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GGD-85-11 1 (1985-04-19)

handle is hein.gao/gaobabezy0001 and id is 1 raw text is: 







BY TH U.S.              NERAL ACCOUNT NO OFFICE


Report To The Commissioner Of

Internal Revenue









Administrative Changes Could

Strengthen IRS' Claims For Rewards

Program


According to the Internal Revenue Service, billions of
dollars in taxes are lost each year due to unreported
and underreported legal and illegal income. IRS has
various programs for detecting such noncompliance
with the tax laws, and its Claims for Rewards Program
has proven to be useful in this regard. Under the
program, citizens can collect from $25 to $100,000
for providing information leading to the collection of
delinquent taxes. Between fiscal years 1975 and
1984, IRS was able to recover about $16.4 million
annually through the program and paid rewards of
about $456,000 annually.

GAO believes that, while the program has been useful
and effective, it could be more so with some admin-
istrative improvements and makes several recom-
mendations to this end. IRS agreed with those GAO
recommendations designed to minimize processing
times, assure that rewards are paid promptly and
accurately, and improve IRS instructions to potential
program participants on the kinds of information IRS
needs to initiate and develop program cases.








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                                                                 GAO/GGD-85-11
    loeoU 'Srl                                                   APRIL 19, 1985