Executive retirement plans allow some executives to defer their pay and related income taxes to future years. We looked at these plans and found: Benefits for executives—e.g., no limits on how much pay can be deferred Risks for executives—if companies go bankrupt, they may not receive deferred pay Little oversight information—oversight agencies don’t have much data on who’s participat...

Individual retirement accounts (IRA) help taxpayers save for retirement. Most IRAs invest in assets like stocks and mutual funds, but some IRA owners want to invest in unconventional assets like real estate or virtual currency. IRS Publications 590-A and B offer guidance to taxpayers with IRAs, but details on unconventional assets are limited. For example, investing in some types of bullion is pe...

A 2009 law created a tax disparity among different types of tobacco products, with cigarettes, roll-your-own tobacco, and small cigars taxed at one rate and pipe tobacco and some large cigars taxed at lower rates. In a 2012 report, we found that tax revenue decreased after the law because manufacturers made and consumers bought more of the lower-taxed products. We previously recommended that Cong...

If you have an individual retirement account (IRA), you know its tax breaks can make it easier to save for retirement. Most IRAs hold investments in traditional assets like stocks and mutual funds. But if you want to invest in non-traditional assets like real estate or virtual currency, your IRA might run afoul of tax laws. You can, however, apply for an exemption from the Department of Labor. The...

What happens if you lose track of some of your retirement funds—such as a 401(k) from a prior employer? The companies holding those unclaimed accounts can take the money out and transfer it to states. States hold the money as lost property until the owners claim it. But whenever money comes out of a tax-deferred account, there are taxes to consider. We looked at how IRS treats these transfers f...

The federal-state unemployment insurance (UI) program relies on state trust funds to hold enough reserves to meet benefit needs during economic downturns. The sufficiency of such "forward funding" has been a policy concern for decades, particularly during the recent recession, which has caused very high unemployment rates. While the economy added jobs in March 2010, unemployment remains very high...

When employers improperly classify workers as independent contractors instead of employees, those workers do not receive protections and benefits to which they are entitled, and the employers may fail to pay some taxes they would otherwise be required to pay. The Department of Labor (DOL) and Internal Revenue Service (IRS) are to ensure that employers comply with several labor and tax laws related...

More than 17 million working-age individuals have a self-reported disability that limits work. Their unemployment rate is also twice as high as for those without a work disability, according to recent Census data. In the Ticket to Work and Work Incentives Improvement Act of 1999, the Congress mandated that GAO study and report on existing tax incentives to encourage businesses to employ and accomm...

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. Eleven percent showed adjusted gross incomes of more than $75,000. The median adjusted gross income...

When computing their federal taxes, taxpayers either claim a standard or itemized deduction. In recent years, about 70 percent of taxpayers have claimed the standard deduction. GAO found that on 948,000 tax returns for tax year 1998, taxpayers did not itemize their deductions yet had payments for mortgage interest and points and for state and local income tax that exceeded the standard deductions...