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Diane Publishing Books
Tax Refunds: IRS Is Exploring Verification Improvements, but Needs to Better Manage Risks
James R. White (au)
For tax year 2011, the Internal Revenue Service (IRS) matched over 140 million individual income tax returns against the 1.6 billion information returns it received from third parties such as employers. Generally, this match does not occur until well after refunds are issued. In early 2011 the then IRS Commissioner outlined a vision for aa ńˇýReal Time TaxńˇŁ system -- a strategy to improve verification by matching third party information to income tax returns before refunds are issued, and IRS began exploring options for Real Time Tax later that year. This report reviews IRSńˇ╗s strategy for exploring Real Time Tax. It (1) describes when IRS receives and matches individual tax and information returns; and (2) assesses the extent to which IRS is following leading practices for managing an exploratory effort of this importance. Tables and figures. This is a print on demand report.
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