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Tax Policy and Administration (61 - 70 of 1,532 items) in Custom Date Range
Tax Policy: Differences in Definitions and Rules in the Tax Code
GAO-14-652R: Published: Jul 18, 2014. Publicly Released: Jul 18, 2014.
Definitions for the same or similar terms can differ across tax provisions and policy objectives. These terms include (1) income, (2) small business, and (3) disabled. At least a dozen different tax code sections modify adjusted gross income (AGI) as part of determining the tax consequences of a particular provision. Depending on the code section, modified adjusted gross income (MAGI) is determine...
IRS Correspondence Audits: Better Management Could Improve Tax Compliance and Reduce Taxpayer Burden
GAO-14-479: Published: Jun 5, 2014. Publicly Released: Jul 7, 2014.
The notices the Internal Revenue Service (IRS) sends during correspondence audits have misled taxpayers by providing unrealistic time frames on when IRS would respond to their correspondence. For example, notices stated that IRS would respond within 30 to 45 days when it has consistently taken several months to do so. Further, as of early 2014, IRS data show that it had not responded timely to mor...
Management Report: Improvements Are Needed to Enhance the Internal Revenue Service's Internal Controls
GAO-14-433R: Published: Jul 2, 2014. Publicly Released: Jul 2, 2014.
During GAOâ€™s audit of the Internal Revenue Serviceâ€™s (IRS) fiscal year 2013 financial statements, it identified the following eight new internal control deficiencies, including the first item listed below that was included in GAOâ€™s report on the results of its fiscal year 2013 financial statement audit as a contributing factor to IRSâ€™s continuing significant deficiency in internal control...
Partnerships and S Corporations: IRS Needs to Improve Information to Address Tax Noncompliance
GAO-14-453: Published: May 14, 2014. Publicly Released: Jun 13, 2014.
The full extent of partnership and S corporation income misreporting is unknown. The Internal Revenue Service's (IRS) last study of S corporations, using 2003-2004 data, estimated that these entities annually misreported about 15 percent (an average of $55 billion for 2003 and 2004) of their income. IRS does not have a similar study for partnerships. Using IRS data and the study results, GAO deriv...
IRS 2015 Budget: Long-Term Strategy and Return on Investment Data Needed to Better Manage Budget Uncertainty and Set Priorities
GAO-14-605: Published: Jun 12, 2014. Publicly Released: Jun 12, 2014.
Since fiscal year 2010, the Internal Revenue Service (IRS) budget has declined by about $900 million. As a result, funding is below fiscal year 2009 levels.IRS Appropriations Fiscal Years 2009 through 2014 and Fiscal Year 2015 Requested AppropriationStaffing has also declined by about 10,000 full-time equivalents since fiscal year 2010, and performance has been uneven. For example, between fiscal...
Inspectors General: A Sample of the Treasury IG for Tax Administration's Audits Were Generally Consistent with Standards, but Additional Review Could Address Exceptions
GAO-14-70: Published: May 16, 2014. Publicly Released: May 30, 2014.
The Treasury Inspector General for Tax Administration's (TIGTA) strategic audit plan for fiscal years 2009 through 2014 and annual audit plan for fiscal year 2012 were consistent with the Council of the Inspectors General on Integrity and Efficiency's (CIGIE) planning guidance, including consideration of risk and coordination. TIGTA's plans included priorities related to risks; the concerns of sta...
Tax Policy: Economic Benefits of Income Exclusion for U.S. Citizens Working Abroad Are Uncertain
GAO-14-387: Published: May 20, 2014. Publicly Released: May 20, 2014.
For tax year 2011 (the most recent data available), an estimated 445,000 tax returns claimed the foreign earned income exclusion (FEIE), which is 0.3 percent of all individual tax returns filed. About 17 percent of FEIE filers also claimed the foreign housing exclusion or deduction. Over half of FEIE filers reported working for a foreign employer, and less than one-third reported working for a U.S...
Internal Revenue Service: Absorbing Budget Cuts Has Resulted in Significant Staffing Declines and Uneven Performance
GAO-14-534R: Published: Apr 21, 2014. Publicly Released: Apr 21, 2014.
IRSâ€™s appropriations have declined to below fiscal year 2009 levels and FTEs have been reduced by about 8,000 since fiscal year 2009. Planned performance in enforcement and taxpayer service has decreased or fluctuated; for example, in the fiscal year 2014 congressional justification the audit coverage target for individual examinations was 1.0 percent for fiscal year 2014, however, the target wa...
Private Pensions: Pension Tax Incentives Update
GAO-14-334R: Published: Mar 20, 2014. Publicly Released: Apr 21, 2014.
To encourage private-sector employers to sponsor new pension plans and U.S. workers to save for retirement, federal law authorizes a variety of tax incentives, such as the ability to defer taxes on contributions to qualified plans until the funds are distributed, up to certain limits. Since 2000, the dollar amount of these limits has increased over time. However, from 2009 through 2011, the number...
Large Partnerships: Characteristics of Population and IRS Audits
GAO-14-379R: Published: Mar 19, 2014. Publicly Released: Apr 17, 2014.
This report provides data on the number and characteristics of large partnerships as well as Internal Revenue Service (IRS) audits of large partnership returns. For purposes of this report, GAO did not identify a statutory, IRS, or industry-accepted definition of a large partnership. Instead, GAO used a combination of criteria for partner size and asset size used by IRS to define large partnership...