Tax Policy and Administration

Jump To:

Recent Reports

View More Reports

Open Recommendations

Tax Enforcement: IRS Could Better Manage Alternative Dispute Resolution Programs to Maximize Benefits
GAO-23-105552
May 31, 2023
Show
8 Open Recommendations
Agency Affected 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.

Payment Integrity: Additional Coordination Is Needed for Assessing Risks in the Improper Payment Estimation Process for Advance Premium Tax Credits
GAO-23-105577
Mar 09, 2023
Show
2 Open Recommendations
Agency Affected 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 the Office of Management and Budget (OMB) guidance in Appendix C to Circular A-123 do not reference any requirements related to the assessment of residual risk. Further, HHS stated the recommendation to assess and identify residual risks would be redundant with CMS's existing approach to developing the improper payment measurement methodology. However, as discussed in our report, OMB guidance states management must perform an assessment to identify and evaluate the potential payment integrity risks that the agency faces and that the identification of payment integrity risks should be a continuous process. Further, OMB encourages agencies to ensure that significant payment integrity risks are part of the estimation methodology so that estimates can be used to assist in identifying root causes. Without first identifying residual risks, there is an increased likelihood that CMS's estimation methodology may not address key risks of improper payments, such as those related to eligibility determinations. Therefore, we continue to believe that our recommendation is valid.
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 (PPACA) provides states with flexibility in the design and operation of their marketplaces, within federal rules, to best meet the unique needs of their residents and insurance markets. HHS further stated that CMS regulations specify a set of eligibility verification requirements that all marketplaces, including SBMs, must follow and allow flexibility for how certain eligibility verification requirements should be met. In addition, HHS provided examples of the flexibilities allowed for certain eligibility verification requirements, specifically residency and duplicate coverage through Medicaid in other states. We acknowledge in the report that PPACA and CMS regulations provide flexibilities related to certain eligibility verification requirements, in part due to whether reliable data sources are available that would allow a marketplace to verify eligibility criteria. However, with such considerable flexibilities, we believe it is important that CMS, in coordination with SBMs, evaluates the risks in making improper eligibility determinations and identifies any additional guidance or actions, if needed, to mitigate those risks. Therefore, we continue to believe that our recommendation is valid.

Abusive Tax Schemes: Additional Steps Could Further IRS Efforts to Detect and Deter Promoters
GAO-23-105843
Jan 17, 2023
Show
1 Open Recommendations
Agency Affected 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.

Paid Tax Return Preparers: IRS Efforts to Oversee Refundable Credits Help Protect Taxpayers but Additional Actions and Authority Are Needed
GAO-23-105217
Nov 30, 2022
Show
7 Open Recommendations
Agency Affected 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
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 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
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 define and document program elements of the Refundable Credits Return Preparer Strategy program, including its goals, objectives, activities, and performance measures. (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 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
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 implement a systematic method of tracking internal recommendations for the Refundable Credits Return Preparer Strategy program. (Recommendation 5)
Open
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
View More Recommendations

Related Pages

GAO Contacts