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      Recent Reports
    IRS Direct File: Actions Needed during Pilot to Improve Information on Costs and BenefitsGAO-24-107236
      
	Published:  Apr 09, 2024


	Publicly Released: Apr 09, 2024
          Information Technology: IRS Needs to Complete Planning and Improve Reporting for Its Modernization ProgramsGAO-24-106566
      
	Published:  Mar 19, 2024


	Publicly Released: Mar 19, 2024
          IRS Reform: Following Leading Practices and Improving Cost Estimation Policies Could Benefit Agency EffortsGAO-24-106091
      
	Published:  Feb 14, 2024


	Publicly Released: Feb 14, 2024
          Tax Compliance: Opportunities Exist to Improve IRS High-Income/High-Wealth AuditsGAO-24-106112
      
	Published:  Jan 11, 2024


	Publicly Released: Feb 12, 2024
          Private Debt Collection Program: IRS Could Improve Results and Better Promote Equitable Outcomes for TaxpayersGAO-24-106140
      
	Published:  Feb 06, 2024


	Publicly Released: Feb 06, 2024
          2023 Tax Filing: IRS Improved Customer Service, but Could Further Improve Processing and Evaluate Expedited HiringGAO-24-106581
      
	Published:  Jan 25, 2024


	Publicly Released: Jan 25, 2024
    
    

  
  View More ReportsOpen Recommendations
        IRS Direct File: Actions Needed during Pilot to Improve Information on Costs and BenefitsGAO-24-107236
      
						Apr 09, 2024
              Show
          3Open Recommendations

          Agency Affected
                                                  Recommendation
                                                  StatusInternal Revenue Service
                                                                                        The Commissioner of Internal Revenue should ensure that relevant officials apply best practices to estimate and document the full costs of developing and operating a Direct File system. (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 ensure that relevant officials estimate and document the potential benefits of a Direct File system. (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 use the cost and benefit data collected during the pilot along with other relevant considerations to inform future decisions about the Direct File system. (Recommendation 3)
                                                                                        Open
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
          IRS Reform: Following Leading Practices and Improving Cost Estimation Policies Could Benefit Agency EffortsGAO-24-106091
      
						Feb 14, 2024
              Show
          5Open Recommendations

          Agency Affected
                                                  Recommendation
                                                  StatusInternal Revenue Service
                                                                                        As IRS implements its agency reform efforts, the Commissioner of Internal Revenue should ensure that IRS can demonstrate that it is following relevant leading agency reform practices. (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 a cost estimating policy for estimating costs of non-IT initiatives that addresses the 12 steps and associated best practices found in our Cost Guide. (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 include IRS's policy for estimating costs of non-IT initiatives in the IRM and issue interim guidance while the IRM section is being developed. (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 incorporate all 12 steps and associated best practices found in our Cost Guide into IRS's IT cost estimation procedures. (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 include IRS's IT cost estimation procedures in the IRM and issue interim guidance while the IRM section is being developed. (Recommendation 5)
                                                                                        Open
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
          Tax Compliance: Opportunities Exist to Improve IRS High-Income/High-Wealth AuditsGAO-24-106112
      
						Feb 12, 2024
              Show
          8Open Recommendations

          Agency Affected
                                                  Recommendation
                                                  StatusInternal Revenue Service
                                                                                        The Commissioner of Internal Revenue should assess whether IRS's research data on HI/HW returns have sufficient coverage and quality to understand the complexity and compliance related to HI/HW tax returns. (Recommendation 1)
                                                                                        Open
IRS agreed with the recommendation. According to IRS, it plans to use data analytics to better understand the filing profile of high-income/high-wealth taxpayers. To fully implement this recommendation, IRS needs to assess whether its underlying research data is sufficient to analyze this taxpayer population. We will continue to monitor IRS's efforts to address our recommendation.Internal Revenue Service
                                                                                        Based on an assessment of the coverage and quality of HI/HW tax return research data, the Commissioner of Internal Revenue should take steps to improve those data, if needed, to better understand the complexity and compliance related to HI/HW tax returns. (Recommendation 2)
                                                                                        Open
IRS agreed with the recommendation. According to IRS, it plans to improve data analytics to identify cases (tax returns) for high risk of noncompliance. To fully implement this recommendation, IRS needs to also improve the underlying data, based on a data assessment, it plans to analyze. We will continue to monitor IRS's efforts to address our recommendation.Internal Revenue Service
                                                                                        The Commissioner of Internal Revenue should develop evaluation plans that include relevant evaluation questions and appropriate evaluation designs to evaluate the effectiveness of IRS's models for selecting HI/HW returns for audit. (Recommendation 3)
                                                                                        Open
IRS agreed with the recommendation. We will continue to monitor IRS's efforts to address our recommendation.Internal Revenue Service
                                                                                        The Commissioner of Internal Revenue should use IRS's evaluation plans to evaluate the effectiveness of its models for selecting HI/HW returns for audit. (Recommendation 4)
                                                                                        Open
IRS agreed with the recommendation. We will continue to monitor IRS's efforts to address our recommendation.Internal Revenue Service
                                                                                        The Commissioner of Internal Revenue should develop a mechanism for consistently collecting and using feedback from audit staff. (Recommendation 5)
                                                                                        Open
IRS agreed with the recommendation. According to IRS, it is creating a more formalized structure to receive feedback from audit staff. We will continue to monitor IRS's efforts to address our recommendation.Internal Revenue Service
                                                                                        The Commissioner of Internal Revenue should assess IRS's current and future hiring and training needs for HI/HW auditing, including the number of staff and their skills. (Recommendation 6)
                                                                                        Open
IRS agreed with the recommendation. According to IRS, it is increasing the hiring capacity of its Human Capital Office, as well as increasing its efforts to hire and train individuals with the skill and potential to work more complicated high-income/high-wealth audit cases. To fully implement this recommendation, IRS needs to determine what skills are needed and the extent to which IRS needs to hire and train for such skills. We will continue to monitor IRS's efforts to address our recommendation.
          Private Debt Collection Program: IRS Could Improve Results and Better Promote Equitable Outcomes for TaxpayersGAO-24-106140
      
						Feb 06, 2024
              Show
          4Open Recommendations

          Agency Affected
                                                  Recommendation
                                                  StatusInternal Revenue Service
                                                                                        The Commissioner of Internal Revenue should establish clear fund balance goals or staffing targets for IRS's Special Compliance Fund. (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 standards for evaluating equity for taxpayers who are either assigned to or excluded from the PDC program, including IRS's process of routing taxpayers to the inactive inventory (shelf). (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 assess IRS's performance against its standards for equity and take actions to address any identified issues. (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 provide taxpayers in the inactive inventory (shelf) and excluded from the PDC program tailored taxpayer-centric information about their debts and options for resolving them. (Recommendation 4)
                                                                                        Open
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
    
    

  
  View More RecommendationsRelated Pages
    RelatedTax Gap
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          RelatedTax Administration
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          RelatedTax Expenditures
          RelatedAffordable Housing
GAO Contacts
    
      Shirley A. Jones
      
              Shirley A. Jones
            
            Managing Associate General Counsel
      
            jonessa@gao.gov
      
            (202) 512-5400
    jessica_lucas_judy_22
      
              Jessica Lucas-Judy
            
            Director
      
            lucasjudyj@gao.gov
      
            (202) 512-6806
    James R. McTigue, Jr
      
              James (Jay) R. McTigue, Jr
            
            Director
      
            mctiguej@gao.gov
      
            (202) 512-6806
                                                      MultimediaIRS: Challenges in High-Income/High-Wealth Audits
      
        
        IRS: Challenges in High-Income/High-Wealth Audits
          Monday, February 12, 2024
          Abusive Tax Schemes
      
        
        Abusive Tax Schemes
          Tuesday, January 17, 2023Transcript
          We reviewed the IRS 2022 Filing Season and this is What We Found
      
        
        We reviewed the IRS 2022 Filing Season and this is What We Found
          Thursday, December 15, 2022Transcript
Podcasts
    
      Shift from Corporations to Partnerships Causes Challenges for IRS Audits
    Thursday, July 27, 2023
      
            Transcript
          Protecting Taxpayer Data from Unauthorized Access by IRS Employees
    Thursday, May 19, 2022
      
            Transcript
          Who Gets Audited by IRS the Most and How Have Audit Rates Changed?
    Tuesday, May 17, 2022
      
            Transcript
INFOGRAPHIC: How Can the Federal Government Reduce the Tax Gap?
        Infographic
                      INFOGRAPHIC: How Can the Federal Government Reduce the Tax Gap?
            Tuesday, October 31, 2017
Photo showing tax documents (rows of documents on roller carts) in the IRS's Kansas City, MO processing center, May 2023
          Blog Post
              As A New Tax Filing Season Kicks Off, We Look at the IRS Efforts to Improve Customer Service and the Audits of Two Very Different Kinds of Taxpayers
            Tuesday, February 20, 2024
      
            Taxes are due April 15 this year. You might be ready to file your taxes, but is IRS ready to process...
          photo of the IRS building sign
          Blog Post
              Taxpayer Information Keeps Ending Up In the Wrong Hands. What Can IRS Do To Better Protect It?
            Tuesday, September 26, 2023
      
            When you file your taxes each year, you expect IRS to keep your personal and financial information...
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