IRS Programs That Resolve Billions of Dollars in Unidentified Taxpayer Payments Need to Be Improved and Modernized

Date Issued

Thursday, May 21, 2026

Submitting OIG

Treasury Inspector General for Tax Administration

Agencies Reviewed/Investigated

Internal Revenue Service

Report Number

2026-400-024

Report Type

Audit

Agency Wide

Yes

Number of Recommendations

Questioned Costs

Funds for Better Use

Report updated under NDAA 5274

Open Recommendations

This report has 3 open recommendations.

Recommendation Number	Significant Recommendation	Recommended Questioned Costs	Recommended Funds for Better Use
1	No	$0	$0
The Chief, Taxpayer Services, should develop an electronic case management system and associated internal controls to collectively manage unidentified payments, hardcore payment tracer referrals, and other inventory streams, across the IRS’s Accounting Operations.
2	No	$0	$0
The Chief, Taxpayer Services, should until an electronic case management system is established, develop an interim process to track hardcore payment tracer referrals.
3	No	$0	$0
The Chief, Taxpayer Services, should establish evaluative metrics for unidentified payments and hardcore payment tracer referrals that will help assess the efficiency and effectiveness of these programs. This should include, but not be limited to, establishing evaluative metrics associated with receipts, rejections, closures, and timeliness, nationwide and for each Tax Processing Center.