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Tax Administration: Federal Agency Tax Compliance Problems Remain; Improvements Are Planned

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Report Type Reports and Testimonies
Report Date Feb. 18, 1992
Report No. GGD-92-29
Subject
Summary:

In an earlier report (see GAO/GGD-91-45, Apr. 16, 1991), GAO noted the need for governmentwide efforts to resolve federal agencies' tax compliance problems. Since then, the Internal Revenue Service (IRS) has developed a plan to address this problem. Because the plan is not yet fully operational, however, IRS' accounts receivable inventory still contains millions of dollars in erroneous receivables from federal agencies, requiring IRS and the agencies to spend valuable resources correcting them. The errors mainly arise from the cumbersome paper-based processes used to make tax payments and meet filing requirements. GAO believes that proposed electronic payments and filing procedures offer promise in reducing the number of erroneous receivables from the agencies that will use it. As IRS continues to implement GAO's recommendations, the tax compliance problems of federal agencies should greatly diminish.

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