Tax Administration
IRS Needs More Reliable Information on Enforcement Revenues Gao ID: GGD-90-85 June 20, 1990Pursuant to a congressional request, GAO reviewed the Internal Revenue Service's (IRS) revenue estimates generated by its various enforcement programs, focusing on: (1) overall IRS enforcement revenue estimates; (2) IRS budget estimates for collection and document matching programs; (3) the IRS Enforcement Resource Allocation Model (ERAM); and (4) IRS efforts to develop more reliable data on the results of its enforcement actions.
GAO found that: (1) IRS has recognized the need for a better management information system on the costs and revenues associated with its enforcement programs, but has made little progress in developing one; (2) IRS does not know how much revenue its enforcement program actually generates; (3) large discrepancies in two major IRS enforcement programs were attributable to uncertainty about actual revenues and insufficient information on how IRS made revenue projections; (4) improved data on actual revenues and sufficient data linking staffing and results could enhance the estimation process; (5) there was inadequate documentation to assess the reasons for variances between estimated and actual underreporter revenues; (6) IRS was not using ERAM as intended, and the agencies involved did not use ERAM because of their concern over its reliability; and (7) IRS does not know whether the planned information system will provide the comprehensive data needed to meet its objectives.
RecommendationsOur 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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