In accordance with 31 U.S.C. section 720, I am writing you concerning actions by the Internal Revenue Service in response to the recommendations contained in a report by the General Accounting Office entitled "Tax Research: IRS Has Made Progress But Major Challenges Remain" (GGD-96-109; June 5, 1996). The GAO report contains several recommendations geared to addressing the IRS' new compliance research approach. Initiated under GAO's basic legislative authority, GAO's objectives were to (1) review the many lessons the IRS has learned from past compliance efforts in identifying factors most critical to the success of its new compliance research approach; and (2) analyze the current status of the new approach and its ability to incorporate these factors. In their report, GAO made four recommendations relative to the compliance research process currently being implemented in the District Offices of Research and Analysis (DORAs). Through development of the Compliance Research Information System (CRIS) business case, which includes implementation of the DORAs and the building of the research infrastructure, three of the four recommendations have already been accomplished. Those recommendations are to: develop an approach for monitoring the effectiveness of mechanisms established to build support for the new approach as well as for the staffsharing and training efforts that are underway and, if necessary, make modifications; set a schedule for completing CRIS, monitor its progress, and take the The Honorable Ted Stevens -2 establish milestones and monitoring mechanisms for (1) completing the The final recommendation was to devise a method to better ensure that reliable compliance data will be available when needed for the research effort, given the indefinite postponement of the Taxpayer Compliance Measurement Program (TCMP). We are currently taking a number of steps to develop new compliance measures and to validate and/or enhance the TCMP process. First, we are hiring an outside contractor to evaluate IRS data needs and the capabilities of the historical TCMP process to meet those needs. We also expect the contractor to recommend enhancements to the TCMP and to suggest alternatives. In addition, there are a number of projects currently underway in the Compliance Research Division and in the DORAs to develop compliance measures to supplement or to replace those normally obtained through the TCMP process. As stated in our response to GAO, these efforts, for the most part, were in progress prior to the completion of the audit. The report itself also makes many references to these efforts. If you have any questions, please do not hesitate to contact me or Floyd Williams, National Director for Legislative Affairs, at 622-3720. Sincerely, こ Ό Dr. Moder David A. Mader Acting Commissioner Enclosure |