10/15/07 GAO Reports On IRS Troubles In Managing Paper Case Files

[admin]

"The Internal Revenue Service is not doing a good job of managing its paper case files," according to a newly released report. The Government Accountability Office found that the IRS does not have an effective process to ensure that paper case files can be located within the requesters' time frames. The missing case files can result in lost revenue, create unnecessary tax burdens, and make the case files unavailable for quality review groups and advisory groups. The report found that in several District Court cases, the IRS lost over $40,000 in revenue per case because it could not locate the files. In two prior GAO audits, the IRS could not locate 10 to 14 percent of the case files requested. In one audit by the Treasury Inspector General for Tax Administration, the IRS could not provide about 19 percent of the case files requested. The missing files can also hinder congressional oversight. The GAO recommended that the IRS track the number of files that cannot be located and the reasons why, and develop performance measures. The IRS agreed it needs to review its program and will form a cross-functional group to identify improvements."

For more information:
http://www.webcpa.com/article.cfm?articleid=25649