PDF - Department of the Treasury

Reference
Number Issued
2005-30-048 March 2005
2005-30-052 March 2005
2005-30-053 March 2005
2005-10-070 March 2005
Projected
Completion
Date
10/15/05
10/15/05
10/15/05
10/15/05
10/15/05
10/15/05
01/15/06
01/15/06
01/15/06
01/15/06
01/15/06
01/15/06
04/15/06
Report Title and Recommendation Summary
(F = Finding Number, R = Recommendation Number,
P = Plan Number)
Stronger Sanctions Are Needed to Encourage Timely Filing of Pass Through
Returns and Ensure Fairness in the Tax System
F-1, R-3, P-1. Develop a legislative proposal to be submitted to the Department of the
Treasury that would amend Internal Revenue Code (I.R.C.) § 6698 to increase the
penalty for late-filed partnership returns from $50 per partner per month to $200 per
partner per month.
F-1, R-4, P-1. Develop a legislative proposal to be submitted to the Department of the
Treasury that would amend I.R.C. § 6698 to remove the five-month limitation on the
number of months of delinquency that the late-filing penalty is assessed on partnership
returns.
F-1, R-5, P-1. Develop a legislative proposal to be submitted to the Department of the
Treasury that would amend I.R.C. § 6698 to make all requirements of the law
applicable to S corporations as well as partnerships.
F-1, R-6, P-1. Develop a legislative proposal to be submitted to the Department of the
Treasury that would amend I.R.C. § 6721 to require the assessment of a $200 penalty
per Schedule K-1 for the failure to timely provide Schedules K-1 to the IRS when a
partnership or S corporation return is filed late.
F-1, R-7, P-1. Develop a legislative proposal to be submitted to the Department of the
Treasury that would amend I.R.C. § 6722 to require the assessment of a $200 penalty
per Schedule K-1 for the failure to timely provide Schedules K-1 to payees when a
partnership or S corporation return is filed more than seven days beyond the return due
date.
F-1, R-8, P-1. Conduct a study to determine whether fixed-dollar penalties set at a
$200 level in I.R.C. § 6698, 6721, and 6722 will be effective in ensuring future
compliance or whether other penalty types and/or higher amounts would be more
effective.
Procedures Regarding the Failure to Pay Tax Penalty Result in Inconsistent
Treatment of Taxpayers and Hundreds of Millions of Dollars in Lost Revenue
F-1, R-1, P-1. Request programming changes that would cause accrued Failure to Pay
(FTP) tax penalties to be assessed on a periodic basis.
F-1, R-2, P-1. Request clarifying legislation regarding the need for separate notices to
be issued to taxpayers each time FTP tax penalties are assessed and interest is charged
on the penalties.
F-1, R-3, P-1. Ensure that notices containing FTP tax penalty assessments include
information informing taxpayers that interest is being charged on the FTP tax penalties
until they are fully paid.
Opportunities Exist to Improve the Effectiveness and Efficiency of the Automated
6020(b) Program
F-1, R-1, P-1. Replace the computer system supporting the Automated 6020(b)
Program.
F-2, R-1, P-1. Raise the dollar level of the risk-based criteria for stand-alone Taxpayer
Delinquency Investigation (TDI) cases as a means of increasing the workload coming
into the Automated 6020(b) Program with cases that would otherwise remain
unworked in the Queue.
F-2, R-2, P-1. Modify the programming to add TDIs involving excise tax returns to the
Automated 6020(b) Program.
The Human Resources Investment Fund is Not a Cost-Effective Method of
Providing Tuition Assistance
F-2, R-1, P-1. Consider eliminating the Human Resources Investment Fund (HRIF)
Program and provide tuition assistance through alternative means such as the
Individual Development Plan process and the Career Transition Assistance Program.
52 April 1, 2005 to September 30, 2005