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Tax Administration: IRS' Use of Nonaudit Contacts

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Report Type Reports and Testimonies
Report Date March 16, 2000
Report No. GGD-00-7
Subject
Summary:

More than 123 million taxpayers filed income tax returns in 1998. For most, this was the end of their interaction with the Internal Revenue Service (IRS) for the year. However, IRS audits about one percent of taxpayers with respect to the tax liability reported on their returns. IRS also uses several types of nonaudit contacts to notify millions of additional taxpayers about potential errors in their reported tax liability. IRS has provided little information publicly on these nonaudit contacts. This report discusses the major types of nonaudit contacts with taxpayers: the math error program, underreporter program, and notices sent to taxpayers about duplicate social security numbers and potential errors on self-employment taxes.

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