Treasury Inspector General for Tax Administration
November 13, 2013
TIGTA - 2013-42
Contact: David Barnes
WASHINGTON -- A plan to increase international tax compliance efforts at the Internal Revenue Service (IRS) is improving individual tax compliance, according to a report released publicly today by the Treasury Inspector General for Tax Administration (TIGTA).
The IRS developed a strategic plan to address international tax compliance, including the creation of the International Campus Compliance Unit (CCU). The IRS expects the CCU to enhance efforts to expand audit coverage of tax returns with international aspects and to increase compliance among international individual taxpayers.
TIGTA reviewed the IRS’s efforts to establish the CCU to determine whether the benefits envisioned in improving international individual tax compliance are being achieved.
TIGTA found that the IRS successfully planned the CCU and followed general Government guidelines and steps for implementing a new business process during the planning. The IRS is still developing inventory selection criteria for the CCU. However, for Fiscal Years 2011 through 2013 (through March 13, 2013), the CCU conducted almost 18,000 audits and assessed approximately $36 million in additional tax.
“This program appears to be a step in the right direction,” said J. Russell George, Treasury Inspector General for Tax Administration. “As globalization expands, so do concerns about the International Tax Gap – that is, taxes owed but not collected on time from a U.S. person or foreign person whose cross-border transactions are subject to U.S. taxation.”
George noted that more needs to be done, adding that despite the CCU’s early accomplishments, it does not have specific performance measures for its operations. “Ideally, an agency should have measures for all its major processes to track costs, quality, and timeliness,” he said.
TIGTA recommended that the IRS enhance the performance measures for the CCU to more specifically reflect the work performed by CCU examiners. The IRS agreed with this recommendation and plans to evaluate the current performance measures and CCU inventory results to determine how to enhance the performance measures specific to work performed by CCU examiners. The IRS plans to use these performance measures to establish effective performance goals and measure the CCU’s success in achieving them.
Read the report.
Note: The difference between the date TIGTA issues an audit report to the Internal Revenue Service and the date TIGTA publicly releases the report is due to TIGTA's internal review process to ensure that public release is in compliance with Federal confidentiality laws.
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