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The number of taxpayer accounts and dollar values shown in the following chart were derived from
analyses of historical data, and are thus considered potential barometers of the impact of audit
recommendations. Actual results will vary depending on the timing and extent of management’s
implementation of the corresponding corrective actions, and the number of accounts or subsequent
business activities impacted from the dates of implementation. Also, a report may have issues that
impact more than one outcome measure category.
.
Outcome Measure Category
Reports With Additional Quantifiable Impact On Tax Administration
Number of
Reports 1
Number of
Taxpayer Accounts
Dollar Value
(in thousands)
Other 6
Taxpayer Rights and Entitlements at Risk 8 2,318,624 $270,608
Reduction of Burden on Taxpayers 5 149,334
7
8
1
Increased Revenue 7 0 $71,347,729 2
Revenue Protection 3 520 $10,380
Taxpayer Privacy and Security 1 93
Inefficient Use of Resources 3 0 $9,942 3
Protection of Resources 3 0 $6,773 4 9
Reliability of Management Information 9 437 $521,947 5 10
See Appendix II for identification of audit reports involved.
2
In one report (Reference No. 2005-30-073), IRS management did not agree that the reported benefit could be realized since backup withholding
is already collected on cases meeting the criteria. In a second report (Reference No. 2005-30-080), IRS management did not concur with the
reported benefit since it did not agree with the cause cited by TIGTA nor did it agree with the specific report recommendations. In a third report
(Report No. 2005-40-106), IRS management believes that because of an incorrect assumption made by TIGTA, the reported benefit should be
revised from $8.5 million to $676,000. In a fourth report (Report No. 2005-30-101), IRS management did not agree with the calculation of the
reported outcome measure. In a fifth report (Report No. 2005-10-125), IRS management did not agree with the reported benefit because it
believes that most of the penalties could be waived or abated due to the existing general reasonable cause standard. In a sixth report (Report
No. 2005-30-142), IRS management stated that it could not measure the future value of the potential benefit. In a seventh report (Report No.
2005-30-139), IRS management did not agree that $10.8 million in revenue would be lost due to the lack of documentation to support penalty
abatements.
3
In one report (Reference No. 2005-30-049), IRS management believes that it achieved the benefits represented by the amount paid to the vendor.
In a second report (Reference No. 2005-40-106), IRS management did not agree with the reported benefit because it was based on a
recommendation to expand a current IRS compliance project.
4
In one report (Reference No. 2005-40-148), IRS management disagreed that the deviations from required security procedures, which affected
payments totaling $5.7 million, is a valid representation because no taxpayer was adversely affected and the deviations did not impact the timely
and accurate processing of the payment. In a second report (Reference No. 2005-10-163), IRS management stated that it located all but four of
the 111 missing pocket commissions noted in the report. Further, it believes, based upon available documentation and statements from its
personnel that it is very likely that all unissued and inactive commissions were destroyed.
5
In one report (Reference No. 2005-20-074), management disagreed that stakeholders should not rely upon the business case data and also did
not agree that dollar cost savings could result from TIGTA's findings. In a second report (Report No. 2005-10-159), IRS management did not
agree that the reported benefit would be realized by using exponential smoothing to forecast the return on additional investments in enforcement.
6
Some reports contained other quantifiable impacts besides the number of taxpayer accounts and dollar value. These outcome measures are
described in the footnote, below.
7 Other measures of taxpayer rights and entitlements consist of 22,604 Notices of Federal Tax Lien in which taxpayers rights could be affected
(Reference No. 2005-30-095).
8
Other measures of taxpayer burden consist of two publications that did not adequately address a revision to the Additional Child Tax Credit
requirement (Reference No. 2005-40-094). IRS does not believe the omitted information would cause military personnel to claim less than the
total credit to which they are rightfully entitled.
9
Other measures of protection of resources consist of 111 missing pocket commissions (Reference No. 2005-10-163).
10
Other measures of reliability of management information consist of 19 Internal Revenue Manual Sections with prohibited references to Illegal Tax
Protestor designations (Reference No. 2005-40-104), an accuracy rate involving taxpayer requests for information that was overstated by
6.13 percent (Reference No. 2005-10-166), and a total of 279 investigative equipment items not controlled or inaccurately shown on the Criminal
Investigation Equipment Control System (Reference No. 2005-10-163).
April 1, 2005 to September 30, 2005 41