Need To Better Assess Consequences Before Reducing Taxpayer Assistance

In response to a congressional request, GAO evaluated the Internal Revenue Service's (IRS) taxpayer assistance activities to: (1) assess their accuracy, timeliness, and availability during the 1982 filing season; (2) identify what kinds of assistance users and other taxpayers needed; and (3) identify ways by which IRS could improve its assistance activities.

IRS believes that telephone assistance is the most efficient way to handle taxpayers' questions. In 1982, IRS was able to handle 20 percent more calls than in 1979 while devoting 14 percent fewer staff years to the task, with little reduction in the accuracy and timeliness of responses. However, the increased demand for telephone assistance made it difficult for many taxpayers to get through to IRS. Therefore, the overall utility of telephone assistance declined. In recent years, IRS has reduced the number of its walk-in assistance offices and changed the focus of the services provided in the remaining offices. By deemphasizing tax return preparation and return review assistance, IRS was able to enhance overall productivity, despite the closing of many offices. IRS has not sought to reduce its correspondence assistance program and GAO found that, in the districts reviewed, IRS met its timeliness goals for correspondence with a 99-percent accuracy rate. GAO found that reductions in the availability of telephone assistance affected college graduates, individuals with incomes over $20,000, and individuals age 65 and older. Individuals with lower incomes and the elderly were more affected by walk-in assistance changes.

Recommendations

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.

Director: Johnny C. Finch Team: General Accounting Office: General Government Division Phone: (202) 512-7824