures adequately respond to this recommendation, and GAO concurs.
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Topics
Automobile industryExcise taxesFuel taxesImport regulationInspectionMotor vehicle pollutionMotor vehicle standardsNoncomplianceTax administrationTax evasion