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Caught Our Eye Rss

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Tax Administration: Examples of Waste and Inefficiency in IRS

  Premium   Download PDF Now (44 pages)
Report Type Reports and Testimonies
Report Date April 27, 1993
Report No. GGD-93-100FS
Subject
Summary:

GAO uncovered many examples of waste and inefficiency, along with cases of abuse and employee misconduct, at the Internal Revenue Service (IRS). Many of these problems can be traced to antiquated IRS computer systems, a fragmented organizational structure, and inefficient work processes. In those cases in which the costs or lost revenues were quantified, the amounts totaled about $87 million. In some cases, the dollar effects were calculated on the basis of audit work at a few IRS locations. The dollar implications could be far greater if the examples are indicative of conditions throughout the agency. Many cases suggest that if the causes of waste, inefficiency, and abuse are not eliminated, taxpayer confidence in IRS and voluntary compliance with the tax system may be undermined. IRS recognizes these problems and is modernizing its systems and reassessing the roles and the responsibilities of its components.

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