Federal taxes (1 - 10 of 75 items)
Corporate Income Tax: Effective Tax Rates Can Differ Significantly from the Statutory Rate
GAO-13-520: Published: May 30, 2013. Publicly Released: Jul 1, 2013.
Effective tax rates (ETR) differ from statutory tax rates in that they attempt to measure taxes paid as a proportion of economic income, while statutory rates indicate the amount of tax liability (before any credits) relative to taxable income, which is defined by tax law and reflects tax benefits and subsidies built into the law. Lacking access to detailed data from tax returns, most researchers...
Internal Revenue Service: 2013 Tax Filing Season Performance to Date and Budget Data
GAO-13-541R: Published: Apr 15, 2013. Publicly Released: Apr 25, 2013.
In summary, so far in the 2013 filing season, GAO found the following:Despite a late start due to tax law changes, IRS and stakeholders reported relatively smooth operations. Although the number of tax returns received and refunds issued was lower in the beginning of the filing season than last year, by the end of March these gaps had closed considerably.Overall, the percentage of callers who soug...
Tax Gap: Complexity and Taxpayer Compliance
GAO-11-747T: Published: Jun 28, 2011. Publicly Released: Jun 28, 2011.
Taxes are necessary because they fund the services provided by government. Several years ago, the Internal Revenue Service (IRS) estimated that the gross tax gap--the difference between taxes owed and taxes paid on time--was $345 billion for 2001. In the face of large and growing deficits, it is important to seek out potential causes and solutions to the tax gap. Achieving high levels of voluntary...
Federal Tax Collection: Potential for Using Passport Issuance to Increase Collection of Unpaid Taxes
GAO-11-272: Published: Mar 10, 2011. Publicly Released: Apr 11, 2011.
According to the Internal Revenue Service (IRS), as of the end of fiscal year 2010, the balance of reported unpaid federal taxes was about $330 billion. Given the many challenges that IRS faces, the enforcement of the tax laws and the tax code is on GAO's list of high-risk areas. GAO was asked to (1) determine, to the extent possible, the magnitude of known unpaid federal taxes for individuals who...
International Taxation: Large U.S. Corporations and Federal Contractors with Subsidiaries in Jurisdictions Listed as Tax Havens or Financial Privacy Jurisdictions
GAO-09-157: Published: Dec 18, 2008. Publicly Released: Jan 16, 2009.
Many U.S. corporations operate globally and have foreign subsidiaries. The subsidiaries may be created, for example, to take advantage of sales opportunities or favorable labor conditions. In some cases they may be used to reduce taxes. GAO was asked to update its 2004 report on large federal contractors with subsidiaries in countries sometimes called tax havens because of low taxes and a general...
Financial Audit: IRS's Fiscal Years 2008 and 2007 Financial Statements
GAO-09-119: Published: Nov 10, 2008. Publicly Released: Nov 10, 2008.
Because of the significance of Internal Revenue Service (IRS) collections to overall federal receipts and, in turn, to the consolidated financial statements of the U.S. government, which GAO is required to audit, and Congress's interest in financial management at IRS, GAO audits IRS's financial statements annually to determine whether (1) the financial statements are fairly stated, and (2) IRS man...
Tax Gap: Actions That Could Improve Rental Real Estate Reporting Compliance
GAO-08-956: Published: Aug 28, 2008. Publicly Released: Sep 29, 2008.
As part of its most recent estimate of the tax gap, for tax year 2001, the Internal Revenue Service (IRS) estimated that individuals underreported taxes related to their rental real estate activities by as much as $13 billion. Given the magnitude of underreporting, even small improvements in taxpayer compliance could result in substantial revenue. GAO was asked to provide information on rental rea...
Tax Preparers: Oregon's Regulatory Regime May Lead to Improved Federal Tax Return Accuracy and Provides a Possible Model for National Regulation
GAO-08-781: Published: Aug 15, 2008. Publicly Released: Sep 15, 2008.
Millions of taxpayers use paid tax return preparers and many of these paid preparers are not subject to any qualification requirements. Paid preparers in California and Oregon are exceptions in that these states have set paid preparer qualification standards. Additionally, two bills before Congress would require national paid preparer regulations. To help Congress better understand the potential c...
U.S. Multinational Corporations: Effective Tax Rates Are Correlated with Where Income Is Reported
GAO-08-950: Published: Aug 12, 2008. Publicly Released: Sep 8, 2008.
U.S. and foreign tax regimes influence decisions of U.S. multinational corporations (MNC) regarding how much to invest and how many workers to employ in particular activities and in particular locations. Tax rules also influence where corporations report earning income for tax purposes. The average effective tax rate, which equals the amount of income taxes a business pays divided by its pretax ne...
Tax Compliance: Businesses Owe Billions in Federal Payroll Taxes
GAO-08-1034T: Published: Jul 29, 2008. Publicly Released: Jul 29, 2008.
GAO previously reported that federal contractors abuse the tax system with little consequence. While performing those audits, GAO noted that much of the tax abuse involved contractors not remitting to the government payroll taxes that were withheld from salaries. As a result, GAO was asked to review the Internal Revenue Service's (IRS) processes and procedures to prevent and collect unpaid payroll...