United States Government Publishing Office publisher pbl distributor dst United States Government Accountability Office author aut Government Organization text government publication eng GAOREPORTS Legislative Agency Publications gao legislative 2010-08-12 U.S. Government Printing Office 2005-03-10 monographic deposited born digital 15 p. GA 1.13:GAO-05-319R https://www.govinfo.gov/app/details/GAOREPORTS-GAO-05-319R P0b002ee18038d7b3 f:d05319r DGPO 2010-08-12 2011-03-24 GAOREPORTS-GAO-05-319R machine generated eng fdlp REPORT GAOREPORTS-GAO-05-319R GAO-05-319R Data integrity Electronic government Internal controls Policy evaluation Tax administration Tax information confidentiality Tax returns Taxpayers Policies and procedures Correspondence A19116 This report responds to a Congressional request that, in conjunction with our audit of the Internal Revenue Service's (IRS) fiscal year 2004 financial statements, we review the agency's procedures for handling and processing receipts and taxpayer information at the Brookhaven service center campus. As a result of the increased percentage of taxpayers filing returns electronically, IRS designed a detailed business plan to reduce the number of service center campuses that process paper returns. In fiscal year 2004, Brookhaven became the first service center campus to downsize its submission processing function, leading to changes in its operations and a significant reduction in the volume of taxpayer receipts and information processed. Congress requested this review in light of these significant changes in operations and IRS's desire to benefit from the Brookhaven experience in planning for future submission processing rampdowns. Specifically, we were asked to (1) review the policies and procedures IRS developed to safeguard and process taxpayer receipts and information at the modified Brookhaven operation and (2) offer recommendations, if any, for improving internal controls at Brookhaven and at other submission processing centers that will undergo future rampdowns. To accommodate the request, we agreed to add a review of the mail control function at the Brookhaven service center campus to our tests of internal controls conducted as part of our audit of IRS's fiscal year 2004 financial statements. We have performed extensive work in reviewing internal controls designed to safeguard taxpayer receipts and information as part of our annual financial audits of IRS. In performing this work, we have come to recognize the significance and importance of the submission processing function to IRS and the potential for loss, theft, or misuse of taxpayer receipts and information if controls are not properly designed and effectively implemented. Our audits have identified weaknesses in internal controls over the safeguarding of taxpayer receipts and information related to submission processing activities at IRS's service center campuses, lockbox banks, and field offices. In reviewing the Brookhaven rampdown procedures, we considered the internal control weaknesses previously found at other service center campuses. https://www.govinfo.gov/content/pkg/GAOREPORTS-GAO-05-319R/html/GAOREPORTS-GAO-05-319R.htm https://www.govinfo.gov/content/pkg/GAOREPORTS-GAO-05-319R/pdf/GAOREPORTS-GAO-05-319R.pdf GAO-05-319R https://www.govinfo.gov/app/details/GAOREPORTS-GAO-05-319R Correspondence GAO-05-319R; Management Report: Review of Controls over Safeguarding Taxpayer Receipts and Information at the Brookhaven Service Center Campus; Data integrity Electronic government Internal controls Policy evaluation Tax administration Tax information confidentiality Tax returns Taxpayers Policies and procedures Volume 112 Page 685 112 Stat. 685 Public Law 105-206