Cooperative efforts go beyond filing assistance. Under the law, the IRS can release information about tax audits to states to cross match records and prevent non-compliance. Currently a major effort involves joint audits and investigations in the motor fuel excise tax area. A tax gap in this excise tax causes shortfalls in the Highway Trust Fund, which is dedicated for national highway infrastructure improvements. In 1992, the IRS increased audits in this area to 5.6 percent coverage and over the past three years has doubled criminal investigator staffing for this work.
Efforts are underway to find new ways to deal with delinquent taxpayers.
Some of these efforts are geared to reduction of burden for the taxpayer and some on finding ways to collect delinquent taxes from certain segments of the taxpayer population that have a relatively high delinquency rate. An example of burden reduction can be found in the area of joint installment agreements. When a taxpayer owes balances on both the state and federal tax bill, it makes sense for the two jurisdictions to work together to see that the money is collected in a way that is as painless as possible for the taxpayer. This concept is being tested in Maine and in the Los Angeles area. The taxpayer can arrange a payment plan that will cover both tax debts at one time.