In response to a congressional request, GAO reviewed the Internal Revenue Service's (IRS) Special Enforcement Program (SEP), which IRS uses to investigate tax law violations and potential taxable income related to illegal activities, to identify: (1) the law enforcement results and tax revenues generated from program operations; and (2) management improvements that could enhance program operations.
Recommendations for Executive Action
|Internal Revenue Service||1. To improve the management of SEP operations, the Commissioner of Internal Revenue should collect management information relating to key program objectives, and identify the tax revenues generated by SEP cases.|
|Internal Revenue Service||2. To improve the management of SEP operations, the Commissioner of Internal Revenue should review existing Case Management and Time Reporting System (CM&TRS) input controls to determine how the accuracy of management information can be improved.|
|Internal Revenue Service||3. To improve the management of SEP operations, the Commissioner of Internal Revenue should: (1) work with IRS Chief Counsel and Department of Justice representatives to provide better guidance for special agents on what constitutes grand jury information; and (2) require special agents to consult with IRS Chief Counsel attorneys, or with U.S. attorney representatives if IRS Chief Counsel is not involved, at the close of a grand jury case to help determine what information could be forwarded to Examination for civil action.|
|Internal Revenue Service||4. To improve the management of SEP operations, the Commissioner of Internal Revenue should establish a district office program to monitor the civil actions taken by various IRS components on closed criminal cases.|