Tax Administration
Compliance 2000--A Worthy Idea That Needs Effective Implementation Gao ID: T-GGD-92-48 June 3, 1992The Internal Revenue Service's (IRS) Compliance 2000 initiative would shift the agency's traditional focus from catching noncompliant taxpayers to preventing noncompliance from occurring in the first place. IRS believes that much noncompliance is unintentional, stemming from bewildering tax laws and unclear forms and instructions, and that taxpayer education and outreach can do much to remedy the situation. GAO believes that while Compliance 2000 is noble in intent, it requires careful implementation. Specifically, IRS needs to develop a structure for planning, managing, and evaluating Compliance 2000. IRS should be sure that any change to the Taxpayer Compliance Measurement Program, IRS' main tool for measuring noncompliance, is compatible with Compliance 2000 to provide a scorecard on its success. Finally, IRS should ensure that traditional enforcement is not compromised; in particular, audit rates must not be lowered.