Summary: Comments were presented on H.R. 6300, the Tax Compliance Act of 1982. GAO endorses the overall objective of the bill which seeks to: (1) reduce the shortfall in Federal tax revenues attributable to noncompliance with the tax laws; (2) enhance the fairness and credibility of the Nation's tax system; (3) improve and expand information reporting; (4) establish a withholding system for pension payments; (5) revise the rules governing interest payments related to certain tax overpayments and underpayments; (6) strengthen the ability of the Internal Revenue Service (IRS) to collect taxes on income derived from illegal activities and foreign sources; and (7) revise certain administrative and judicial proceedings with respect to partnerships and Subchapter S corporations. For some time, GAO has been advocating increases in IRS resources. In this regard, GAO believes IRS will need, at least on a temporary basis, some additional people and computer resources to implement this bill effectively. Such short-term additional expenditures could yield extensive long-term benefits.
