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Tax Administration: IRS Undercover Operations Management Oversight Should Be Strengthened

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Report Type Reports and Testimonies
Report Date April 21, 1992
Report No. GGD-92-79
Subject
Summary:

While the Internal Revenue Service (IRS) has procedures to help minimize the risks associated with undercover operations, GAO found that these procedures are often ignored, increasing IRS' vulnerability to the operational breakdowns and misuse of funds alleged in Project Layoff. During that effort, IRS agents established a Las Vegas bookmaking business in the mid-1980s to identify unreported gambling income. GAO believes that IRS' existing procedures are solid but could be enhanced to better protect against operational vulnerability. Further, more management attention and priority needs to be given to the oversight of these projects.

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