Undercover Operations: IRS' Management of Project Layoff
GGD-92-80
Published: Apr 21, 1992. Publicly Released: May 06, 1992.
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Highlights
Pursuant to a congressional request, GAO reviewed Project Layoff, an Internal Revenue Service (IRS) undercover operation, focusing on: (1) problems with the operation; and (2) ways to prevent similar problems in the future.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Internal Revenue Service | The Commissioner of Internal Revenue should direct the Assistant Commissioner (Criminal Investigation) to require that Criminal Investigation Division staff involve the Controller in planning financial recordkeeping to adequately account for business receipts and disbursements during business-type undercover operations. |
The Internal Revenue Manual was revised on August 10, 1992, to include requirements that Criminal Investigation will seek advice from the IRS Controller and use this advice in planning meetings.
|
| Internal Revenue Service | The Commissioner of Internal Revenue should direct the Assistant Commissioner (Criminal Investigation) to require that National Office staff be involved in planning and overseeing how intelligence gathered and developed during large-scale operations will be used after the operations are completed. |
The National Office analyst staff was increased on May 4, 1992, and staff were assigned specific program areas to ensure that these areas are included in operational reviews.
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Topics
Excise taxesFunds managementInternal controlsLaw enforcementMalfeasanceOrganized crimeProgram managementTax administrationTax evasionTax violationsUndercover operationsGambling