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Continued Efforts Are Needed to Address Billions of Dollars in Reporting and Payment Discrepancies Relating to Tax Withheld From Foreign Persons

Report Information

Date Issued
Report Number
2020-40-021
Report Type
Audit
Joint Report
Yes
Participating OIG
Treasury Inspector General for Tax Administration
Agency Wide
Yes (agency-wide)
Questioned Costs
$0
Funds for Better Use
$0
View Report

Recommendations

The Commissioner, Large Business and International Division, should review the 19 withholding agents and 232 financial institutions TIGTA identified that did not comply with the Form 1042-S e-filing requirement and take the actions needed to address their noncompliance, including assessing failure to file penalties when appropriate.
Recommendation rejected by IRS

The Commissioner, Large Business and International Division, should establish processes to perfect ****2***** 1042-S to ensure that the forms contain a valid UFI, i.e., a UFI is present and is in the valid format, before the forms are input into IRS systems.
Recommendation rejected by IRS