Audit Reports - FY2012 - No Script

SEP 2012 | AUG 2012 | JUL 2012 | JUN 2012 | MAY 2012 | APR 2012
MAR 2012 | FEB 2012 | JAN 2012 | DEC 2011 | NOV 2011 | OCT 2011

September 2012

Report NumberReport Details and Links
201220114Treasury Inspector General for Tax Administration - Federal Information Security Management Act Report for Fiscal Year 2012
Audit Highlights: PDF | HTML

201220115Using SmartID Cards to Access Computer Systems Is Taking Longer Than Expected
Audit Highlights: PDF | HTML

201220120Annual Assessment of the Internal Revenue Service Information Technology Program
Audit Highlights: PDF | HTML

201220122Customer Account Data Engine 2 (CADE 2): System Requirements and Testing Processes Need Improvements
Audit Highlights: PDF | HTML

201220121Despite Steps Taken to Increase Electronic Returns, Unresolved Modernized e-File System Risks Will Delay the Retirement of the Legacy e-File System and Implementation of Business Forms
Audit Highlights: PDF | HTML

201220109The Customer Account Data Engine 2 Database Was Initialized; However, Database and Security Risks Remain, and Initial Timeframes to Provide Data to Three Downstream Systems May Not Be Met
Audit Highlights: PDF | HTML

201240119The Majority of Individual Tax Returns Were Processed Timely, but Not All Tax Credits Were Processed Correctly During the 2012 Filing Season
Audit Highlights: PDF | HTML

201240118Processes for the Direct Deposit of Tax Refunds Need Improvement to Increase Accuracy and Minimize Fraud
Audit Highlights: PDF | HTML

201220112An Enterprise Approach Is Needed to Address the Security Risk of Unpatched Computers
Audit Highlights: PDF | HTML

201220107The Information Technology Organization Needs to Implement a Competency Database to Efficiently Manage Its Workforce
Audit Highlights: PDF | HTML

201220099Audit Trails Did Not Comply With Standards or Fully Support Investigations of Unauthorized Disclosure of Taxpayer Data
Audit Highlights: PDF | HTML

201240113Penalty Abatement Procedures Should Be Applied Consistently to All Taxpayers and Should Encourage Voluntary Compliance
Audit Highlights: PDF | HTML

201211101Deficiencies Continue to Exist in Verifying Contractor Labor Charges Prior to Payment
Audit Highlights: PDF | HTML

201240116While Use of the Modernized e-File System for Individual Tax Returns Has Increased, the Legacy e-File System Is Still Needed as a Backup
Audit Highlights: PDF | HTML

201240111Delays in Processing Net Operating Loss Cases Resulted in Millions of Dollars in Unnecessary Interest Payments
Audit Highlights: PDF | HTML

201230110Collection Field Function Procedures Were Not Always Followed When Assessing Taxes on Businesses That Have Not Filed Tax Returns
Audit Highlights: PDF | HTML

201240108Control Weaknesses Could Allow Taxpayers' Delinquent Accounts to Be Inappropriately Closed As Currently Not Collectible
Audit Highlights: PDF | HTML

201240106The Process for Individuals to Report Suspected Tax Law Violations Is Not Efficient or Effective
Audit Highlights: PDF | HTML

201230097Actions Are Needed to Ensure Audit Results Post Timely and Accurately to Taxpayer Accounts
Audit Highlights: PDF | HTML

201240105Expansion of Controls Over Refundable Credits Could Help Reduce the Billions of Dollars of Improperly Paid Claims
Audit Highlights: PDF | HTML

201230104Criminal Investigation's Firearms Training and Qualification Policies Need to Be Clarified
Audit Highlights: PDF | HTML

201230094A Concerted Effort Should Be Taken to Improve Federal Government Agency Tax Compliance
Audit Highlights: PDF | HTML

201230102Fiscal Year 2012 Statutory Audit of Compliance With Notifying Taxpayers of Their Rights When Requested to Extend the Assessment Statute
Audit Highlights: PDF | HTML

201230089Fiscal Year 2012 Statutory Review of Restrictions on Directly Contacting Taxpayers
Audit Highlights: PDF | HTML

August 2012

Report NumberReport Details and Links
201210100Significant Additional Real Estate Cost Savings Can Be Achieved by Implementing a Telework Workstation Sharing Strategy
Audit Highlights: PDF | HTML

201230098Fiscal Year 2012 Statutory Review of Compliance With the Freedom of Information Act
Audit Highlights: PDF | HTML

201230096Procedures for Withdrawals and Releases of Notices of Federal Tax Lien Were Not Always Followed
Audit Highlights: PDF | HTML

201230095Fiscal Year 2012 Statutory Review of Compliance With Legal Guidelines When Issuing Levies
Audit Highlights: PDF | HTML

201230093Improved Toll-Free Telephone Services Should Make It Easier for Taxpayers to Obtain Assistance During a Correspondence Audit
Audit Highlights: PDF | HTML

201230092Business Taxpayers Were Effectively Transitioned to Electronic Payments;However, They Were Not Always Timely Contacted When Payments Were Missed
Audit Highlights: PDF | HTML

201220086The End-User Equipment and Services Organization Successfully Planned Its Reorganization; However, Program Measures and Efficiencies Can Be Improved
Audit Highlights: PDF | HTML

201230090Fiscal Year 2012 Statutory Audit of Compliance With Legal Guidelines Restricting the Use of Records of Tax Enforcement Results
Audit Highlights: PDF | HTML

201210091The Onboarding Process Has Improved, but Additional Steps Should Be Taken to Ensure Employees Have the Tools, Resources, and Knowledge to Be Successful and Productive
Audit Highlights: PDF | HTML

201210087Statistical Portrayal of the Tax Exempt Bonds Office's Enforcement Activities From Fiscal Year 2005 Through Fiscal Year 2010
Audit Highlights: PDF | HTML

July 2012

Report NumberReport Details and Links
201240088Ensuring the Quality Review Process Is Consistently Followed Remains a Problem for the Volunteer Program
Audit Highlights: PDF | HTML

201230083The Collection Function Develops Quality Fraud Referrals but Can Improve the Identification and Development of Additional Fraud Cases
Audit Highlights: PDF | HTML

201210077Office of Appeals Errors in the Handling of Collection Due Process Cases Continue to Exist
Audit Highlights: PDF | HTML

201210075An Independent Risk Assessment of Facility Physical Security Was Not Performed in Compliance With Contract Requirements
Audit Highlights: PDF | HTML

201240085The Internal Revenue Service Is Making Progress Toward Implementing Daily Processing of Individual Tax Returns
Audit Highlights: PDF | HTML

201210076The Full Costs of Work Performed on Reimbursable Agreements Are Not Always Charged, Resulting in Reduced Funds Available for Tax Administration
Audit Highlights: PDF | HTML

201230084Fiscal Year 2012 Statutory Review of Disclosure of Collection Activity With Respect to Joint Returns
Audit Highlights: PDF | HTML

201210069The Remediation Plan Still Does Not Contain All the Necessary Actions to Address the Unpaid Assessments Material Weakness
Audit Highlights: PDF | HTML

201242080There Are Billions of Dollars in Undetected Tax Refund Fraud Resulting From Identity Theft
Audit Highlights: PDF | HTML

201242081Substantial Changes Are Needed to the Individual Taxpayer Identification Number Program to Detect Fraudulent Applications
Audit Highlights: PDF | HTML

201210074Accounting for the Austin Incident
Audit Highlights: PDF | HTML

201240073Better Information Is Needed to Assess Ongoing Efforts to Expand Self-Assistance and Virtual Services to Taxpayers
Audit Highlights: PDF | HTML

June 2012

Report NumberReport Details and Links
201230072Fiscal Year 2012 Review of Compliance With Legal Guidelines When Conducting Seizures of Taxpayers' Property
Audit Highlights: PDF | HTML

201230068Implementation of the Return Preparer Visitation Project Was Successful, but Improvements Are Needed to Increase Its Effectiveness
Audit Highlights: PDF | HTML

201240071Insufficient E-Services Controls May Put Taxpayer Information at Risk
Audit Highlights: PDF | HTML

201213070Affordable Care Act: While Much Has Been Accomplished, the Extent of Additional Controls Needed to Implement Tax-Exempt Hospital Provisions Is Uncertain
Audit Highlights: PDF | HTML

201230062The Recommended Adjustments From S Corporation Audits Are Substantial, but the Number of No-Change Audits Is a Concern
Audit Highlights: PDF | HTML

201230066Fiscal Year 2012 Statutory Audit of Compliance With Legal Guidelines Prohibiting the Use of Illegal Tax Protester and Similar Designations
Audit Highlights: PDF | HTML

201230060Despite Some Favorable Partnership Audit Trends, the Number of No-Change Audits Is a Concern
Audit Highlights: PDF | HTML

201243064Affordable Care Act: Planning Efforts for the Tax Provisions of the Patient Protection and Affordable Care Act Appear Adequate; However, the Resource Estimation Process Needs Improvement
Audit Highlights: PDF | HTML

201240065Processes to Address Erroneous Adoption Credits Result in Increased Taxpayer Burden and Credits Allowed to Nonqualifying Individuals
Audit Highlights: PDF | HTML

201210052The Taxpayer Advocate Service's ASK-TAS1 Toll-Free Line Has Evolved Over Time, but Additional Steps Are Necessary to Evaluate Its Impact
Audit Highlights: PDF | HTML

201210058Implementing Better Management Controls Would Improve the Exempt Organizations Function's Ability to Properly Oversee and Timely Process Referrals
Audit Highlights: PDF | HTML

May 2012

Report NumberReport Details and Links
201230057Problems Persist When Processing Undelivered Lien Notices and Notifying Taxpayers' Representatives
Audit Highlights: PDF | HTML

201220051Customer Account Data Engine 2 Performance and Capacity Is Sufficient, but Actions Are Needed to Improve Testing
Audit Highlights: PDF | HTML

201210055Oversight of Nonbank Trustees Has Improved, but Resources Expended on the Program Should Be Reevaluated
Audit Highlights: PDF | HTML

201210046The Exempt Organizations Function Should Take Action to Limit the Disclosure of Social Security Numbers on Publicly Available Tax-Exempt Returns


201240050Most Taxpayers Whose Identities Have Been Stolen to Commit Refund Fraud Do Not Receive Quality Customer Service
Audit Highlights: PDF | HTML

201220041Disaster Recovery Testing Is Being Adequately Performed, but Problem Reporting and Tracking Can Be Improved
Audit Highlights: PDF | HTML

April 2012

Report NumberReport Details and Links
201230045Improved Oversight Is Needed to Effectively Process Whistleblower Claims
Audit Highlights: PDF | HTML

201240049Additional Steps Are Needed to Ensure the Volunteer Income Tax Assistance Grant Program Reaches More Underserved Taxpayers
Audit Highlights: PDF | HTML

201210040Opportunities Exist to Reduce Lockbox Fingerprinting Costs
Audit Highlights: PDF | HTML

201210043Future Improvements Could Further Increase the Benefits of the Tuition Assistance Program
Audit Highlights: PDF | HTML

201210044No Fair Tax Collection Practices Violations Were Closed in Fiscal Year 2011
Audit Highlights: PDF | HTML

March 2012

Report NumberReport Details and Links
201230033Increasing Requests for Offers in Compromise Have Created Inventory Backlogs and Delayed Responses to Taxpayers
Audit Highlights: PDF | HTML

201240036Interim Results of the 2012 Filing Season
Audit Highlights: PDF | HTML

201210031Citibank Purchase Card and Fleet Card Rebates Were Maximized and Are Now Properly Allocated
Audit Highlights: PDF | HTML

201210027Appropriate Actions Were Taken to Identify Thousands of Organizations Whose Tax-Exempt Status Had Been Automatically Revoked, but Improvements Are Needed
Audit Highlights: PDF | HTML

201220029Virtual Server Technology Has Been Successfully Implemented, but Additional Actions Are Needed to Further Reduce the Number of Servers and Increase Savings
Audit Highlights: PDF | HTML

201230030Actions Can Be Taken to Reinforce the Importance of Recognizing and Investigating Fraud Indicators During Field Audits
Audit Highlights: PDF | HTML

201230026Designated Payment Codes Are Inaccurate and Ineffective
Audit Highlights: PDF | HTML

201220019The Computer Security Incident Response Center Is Effectively Performing Most of Its Responsibilities, but Further Improvements Are Needed
Audit Highlights: PDF | HTML

201240028The Internal Revenue Service Is Not in Compliance With All Improper Payments Elimination and Recovery Act Requirements
Audit Highlights: PDF | HTML

February 2012

Report NumberReport Details and Links
201240021The Volunteer Program Management Information System Has Improved, but Better Controls Are Needed to Ensure Data Reliability
Audit Highlights: PDF | HTML

201230020Improvements Are Needed to Ensure the Business Master File Case Creation Nonfiler Identification Process Is Working Effectively
Audit Highlights: PDF | HTML

201240015Procedures Need to Be Updated to Ensure Proper Determinations of Tax Relief for Taxpayers Affected by Disasters
Audit Highlights: PDF | HTML

201241013The Internal Revenue Service Disallowed Erroneous First-Time Homebuyer Credits Totaling $1.6 Billion; However, Its Examination Resources Could Have Been Used More Effectively
Audit Highlights: PDF | HTML

201230014Criminal Investigation Can Take Steps to Strengthen Oversight of Its Undercover Operations
Audit Highlights: PDF | HTML

January 2012

Report NumberReport Details and Links
201210018Independent Attestation Review of the Internal Revenue Service's Fiscal Year 2011 Annual Accounting of Drug Control Funds and Related Performance
Audit Highlights: PDF | HTML

201230011Opportunities Exist to Identify More Taxpayers Who Underreport Retirement Income
Audit Highlights: PDF | HTML

201230012Procedures Are Needed to Improve the Accounting and Monitoring of Restitution Payments to Prevent Erroneous Refunds
Audit Highlights: PDF | HTML

201240001Analysis of Internal Revenue Service Employees' Use of Tax Preparation Assistance


December 2011

Report NumberReport Details and Links
201213009Affordable Care Act: The Office of Appeals Planning Efforts for the Health Care Reform Legislation
Audit Highlights: PDF | HTML

201240010More Tax Return Preparers Are Filing Electronically, but Better Controls Are Needed to Ensure All Are Complying With the New Preparer Regulations
Audit Highlights: PDF | HTML

201240008Eliminating the Automatic Mailing of Tax Packages Achieved Significant Savings, Although Some Taxpayers Were Burdened
Audit Highlights: PDF | HTML

November 2011

Report NumberReport Details and Links
201230007Revenue Officers Took Appropriate Levy Actions but Face Challenges and Delays Bringing Taxpayers Into Compliance
Audit Highlights: PDF | HTML

201210006Internal Revenue Service Diversity Demographics Compare Favorably With Other Federal Agencies' Senior Executive Service Ranks
Audit Highlights: PDF | HTML