Tax Policy and Administration

This report summarizes GAO's work in the tax area during fiscal year 1994. It discusses actions taken on GAO's recommendations as of the end of 1994, recommendations that GAO made to Congress before and during fiscal year 1994 that remain open, and assignments for which GAO was given access to tax information under the law. GAO's key recommendations for tax policy and administration related to the need for improving compliance with the tax laws, increasing accounts receivable collections, modernizing the Internal Revenue Service, enhancing the effectiveness of tax incentives, helping taxpayers, and improving financial management.

GAO noted that its recommendations addressed specific actions that Congress and the administration could take to: (1) improve compliance with tax laws; (2) increase accounts receivable collections; (3) simplify the tax system; (4) modernize the Internal Revenue Service (IRS); (5) strengthen IRS management practices; and (6) enhance the effectiveness of tax incentives.