Employment-related identity fraud occurs when people use a name or Social Security number (SSN) other than their own to get a job. This fraud makes it harder for IRS to collect taxes and harder for the Social Security Administration to manage benefits. Though the true scope of this fraud is unknown, we identified 1.3 million SSNs from 2016 that were associated with both signs of potential fraud (...

Each year, we make more than 1,000 recommendations to help improve the federal government. We alert department heads to the recommendations where they can save the most money, address issues on our High Risk List, or significantly improve government operations. This report outlines our 24 priority open recommendations for the Internal Revenue Service as of April 2020. For example, 2 recommendati...

According to IRS, the Tax Cuts and Jobs Act of 2017 was the most sweeping tax law change in over 3 decades—with 86 provisions that modified, added to, or repealed business and international taxes. IRS prioritized and implemented key provisions of the act and provided taxpayer guidance. But there are challenges to fully implementing the act. For example, tax return data related to some of the n...

As virtual currencies like bitcoin grow in popularity, how can IRS be sure that people are paying relevant taxes? IRS addressed some taxpayer questions in its 2014 and 2019 virtual currency guidance. For example, the guidance says that using virtual currency can produce taxable capital gains. But IRS could do more to help taxpayers comply. Financial institutions already report information about...

Thieves can claim a business’s tax refund by fraudulently using the business’s tax ID number and other identifying information. Between January 2017 and August 2019, IRS’s efforts to prevent this type of fraud helped keep $384 million out of criminals’ hands. However, we found that IRS could do more to combat this evolving threat. We made 6 recommendations to help IRS stay ahead of crimi...

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...

For the English version of this page, see GAO-20-55. El IRS implementó cambios significativos en las leyes tributarias antes de la temporada de presentación de impuestos de 2019. Identificamos varias áreas donde el IRS podría mejorar el servicio al cliente y facilitar el cumplimiento de los requisitos tributarios. Por ejemplo, la agencia solo tiene unos pocos servicios para contribuyentes co...

Para la versión de esta página en español, ver a GAO-20-313. The IRS implemented significant changes to the tax laws before the 2019 filing season. We identified several areas where the IRS could improve customer service and facilitate compliance with tax requirements. For instance, the agency only has a few services for taxpayers with limited English-language skills, and the translated conte...

IRS offers a range of online services, including services that allow taxpayers to track refunds or view their accounts. Although IRS recognizes that taxpayers want more online options, it hasn’t considered taxpayer input in developing new services. Also, its efforts to determine whether current online services meet taxpayer needs haven’t yet been sufficient to make decisions about how to move...

When taxpayers overstate how much they've donated to charities on their tax forms, it improperly reduces their tax bills. In some cases, the charity is complicit, while in others, it is being exploited. IRS’s different offices may find evidence of abusive schemes involving charities and other tax-exempt organizations in their audits. Yet IRS doesn’t consistently analyze data from its offices...