TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRATION
Office of Audit
THE OFFICE OF DISCLOSURE CONTINUED TO
IMPROVE COMPLIANCE WITH THE FREEDOM OF INFORMATION ACT REQUIREMENTS
Issued on August 29, 2008
Highlights
Highlights of Report
Number: 2008-30-164 to the Internal
Revenue Service Commissioner for the Small
Business/Self-Employed Division.
IMPACT ON TAXPAYERS
The Internal Revenue Service (IRS)
must ensure that the provisions of the Freedom of Information Act (FOIA), the
Privacy Act of 1974, and Internal Revenue Code Section (I.R.C. §) 6103 are
followed, particularly because errors can violate taxpayer rights and result in
improper disclosures of tax information.
TIGTA reviewed a statistically valid sample of 82 FOIA/Privacy Act cases
and found 3 (3.7 percent) cases in which taxpayer rights might have been
violated because the IRS improperly withheld information requested by the taxpayers. When projected to the population, the sample
results indicate that 207 taxpayers might have been improperly denied
information under the FOIA and/or the Privacy Act in Fiscal Year 2007. The IRS adhered to legal requirements under I.R.C. § 6103 in
the sample of 84 cases TIGTA reviewed.
WHY TIGTA DID THE AUDIT
The
overall objective of this review was to determine whether the IRS has adequate
and effective policies and procedures to ensure compliance with FOIA provisions.
TIGTA
is required to conduct periodic audits to determine if the IRS properly denied
taxpayers’ written requests for tax account information and to include the
results of these audits in one of its Semiannual Reports to Congress. This is our ninth review of denials of FOIA,
Privacy Act, and I.R.C. § 6103 requests.
WHAT TIGTA FOUND
The
IRS continued to improve the accuracy, timeliness, and completeness of its
responses to requests for information covered by the FOIA. For example, the percentage of untimely
responses to FOIA/Privacy Act requests continued to decrease. In the previous 8 years’ audits, the
percentages of untimely responses ranged from a high of 43.5 percent to a low
of 2.3 percent. In addition, TIGTA noted
no exceptions in the 84 I.R.C. § 6103 cases reviewed. This is a marked improvement over our results
from last year, when information was improperly withheld in 14.5 percent of the
cases reviewed.
The
improved performance can be attributed in large part to the policies,
procedures, and techniques (management controls) in place to help ensure that disclosure
personnel handle requests under the FOIA in a timely manner and in accordance
with laws and regulations. While improvement
was noted, management’s continued attention is needed to ensure that disclosure
personnel follow required procedures. In
3.7 percent (3 of 82 cases) of the FOIA/Privacy Act cases reviewed, information
was improperly withheld from requestors.
These errors occurred mainly because of inadequate research or simple
oversight by disclosure personnel.
WHAT TIGTA RECOMMENDED
TIGTA
made no recommendations during this audit because, in our opinion, management
controls are operating as intended in providing reasonable assurance that FOIA provisions
are followed and that accurate and timely responses are forwarded to taxpayers
when written requests for tax account information are received. IRS management
reviewed this report prior to issuance and agreed with the facts, findings, and
outcome measures presented.
READ THE
FULL REPORT
To view the report,
including the scope and methodology, go to:
Email Address: inquiries@tigta.treas.gov
Phone Number: 202-622-6500
Web Site:
http://www.tigta.gov