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Collecting Back Taxes: IRS Phone Operations Must Do Better

IMTEC-91-39 Published: Jun 18, 1991. Publicly Released: Jun 27, 1991.
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Highlights

Pursuant to a congressional request, GAO reviewed the Internal Revenue Service's (IRS) Automated Collection System (ACS), focusing on ACS call sites' effectiveness in calling and providing assistance to persons who owed taxes.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Internal Revenue Service Because of the potential for increasing the collection of back taxes, the Commissioner of Internal Revenue should implement at all call sites: (1) automation for making outgoing calls and for receiving and directing incoming calls; and (2) standard hours of operation.
Closed – Implemented
In response to GAO's report, IRS established standard hours of operation at call sites and installed call routing systems at all 23 customer service sites. In March 1996, IRS awarded a contract to pilot a system for making outgoing calls. The system was installed at the Buffalo, New York, customer service site and pilot tested from October 1, 1996 to March 29, 1997. According to IRS, preliminary results show the system is performing as anticipated. A final evaluation report of the pilot, including recommendations for nationwide rollout, is expected by the end of May 1997.
Internal Revenue Service The Commissioner of Internal Revenue should expeditiously establish measurements, such as target overhead rate, to evaluate the performance of call sites. Private collection agencies should be used to help do this, and to look at call site operations and identify specific management, technological, operational, and organizational changes that would improve the collection of back taxes.
Closed – Implemented
The IRS effort to establish meaningful measurements of ACS productivity and level of service is complete. Baseline measurements to evaluate performance of all sites are now available from U.S. Sprint. Contractor assistance has been obtained to ensure that these ACS features are included in the design of the Integrated Case Processing program. In addition, IRS still plans to conduct additional studies of private sector collection operations as part of its Contracting Out Study.

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Topics

Delinquent taxesFederal taxesFlexible work schedulesGovernment collectionsInformation systemsStaff utilizationTax administrationTax nonpaymentTelephonesTaxes