How does the IRS ensure that your taxes are accurate? The IRS gets information from employers, banks, and other third-parties about your income and other factors that can affect your tax bill. Mismatches between this information and what you report on your taxes can indicate errors or potential fraud. The IRS processes billions of third-party information returns. But the system isn't managed strat...

Our oversight of the federal COVID-19 response continues. Findings include: In our national survey, states and territories were concerned about ongoing shortages of some testing-related and other medical supplies (e.g., nitrile gloves) As vaccines and therapeutics are approved for use, more transparency around FDA's scientific reviews of safety and effectiveness is needed to strengthen public con...

Even before COVID-19, the federal government's long-term fiscal path was unsustainable because debt was growing faster than the economy. By the end of FY 2019, debt held by the public had climbed to 79% of GDP. It is expected to reach 195% of GDP by FY 2050. We testified that the federal government does not have a long-term fiscal plan to control the growing debt. Such a plan could benefit from fi...

Nonprofit community hospitals can be tax-exempt if they: Provide community benefits, e.g., run an emergency room that is open to all, regardless of ability to payMeet legal requirements in the Patient Protection and Affordable Care Act, e.g., set billing and collection limits While the IRS can easily verify whether the legal requirements are met, it is harder to verify community benefits because t...

Tax-exempt organizations often provide charitable services or membership benefits—and they generally don’t pay federal income taxes. However, they do file an annual return to report their tax-exempt activities. In 2016, IRS started using analytical models as part of an approach to use data to select which of these returns to review for compliance with tax-exempt laws. The models score each re...

This report provides an update on the federal government’s fiscal condition at the end of FY 2019 and the unsustainable path it is on if policies don’t change. Among its findings: Publicly held debt rose to 79% of GDP. The Congressional Budget Office and this new report both project it will continue to grow Interest on the debt is the fastest growing item in the budget; it is projected to b...

According to IRS, the Tax Cuts and Jobs Act of 2017 was the most sweeping tax law change in over 3 decades—with 86 provisions that modified, added to, or repealed business and international taxes. IRS prioritized and implemented key provisions of the act and provided taxpayer guidance. But there are challenges to fully implementing the act. For example, tax return data related to some of the n...

When taxpayers overstate how much they've donated to charities on their tax forms, it improperly reduces their tax bills. In some cases, the charity is complicit, while in others, it is being exploited. IRS’s different offices may find evidence of abusive schemes involving charities and other tax-exempt organizations in their audits. Yet IRS doesn’t consistently analyze data from its offices...

According to IRS estimates, taxpayers collectively pay about 82% of the taxes they owe. This difference between what taxpayers owe and what they pay voluntarily and on time is known as the tax gap, which IRS estimated averaged $458 billion a year for 2008-2010. We testified that key factors contributing to the gap include tax code complexity and declining IRS budgets. We also testified about mult...

The Improper Payments Information Act of 2002, as amended (IPIA), defines “significant” improper payments as improper payments in the preceding fiscal year that may have exceeded either (1) 1.5 percent of program outlays and $10 million or (2) $100 million (regardless of the improper payment rate). GAO found that the Departments of Health and Human Services (HHS), the Treasury (Treasury), Just...

According to IRS estimates, taxpayers collectively pay a bit more than 80% of the taxes they owe. This difference between the taxes people and businesses owe and what they pay on time is known as the tax gap, which IRS estimated to be $458 billion, on average, for 2008-2010. IRS used to set specific, numeric goals for improving taxpayer compliance, but has moved away from that approach. Officials...

The Comptroller General testified before Congress about the government’s unsustainable fiscal outlook, the need for a long-term plan to address growing debt, and other aspects of the nation's fiscal health. For example, public debt as a share of the economy is projected to top its record level within 13 to 20 years. Its continued growth is unsustainable. A plan to put the government on a sustai...

Businesses are responsible for paying taxes and must report their tax debts if they want federal contracts. Agencies are supposed to consider these debts before awarding contracts. However, we reviewed the Departments of Energy, Health and Human Services, and Veterans Affairs, as well as the Army and Navy, and found that they may have inappropriately awarded more than 1,800 contracts to businesse...

This report provides an update on the nation's fiscal health as of the end of FY 2018, and describes its likely fiscal future if policies don’t change. Among its findings: The federal government’s current fiscal path is unsustainable The federal deficit increased to $779 billion—and will reach $1 trillion in the next few years for the first time since 2012 Publicly held debt was 78% of G...

Every 2 years, we report on federal programs/operations that are vulnerable to waste, fraud, abuse, and mismanagement, or that need broad reform—our High Risk List. Our 2019 report reviews the status of areas on the list and outlines steps to lasting solutions. We testified in front of the Senate that the ratings for over half the 35 areas on our list remain unchanged. Since our last update, 7...

Every 2 years, we report on federal programs/operations that are vulnerable to waste, fraud, abuse, and mismanagement, or that need broad reform—our High Risk List. Our 2019 report reviews the status of areas on the list and outlines steps to lasting solutions. We testified in front of the House that the ratings for over half the 35 areas on our list remain unchanged. Since our last update, 7 a...

Every 2 years, we report on federal programs and operations that are vulnerable to waste, fraud, abuse, and mismanagement, or that need broad reform—our High Risk List. Our 2019 report reviews the status of areas on the list and outlines steps to lasting solutions. The ratings for over half of the 35 areas on our list remain unchanged. Since our last update, 7 areas improved and 3 regressed. We...

This report provides an update on the nation's fiscal health as of the end of fiscal year 2017, and describes its likely fiscal future if policies don’t change. Among its findings: The federal government’s current fiscal path is unsustainable. Publicly held debt was 76 percent of GDP at the end of fiscal year 2017 and it will surpass its historical high of 106 percent within 14 to 22 years. ...

In fiscal year 2016 GAO’s work resulted in a return of $112 for every dollar invested in GAO, generating over $63 billion in financial benefits to the federal government. Implementation of GAO’s recommendations led to 1,234 program and operational improvements across the federal government including many important contributions to enacted budget, appropriations and authorization legislation. G...

The Comptroller General testified before Congress about the federal government's unsustainable long-term fiscal outlook—the growing imbalance between revenues (money collected) and spending (driven by health care, Social Security, and net interest on the debt). A plan is needed to put the nation on a sustainable long-term fiscal path. But in the near-term, Congress and executive branch agencies...

The IRS uses its National Research Program to study tax compliance issues. The program recently completed a study on employment tax returns filed between 2008 and 2010, but the IRS has not made plans to analyze the results of this study. We looked at the study results and found that noncompliance in reporting taxable wages most frequently involved how workers were classified (and whether employer...