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Taxpayer First Act: The IRS Implemented the Information Returns Intake System, Although Users Experienced Some Slight Processing Delays During Peak Processing

Report Information

Date Issued
Report Number
2025-405-013
Report Type
Audit
Special Emphasis
Taxpayer First Act (TFA)
Joint Report
No
Agency Wide
Yes (agency-wide)
Questioned Costs
$0
Funds for Better Use
$0
View Report

Recommendations

In August 2024, we notified the Director, Examination Case Selection, Small Business/Self-Employed Division, of our concern that the business rule that performed a validity check on the gross proceeds amount reported on Form 1099-S, Proceeds From Real Estate Transactions, was not working as intended. Our analysis identified 13 of 20 records erroneously rejected or were identified as errors by IRIS. We recommended that the IRS request programming changes to prevent Forms 1099-S from being rejected or incorrectly identified as errors.

In April, 2024, we notified the Director, Submission Processing, Taxpayer Services, of our concerns with the missing and inconsistent criteria used by IRIS to process paper-filed Forms 1099. We recommended that the IRS request programming changes, if needed, to ensure that IRIS business rules are using the same criteria as the legacy ERS.