WASHINGTON - The Internal Revenue Service (IRS) does not yet have sufficient data to determine if Facilitated Self-Assistance and Virtual Services are an effective and efficient means of providing customer service to taxpayers.

This is the finding of a new audit report released today by the Treasury Inspector General for Tax Administration (TIGTA).

Each year, millions of taxpayers turn to the IRS for help in preparing their tax returns. The IRS is testing strategic initiatives to examine the feasibility of Facilitated Self-Assistance and video conferencing technology as alternative service delivery options for taxpayers who seek traditional face-to-face contacts at Taxpayer Assistance Centers and Volunteer sites.

TIGTA conducted this audit to determine the effectiveness of the IRS's efforts to expand taxpayer assistance using such technologies.

TIGTA found that the IRS has not yet established goals and measures for its initiatives to gauge their success, including data to determine if any or all are cost effective. In addition, TIGTA had difficulty contacting or locating Volunteer Program sites that offered Facilitated Self-Assistance or Virtual Services.

"Taxpayers have different preferences and service requirements," said J. Russell George, Treasury Inspector General for Tax Administration. "The IRS's challenge is to meet taxpayer needs and determine how to provide the best services with its limited resources," he added.

TIGTA recommended that the IRS:

• develop sufficient measures (including a customer satisfaction survey) and goals for the Facilitated Self-Assistance initiative;
• develop goals and measures for the Virtual Services initiative in the Volunteer Program sites to ensure it is meeting expectations (after establishing a baseline);
• emphasize to employees and volunteers the need to consistently offer taxpayers the options of using Facilitated Self-Assistance when available; and
• accurately publicize these alternative service options on IRS.gov.

IRS management agreed with three of the four recommendations and plans to take actions to improve its efforts to expand and monitor taxpayer assistance using self-assistance and virtual technology service options.