A recent Government Accountability Office (GAO) report criticizes some of the IRS’s handling of W-2 forms, 1099s and other information returns (IRs). The IRS uses IRs to verify taxpayers’ income and uncover fraud and noncompliance. The GAO report affirms that IRs are critical to ensuring correct tax payments. But it states that the IRS lacks the centralized leadership needed to make strategic decisions about them. The GAO recommends that the IRS: 1) develop a plan that systematically evaluates IRs; 2) determine ways to expand third-party information reporting; and 3) arrive at a threshold for payment information reporting. For more information: https://bit.ly/3MNpvmz
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