Based on our analysis of information from various parties, including officials from selected state revenue departments and federal agencies that use PCAs, five factors are critical to the success of a PCA collection program. Together, these factors increase the chances for success and help the program achieve desired results. Although incomplete, IRS has taken actions to address these factors. Fo

GAO noted that: (1) several weaknesses were found in IRS' correspondence audit processes; (2) these weaknesses, individually or in combination, can erode the integrity of the correspondence audit processes, which are designed to help ensure that taxpayers pay the correct tax amounts and are treated properly; (3) during fiscal years 1992-1997, the annual number and results of correspondence audits

GAO noted that: (1) ATF uses a variety of methods to enforce compliance with the alcohol SOTs; (2) among other information preprinted on the special tax renewal registration and return, ATF lists each known operating location and the total amount of taxes due; (3) ATF also informs the public about alcohol occupational tax requirements using a variety of media; (4) all but five states routinely pr

GAO noted that: (1) for audits closed in FY 1992 through FY 1997, IRS recommended tens of billions of dollars in additional taxes for each year; (2) however, not all recommended taxes are assessed; and not all assessed taxes are collected; (3) IRS had settled 40 percent of FY 1992 audits without assessing the recommended taxes, usually because of IRS Office of Appeals' decisions, and had yet to s

GAO noted that it published 50 reports in 6 broad areas: (1) IRS management and budget; (2) individual and business tax issues; (3) customer service; (4) submission processing; (5) accounts receivable/collections; and (6) tax expenditures and preferences.

GAO noted that its recommendations addressed specific actions that Congress and the administration could take to: (1) improve compliance with tax laws; (2) assist taxpayers; (3) enhance the effectiveness of tax incentives; (4) improve Internal Revenue Service management; and (5) improve the processing of returns and receipts.

GAO found that: (1) for every dollar invested in large corporation audits, IRS ultimately assessed $15 in additional taxes for the years 1988 through 1994; (2) IRS invested more hours in directly auditing large corporations but recommended less additional tax per hour invested in 1994 compared to 1988; (3) in 1994, large corporations appealed 66 percent of the additional taxes that IRS recommende

Pursuant to a congressional request, GAO provided information on the Internal Revenue Service's (IRS) tax liens. GAO noted that: (1) although IRS does not investigate individual taxpayer complaints, taxpayers can contact the IRS Ombudsman who administers the IRS Problem Resolution Program; (2) the Ombudsman can give the taxpayer relief through administrative injunctions in hardship cases; (3) alt

GAO found that: (1) it is impossible to determine the proper amount of taxes owed by large corporations because of the complexity and ambiguity of tax laws; (2) historically, IRS has collected 22 percent of the additional taxes recommended through CEP audits and collections have varied widely among industries and IRS districts; (3) simplifying the tax code would improve the collection rate and be

GAO found that: (1) many states have made changes to their delinquent tax collection procedures to increase collections and program efficiency; (2) state tax collection program improvements include new or improved accounts receivable management information systems, updated written billing procedures, and the use of telephone collection techniques and enforcement programs that restrict taxpayer ac