Voluntary Compliance: Income Tax Filing, Payment and Reporting
“Ensuring fairness by measuring taxpayer compliance”
NPR Compliance Measurement
Prepare for a Paperless Society
The Burden of Data Collection shifts from Taxpayers to the IRS.
Warehouses of paper have been exchanged with
streamlined electronic data collection methods, dramatically improving error rates. The IRS admits a 12% error rate processing paper
returns. Incredibly, 28-32 people touch a paper-filed return before processing is complete.
The electronic data is designed to lessen pesky IRS letters and intrusion into taxpayers’ lives. The Internal Data Analysis
means no IRS contact to the compliant taxpayer.
An NRP sample of 49,000 taxpayers (many of whom never knew that they were chosen) were examined to fine-tune these issues and to set guideline regulations.
Note that cross-data will analyze:
Average income of your neighborhood
Possession of required business’ licenses
The IRS is applying the Sample Test Results to:
Fairness to all
Reducing burden of compliant taxpayers
More effectively manage its compliance programs
Design pre-filing activities that help taxpayers comply with the tax law.
The IRS National Research Program
Sophisticated data compilation became a reality in 2003. The program is designed to measure non-taxpayers.
The intricate web-based public data has been inter-linked to provide the IRS with all public records about each taxpayer. This information superhighway
is to be used only on a “need-to-know” basis. Concerns have been voiced.
Referred to as the NRP, the National Research Program objectives are to:
Update workload selection formulas
Provide IRS Operating Divisions with results they will own and use to develop customer-focused programs.
Improve IRS’ ability to detect non-compliance and develop appropriate, cost-effective treatments for prevention and early intervention.
The good news is that this information will save an estimated 15,000 taxpayers the trauma of an audit. It is projected that the NRP Guiding Principles
Minimize taxpayer burden as data is collected.
Solicit external “stakeholder ideas and support” – ACTUAL TAXPAYERS – in the design of the program. The purpose is to minimize tax burden.
Involve the Business Operation Divisions as partners in the design and implementation of the program and as customers of the results.
What Business Entity Are You? – Oh, the difference it makes!
Everything’s Electronic – Update on IRS E-submissions programs
Tax Practice Rules, Client Privilege & Disclosure
What do we really know about the state of compliance with the U.S. tax laws? The Webcast, IRS Compliance Research Programs, takes a look at
how the IRS analyzes filing data, results of enforcement programs and the impact of education and assistance to figure out the best mix of
efforts to elevate compliance.
To find out more, view previous Webcasts, or register as a new viewer.