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Open Recommendations

IRS Direct File: Actions Needed during Pilot to Improve Information on Costs and Benefits
GAO-24-107236
Apr 09, 2024
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3 Open Recommendations
Agency Affected Recommendation Status
Internal Revenue Service The Commissioner of Internal Revenue should ensure that relevant officials apply best practices to estimate and document the full costs of developing and operating a Direct File system. (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 ensure that relevant officials estimate and document the potential benefits of a Direct File system. (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 use the cost and benefit data collected during the pilot along with other relevant considerations to inform future decisions about the Direct File system. (Recommendation 3)
Open
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

IRS Reform: Following Leading Practices and Improving Cost Estimation Policies Could Benefit Agency Efforts
GAO-24-106091
Feb 14, 2024
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5 Open Recommendations
Agency Affected Recommendation Status
Internal Revenue Service As IRS implements its agency reform efforts, the Commissioner of Internal Revenue should ensure that IRS can demonstrate that it is following relevant leading agency reform practices. (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 establish a cost estimating policy for estimating costs of non-IT initiatives that addresses the 12 steps and associated best practices found in our Cost Guide. (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 include IRS's policy for estimating costs of non-IT initiatives in the IRM and issue interim guidance while the IRM section is being developed. (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 incorporate all 12 steps and associated best practices found in our Cost Guide into IRS's IT cost estimation procedures. (Recommendation 4)
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 include IRS's IT cost estimation procedures in the IRM and issue interim guidance while the IRM section is being developed. (Recommendation 5)
Open
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

Tax Compliance: Opportunities Exist to Improve IRS High-Income/High-Wealth Audits
GAO-24-106112
Feb 12, 2024
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8 Open Recommendations
Agency Affected Recommendation Status
Internal Revenue Service The Commissioner of Internal Revenue should assess whether IRS's research data on HI/HW returns have sufficient coverage and quality to understand the complexity and compliance related to HI/HW tax returns. (Recommendation 1)
Open
IRS agreed with the recommendation. According to IRS, it plans to use data analytics to better understand the filing profile of high-income/high-wealth taxpayers. To fully implement this recommendation, IRS needs to assess whether its underlying research data is sufficient to analyze this taxpayer population. We will continue to monitor IRS's efforts to address our recommendation.
Internal Revenue Service Based on an assessment of the coverage and quality of HI/HW tax return research data, the Commissioner of Internal Revenue should take steps to improve those data, if needed, to better understand the complexity and compliance related to HI/HW tax returns. (Recommendation 2)
Open
IRS agreed with the recommendation. According to IRS, it plans to improve data analytics to identify cases (tax returns) for high risk of noncompliance. To fully implement this recommendation, IRS needs to also improve the underlying data, based on a data assessment, it plans to analyze. We will continue to monitor IRS's efforts to address our recommendation.
Internal Revenue Service The Commissioner of Internal Revenue should develop evaluation plans that include relevant evaluation questions and appropriate evaluation designs to evaluate the effectiveness of IRS's models for selecting HI/HW returns for audit. (Recommendation 3)
Open
IRS agreed with the recommendation. We will continue to monitor IRS's efforts to address our recommendation.
Internal Revenue Service The Commissioner of Internal Revenue should use IRS's evaluation plans to evaluate the effectiveness of its models for selecting HI/HW returns for audit. (Recommendation 4)
Open
IRS agreed with the recommendation. We will continue to monitor IRS's efforts to address our recommendation.
Internal Revenue Service The Commissioner of Internal Revenue should develop a mechanism for consistently collecting and using feedback from audit staff. (Recommendation 5)
Open
IRS agreed with the recommendation. According to IRS, it is creating a more formalized structure to receive feedback from audit staff. We will continue to monitor IRS's efforts to address our recommendation.
Internal Revenue Service The Commissioner of Internal Revenue should assess IRS's current and future hiring and training needs for HI/HW auditing, including the number of staff and their skills. (Recommendation 6)
Open
IRS agreed with the recommendation. According to IRS, it is increasing the hiring capacity of its Human Capital Office, as well as increasing its efforts to hire and train individuals with the skill and potential to work more complicated high-income/high-wealth audit cases. To fully implement this recommendation, IRS needs to determine what skills are needed and the extent to which IRS needs to hire and train for such skills. We will continue to monitor IRS's efforts to address our recommendation.

Private Debt Collection Program: IRS Could Improve Results and Better Promote Equitable Outcomes for Taxpayers
GAO-24-106140
Feb 06, 2024
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4 Open Recommendations
Agency Affected Recommendation Status
Internal Revenue Service The Commissioner of Internal Revenue should establish clear fund balance goals or staffing targets for IRS's Special Compliance Fund. (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 establish standards for evaluating equity for taxpayers who are either assigned to or excluded from the PDC program, including IRS's process of routing taxpayers to the inactive inventory (shelf). (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 assess IRS's performance against its standards for equity and take actions to address any identified issues. (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 provide taxpayers in the inactive inventory (shelf) and excluded from the PDC program tailored taxpayer-centric information about their debts and options for resolving them. (Recommendation 4)
Open
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
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