House Bill 6300, the Tax Compliance Act of 1982

Comments were presented on H.R. 6300, the Tax Compliance Act of 1982. GAO endorses the overall objective of the bill which seeks to: (1) reduce the shortfall in Federal tax revenues attributable to noncompliance with the tax laws; (2) enhance the fairness and credibility of the Nation's tax system; (3) improve and expand information reporting; (4) establish a withholding system for pension payments; (5) revise the rules governing interest payments related to certain tax overpayments and underpayments; (6) strengthen the ability of the Internal Revenue Service (IRS) to collect taxes on income derived from illegal activities and foreign sources; and (7) revise certain administrative and judicial proceedings with respect to partnerships and Subchapter S corporations. For some time, GAO has been advocating increases in IRS resources. In this regard, GAO believes IRS will need, at least on a temporary basis, some additional people and computer resources to implement this bill effectively. Such short-term additional expenditures could yield extensive long-term benefits.