Appendix V

Listing of Recommendations Made in Fiscal Year 1992 to the Commissioner of Internal Revenue and to Other Agency Heads

Accounts Receivable

ADP and Information
Technology

Compliance

Establish a Mechanism to Ensure That Federal Agencies Report
All Required Information on Federal Contracts and
Develop Procedures to Fully Use the Federal Contract
Information Received

Work With Private Industry to Ensure That IRS is Using
the Best Collection Practices Available; Change the
Basis for Scoring Nonfiler Delinquencies; and Expand
the Resource and Workload Management System

Complete, as Soon as Possible, the Integration Strategy
and Business Transition Plan and Ensure That IRS'
Strategy for Input Processing is Analytically Sound
Before Committing to its Implementation; and Improve
the Procurement Process Relating to (1) Software
Maintenance Documentation; (2) Price/Technical Tradeoff
Analyses; (3) Separation of Roles of Security Administrators
and Software Developers; and (4) Responsibility for
Protecting the Privacy of Taxpayer Information

Report the Net Revenue Effect of the Staffing Increases That
Congress Authorized in Fiscal Year 1991 to Congressional
Oversight, Budget, and Appropriation Committees; and
Ensure That the Collection Revenue Estimation
Methodology is Valid and Adequately Documented
Develop a Structure for Planning, Managing, and Evaluating
IRS' Compliance 2000 Efforts

Take Various Steps to Better Administer Transfer Pricing
Issues By Making Improvements in the Areas of Staffing,
Management Information, and the Use of Centralized
Transfer Pricing Expertise

To Gain Access to Tax Data, HUD Should (1) Incorporate in
its Assisted Housing Information Systems Appropriate Data
Safeguards and (2) Conduct a Cost-Benefit Analysis of
Using Tax Data to Identify Subsidized Households'
Misreporting of Income and Report the Results to Congress

Page

18

20

23

30

38

39

42

61

63

65

70

72

Listing of Recommendations Made in Fiscal
Year 1992 to the Commissioner of Internal
Revenue and to Other Agency Heads

Tax Policy

Improve Taxpayer Awareness and Compliance Through Proper
Notification Channels of the Advance Payment Option of the
Earned Income Credit, Which is Not Widely Known or Generally
Understood by the Taxpaying Public

85

Appendix VI

Chronological Listing of GAO Products on

Tax Matters Issued in Fiscal Year 1992

Testimony on Amortizing Purchased Intangible Assets (GAO/T-GGD-92-01)

10/02/91

Proposed Tax Credit Would Add to Government's Cost of Selling Resolution Trust Corporation's Assets (GAO/GGD-92-14BR)

11/01/91

Private Pensions: IRS Efforts Underway to Improve Spousal Consent Forms (GAO/HRD-92-31)

Veterans' Benefits: Millions in Savings Possible From VA's Matching Program With IRS and SSA (GAO/HRD-92-37)
Status of IRS' Efforts to Deal With Integrity and Ethics Issues (GAO/GGD-92-16)

12/23/91

12/31/91

Testimony on Summary of GAO Work Related to Expiring Tax Provisions (GAO/T-GGD-92-11)
IRS' Implementation of Certain Compliance Initiatives (GAO/GGD-92-45FS)

01/28/92

01/30/92

Federal Agency Tax Compliance Problems Remain; Improvements Are Planned (GAO/GGD-92-29)

02/18/92

Earned Income Tax Credit: Advance Payment Option Is Not Widely Known or Understood by the Public (GAO/GGD-92-26)

02/19/92

Luxury Excise Tax Issues and Estimated Effects (GAO/GGD-92-9)

02/26/92

IRS Procurement: Software Documentation Requirement Did Not Restrict Competition (GAO/IMTEC-92-30)
Testimony on Tax Systems Modernization: Factors Critical to Success (GAO/T-IMTEC-92-10)
Tax Systems Modernization: IRS Award to MITRE Corporation Violated the Competition in Contracting Act
(GAO/IMTEC-92-28)

03/02/92

03/10/92

03/12/92

Tax Systems Modernization: IRS Could Have Avoided Successful Protests of Major Computer Procurement (GAO/IMTEC-92-27)

03/13/92

Testimony on Federal Contractor Tax Delinquencies and Status of the 1992 Tax Return Filing Season (GAO/T-GGD-92-23)

03/17/92

IRS' System Used in Prioritizing Taxpayer Delinquencies Can Be Improved (GAO/GGD-92-6)

03/26/92

Testimony on Women's Pensions: Recent Legislation Generally Improved Pension Entitlement and Increased Benefits (GAO/T-HRD-92-20)

03/26/92

Testimony on Tax Systems Modernization: Progress Mixed in Addressing Critical Success Factors (GAO/T-IMTEC-92-13)

04/02/92

Testimony on An Update on IRS' Progress on Accounts Receivable and Strategic Management (GAO/T-GGD-92-26)
Tax Policy: Effects of Changing the Tax Treatment of Fringe Benefits (GAO/GGD-92-43)

IRS Undercover Operations Management Oversight Should Be Strengthened (GAO/GGD-92-79)
Testimony on One Stop Service: A New Concept of Assistance for Taxpayers (GAO/T-GGD-92-33)
Tax Systems Modernization: Input Processing Strategy is Risky and Lacks a Sound Analytical Basis
(GAO/T-IMTEC-92-15)

04/21/92

04/28/92

04/29/92

Testimony on IRS' Budget Request for Fiscal Year 1993 (GAO/T-GGD-92-34)
Pharmaceutical Industry: Tax Benefits of Operating in Puerto Rico (GAO/GGD-92-72BR)
Performance Measurement: An Important Tool in Managing for Results (GAO/T-GGD-92-35)
Opportunities to Reduce Taxpayer Burden Through Return-Free Filing (GAO/GGD-92-88BR)

04/30/92

05/04/92

05/05/92

05/08/92

(continued)

Chronological Listing of GAO Products on
Tax Matters Issued in Fiscal Year 1992

Status of Efforts to Curb Motor Fuel Tax Evasion (GAO/GGD-92-67)

05/12/92

Tax Systems Modernization: Update on Critical Issues Facing IRS (GAO/T-IMTEC-92-18)

05/13/92

Testimony on Opportunities to Reduce the Burden of Filing and Processing Tax Returns (GAO/T-GGD-92-41) 1991 Annual Report on GAO's Tax-Related Work (GAO/GGD-92-57)

05/13/92

05/21/92

Tax Systems Modernization: IRS' Key Planning Components (GAO/IMTEC-92-55R)

05/22/92

Allegations Concerning Certain IRS Contracts for ADP Support Services (GAO/GGD-92-14R)

05/28/92

IRS' Executives' Views on the Business Review Process (GAO/GGD-92-103FS)

05/29/92

Testimony on Tax Administration: Compliance 2000-A Worthy Idea That Needs Effective Implementation (GAO/T-GGD-92-48)

06/03/92

Problems Persist in Determining Tax Effects of Intercompany Prices (GAO/GGD-92-89)

06/15/92

Testimony on Money Laundering Forms Could Be Used to Detect Nonfilers (GAO/T-GGD-92-56)

06/23/92

Urban Poor: Tenant Income Misreporting Deprives Other Families of HUD-Subsidized Housing (GAO/HRD-92-60)
Testimony on IRS' Progress on Integrity and Ethics Issues (GAO/T-GGD-92-62)
Testimony on Improving Independent Contractor Compliance (GAO/T-GGD-92-63)
Approaches for Improving Independent Contractor Compliance (GAO/GGD-92-108)

07/17/92

07/22/92

07/23/92

07/23/92

Tax Administration: Congress Needs More Information on Compliance Initiative Results (GAO/GGD-92-118)
Opportunities to Further Improve IRS' Business Review Process (GAO/GGD-92-125)

07/31/92

08/13/92

IRS Should Expand Financial Disclosure Requirements (GAO/GGD-92-117)

08/17/92

1988 and 1989 Company Effective Tax Rates Higher Than in Prior Years (GAO/GGD-92-111)

08/19/92

Social Security: Reconciliation Improved SSA Earnings Records, but Efforts Were Incomplete (GAO/HRD-92-81)
Mass Transit: Effects of Tax Changes on Commuter Behavior (GAO/RCED-92-243)

09/01/92

09/08/92

IRS' 1992 Filing Season Was Successful but Not Without Problems (GAO/GGD-92-132)
Energy Policy: Options to Reduce Environmental and Other Costs of Gasoline Consumption (GAO/T-RCED-92-94)
Energy Policy: Options to Reduce Environmental and Other Costs of Gasoline Consumption (GAO/RCED-92-260)
Tax Systems Modernization: Concerns Over Security and Privacy Elements of the Systems Architecture
(GAO/IMTEC-92-63)

Federal Agencies Should Report Service Payments Made to Corporations (GAO/GGD-92-130)

09/22/92

Testimony on IRS' Management of Seized Assets (GAO/T-GGD-92-65)

09/24/92