HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.
![handle is hein.gao/gaobaabvi0001 and id is 1 raw text is:
DOCUMENT RESUHF
00293 - [A1051903)
Extending the Tax Assessrent Period: Why, How Often, and What
Improvom#gn+.q Can He Made. GGD-76-108, 0-137762. March 28, 1977.
35 pp. + a pendices (i pp.).
Report to Rep. Al Ullman, Chairman, Joint Committee on Taxation;
Sen. Russell B. Long, Vice Chairman; by Elmer B. Staats,
Comptrcllar Genere'.
Issue hrea: Tax Administration (200).
Contact: General Government Div.
Budget Function: General Government; Other General Government
(806).
Organization Concerned: Department of the Treasury; Internal
Revenue Service.
congressional Rele-ance: House Committee on Ways and Means;
Senate Committee on Finance; Joint Committee on Taxation.
Authority: Revenue Act of 1934. Internal Revenue Code of 1954.
A statute of limitations restricts the Internal Revenue
Service's (IRS) audit and assessment authority to 3 ye.ars after
a tax return is due or filed, whichever comes later. If more
time is needed to resolve a tax examination satisfactorily, the
statute period can be extended by written agreement (waiver)
between IRS and the taxpayer. Findings/CDnclusicns: Waivers
were requested in about two percent of tk.e many audits conducted
by the Atlanta, San Francisco, and Seattle IRS district offices
during 9 mcnths selected between Octrber 1974 and October 1975.
The reasons given for requesti-:] a waiver do not alway explain
the urderlying cause ior not resolving the examination in time.
The taxpayer has three options on a waiver--agree to waiver,
propose conditions to waiver, or refuse waiver--but he quite
often is not informed of alternatives. About 20 percent of
interviewed taxpayers who agreed to a waiver irdicated that they
would have made other decisions had they known the choices;
about 24 percent felt pressured into agreein. The number of
waivers could be reduced by amending IRS policies and
procedures. IRS could enhance its public image by r-questing
fewer waivers and providing ore complete and consistent
information when requests are made. Recommendations: Taxpayers
should be provided with complete and consistent explanations of
their rights and options concerning aivers. Taxpayers should be
permitted greater leeway in proposing waiver conditions and
their conditions should be ore readily accepted. Prioritv
handling techniques should be applied for cases nearing
expiration of the statutory period. A waiver request should >e
made only after priozity processing results indicate the need
for more time. The use of open-ended waivers should be expanded.
A statement should be added to IRS request tore for fixed-period
waivers noting that the period will end on the agreed upon date
or after assessment, whichever comes first. (Author/SS)](ViewImageLocal?handle=hein.gao/gaobaabvi0001&div=1&collection=&method=preview&ext=.png&size=3)