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GGD-81-20 1 (1980-10-16)

handle is hein.gao/gaobabbda0001 and id is 1 raw text is: 




BY THE COMPTROLLER GENERAL



Report To The Congress


OF THE UNITED STATES





New Formula Needed To Calculate

Interest Rate On Unpaid Taxes





Deficiencies in the formula used to calculate
interest assessments on delinquent taxes de-
prived the Government of about $286 million
in fiscal year 1979.

At present, the formula is adjusted every 2
years based on changes in the prime interest
rate. As a result, the formula rates do not re-
flect, except by chance, the costs the Govern-
ment actually incurs in connection with de-
linquent taxes--the costs of its own borrowings
and credit administration. The problem is
compounded by the practice of only making
biennial adjustments in a period of rapidly and
sharply shifting interest rates.














            °2i


                                                                GGD-81-20
                                                           OCTOBER 16,1980

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