Additional IRS Actions Needed To Make Sure That Individuals Pay the Correct Social Security Tax

Gao ID: GGD-78-70 August 15, 1978

The focus of the Internal Revenue Service (IRS) audits is on the proper reporting and payment of income taxes rather than on the accurate reporting of and payment of social security taxes. There is a need to recognize that any problem affecting social security taxes will grow in importance as these taxes increase in the coming years.

A net underpayment of about $32 million to the Social Security Tax Fund resulted from: the number and quality of IRS audits of social security taxes paid by taxpayers who indicated they had self-employment incomes; problems that the IRS and taxpayers have in determining whether miscellaneous earned income is subject to social security tax and, if so, what kind; and the adequacy of IRS programs to ensure proper reporting and payment of social security taxes.


Our recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.

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