GAO reports on IRS efforts to enhance tax compliance

The Government Accountability Office (GAO) recently reported that the IRS can improve its use of information returns to enhance tax compliance. The IRS received more than five billion such returns in 2022, including Form W-2, Form 1099-NEC, Form 1099-INT and Form 1099-K. It uses these forms to verify self-reported income and tax on taxpayers’ returns. A key problem identified by the GAO is that the IRS “lacks centralized leadership to make strategic decisions related to the use of information returns across the agency.” Another potential problem is that the new Form 1099-K reporting threshold “may exacerbate taxpayer confusion,” the report said. Read the GAO report: https://bit.ly/3TSRaH7