GAO’s reports and testimonies give Congress, federal agencies, and the public timely, fact-based, non-partisan information that can improve government operations and save taxpayers billions of dollars.
Civil tax penalties are an important tool to encourage taxpayer compliance with the tax laws. A number of civil tax penalties have fixed dollar amounts--a specific dollar amount, a minimum or maximum amount--that are not indexed for inflation.
The federal possessions tax credit, which was designed to encourage U.S. corporate investment in Puerto Rico and other insular areas, expires this year. Proponents of continued federal economic assistance to Puerto Rico have presented a variety of proposals for congressional consideration.
The Community Renewal Tax Relief Act of 2000 authorized up to $15 billion under the New Markets Tax Credit (NMTC) program to stimulate capital investment in low-income and economically distressed communities.
The Jenkins Act requires any person who sells and ships cigarettes across a state line to a buyer, other than a licensed distributor, to report the sale to the buyer's state tobacco tax administrator. The act establishes misdemeanor penalties for violating the act.
State and federal officials are concerned that as Internet cigarette sales continue to grow and as states' cigarette taxes increase, so will the amount of lost state tax revenue due to noncompliance with the Jenkins Act.
This report provides information on the income ranges of taxpayers who may have overpaid federal taxes by not itemizing. GAO found that of the returns filed for tax year 1998, 53 percent of taxpayers who may have overpaid federal taxes by not itemizing, had adjusted gross incomes of $50,000 or less.
The Earned Income Tax Credit (EIC), which is expected to provide more than $20 billion in refundable tax credits in fiscal year 2002, is intended to offset the burden of the Social Security payroll tax on low-income workers and encourage low-income individuals to work. About 75 percent of the 17.