Tax Administration: IRS' Use of Nonaudit Contacts
GGD-00-7
Published: Mar 16, 2000. Publicly Released: Mar 16, 2000.
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Highlights
Pursuant to a congressional request, GAO provided information on the Internal Revenue Service's (IRS) use of nonaudit contacts with taxpayers, focusing on: (1) the frequency of use, variation in timing, and types of taxpayer responses for three major types of nonaudit contacts; and (2) analyzing the IRS' use of data from the three types of nonaudit contacts to improve compliance and service to taxpayers.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Internal Revenue Service | While the IRS completes its modernization effort, the Commissioner of Internal Revenue should start to collect and analyze available data from each of the three major nonaudit programs to help identify ways to improve compliance and taxpayer service. To minimize the costs, IRS could target the types of contacts under each of the three programs that have the greatest potential for generating such improvements. |
Closed – Implemented
GAO is closing this recommendation as of 6/04. IRS has not fully met the recommendation because it does not appear to have any plans to further analyze the data to improve compliance and taxpayer service through all 3 of the nonaudit programs. However, IRS has met it in a large part. IRS Research provided examples of several studies done on soft notices and others being planned. IRS also has started collecting and publicizing (in its annual data book) more data on the math error and automated underreporter program during early 2004.
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| Internal Revenue Service | The Commissioner of Internal Revenue should determine how the modernized information systems can cost-effectively collect such data on the various types of contacts in each of these nonaudit programs, and how the data can be used to improve compliance and increase customer service. |
Closed – Not Implemented
To collect data on the three nonaudit programs' impacts on compliance and service, IRS had planned (for at least the last 4 years) to use the Customer Relationship Management (CRM) system, which was to be implemented in phases through December 2005. During July 2005, we were told that CRM did not work and that IRS was no longer tracking the recommendation. Given its age and that no one in IRS seems to be working on it, this recommendation is being closed as not implemented.
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Customer serviceData collectionTax administration systemsTax return auditsTax violationsTaxpayersVoluntary complianceData errorsEarned income tax creditSocial security numbers