Case Selection Processes Result in Billions of Dollars in Potential Employer Underreported Tax Not Being Addressed

The Commissioner, Small Business/Self-Employed Division, should evaluate the current agreement and workload processes with the SSA, as required, and ensure that the IRS is expending resources to work the most productive SSA-CAWR cases.

The Commissioner, Small Business/Self-Employed Division should revise the case selection process to include auto-generated cases with the highest potential tax assessment and expand discrepancy case selection to include cases currently excluded from the systemic selection process.

The Commissioner, Small Business/Self-Employed Division, should: Coordinate with the Information Technology organization to review open Unified Work Requests to ensure prioritization for those enhancements, i.e., correct creation of discrepancy cases involving ****2**** and the use of ******2******, that will have the greatest impact on tax administration.

The Commissioner, Small Business/Self-Employed Division, should take actions necessary to implement the proposed upgrade to modify the CAP system to include prior year discrepancy cases when current year discrepancy cases are selected for the same employer.

The Commissioner, Small Business/Self-Employed Division, should establish a systemic process to match data fields to perfect unpostable Forms W-3.