There
Were Significant Limitations in Phase 1 of the Facilitated Self-Assistance
Research Project
March 10, 2009
Reference Number: 2009-40-047
This report has cleared the Treasury Inspector General for Tax Administration disclosure review process and information determined to be restricted from public release has been redacted from this document. Revenue Service without the permission of the TIGTA.
Phone Number |
202-622-6500
Email Address | inquiries@tigta.treas.gov
Web Site |
http://www.tigta.gov
March 10, 2009
MEMORANDUM FOR COMMISSIONER, WAGE AND INVESTMENT DIVISION
FROM: Michael R. Phillips /s/ Michael R. Phillips
Deputy Inspector General for Audit
SUBJECT: Final Audit Report – There Were Significant Limitations in Phase 1 of the Facilitated Self-Assistance Research Project (Audit # 200840013)
This report presents the results of our review to determine whether
the Facilitated Self-Assistance Research Project (FSRP) structure and
methodology were sound and included adequate performance measures and
milestones for successful implementation.
This audit was conducted as part of our Fiscal Year 2008 Annual
Audit Plan.
Impact on the Taxpayer
The FSRP provides
taxpayers with an opportunity, with assistance from a
Synopsis
The Wage and Investment
Division, Planning, Research, and Analysis (Research) function, reported on September
8, 2008, that inconsistent data collection, a small sample size, and low survey
response rates during the FSRP imposed serious limitations on the data
collected. Therefore, the extent to
which facilitated self‑assistance is an effective and efficient means of
providing customer service at the 15 TACs selected for Phase 1 during the 2008
Filing Season could not be determined. Nevertheless, the FSRP
is being expanded to an additional 35 TACs for the 2009 Filing Season
before the IRS has ensured that all limitations have been addressed.
The reliability of
FSRP data was also compromised due to the number and complexities of taxpayer
surveys. The FSRP includes five surveys—four
screening surveys administered face to face with the data captured by
commercial software and an exit survey administered online to computer users
and by paper to toll-free telephone users.
Revising or eliminating surveys could help improve participation in the
FSRP.
Although one of the
ultimate goals of the FSRP is to provide self-assistance and eliminate the need
for contact with an IRS employee, funding does not include printers for each
FSRP terminal.[4]
Instead, FSRP participants are required to see an IRS employee to obtain
printed copies of any documents they print from the terminals, which could be
forms or their tax returns. In addition,
FSRP terminals are only offered at times when TAC employees conduct the
surveys. Allowing taxpayers to use the
FSRP terminals at all times would benefit both taxpayers and the IRS. Taxpayers could use the terminals while
waiting for an assistor or instead of an assistor.
The IRS has also been
unable to provide sufficient support for the methodology used to select FSRP
services or the TACs. The IRS continues
to offer the same 11 services even though some have not been accessed by
taxpayers. The IRS did not conduct additional
analysis to determine whether service tasks should remain the same. Further, there was no support to show why access
to all of IRS.gov is not offered in the FSRP.
IRS officials stated they did not conduct any additional analysis
because they believed the insufficiency of the data negated any benefit from
additional analysis.
Although the IRS
provided documentation showing the criteria required for the Centers
participating in Phase 1, no support was provided to show that the
15 TACs actually selected by the Area Office[5] directors met all the criteria, and if they
did not meet the criteria, why they did not.
In addition, three of the Centers chosen are located in areas where a significant
percentage of the population speaks Spanish as their first language, even
though one of the criteria of the FSRP, which is only offered in English, was
that selected participants not have any language barriers. Without sufficient support for the
methodologies used in the FSRP, the IRS cannot appropriately analyze the
results and establish performance measures.
Recommendations
We recommended that the Commissioner, Wage and Investment Division, should 1) not expand the FSRP before all data collection issues have been corrected and sufficient data are collected to ensure the FSRP can be accurately measured and the data are used to make sound business decisions, 2) revise and/or eliminate surveys to reduce burden and encourage participation, 3) conduct a cost analysis of either providing a printer dedicated to each FSRP terminal or using a facilitator who can quickly provide printed materials to taxpayers, 4) ensure all decisions and processes are documented and are properly managed and maintained so all transactions and other significant events are readily available for analysis, 5) consider expanding the criteria for participation in the FSRP to all activities on IRS.gov to maximize the number of taxpayers eligible to participate and analyze IRS.gov data to determine the webpages most often visited, and 6) conduct testing at a number of TACs to determine the feasibility and benefit of providing the terminals for taxpayers’ use at all times.
Response
The IRS agreed with recommendations 2, 3, and 4, disagreed
with recommendations 1 and 6, and partially agreed with recommendation 5. The IRS agreed to
revise the surveys to reduce burden and encourage participation. It has already conducted a cost analysis and
will use facilitators to quickly provide printed materials to taxpayers, and it
also will ensure that all decisions and processes are documented.
IRS management disagreed that the FSRP should not be expanded. The Field Assistance Office received additional funding early in Fiscal Year 2008 for the expansion of the FSRP. The additional 35 TACs will increase the volume of data collected, further mitigate any limitations of the sampling frame, and ultimately permit better assessment of the FSRP.
The IRS agrees in part with
recommendation 5. It agrees to consider
the analysis of IRS.gov data to determine the webpages most often visited by
taxpayers and compare those to the services provided by the TACs. However, the IRS does not agree to expand the
criteria for participation in the FSRP to all activities on IRS.gov to maximize
the number of taxpayers eligible to participate. Expanding the criteria to all activities on
IRS.gov would require expanding the eligibility questions to include hundreds
of possible responses.
Finally, the IRS does not agree to conduct additional testing to determine the feasibility and benefit of providing the terminals for taxpayers to use at all times. The Field Assistance Office efforts will be focused on determining whether implementation of the FSRP is in the best interest of the taxpayers and the IRS. Management’s complete response to the draft report is included as Appendix V.
Office of Audit Comment
We believe expanding the project to 50 TACs was premature and that data collection issues should have been corrected before the Project was expanded. This is particularly true because the data collection was not successful with the original 15 TACs.
Additionally, we believe the research phase is the opportune time to experiment and test different methods and/or theories, such as a making a terminal available for taxpayers at all times.
Copies of
this report are also being sent to the IRS managers affected by the report
recommendations. Please contact me at
(202) 622-6510 if you have questions or Michael E. McKenney, Assistant
Inspector General for Audit (Returns Processing and Account Services), at (202)
622-5916.
Burdensome Surveys Could Impede the
Success of the Facilitated Self-Assistance Research Project
Appendices
Appendix
I – Detailed Objective, Scope, and Methodology
Appendix
II – Major Contributors to This Report
Appendix
III – Report Distribution List
Appendix
IV – Facilitated Self-Assistance Research Project Surveys
Appendix V
– Management’s Response to the Draft Report
Abbreviations
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FSRP |
Facilitated Self-Assistance Research Project |
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IRS |
Internal Revenue Service |
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TAC |
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In Fiscal Year 2006, the Internal Revenue Service (IRS) began a 5-year strategy, called the Taxpayer Assistance Blueprint, to improve taxpayer service. The vision for future IRS service delivery includes initiatives designed to enhance taxpayer services—many of which will help move the IRS closer to providing many of the services now available in the private sector. One of these service delivery initiatives is to move taxpayers from expensive face-to-face services at the local IRS offices, called Taxpayer Assistance Centers (TAC or Center),[6] to less costly and more efficient self-assistance service. The IRS expects this move will ultimately increase compliance and reduce taxpayer burden.
The TACs offer face-to-face assistance.
The IRS provides taxpayers
the option of obtaining face‑to‑face assistance at 401 TACs
nationwide. The IRS suggests taxpayers
visit the Centers when they have complex tax issues, need to resolve tax
problems relating to their tax accounts, have questions about how the tax law
applies to their individual income tax returns, or feel more comfortable talking
with someone in person
Research and analysis conducted during the development of the Taxpayer Assistance Blueprint found there is greater taxpayer value in securing forms and publications through the Internet than through any other channel. It also established that increasing the percentage of tax law questions addressed through the IRS’ public Internet site, IRS.gov, and decreasing the percentage addressed through face-to-face interactions would allow the IRS to gain efficiencies and increase its overall capacity to serve taxpayers.
Overall, between 42 percent
and 72 percent of TAC users reported a willingness to use IRS.gov for at least 1
activity. In addition, a 2006 IRS
Oversight Board survey
[7] indicated that 42 percent of TAC users
would consider using the IRS web site instead of visiting a Center. The Planning, Research, and Analysis
(Research) function also suggested that TAC users may be unaware of other
IRS service channels.
Based on these findings, the Taxpayer Assistance Blueprint included an initiative called the Facilitated Self-Assistance Model. Implementation of the Facilitated Self-Assistance Model was expected to provide more convenient service alternatives for taxpayers and free up limited staff resources to focus on providing more complex services best delivered face to face. On September 29, 2006, IRS executives approved a Facilitated Self-Assistance Research Project (FSRP or Project) to begin the migration of those taxpayers who have indicated the willingness to use alternative service channels.
The FSRP is being implemented by two IRS Wage and Investment Division offices or functions: 1) the Field Assistance Office responsible for overseeing the TAC Program, and 2) the Research function. There are two main research questions that guide the Project.
The Research function developed nine additional questions to help address taxpayers’ overall willingness to use facilitated self-assistance as well as to help assess the costs and benefits (e.g., taxpayer burden). A comparison of the benefits and limitations of facilitated self-assistance compared to other service channels can help determine the relative value of this service offering.
The FSRP was set up to be a self-help service, with guidance
available. It provides taxpayers a
computer with IRS.gov access, a telephone with access to the IRS toll-free telephone
lines, and the opportunity to help themselves to IRS services, with a TAC
employee nearby to provide guidance.
Traditional assistance is to remain an option for any TAC customer who
prefers face-to-face service.
Figure 1 shows the 15 TACs selected by the Taxpayer
Assistance Blueprint TAC team using the following
criteria: size (determined by number of technical
employees), information technology capabilities, geographic distribution, and
the TAC’s capacity to hold computer terminals.
Figure 1: The Initial 15 Centers
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Medium |
Large |
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Source: FSRP Research Report.[8]
The 15 TACs were selected for an
initial small-scale FSRP implementation, originally planned for the 2007 Filing
Season but postponed until late in Calendar Year 2007 to give the FSRP team
additional time to design and fully develop a system that would meet both
customer and business needs. Deployment of these computer terminals was
completed by the end of October 2007.
Participation in the FSRP is currently limited to
individuals who are capable of using computers and have no language barriers since
the system is available only in English.
The Field Assistance Office selected 11 services, based on all available
services. Figure 2 shows the 11 FSRP
services.
Figure 2: The 11 FSRP Services
|
1.
Alternative Minimum Tax Assistant |
The Alternative
Minimum Tax Assistant is intended to provide a simple test for taxpayers who
fill out their tax returns without using software to determine whether they
may be subject to the Alternative Minimum Tax. |
|
2.
Copy of Tax Return Information–Telephone Option Only |
Taxpayers can obtain
a transcript by calling |
|
3.
Earned Income Tax Credit Assistant |
The Earned Income Tax
Credit is a credit for some people who work.
Taxpayers determine eligibility by answering questions and providing
income information. |
|
4.
Electronic Filing Tax Payment System |
Businesses and individuals
can pay all their Federal taxes using the Electronic Filing Tax Payment
System. |
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5.
Employee Identification Number Application |
The taxpayer gets an Employer
Identification Number immediately and can download, save, and print an Employer
Identification Number confirmation notice. |
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6.
Forms and Publications |
This is the IRS forms
and publications resource page. The
links provide methods to access and acquire both electronic and print copies. |
|
7.
Online Installment Agreements |
Individuals who owe
$25,000 or less can use this application to request a payment agreement. |
|
8.
Tax Law Questions |
Taxpayers can get
answers to many tax questions by answering a series of simple online
questions. |
|
9.
Tax Return Preparation and Electronic Filing Using the IRS Free File
Program |
The IRS advertises
Free File as the fast, easy, and free way to file Federal income taxes if
taxpayers meet the criteria of one of the Free File Program providers. |
|
10.
Tax Withholding Calculator |
This helps taxpayers
who are employees ensure they do not have too much or too little income tax
withheld from their pay. |
|
11.
Where’s My Refund |
Taxpayers can track
their refunds through this secure web site. |
Source:
FSRP Research Report.
Data were collected from March 10 to April 15, 2008 (hereafter referred to as Phase 1 of the FSRP). The Research function issued a report on September 8, 2008, stating that data collection issues limited the analyses for the Project, including a reduced data collection time period, nonrandom Center selection, software problems, and variations in research protocol among Centers.
This
review was performed at the IRS Wage and Investment Division Field Assistance
Office and Research function in
The Internal
Revenue Service Determined There Were Significant Limitations in Phase 1 of the
Facilitated Self-Assistance Research Project
The Research function reported on September 8, 2008, that inconsistent
data collection, a small sample size, and low survey response rates during the
FSRP imposed serious limitations on the data collected. Therefore, the extent to which facilitated
self-assistance is an effective and efficient means of providing customer
service could not be determined. Nevertheless, the
FSRP is being expanded to an additional 35 Centers (hereafter referred to
as Phase 2 of the FSRP) for the 2009 Filing Season before the IRS has
ensured that all limitations have been addressed.
The FSRP Phase
1 was conducted at 15 TACs and data were collected from March 10 to April 15,
2008.
Almost
34,000 contacts were recorded at the 15 TACs during this time period. Participation was limited to individuals who
were capable of using computers, had no language barriers, and were at the TACs
for 1 of the 11 FSRP services. Only
2 percent of the eligible TAC visitors were willing and able to use the FSRP
terminals during this time period.
The FSRP appears to be a viable solution in
assisting the taxpayers visiting the Centers.
The Project is being marketed in the TACs as a “no waiting in line
option” for assistance. Banks, airlines,
and other service industries have added similar customer workstations to both
ease waiting lines and to shorten time for customer assistance. The FSRP also has the advantage of
introducing taxpayers to IRS.gov so that future inquiries and actions can be handled
without travel to a TAC. However,
despite IRS efforts to implement the FSRP and manage taxpayer wait time and
limit burden, IRS employees often experienced high stress levels when they
believed they had insufficient time to administer the survey process. Taxpayers also experienced long wait times.
The
Research function reported numerous limitations on the data collected
The Project was implemented using current IRS equipment and staffing; therefore, costs were minimized. The FSRP TACs were selected by the Field Assistance Area Office[9] directors. Center employees conducting the surveys determined taxpayer eligibility. The survey data included results from five surveys (four screening and one exit survey) and observations at five FSRP Centers.
The Research function’s report identified the following limitations:
·
Software problems and a reduced data collection time period. Due to difficulties with the computer software
applications used to collect survey data, the data collection period was
limited to a 5-week period (March 10 through April 15, 2008) at the end of
the 2008 Filing Season, instead of collecting data throughout the entire filing
season.[10]
Based on these findings, the Research function recommended that the Field Assistance Office 1) follow the research protocol consistently across Centers and perform and submit a weekly quality review of FSRP data collection and project administration, 2) make the FSRP process less cumbersome by improving TAC employee familiarity with scripts, increasing interpersonal interactions with participants, 3) provide appropriate training on the FSRP and on how to use the survey application to all employees who are involved with administering the FSRP, and 4) conduct additional research on interesting findings presented in the report.
In addition, the Field Assistance Office and the Research function met
and documented lessons learned from the 2008 Filing Season and agreed to an
action plan for Fiscal Year 2009. The
proposed actions included a recommendation to remove the telephone option from
the FSRP, to enhance employee engagement and training, and to reassess the
services offered by the FSRP.
Additional funding has allowed the project to be expanded to 50 Centers
The FSRP report states that the Field Assistance Office received additional Fiscal Year 2008 funding for the Project and will continue administering the FSRP for another year. The funding allowed the Field Assistance Office to add 35 FSRP Centers for a total of 50 Centers. The expansion will increase the difficulty of ensuring that the Project is administered consistently across all Centers. The Field Assistance Office stated that it has provided additional training to employees and is confident that expanding the Project at this time is viable. Moreover, the Research function believes that expanding the FSRP to 50 Centers will help ensure that it will collect sufficient data to draw conclusions on the success of the Project.
To assess the Project, the Field Assistance Office developed action standards, including target achievement levels or decision points, for select primary research questions. One of the 5 action standards is that more than 50 percent of eligible taxpayers choose to use the FSRP terminals. Phase 1 results showed that only 31 percent of eligible taxpayers chose to use the FSRP.
Phase 2 is being conducted during the 2009 Filing Season. The IRS predicts that it will have a busier filing season with more taxpayer contacts. Although the Research function made recommendations and the Field Assistance Office has taken action on the recommendations, there is no current data to ensure that the corrective actions have all been implemented. Because the IRS could not operate the FSRP in 15 TACs effectively, we believe the FSRP should not be expanded.
We are concerned that expanding the project to 50 Centers is premature and that data collection issues should be corrected before the Project is expanded. This is particularly true because the data collection was not successful with the original 15 Centers.
Recommendation
Recommendation 1: The Commissioner, Wage and Investment Division, should not expand the FSRP before all data collection issues have been corrected and sufficient data are collected to ensure the Project can be accurately measured and the data are used to make sound business decisions.
Management’s Response: The IRS does not agree with this recommendation. The Field Assistance Office received additional funding early in Fiscal Year 2008 for the expansion of the FSRP. The additional 35 Centers will increase the volume of data collected, further mitigate any limitations of the sampling frame, and ultimately permit better assessment of the FSRP. Deployment of the additional Centers began August 18, 2008, and is now complete.
Office of Audit Comment: We believe expanding the project to 50 Centers was premature and that data collection issues should have been corrected before the Project was expanded. This is particularly true because the data collection was not successful with the original 15 Centers.
Burdensome Surveys Could Impede the Success of the Facilitated Self-Assistance Research Project
The reliability of the FSRP data was
compromised due to the number and complexities of taxpayer surveys. When developing surveys, agencies should demonstrate
1) the practical utility of the collection of a survey and 2) the burden of the
collection both in terms of hours and other costs is justified.[11] How
well a survey is designed and conducted can lead to either more or less
variance or errors in results. Agencies
designing and conducting surveys need to consider all the potential sources of
errors and plan to adequately prevent, measure, and adjust for them.
Without reliable survey information in Phase
1 of the FSRP, there is little justification for expanding the Project to 50
Centers. There has been little change to
the survey methodology and design, and the burden to IRS employees and taxpayers
remains mostly unchanged. In addition, the
TACs expect to have a higher volume of taxpayer traffic during the 2009 Filing
Season.
The FSRP includes five surveys—four screening surveys administered face to face with the data captured by commercial software and an exit survey administered online to computer users and by paper to toll-free telephone users. Figure 3 shows the flow of the FSRP, including the surveys. See Appendix IV for details of the surveys.
Figure 3: Flowchart
of the Taxpayer’s Actions When Using the FSRP
Figure 3 was removed due
to its size. To see Figure 3, please go
to the Adobe PDF version of the report on the TIGTA Public Web Page.
*Q-MATIC is an on-line
system available at selected major assistance centers to facilitate workload
and resource distribution by screening and categorizing taxpayer needs at the
point of registration.
As the FSRP is currently setup, a TAC employee (either a screener or a facilitator) must take the following steps:
1) Ask four questions to determine if the service task is within the scope of the FSRP and if the taxpayer is able to participate (e.g., sufficient English language skills and physical abilities).
2) Explain the study and ask if the taxpayer is willing to participate.
The TAC employee must then:
3) Ask seven questions about demographics including the participant’s age, income level, language spoken in the home, gender, zip code, and prior methods used for issue resolution.
4) Conduct a preparedness survey of one to four questions to determine if those taxpayers who are eligible and willing to participate in the FSRP have the necessary materials and information with them to accomplish the service task.
5) Finally, print a unique identification number for the participant and provide basic instructions.
The employees are instructed to do the above for all taxpayers who enter the TACs and ask for assistance. Even if eligible taxpayers refuse, the employees ask them to take a refusal survey and if the taxpayers agree the screeners will then administer the survey. All responses are to be entered into a computer as the taxpayers provide the responses.
Administering
the surveys is time consuming and not always practical for small or busy TACs,
yet these are the Centers that can most benefit from self-assistance options.
The surveys add time to all taxpayers’ wait time. Understandably, during busy times, TAC employees are reluctant to ask taxpayers to participate in the survey since it affects taxpayers who are waiting in line to be assisted. Over one-half of the taxpayers visiting a TAC have questions that do not meet FSRP criteria, such as specific taxpayer account issues.
Treasury Inspector General for Tax Administration auditors made anonymous visits to all 15 FSRP Centers during June through August 2008 and asked 2 questions at each Center; both questions met FSRP criteria. Auditors were not offered the opportunity to participate in the FSRP in 12 (80 percent) of the 15 Centers, even though the questions met FSRP criteria. Discussions with TAC employees showed that employees felt pressure to administer the survey while still providing good customer service. This created significant limitations in data collection during Phase 1 because some employees chose not to ask taxpayers to participate and in some cases employees manipulated the data to make it appear they were offering the survey when they were not.
To address these concerns, the Field Assistance Office will provide additional training to its TAC assistors, including how to manage the surveys. It will also emphasize the importance of the FSRP and how it will help move taxpayers to use self-service for less complex issues, allowing TAC assistors to serve more taxpayers efficiently and effectively. In addition, the Field Assistance Office will emphasize to Center employees that they are able to suspend the Project during busy times, when administering the surveys would significantly affect taxpayers’ wait times.
Though these actions may address assistors’ reluctance to offer the FSRP when the TACs are experiencing heavy traffic, it also affects the amount of data collected. Gathering a sufficient amount of data was one of the main reasons the IRS expanded the number of FSRP Centers. Further, busy times at the TACs provide an opportune time for taxpayers to use the self‑assistance options and allow the assistors to address more complex issues.
Revising or eliminating surveys could help
improve participation in the FSRP
Collecting demographics on taxpayers who visit the TACs is invaluable, but is not practical during busy times, which are opportune times to offer self-assistance options. Therefore, revising or eliminating surveys could help increase FSRP participation.
Other methodologies that might be considered include:
Since it might be too late to change computer programming, survey results could be captured using scannable forms.
Dedicating printers to each FSRP terminal
would make the self-assistance option more complete
Although one of the ultimate goals of the Taxpayer Assistance Blueprint’s Facilitated Self-Assistance Model is to provide self-assistance and eliminate the need for contact with an IRS employee, funding does not include printers for each FSRP terminal. Instead, FSRP participants are required to see an IRS employee to obtain copies of documents they printed, which could be forms or their tax returns.
As a result, during a recent visit to an FSRP TAC on another Treasury Inspector General for Tax Administration audit,[12] it took 30 minutes to obtain the forms needed when it could have taken significantly less time. Our audit recommended that the Commissioner, Wage and Investment Division, place printers near the FSRP terminals so taxpayers can retrieve printed forms and publications without recontacting an IRS employee.
IRS management did not agree to place
printers near the terminals so that taxpayers could retrieve printed forms and
publications. Printers are currently
located in secure locations to eliminate inadvertent disclosure of taxpayer
information that could occur through the printing of electronically filed tax returns
with personally identifiable information.
The IRS stated that printers cost between
$200 and $375, and cartridges for each printer cost approximately $95.50. Other concerns over providing printers
included:
Notwithstanding, most FSRP participants (about 70 percent) printed forms, publications, and tax returns. Placing a printer by each FSRP terminal would allow for greater self-assistance and help ensure privacy.
Recommendations
The Commissioner, Wage and Investment Division, should:
Recommendation 2: Revise and/or eliminate the surveys to reduce burden and encourage participation.
Managements Response: The IRS agreed with this recommendation to revise the
surveys to reduce burden and encourage participation. The IRS recently completed revisions to the
survey process to include modified questions.
The preparedness survey has been reduced to two questions and is
completed by employees during the screening process. These steps will reduce taxpayer burden and
increase participation. It is
anticipated that after the research phase of the FSRP, data collection will be
significantly reduced and occur entirely within the exit survey.
Recommendation 3: Conduct a cost analysis of either providing a printer dedicated to each FSRP terminal or using facilitators who can quickly provide printed materials to taxpayers.
Management’s Response: The IRS agreed with this recommendation. The FSRP already includes utilizing a designated facilitator to provide printed material to the taxpayer. The IRS will continue to ensure facilitators provide printed material quickly to taxpayers. The additional cost of providing printers is not warranted due to the presence of a designated facilitator at each Center. Further, it was determined that there were unanswered security issues involved with the placement of additional printers.
Performance Measures Could Not Be Established and Facilitated Self‑Assistance Research Project Results Could Not Be Assessed
The IRS has been unable to provide sufficient support for the methodology used to select the FSRP services or the TACs. The Government Performance and Results Act of 1993[13] directs Federal Government agencies to focus on their missions and goals, how to achieve them, and how to improve their program effectiveness and public accountability by promoting a new focus on results, service quality, and customer satisfaction. Performance measures need to be based on program-related characteristics and performance data and must be sufficiently complete, accurate, and consistent. Performance data must be used to improve organizational processes, identify performance gaps, and set improvement goals.
FSRP services
The FSRP Research Report stated that during the planning stages the Field Assistance Office selected 11 services to be offered at FSRP terminals. Further, these services were based on the services available at that time. However, little support or documentation has been provided and, therefore, we cannot determine whether these services were the best suited for the FSRP.
Figure 4 shows the 11 services within the scope of the FSRP, along with the number of inquiries made by taxpayers using the FSRP terminals at the 15 TACs.
Figure 4: Number
of Inquires Made at the FSRP Terminals
from March 10 through April 15, 2008
|
Services |
Number of Inquiries |
Percentage |
|
Forms and Publications |
219 |
41.2% |
|
Free File |
158 |
29.7% |
|
Frequently Asked Tax Questions and Answers |
61 |
11.5% |
|
Employer Identification Number Application |
52 |
9.8% |
|
Copy of Your Tax Return Information |
16 |
3.0% |
|
Where's My Refund |
14 |
2.6% |
|
Online Payment Agreement |
9 |
1.7% |
|
Electronic Federal Tax Payment System |
2 |
0.4% |
|
Earned Income Tax Credit Assistant |
1 |
0.2% |
|
Alternative Minimum Tax Assistant
for Individuals |
0 |
0.0% |
|
IRS Withholding Calculator |
0 |
0.0% |
|
Total |
532 |
100.1%* |
Source: FSRP Research Report.
* Total sums
to more than 100 percent due to rounding
The IRS had planned to offer the same 11 services even though some services such as the Alternative Minimum Tax Assistant for Individuals and the IRS Withholding Calculator have not been accessed. However, it now plans to remove these services. Nevertheless, there is no support to show why access to all of IRS.gov is not offered in the FSRP. IRS officials stated that they need to constrain the data for the Project, but plan to offer access to all IRS.gov once self‑assistance is fully implemented.
Not offering taxpayers complete access to IRS.gov service limits the number of FSRP participants and ultimately the number of taxpayers who can be accommodated and use the self‑service option. IRS officials stated they did not conduct additional analysis because they believed the insufficiency of the data negated the benefit of any additional analysis. Also, they explained that the outside contractor for IRS.gov owns that data; therefore, it would cost the IRS $10,000 to conduct that analysis. However, the IRS does collect data on IRS.gov visits and is able to determine which webpages are visited. This has not been matched with those services offered in the TACs.
Some TACs were still offering the FSRP option in August 2008, although most were not. The IRS has the means to capture all information and actions taken on FSRP terminals. Allowing taxpayers to use the FSRP terminals at all times would benefit both taxpayers and the IRS. Taxpayers could use the terminals while waiting for an assistor or instead of an assistor.
To
track taxpayer contacts, a generic password could be used in place of the unique
identification number currently provided to FSRP participants. The IRS could ask the taxpayer to complete
the exit survey to capture some demographic information as well as customer
satisfaction measures. If the taxpayer
chooses not to complete the survey or forgets to sign off, the computer could automatically log off after a certain time
with no activity.
IRS management explained that they want to
avoid situations in which taxpayers not participating in the Project are using
the FSRP terminals while taxpayers willing to participate are waiting to use
the terminals. Nevertheless, this type
situation simulates conditions that might occur when self-assistance is fully
implemented.
FSRP TACs
IRS analysts stated that the criteria for selecting the TACs for the Project were to select one small, one medium, and one large Center in each of the five geographic areas. In addition, the Centers should have certain information technology capabilities, including the capacity to hold FSRP computer terminals. Each of the five Area Office directors was asked to choose three TACs in his/her respective area.
Although the IRS provided documentation showing the criteria required for the Centers participating in Phase 1, no support was provided to show that the 15 Centers actually selected by the Area Office directors met all the criteria, and if they did not meet the criteria, why they did not. In addition, three Centers chosen are located in areas where a significant percentage of the population speaks Spanish as their first language, even though one of the criteria of the FSRP‑which is only offered in English–was that selected participants not have any language barriers.
Before expanding to other Centers, the IRS should document
why the services and TACs were chosen so it can appropriately evaluate the data
and make sound business decisions.
Recommendations
The Commissioner, Wage and Investment Division, should:
Recommendation 4: Ensure
that all decisions and processes are documented and are properly
managed and maintained so all transactions and
other significant events are readily available for analysis.
Managements Response: The IRS
agreed with this recommendation. All
decisions and processes are documented and now maintained on a SharePoint drive
that was established to store critical program documents. A formal process will be established to
secure written approval of critical program changes from the Director, Field
Assistance Office.
Recommendation 5: Consider expanding the criteria for participation in the FSRP to all activities on IRS.gov to maximize the number of taxpayers eligible to participate. In addition, analysis of IRS.gov data should be conducted to determine the webpages most often visited by taxpayers and compare those to the services provided by the TACs.
Managements Response: The IRS agreed
in part with this recommendation. It agrees
to consider the analysis of IRS.gov data to determine the webpages most often
visited by taxpayers and compare those to the services provided by the TACs. Any further implementation of the FSRP will
include full consideration of expansion of services.
The IRS
does not agree to expand the criteria for participation in the FSRP to all
activities on IRS.gov to maximize the number of taxpayers eligible to
participate. Expanding the criteria to
all activities on IRS.gov would require expanding the eligibility questions to
include hundreds of possible responses.
Adding the additional questions would be cumbersome and time consuming
to administer during this phase of the project.
The FSRP is a research project and, as such, controls are in place to
allow for meaningful data collection and analysis.
Recommendation 6: Conduct testing at a number of the TACs to determine the feasibility and benefit of providing the terminals for taxpayers’ use at all times.
Managements Response: The IRS does not agree with this recommendation. Field Assistance Office efforts will be
focused on determining whether implementation of the FSRP is in the best
interest of the taxpayers and the IRS.
Office of Audit Comment: The IRS’ concern is with changing the parameters of their existing research plan to accommodate a different method of service delivery. We believe the research phase is the opportune time to experiment and test different methods and/or theories, such as a making a terminal available for taxpayers at all times.
Appendix I
Detailed Objective, Scope, and Methodology
The overall objective of our review was to determine whether the FSRP structure and methodology are sound with adequate performance measures and milestones for successful implementation. To accomplish our objective, we:
I.
Determined
how the IRS is measuring the success of the FSRP and what measures the IRS is
using to ensure that the FSRP is meeting IRS objectives and goals.
II.
Determined
whether the IRS selection process for FSRP TACs[14] was adequate.
III.
Determined
whether the services offered by the FSRP were selected to maximize its use and
ensure that the FSRP meets its objectives.
IV.
Determined
whether FSRP use is tracked and monitored to determine whether the results are
accurate and reliable and are adequate to measure its success.
V.
Determined
whether TAC employees are following the methodology of the FSRP to ensure its
success.
A.
Anonymously
shopped all of the 15 FSRP TACs to determine whether FSRP service is offered.
B.
Interviewed
TAC employees to determine why the TAC is not using the FSRP.
VI.
Identified
the internal controls the IRS has to monitor the use of FSRP workstations to
determine whether they are sufficient to provide valid results.
VII.
Determined
whether taxpayers’ identities were protected when using FSRP workstations.
Appendix II
Major Contributors to This Report
Michael E. McKenney, Assistant Inspector
General for Audit (Returns
Processing and Account Services)
Augusta R. Cook, Director
Tracy K. Harper, Lead Auditor
Cynthia Dozier, Senior Auditor
Elizabeth
A. Miller, Senior Auditor
Janice
A. Murphy, Senior Auditor
Craig L. Pelletier, Senior Auditor
Jerome
S Antoine, Auditor
Jean
M. Bell, Auditor
Mary
L. Keyes, Auditor
Nelva
Usher, Auditor
Kevin O’Gallagher, Information Technology
Specialist
Appendix III
Commissioner
C
Office of the Commissioner – Attn: Chief of
Staff C
Deputy Commissioner for Operations Support OS
Deputy Commissioner for Services and
Enforcement SE
Deputy Commissioner, Wage and Investment
Division SE:W
Chief Technology Officer OS:CTO
Director, Customer Assistance, Relationships,
and Education, Wage and Investment Division
SE:W:CAR
Director, Strategy and Finance, Wage and
Investment Division SE:W:S
Director, Field Assistance, Wage and
Investment Division SE:W:CAR:FA
Director, Planning, Research, and Analysis, Wage
and Investment Division SE:W:S:R
Chief, Performance Improvement, Wage and
Investment Division SE:W:S:PI
Chief Counsel CC
National Taxpayer Advocate TA
Director, Office of Legislative Affairs CL:LA
Director, Office of Program Evaluation, and
Risk Analysis RAS:O
Office of Internal Controls OS:CFO:CPIC:IC
Audit Liaison: Senior Operations
Advisor, Wage and Investment Division
SE:W:S
Appendix IV
Facilitated Self-Assistance
Research Project Surveys
|
Survey |
Purpose |
Method of Collection |
Optional or Required |
|
Eligibility |
Determines whether the service task is within the
scope of the FSRP and if the taxpayer is able to participate (e.g.,
sufficient English language skills and physical abilities). |
Face-to-Face
Interview |
Required |
|
Gathers demographic information
from taxpayers willing to take the intake survey and/or participate in the
FSRP (i.e., participant’s age, income level, language spoken in the home,
gender, zip code, and prior methods used for issue resolution). |
Face-to-Face Interview |
Optional |
|
|
Refusal |
Collects
demographic data on taxpayers who refuse to participate in the FSRP and seeks
the reason(s) for not participating in the FSRP. |
Face-to-Face
Interview |
Optional |
|
Preparedness |
Determines
whether those taxpayers who are eligible and willing to participate in the
FSRP have the necessary materials and information with them to accomplish the
service task. |
Face-to-Face
Interview |
Required |
|
Exit |
Asks taxpayers to report their perceived success in
seeking service and their willingness to use IRS.gov for future service
tasks, including: §
Reason for visit. §
Whether the answer to the question was received/transaction was completed. §
Ease/usefulness of finding information. §
Plan to seek further assistance. §
Method for seeking further service. §
Past IRS resources used. §
Use of IRS.gov in the future. |
Online (for IRS.gov users); |
Optional |
Source: FSRP Research Report.[15]
Appendix V
Management’s Response to the Draft
Report
The response was removed
due to its size. To see the response,
please go to the Adobe PDF version of the report on the TIGTA Public Web Page.
[1] An IRS office with employees who answer questions, provide assistance, and resolve account-related issues for taxpayers face to face.
[2] The IRS public Internet site.
[3] Phase 1 of the FSRP was the data collection period of March 10 to April 15, 2008.
[4] The terms “terminal” and “workstation” are used interchangeably throughout the report.
[5] A geographic organizational level used by IRS business units and offices to help their specific types of taxpayers understand and comply with tax laws and issues.
[6] An IRS office with employees who answer questions, provide assistance, and resolve account-related issues for taxpayers face to face.
[7] Internal Revenue Service Oversight Board Taxpayer Customer Service and Channel Preference Survey, November 2006.
[8]
Facilitated Self-Assistance Research Project
Research Report, Project # 7-07-03-2-008N, Taxpayer
Needs, Preferences and Burden, W&I Planning, Research, and Analysis,
issued September 8, 2008. W&I = Wage
and Investment.
[9] A geographic organizational level used by IRS business units and offices to help their specific types of taxpayers understand and comply with tax laws and issues
[10] The period from January through mid-April when most individual income tax returns are filed.
[11] Memorandum for the President’s Management Council, dated January 20, 2006, “Guidance on Agency Survey and Statistical Information Collections.”
[12] Tax Forms and
Publications Were Generally Obtainable, but the Time Required to Acquire Forms
Could Be Reduced (Reference Number
2008-30-166, dated September 15, 2008).
[13] Pub. L. No. 103-62, 107 Stat. 285 (codified as
amended in scattered sections of 5 U.S.C., 31 U.S.C., and 39 U.S.C.).
[14] An IRS office with employees who answer questions, provide assistance, and resolve account-related issues for taxpayers face to face.
[15]
Facilitated Self-Assistance Research Project
Research Report, Project # 7-07-03-2-008N, Taxpayer
Needs, Preferences and Burden, W&I Planning, Research, and Analysis,
issued September 8, 2008. W&I = Wage
and Investment.