Summary

GAO summarized information relating to tax administration issues facing the Internal Revenue Service (IRS).

GAO noted that IRS could: (1) modernize its inefficient and outdated tax processing system by designating and supporting the necessary information technology and financial personnel and developing a financial management plan to set priorities, ensure accountability, and maintain and monitor system operations and improvements; (2) strengthen its human resources management by offering more competitive salaries, providing high-quality training, and implementing a quality assurance plan; (3) improve its tax collection activities by developing more effective ways for prevention or early detection of delinquencies; and (4) improve taxpayer compliance by increasing tax audits and developing better information systems for identifying potential noncompliance.