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'IRS Needs to Better Manage the Collection Notices Sent to Individuals'

November 02, 2009

The GAO says the IRS doesn't do a very good job of issuing collection notices and following up on them:

We found that collection officials lacked information to know what the notice-phase business rules are and how the rules operate. In some cases, the officials either did not know or misunderstood these key business rules. For example, in a meeting with us, IRS executives and managers cited three different amounts for the dollar threshold of the low dollar rule, which determines which notices are sent and whether further collection action will be deferred or the debt will potentially be offset by levying a state refund.

It's hard enough for the IRS to do the one task it should be doing: collecting taxes. It's crazy to also assign it tasks like assuring energy efficiency, monitoring research and development, and, heaven forbid, managing the nation's health care.