Tax Administration: Changes Needed to Reduce Volume and Improve Processing of Undeliverable Mail
GGD-95-44
Published: Dec 07, 1994. Publicly Released: Dec 07, 1994.
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Highlights
In response to a congressional request, GAO reviewed the Internal Revenue Service's (IRS) processes for handling undeliverable mail, focusing on the: (1) amount of and reasons for undeliverable mail; and (2) impact of undeliverable mail on taxpayers and IRS.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Internal Revenue Service | To help IRS better manage its undeliverable mail, the Commissioner of Internal Revenue should better encourage taxpayers to make address changes by: (1) accepting changes of address over the telephone; (2) making Form 8822, Change of Address, more conveniently available; and (3) emphasizing to taxpayers the importance of keeping their addresses current with IRS. |
Closed – Implemented
IRS implemented standardized procedures for accepting oral notification of address changes from taxpayers during all compliance case contacts on active accounts. IRS is also considering whether oral notification should be accepted for address perfection. In addition, IRS has revised some taxpayer education materials to simplify and standardize change of address instructions. Furthermore, IRS tested the use of an external vendor to mail confirmation letters to taxpayers that had notified the Postal Service of an address change. The test results were positive, and the Taxpayer Advocate has recommended that IRS negotiate a new contract with the vendor.
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| Internal Revenue Service | To help IRS better manage its undeliverable mail, the Commissioner of Internal Revenue should proceed with plans to establish a centralized unit within each service center to process all service center undeliverable mail starting with the initial occurrence of returned mail. |
Closed – Implemented
While this recommendation has not been fully implemented, significant steps have been taken toward developing service-wide procedures for processing undeliverable mail. For example, IRS included funds in its FY 1997 budget to process the Master File through the Postal Service's National Change of Address (NCOA) database. In addition, IRS is attempting to acquire the NCOA database for in-house use. IRS is also seeking legal authority to use the NCOA to update taxpayers' addresses.
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Topics
CentralizationCollection proceduresDebt collectionFederal formsFederal taxesMail delivery problemsTax administrationTax nonpaymentTaxpayersPostal service