Tax Administration: Reducing Delays in the Pursuit of Tax Revenue on Closed Criminal Cases
GGD-89-41
Published: Mar 16, 1989. Publicly Released: Mar 16, 1989.
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Highlights
In response to a congressional request, GAO evaluated the Internal Revenue Service's (IRS) General Enforcement Program (GEP), focusing on the: (1) amount of civil tax assessed and collected; and (2) IRS process for referring completed cases for civil action.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Internal Revenue Service | To better protect the collection of tax revenues on completed criminal prosecution cases, the Commissioner of Internal Revenue should establish appropriate internal control mechanisms in the Criminal Investigation Division to better ensure prompt notification to the Office of the Chief Counsel about actions taken on criminal prosecution cases and about delays in the issuance of closing memoranda to authorize civil action on criminal prosecution cases. |
IRS revised its Criminal Investigation Management Information System to track the status of cases subsequent to closure of the criminal case. A manual transmittal dated May 2, 1990 provides for notification of Counsel and Exam as soon as the Grand Jury or administrative investigation is closed.
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| Office of the Chief Counsel | To better protect the collection of tax revenues on completed criminal prosecution cases, the Chief Counsel, IRS, should establish controls to better ensure timely authorization of civil action by promptly issuing closing memoranda on completed criminal prosecution cases. |
The Chief Counsel has established new criteria and additional guidance for its attorneys. The attorneys are required to authorize civil action within 5 days of the completion of all criminal action. The Counsel has also expanded its automatic closing procedures to these criminal cases to ensure their timely closure.
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Topics
Civil procedureGovernment collectionsInteragency relationsInternal controlsLaw enforcementProgram managementTax administrationTax evasionTax lawTax nonpayment