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As of October 2, 2023, there are 5005 open recommendations that still need to be addressed. 521 of these are priority recommendations, those that we believe warrant priority attention. Learn more about our priority designation on our Recommendations page.

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1 - 20 of 196 Recommendations, including 28 Priority Recommendations

Tax Enforcement: IRS Audit Processes Can Be Strengthened to Address a Growing Number of Large, Complex Partnerships

GAO-23-106020
James (Jay) R. McTigue, Jr
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4 Open Recommendations
Agency Recommendation Status
Internal Revenue Service The Commissioner of Internal Revenue should use representative sampling of partnership returns, including those on which IRS's current partnership models do not identify risk factors, to help identify additional noncompliance that may not be detected and to improve the agency's understanding of the models' effectiveness. (Recommendation 1)
Open

When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Internal Revenue Service The Commissioner of Internal Revenue should test and validate the key assumptions used in IRS's partnership models through analysis of data on audit outcomes or other research and develop a formal process for using audit results and other data as they become available to improve model performance. (Recommendation 2)
Open

When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Internal Revenue Service The Commissioner of Internal Revenue should develop guidance defining large, complex partnerships and the characteristics of those entities. (Recommendation 3)
Open

When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Internal Revenue Service The Commissioner of Internal Revenue should identify and implement measures for tracking progress toward agency objectives that reflect the definitions and guidance for large, complex partnerships, which should include creating additional activity codes for IRS to track audit resources used and results. (Recommendation 4)
Open

When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

Tax Enforcement: IRS Could Better Manage Alternative Dispute Resolution Programs to Maximize Benefits [Reissued with revisions on Jun. 7, 2023]

GAO-23-105552
Jessica Lucas-Judy
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8 Open Recommendations
Agency Recommendation Status
Internal Revenue Service The Commissioner of Internal Revenue should collect consistent, reliable data on what happens to taxpayer requests to use ADR as well as the results of each ADR program, such as resolutions achieved for the time and costs invested. (Recommendation 1)
Open

When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Internal Revenue Service The Commissioner of Internal Revenue should establish objectives for ADR programs in clear, measurable terms. (Recommendation 2)
Open

When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Internal Revenue Service The Commissioner of Internal Revenue should link the ADR program objectives to the IRS strategic goals and objectives that the programs support. (Recommendation 3)
Open

When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Internal Revenue Service The Commissioner of Internal Revenue should regularly analyze data on the use and results of ADR to make real-time decisions to improve performance, as appropriate. (Recommendation 4)
Open

When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Internal Revenue Service The Commissioner of Internal Revenue should regularly monitor ADR program operations with a focus on soliciting and using taxpayer feedback on the quality of their experiences with ADR. (Recommendation 5)
Open

When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Internal Revenue Service The Commissioner of Internal Revenue should establish a neutral IRS resource to communicate with taxpayers to answer questions about IRS's Fast Track programs. (Recommendation 6)
Open

When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Internal Revenue Service The Commissioner of Internal Revenue should conduct periodic evaluations of the ADR programs to identify actions needed to improve their performance in achieving objectives. (Recommendation 7)
Open

When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Internal Revenue Service The Commissioner of Internal Revenue should establish clear responsibility and related tasks for managing ADR programs, including the practices in the above recommendations, to help ensure that the programs maximize the benefits of using ADR. (Recommendation 8)
Open

When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

Payment Integrity: Additional Coordination Is Needed for Assessing Risks in the Improper Payment Estimation Process for Advance Premium Tax Credits

GAO-23-105577
Hannah Padilla
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2 Open Recommendations
Agency Recommendation Status
Centers for Medicare & Medicaid Services The Administrator for CMS should, in coordination with the states, assess and identify residual risks to which the SBMs may be vulnerable related to eligibility determinations and take these risks into account when developing and implementing the improper APTC payment estimation methodology for the SBMs. (Recommendation 1)
Open

The Department of Health and Human Services (HHS) disagreed with our recommendation. HHS stated that in 2019 HHS developed an initiative to provide state-based marketplaces (SBM) with an opportunity to voluntarily engage with HHS to prepare for future measurement of improper advance premium tax credit payments. However, we found that HHS's Centers for Medicare & Medicaid Services' (CMS) initiative did not include a process to identify and consider residual risks that may result from SBMs' eligibility determinations. In addition, HHS stated that the Payment Integrity Information Act of 2019 and
Centers for Medicare & Medicaid Services The Administrator for CMS should, in coordination with the states, assess and identify residual risks to which the SBMs may be vulnerable related to eligibility determinations and identify any additional guidance or other actions, as needed, to mitigate any residual risks within the SBMs. (Recommendation 2)
Open

The Department of Health and Human Services (HHS) disagreed with our recommendation. HHS stated that in 2019 HHS developed an initiative to provide state-based marketplaces (SBM) with an opportunity to voluntarily engage with HHS to prepare for future measurement of improper advance premium tax credit payments. However, we found that HHS's Centers for Medicare & Medicaid Services' (CMS) initiative did not include a process to identify and consider residual risks that may result from SBMs' eligibility determinations. In addition, HHS stated that the Patient Protection and Affordable Care Act

Abusive Tax Schemes: Additional Steps Could Further IRS Efforts to Detect and Deter Promoters

GAO-23-105843
James (Jay) R. McTigue, Jr
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1 Open Recommendations
Agency Recommendation Status
Internal Revenue Service The Commissioner of Internal Revenue should ensure that the Director of the Office of Promoter Investigations finalizes outcome-oriented goals and performance measures to evaluate the effectiveness of OPI. (Recommendation 2)
Open

We continue to monitor IRS's progress in finalizing outcome-oriented goals and performance measures specific to OPI programs.

Paid Tax Return Preparers: IRS Efforts to Oversee Refundable Credits Help Protect Taxpayers but Additional Actions and Authority Are Needed

GAO-23-105217
James (Jay) R. McTigue, Jr
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5 Open Recommendations
Agency Recommendation Status
Congress Congress should grant IRS the explicit authority to establish professional requirements for paid tax preparers. (Matter for Consideration 1)
Open

When we confirm what actions have been taken in response to this recommendation, we will provide updated information.
Internal Revenue Service The Commissioner of Internal Revenue should test preparer education and compliance treatments in the Refundable Credits Return Preparer Strategy program that use digital services and assess the results of any tests. Examples include warning letters and secure document uploads. (Recommendation 1)
Open

IRS agreed with this recommendation. As of May 2023, IRS reported that it is evaluating existing and new options to enable paid tax preparers to interact with IRS digitally during the course of various treatments.
Internal Revenue Service The Commissioner of Internal Revenue should develop a performance measure for the Refundable Credits Return Preparer Strategy program to assess how its preparer treatments affect compliance with due diligence requirements over time. (Recommendation 2)
Open

IRS agreed with this recommendation. As of May 2023, IRS reported that it has explored options to develop such a performance measure. IRS said it has completed preliminary work to track treated preparers over a five-year period to determine the percentage that continue to require treatment after the first year and the type of treatment needed. IRS reported it is analyzing these initial results to help finalize a performance measure, which it aims to implement by February 2024.
Internal Revenue Service The Commissioner of Internal Revenue should define and document program elements of the Refundable Credits Return Preparer Strategy program, including its goals, objectives, activities, and performance measures. (Recommendation 3)
Open

IRS agreed with this recommendation. As of May 2023, IRS reported that it has defined program goals and is analyzing fiscal year 2023 data to refine the program's goals, objectives, activities, and performance measures.
Internal Revenue Service The Commissioner of Internal Revenue should develop a long-term plan for the Refundable Credits Return Preparer Strategy program, in coordination with stakeholders, which outlines the program's vision for the future, links program elements together, and clearly aligns to agency strategic goals. (Recommendation 4)
Open

IRS agreed with this recommendation. As of May 2023, IRS reported it is working with stakeholders to determine long-term plans for the program. IRS said it is working to address this recommendation in conjunction with GAO's other report recommendation to finalize its Service-wide Return Preparer Strategy and identify the resources needed to implement it (Recommendation 6). According to IRS, its efforts to develop long-term plans for this program are somewhat dependent on finalizing a Service-wide Return Preparer Strategy.
Note: the list of open recommendations for the last report may continue on the next page.

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