Smartphones and apps have made it easier for people to find work through new online marketplaces, such as ride sharing or meal delivery. But these “platform” or “gig” workers may not understand all of the tax obligations of their new job. For example, companies may classify them as independent contractors instead of employees, and they may not know to make estimated quarterly tax payments...

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 (...

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Jobs Act of 2017 was the most sweeping tax law change in over 3 decades—with 86 provisions that modified, added to, or repealed business and international taxes.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...

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...

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...

In 2019, IRS collected over $3 trillion in taxes. This money equates to about 95% of the gross revenue of the United States and helps fund the country. Accordingly, IRS’s financial management is important to Congress and taxpayers. We audit IRS's financial statements each year and issue an opinion on them, as well as on the effectiveness of the agency's internal controls (e.g., its ability to e...

The Airport and Airway and the Highway Trust Funds are the main funding sources for federal aviation and ground transportation programs. User taxes on airline tickets, aviation fuel, tires, or gasoline are their primary source of funding. The IRS is responsible for collecting those taxes and certifying the amounts distributed to the trust funds. We performed audit procedures requested by the Depa...

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...