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Revising Tax Debt Identification Programming and Correcting Procedural Errors Could Improve the Tax Refund Offset Program

Report Information

Date Issued
Report Number
2016-40-028
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 Deputy Commissioner for Services and Enforcement should revise identification processes to include sole proprietor information from Form SS-4 to identify individual tax refunds to offset to business tax debt.

The Deputy Commissioner for Services and Enforcement should develop a systemic process to ensure that freezes are not erroneously reversed if an outstanding tax debt remains on an NMF account.

The Deputy Commissioner for Services and Enforcement should ensure that a manual freeze is input on a primary taxpayer's account when the secondary taxpayer's account has an outstanding tax debt.

The Commissioner, Wage and Investment Division, should develop a process to ensure that offset freezes are placed on all individual and business accounts when there is outstanding debt on the NMF tax account.

The Commissioner, Wage and Investment Division, should revise computer programming to ensure that credit elects are offset to any associated tax debt on the NMF.