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Open Recommendations (211 total)

Excise Taxes: Action Needed to Improve Compliance for Sport Fishing and Archery Imports

GAO-24-106569
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1 Open Recommendations
Agency Affected Recommendation Status
Internal Revenue Service The Commissioner of Internal Revenue, in coordination with the Secretary of the Treasury, should consolidate existing guidance on federal sport fishing and archery excise taxes and ensure that it is made easily accessible to taxpayers. (Recommendation 1)
Open
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

Retirement Investments: Agencies Can Better Oversee Conflicts of Interest Between Fiduciaries and Investors

GAO-24-104632
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2 Open Recommendations
Agency Affected Recommendation Status
Internal Revenue Service The Commissioner of the IRS should coordinate with DOL through a formal means, such as a memorandum of understanding, on non-exempt prohibited transactions involving firms and financial professionals who are IRA fiduciaries and owe excise tax. (Recommendation 2)
Open
IRS agreed with this recommendation. IRS stated it will explore opportunities to develop more formal means for coordination between IRS and DOL for prohibited transactions related to investment advice provided to IRA owners from financial services firms. We await progress on these efforts.
Internal Revenue Service The Commissioner of the IRS should develop and implement a process independent of DOL referrals for identifying non-exempt prohibited transactions involving firms or financial professionals who are fiduciaries to IRAs and assessing applicable excise taxes. For example, IRS could check Form 5330 filing compliance during income tax audits of financial services firms. (Recommendation 1)
Open
IRS agreed with this recommendation and stated that it would examine the processes and consider implementing additional measures to identify prohibited transactions as appropriate. We await progress on these efforts.

Excise Taxes: Action Needed to Improve Compliance for Sport Fishing and Archery Imports

GAO-24-106569
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1 Open Recommendations
Agency Affected Recommendation Status
Internal Revenue Service The Commissioner of Internal Revenue, in coordination with the Secretary of the Treasury, should develop guidance for consumers on when they may be liable for and how to calculate, file, and pay the sport fishing and archery excise taxes. (Recommendation 2)
Open
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

Tax Gap: IRS Should Take Steps to Ensure Continued Improvement in Estimates

GAO-24-106449
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5 Open Recommendations
Agency Affected Recommendation Status
Internal Revenue Service The Commissioner of Internal Revenue should complete documentation on key components of the NRP AI models, such as which model options were considered and chosen for implementation, and how IRS determined risk levels and time frames for risk level updates. (Recommendation 2)
Open
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Internal Revenue Service The Commissioner of Internal Revenue should complete documentation for the NRP AI models on the technical specifications needed to run the model, such as how the data are to be split or divided. (Recommendation 3)
Open
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Internal Revenue Service The Commissioner of Internal Revenue should ensure officials in the Research, Applied Analytics and Statistics Division work with officials in the Small Business/Self-Employed and Large Business and International Divisions to develop and report on analyses that could provide stakeholders with more confidence in the methods used to estimate undetected noncompliance, and information on its root causes. (Recommendation 1)
Open
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Internal Revenue Service The Commissioner of Internal Revenue should develop and document a plan for evaluating the redesigned sample selection process, including factors IRS will consider in determining whether or how to continue using it. (Recommendation 6)
Open
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Internal Revenue Service The Commissioner of Internal Revenue should ensure IRS has complete documentation on how to update the NRP sample selection process in response to changes in the operating environment, including the performance of its AI models and risk level analysis. (Recommendation 4)
Open
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

Tax Gap: IRS Should Take Steps to Ensure Continued Improvement in Estimates

GAO-24-106449
Show
1 Open Recommendations
Agency Affected Recommendation Status
Internal Revenue Service The Commissioner of Internal Revenue should complete documentation on processes for assessing the results of AI model updates, including validating the models. (Recommendation 5)
Open
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
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