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DTIC ADA145146: IRS (Internal Revenue Service) Generally Does a Good Job When Abating Civil Penalties--and Has Made Recent Improvements.

The Internal Revenue Service (IRS) is authorized to abate (cancel or reduce) civil penalties that it has imposed on taxpayers when (a) the penalties have been incorrectly assessed or (b) the taxpayer provides a valid explanation for underpaying taxes or failing to file required tax information. GAO's review of the penalty abatement process showed that although IRS is doing a good job in this area, performance could be improved. GAO proposed that IRS provide clearer guidance for its employees to use when considering abatement requests made by taxpayers who claim they have a 'reasonable cause' for failing to pay enough taxes or file required tax information. GAO also proposed that IRS implement procedures for reviewing the abatement process as well as provide its employees with additional training. iRS agreed with and implemented GAO's proposals. GAO is therefore making no recommendations in this report. (Author)

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