Where To Report Waste

Fraud, Abuse, Or Retaliation

Actions Are Needed to Improve the Completeness, Development, and Review of IRS Tax Gap Estimates

Submitting OIG:

Treasury Inspector General for Tax Administration

Date Issued:

Thursday, March 23, 2023

Agency Reviewed / Investigated:

Internal Revenue Service

Submitting OIG-Specific Report Number:

2023-10-016

Location(s):

Agency-Wide

Type of Report:

Audit

Questioned Costs:

$0

Funds for Better Use:

$0

Number of Recommendations:

6

View Document:

Attachment	Size
202310016fr.pdf	3.21 MB

Related Open Recommendations

Recommendation Number	Recommendation Status	Significant Recommendation	Additional Details
1	Open	No
Coordinate with IRS business operating divisions to create and implement a formalized strategy to identify, prioritize, and develop estimates for areas of noncompliance that are not currently addressed in the Tax Gap estimates.
2	Open	No
Improve the transparency of the Tax Gap estimates in future revisions of the Tax Gap report by including an enhanced discussion of the limitations of the Tax Gap estimates, including the types of taxpayer noncompliance that are not included in the estimates and those types that may not be fully captured.
3	Open	No
The Chief Data and Analytics Officer, RAAS, should develop consolidated, written policies and procedures for developing the Tax Gap to help ensure repeatability, timeliness, quality, and continuity of the Tax Gap estimates and improve oversight.
4	Open	No
Develop written policies and processes to formalize the internal and external reviews of the Tax Gap estimates.
5	Open	No
Reestablish an advisory group to review any updates to the Tax Gap methodology that would significantly affect the estimates.
6	Open	No
Develop a formal process for documenting the advisory group’s feedback on the Tax Gap estimates, including making a high-level summary of its feedback available to the public.