GAO REPORT-- An Overview from GAO-16-151


2015 TAX FILING SEASON--Deteriorating taxpayer service underscores the
need for a comprehensive strategy and continued efficiencies

In fiscal year 2015, 

Resources decreased by 5%. IRS resources for taxpayer services was about
$111 million less than it was in fiscal year 2014

Responsibilities increased as a result of:
--The Patient Protection and Affordable Care Act
--Increased identity theft refund fraud cases

A comprehensive customer service strategy would help the IRS overcome
challenges in delivering service to individual taxpayers. IRS provided
poor telephone service during fiscal year 2015.
--38% response rate for callers seeking live assistance
--Over 56 million calls abandoned, disconnected or met with a busy
signal
--Average wait times of more than 30 minutes

The IRS is late to resolve nearly 50% of correspondence. Common errors
made by IRS assistors include providing inaccurate information when
sending correspondence to taxpayers, or not sending correspondence at
all.
A control that requires assistors to send correspondence as needed would
help reduce this problem.

Conducting performance evaluations would help the IRS find ways to
reduce refund delays and interest paid to taxpayers.

Errors by the taxpayer or the IRS can delay refunds and result in
significant refund interest paid by the IRS to taxpayers

Line chart:
Number of errors in millions:
Calendar year 2010=$34
Calendar year 2011=$22
Calendar year 2012=$21
Calendar year 2013=$24
Calendar year 2014=$20
Calendar year 2015=$21 (through early October)

Net refund interest paid in millions of dollars:
Calendar year 2010=$14
Calendar year 2011=$3
Calendar year 2012=$5
Calendar year 2013=$10
Calendar year 2014=$6
Calendar year 2015=$8 (through early October)

The IRS made changes to services that include:

In fiscal year 2014:
--Eliminating free tax return preparation at walk-in sites. Eliminating
free tax return preparation and other services in fiscal year 2014
allowed IRS to redirect about $50  million dollars to other services
In fiscal year 2015:
--Directing more taxpayers to use the IRS's online services such as its
payment agreement tool, and

--Providing fewer printed products at walk-in sites

GAO's prior filing season related matters for Congress and
recommendations remain open
--5 matters for Congressional consideration
--21 recommendations for improving operations

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