U.S. flag

An official website of the United States government

Dot gov

Official websites use .gov
A .gov website belongs to an official government organization in the United States.

Https

Secure .gov websites use HTTPS
A lock () or https:// means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.

Breadcrumb

Improvements Are Needed to Ensure Tax Accounts on the Automated Non-Master File Are Accurately Processed

Report Information

Date Issued
Report Number
2017-40-037
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

Recommendations

The Commissioner, Wage and Investment Division, should correct ANMF programming to compute and assess the Failure to File penalty on Form 1040NR, U.S. Nonresident Alien Income Tax Return, accounts in which the Taxpayer Identification Number is an Employer Identification Number.

The Commissioner, Wage and Investment Division, should Correct ANMF programming to use the correct date when computing the Failure to Pay penalty. In addition, programming should be corrected to ensure that the proper penalty rate is used to compute the penalty amount.

The Commissioner, Wage and Investment Division, should Review the 85 accounts TIGTA identified in which the Failure to File penalty and the 380 accounts in which the Failure to Pay penalty were not correctly assessed to ensure that the correct penalty amounts are assessed on all accounts in which the Collection Statute Expiration Date (CSED) remains open.

The Commissioner, Wage and Investment Division, should establish processes to ensure that employees properly research ANMF accounts to identify whether the taxpayer has other balance due ANMF accounts to which credits can be transferred prior to refunding them to taxpayers.

The Commissioner, Wage and Investment Division, should establish processes to ensure that payments are correctly applied to overflow ANMF accounts in situations in which the taxpayer has balance due accounts on both the ANMF and the Master File.