Tax Administration: IRS Can Do More to Collect Taxes Labelled "Currently
Not Collectible" (Chapter Report, 10/08/93, GAO/GGD-94-2).

Hundreds of millions of dollars in increased taxes may be collected from
delinquent accounts that the Internal Revenue Service (IRS) has deemed
"currently not collectible" (CNC); some taxpayers who reported incomes
of more than $70,000 have never paid a dime toward their tax debts.  At
the end of fiscal year 1992, IRS' inventory of individual and business
delinquent accounts totaled more than $130 billion, about 40 percent of
this classified as CNC.  Yet GAO found that CNC determinations were
sometimes based on inadequate work, were questionable given available
information, or did not fully provide for future collection potential.
For example, IRS did not give its employees specific guidance with which
to make CNC determinations, and IRS reviews were not spotting and
correcting problems with CNC determinations.

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  GGD-94-2
     TITLE:  Tax Administration: IRS Can Do More to Collect Taxes 
             Labelled "Currently Not Collectible"
      DATE:  10/08/93
   SUBJECT:  Accounts receivable
             Tax nonpayment
             Personal income taxes
             Debt collection
             Delinquent taxes
             Internal controls
             Collection procedures
             Government collections
             Tax administration systems
             Tax return audits
IDENTIFIER:  IRS Automated Collection System
             IRS Collection Quality Measurement System
             IRS Tax System Modernization Program
             TSM
             
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