The Treasury Inspector General for Tax Administration (TIGTA) performed an audit of the IRS’ employment tax examination processes, and concluded in its February 13, 2023 report that improvements are necessary. Specifically, the classification process (classifying which tax returns will be examined), documentation procedures, and their tracking system needs further development.
Employment taxes make up 19% of the total gross tax gap. Therefore, improving the function of the Specialty Employment Tax Examination division can greatly increase compliance and collection potential.
To read the full report, click here.
