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GGD-79-59 1 (1979-08-15)

handle is hein.gao/gaobaazqy0001 and id is 1 raw text is: 
                                                             ,/, // -


REPORT BY THE


Comptroller General


OF THE UNITED STATES
     RESTRICTED             ho- ' Pie rislewto outs,1 ne I uoeme
     Aecounting Cf,-,. .    e   t b .   of speelt approval
     by the Office of cua;:rossiealal Relations  z--      .

IRS' Audits of Individual Taxpayers

And Its Audit Quality Control System

Need To Be Better



At the request of the Joint Committee on Taxation, GAO
evaluated the quality of I RS audits of individual taxpayers.
GAO determined that the quality of these audits needs to be
improved. Also, I RS' system for identifying and correcting
less than quality audits is not as effective as it should be. The
quality control system, in fact, led IRS to believe that quality
was not in need of improvement.

Among the results of GAO's analysis of 490 randomly
sampled IRS audits that had passed through IRS' quality
control system in 5 selected districts were the following:

     --These districts assessed incorrect tax estimated to total
     $1.0 million over a 4-month period because of techni-
     cal errors, computation errors, or failure to make auto-
     matic adjustments.

     --IRS personnel too frequently overlooked important
     audit issues. Since those issues were not audited, GAO
     lacked the data needed to compute the related tax
     impact.
 IRS has taken some actions to improve audit quality and its
 quality control system, and is planning others. GAO made a
 number of recommendations that IRS should include in
 those plans.








             't                           K.                           GG D-79-59
                   ir~-.     ~         ThAUGUST 15, 1979

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