Report: 20 years later, IRS still bungling back taxes


An audit of the Internal Revenue Service concluded there is a serious problem with its financial reporting software which has persisted for two decades, according to a new Government Accountability Office (GAO) report.

Since at least the mid-1990s, the tax agency's software has been unable to attribute taxes received to the accounts of specific taxpayers who owed back taxes. Instead the IRS has employed a labor intensive statistical estimation process to track $9 billion in adjustments during Fiscal Year 2015, the report states.

"Basically, due to limitations in IRS's financial systems and errors in taxpayer accounts, IRS's systems cannot break down total unpaid tax assessments into its component parts (taxes receivable, compliant assessments, write-offs)," GAO Financial Management and Assurance Director Cheryl Clark told the Washington Examiner.

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