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The Internal Revenue Service is Underutilizing Form 1099-K Data to Identify Tax Returns for Audit

Report Information

Date Issued
Report Number
2017-30-083
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 Director, Examination, Small Business/Self-Employed Division, should consider implementing compliance projects to test the use of Form 1099-K data to identify certain types of tax returns for audit.

The Director, Examination, Small Business/Self-Employed Division, should identify and address the reasons tax returns with large discrepancies between income reported on tax returns and the amounts reported on Form 1099 K were not selected for audit or other treatment.