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 <extent>68 p.</extent>
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<classification authority="sudocs">GA 1.13:GGD-95-6</classification>
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 <reportNumber>GGD-95-6</reportNumber>
 <subject>Tax administration</subject>
 <subject>Federal taxes</subject>
 <subject>Federal forms</subject>
 <subject>Taxpayers</subject>
 <subject>Computerized information systems</subject>
 <subject>Systems conversions</subject>
 <subject>Information dissemination operations</subject>
 <subject>Computer software</subject>
 <subject>Systems analysis</subject>
 <identifier>IRS Tax System Modernization Program</identifier>
 <identifier>TSM</identifier>
 <identifier>IRS Correspondex Expert System</identifier>
 <identifier>IRS Business Master Plan</identifier>
 <identifier>IRS Business Master File</identifier>
 <identifier>IRS Individual Master File</identifier>
 <identifier>IRS Integrated Data Retrieval System</identifier>
 <identifier>IRS Tele-Tax System</identifier>
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<titleInfo>
 <title>Tax Administration: IRS Notices Can Be Improved</title>
</titleInfo>
<abstract>Each year, the Internal Revenue Service (IRS) sends millions of notices
to taxpayers about the status of their tax accounts. Notices are often
the first form of IRS contact that taxpayers receive to alert them to a
potential tax problem.  In 1993, IRS sent more than 60 million notices
affecting about $190 billion in taxpayer transactions.  GAO identified
clarity problems with 31 of the 47 most commonly used notices it
received.  GAO also believes that taxpayers with multiple tax problems
would be better served by receiving a single, comprehensive notice
summarizing the status of their accounts, rather than the stream of
multiple notices that IRS now sends out.  Through a tax systems
modernization initiative that is exploring ways to issue a single notice
addressing multiple tax matters, IRS hopes to be able to deliver
comprehensive tax account notices to taxpayers. Despite IRS&apos; progress
and commitment to improving clarity, in some cases taxpayers continued
to receive notices that IRS&apos; Notice Clarity Unit (NCU) deemed
problematic.  Although NCU may have reviewed the notice and recommended
text changes, IRS continued to issue the inferior version, since the
revisions were not made promptly.  Many of the recommended changes were
delayed or never made because of IRS&apos; computer system, which is
antiquated and requires labor-intensive programming to make the simplest
of text changes.  Improvements may result from the transfer of notices
to Correspondex, a more modern computer system that generates other IRS
correspondence.</abstract>
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<identifier type="preferred citation">GAO/GGD-95-6</identifier>
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<note>Letter Report</note>
<extension>
 <searchTitle>GAO/GGD-95-6; Tax Administration: IRS Notices Can Be Improved;
            </searchTitle>
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<subject>
 <topic>Tax administration</topic>
 <topic>Federal taxes</topic>
 <topic>Federal forms</topic>
 <topic>Taxpayers</topic>
 <topic>Computerized information systems</topic>
 <topic>Systems conversions</topic>
 <topic>Information dissemination operations</topic>
 <topic>Computer software</topic>
 <topic>Systems analysis</topic>
 <topic>IRS Tax System Modernization Program</topic>
 <topic>TSM</topic>
 <topic>IRS Correspondex Expert System</topic>
 <topic>IRS Business Master Plan</topic>
 <topic>IRS Business Master File</topic>
 <topic>IRS Individual Master File</topic>
 <topic>IRS Integrated Data Retrieval System</topic>
 <topic>IRS Tele-Tax System</topic>
</subject>
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