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GAO-22-105632 1 (2022-06-06)

handle is hein.gao/gaonev0001 and id is 1 raw text is: G A    O xU.S. GOVERNMENT ACCOUNTABILITY OFFICE
441 G St. N.W.                                                   Comptroller General
Washington, DC 20548                                              of the United States
June 6, 2022
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 an update on the overall status of the Internal Revenue
Service's (IRS) implementation of GAO's recommendations and to call your personal attention
to areas where open recommendations should be given high priority.1
In November 2021, we reported that on a government-wide basis, 76 percent of our
recommendations made 4 years ago were implemented.2 IRS's recommendation
implementation rate was 88 percent. As of May 2022, IRS had 268 open recommendations.
Fully implementing these open recommendations could significantly improve IRS's operations.
Since our June 2021 letter, IRS has implemented four of our 25 open priority recommendations.
Specifically, IRS implemented
 three June 2014 recommendations for the correspondence audit program, better linking
performance measures to program-specific objectives and agency-wide goals;3 and
 our July 2018 recommendation by completing an extended evaluation to quantify the
potential costs and benefits of expanding the Return Review Program, IRS's primary
pre-refund system for detecting and preventing the issuance of invalid refunds.4
In addition, we closed one priority recommendation from February 2020 as implemented
because Congress took action that addressed it by requiring third-party reporting for
1Priority open recommendations are those that GAO believes warrant priority attention from heads of key
departments or agencies. They are highlighted because, upon implementation, they may significantly improve
government operations, for example, by realizing large dollar savings; eliminating mismanagement, fraud, and abuse;
or making progress toward addressing a high-risk or fragmentation, overlap, or duplication issue.
2GAO, Performance and Accountability Report: Fiscal Year 2021, GAO-22-4SP (Washington, D.C.: Nov. 15, 2021).
3GAO, IRS Correspondence Audits: Better Management Could Improve Tax Compliance and Reduce Taxpayer
Burden, GAO-14-479 (Washington, D.C.: Jun. 5, 2014).
4GAO, Tax Fraud and Noncompliance: IRS Could Further Leverage the Return Review Program to Strengthen Tax
Enforcement, GAO-18-544 (Washington, D.C.: Jul. 24, 2018).

GAO-22-105632

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