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GAO-20-548PR 1 (2020-04-23)

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c AO U.S. GOVERNMENT ACCOUNTABILITY OFFICE
441 G St. N.W.                                                            Comptroller General
Washington, DC 20548                                                      of the United States



April 23, 2020


The Honorable Charles P. Rettig
Commissioner
Internal Revenue Service

Priority Open Recommendations: Internal Revenue Service

Dear Mr. Rettig:

The purpose of this letter is to provide you with the overall status of the Internal Revenue
Service's (IRS) implementation of our recommendations and to call your personal attention to
critical open recommendations that we believe should be given high priority.1

In November 2019, we reported that on a government-wide basis, 77 percent of our
recommendations made 4 years ago were implemented.2 IRS's recommendation
implementation rate was 83 percent. As of April 2020, IRS had 244 open recommendations. As
operations return to normal from the COVID-19 (coronavirus) pandemic, fully implementing
these open recommendations could significantly improve IRS's operations.

IRS has made progress implementing a number of priority recommendations. Since our April
2019 letter, IRS has implemented six of our 23 open priority recommendations. Specifically, IRS
has:

    *  increased the frequency with which incoming W-2 information is made available for pre
       refund verification to expand the agency's efforts to systematically verify wage
       information reported on tax returns and avoid issuing invalid refunds;
    *  assessed the additional benefits that the digitization of paper returns can have on the
       Return Review Program's (RRP) enhanced enforcement capabilities;
    *  estimated the resources required for the foundational initiatives and supporting activities
       in its Identity Assurance Strategy and Roadmap;
    *  established a process to provide the Centers for Medicare & Medicaid Services with
       information to verify taxpayers' compliance with applicable tax filing requirements and to
       notify nonfilers of the tax filing requirement to receive an advance Premium Tax Credit to
       help cover the premiums for their health insurance purchased through the Health
       Insurance Marketplace;3 and


1Priority recommendations are those that we believe warrant priority attention from heads of key departments or
agencies. They are highlighted because, upon implementation, they may significantly improve government operation,
for example, by realizing large dollar savings; eliminating mismanagement, fraud, and abuse; or making progress
toward addressing a high-risk or duplication issue.
2GAO, Performance and Accountability Report.- Fiscal Year 2019, GAO-20-1 SP (Washington, D.C.: Nov. 19, 2019).
3To help pay the cost of insurance premiums for taxpayers and their dependents, the Patient Protection and
Affordable Care Act provides a premium tax credit (PTC) to individuals who meet certain income and other


GAO-20-548PR IRS Priority Recommendations


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