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Tax Administration: Increased Fraud and Poor Taxpayer Access to IRS Cloud 1993 Filing Season

GGD-94-65 Published: Dec 22, 1993. Publicly Released: Dec 22, 1993.
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Highlights

Pursuant to a congressional request, GAO reviewed the Internal Revenue Service's (IRS) performance during the 1993 tax filing season, focusing on the: (1) processing of tax returns, including the growth in fraudulent electronic returns; (2) accuracy and accessibility of IRS toll-free telephone assistance; and (3) availability of tax materials to taxpayers.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Internal Revenue Service The Commissioner of Internal Revenue should require Criminal Investigation to: (1) analyze the fraud cases IRS identified from information provided by RAL banks to see if those cases involve unique features that should be included in IRS computer screening criteria; and (2) determine which RAL banks were used for fraudulent refunds to see if special attention should be given to banks that do not use the Fraud Service Bureau.
Closed – Implemented
IRS said that it would be monitoring results from the 1995 filing season relative to both parts of GAO's recommendation.
Internal Revenue Service The Commissioner of Internal Revenue should allow electronic filers to transmit Form 9465 as part of their electronic submission if IRS decides to continue using that form for requesting installment agreements.
Closed – Implemented
IRS expanded its Electronic Filing System, as of January 1996, to allow the filing of Form 9465 electronically.

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Topics

Computer fraudElectronic formsElectronic funds transferFraudTax administrationTax refundsTax returnsTaxpayersTelecommunicationsTaxes