United States Government Accountability Office GAO November 2004 Report to the Secretary of the Treasury _part4 ppt

Management Discussion and Analysis
Page 48 GAO-05-103 IRS’s Fiscal Years 2004 and 2003 Financial Statements




INTERNAL REVENUE SERVICE
Management Discussion and Analysis
For the Fiscal Year Ended September 30, 2004
34
Rate of Filing Compliance
The rate of filing compliance is the percentage of individual returns that are filed timely for
a given tax year. This rate for individual taxpayers is computed by dividing the estimated
number of returns filed on time for a given tax year by the estimated number of all returns
required to be filed.
Taxpayer Delinquent Investigations (TDI)
x Automated Collection System (ACS) Closures - TDI
Description
: The measure reflects the number of ACS TDI taxpayer dispositions minus any
TDI taxpayer cases systemically removed from inventory after being in the non-active
inventory for approximately one year.
x Field Collection - Number of Cases Closed - TDI
Description
: The number of Taxpayer Delinquency Investigation (TDI) investigations that
moved to immediate resolution status or delayed resolution status/no results status
excluding surveyed investigations. Includes all TDIs regardless of whether or not they are
associated with an open Tax Delinquent Account.
FY 2004 Performance: ACS closures - TDI: Target Achieved
. TDI performance results show
improvement over last year. There is an increase in notices sent to potential non-filers, who
subsequently provided returns shortly after cases moved to ACS status.

Several factors contributed to improved performance, including:
x Reengineering efficiencies that elevated employment tax cases with delinquencies less
than a year old to the highest priority
x A programming anomaly that resulted in unscheduled case creation
x Automatic closure of 17,000 cases to Correspondence Exam
x Improvements to the automated 6020(b) substitute for return program
Field Collection closures - TDI Target Achieved.
The TDI closure rate is more than 25 percent
above the Plan. A large portion of the high-priority cases are employment tax delinquencies
and IRS is working them more efficiently at an earlier stage. By intervening in the pattern of
delinquency earlier, delinquencies are smaller in scale and can be resolved more quickly.
Taxpayer Delinquent Investigations
Plan Actual
152,153 197,499
Field Collection - Cases Closed
TDI
119,451 140,737 150,190
198,155 295,010
FY 2001 FY 2002
ACS Closures – TDI
297,791 190,411 197,517
FY 2003
FY 2004
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