United States Government Publishing Office publisher pbl distributor dst United States Government Accountability Office General Government Division author aut Government Organization text government publication eng GAOREPORTS Legislative Agency Publications gao legislative 2010-08-12 U.S. Government Printing Office 1995-09-18 monographic deposited born digital 29 p. GA 1.13:GGD-95-160 https://www.govinfo.gov/app/details/GAOREPORTS-GGD-95-160 P0b002ee180378370 f:gg95160 DGPO 2010-08-12 2011-03-28 GAOREPORTS-GGD-95-160 machine generated eng fdlp REPORT GAOREPORTS-GGD-95-160 GGD-95-160 Tax administration systems Tax nonpayment Noncompliance Reporting requirements Taxpayers Tax returns Management information systems Personal income taxes Social security number IRS Tax System Modernization Program IRS Business Master File TSM Letter Report GGD Pursuant to a congressional request, GAO reviewed whether the Internal Revenue Service (IRS): (1) accurately cross references the two identification numbers that self-employed individuals report on their tax returns; and (2) needs to take any actions to improve the accuracy of its cross-reference files.<p/>GAO found that IRS: (1) uses information from different computer files to identify sole proprietors that may have tax compliance problems; (2) requires certain taxpayers to have a valid social security number (SSN) and employer identification number (EIN) so that it can cross-reference the taxpayers' accounts from one file to another; and (3) records a sole proprietor's identification numbers on three computer files and uses the SSN to establish an account on the Individual Master File. In addition, GAO found that: (1) the identification numbers that IRS records for cross-referencing purposes are not always reliable and cause IRS to generate false underreporter leads; (2) the IRS computerized screening process limits the number of false underreporter leads created by the Cross-Reference Entity File; and (3) if IRS and the Social Security Administration eliminate sole proprietors' EIN, they will have to modify their computer programs to accept SSN instead of EIN. https://www.govinfo.gov/content/pkg/GAOREPORTS-GGD-95-160/html/GAOREPORTS-GGD-95-160.htm https://www.govinfo.gov/content/pkg/GAOREPORTS-GGD-95-160/pdf/GAOREPORTS-GGD-95-160.pdf GAO/GGD-95-160 https://www.govinfo.gov/app/details/GAOREPORTS-GGD-95-160 Letter Report GAO/GGD-95-160; Tax Administration: Sole Proprietor Identification Numbers Can Be Improved; Tax administration systems Tax nonpayment Noncompliance Reporting requirements Taxpayers Tax returns Management information systems Personal income taxes Social security number IRS Tax System Modernization Program IRS Business Master File TSM