Open Recommendations

We recommend that the TSA Administrator use the results of the Requirements and Capabilities Analysis office’s updated CBP OneTM risk assessment to develop and implement policy and procedural changes needed to mitigate risks

We recommend the Secretary direct the Office of Strategy, Policy, and Plans to ensure the timely development and updates of Department and component strategic guidance.

We recommend the Under Secretary for Strategy, Policy, and Plans:• conduct an inventory of all required Department and component strategic guidance documents and mandated updates; and• implement and track the updates to all strategic guidance documents, and ensure they remain current.

Develop policies and procedures to ensure GL grant expenditures are reconciled with supporting documentation to reflect accurate reporting of financial information on the SF 270.

Work with ARC to resolve the reporting discrepancies of non-ARC matching cost share expenditures to reflect the total cost incurred of $117,326.

The Commissioner, SB/SE Division, should collaborate with the IRS Office of Chief Counsel to develop guidance for the applicability and computation of the failure to file penalty for delinquent Forms 5329.

The Commissioner, SB/SE Division, should coordinate with the Commissioner, Taxpayer Services, to *********** ********************************************************************

The Commissioner, SB/SE Division, should determine the appropriate compliance treatment for the 54 taxpayers who did not report the early retirement distributions as income on their tax returns and consider future compliance treatments for similarly situated taxpayers.

Begin appropriate enforcement actions, starting with notice issuance, on the population of nonfilers with gambling winnings for TYs 2018 through 2020, prioritizing high-income nonfilers, including the top 100 nonfiler cases identified by TIGTA.

Review the population of nonfilers with gambling winnings for TYs 2018 through 2020 that were not identified by the IMF CCNIP and begin appropriate enforcement actions as warranted.

The Commissioner, SB/SE Division, should expand the wager codes to specifically include sports betting and use the wager code as a tool to identify potential noncompliance of excise taxes.

The Commissioner, SB/SE Division, should conduct an environment scan of the current and potential future conditions of the sports betting and online gambling industries, the industries’ risks, and the impact on tax compliance, and develop a process to identify and address Form 730 nonfilers and underreporter noncompliance.

The Chief, Taxpayer Services, should at the start of each filing season, determine if any Free File Program partners have been identified or sanctioned for an unauthorized disclosure of taxpayer information and document actions taken to mitigate the potential risk to the Program.

The Chief, Taxpayer Services, should identify IRS personnel with the appropriate technical expertise to review the participating partners’ privacy disclosures and taxpayer consents each filing season to evaluate whether the format and content of written consents complies with Treas. Reg. 301.7216-3 and other IRS guidance.

The Chief, Taxpayer Services, should evaluate the feasibility of using additional avenues (such as letters, text messaging, and e-mails) to reach eligible Free File Program taxpayers. This should include determining if any of these avenues can be associated with increased participation.

The Chief, Taxpayer Services, should identify and incorporate appropriate qualitative and quantitative measures into the Free File Program communication plan that allow for evaluating the effectiveness of outreach efforts.

The Chief, Taxpayer Services, should develop a comprehensive MOU provision testing plan that ensures that all sections of the MOU (and addendums, as applicable) are being addressed each filing season. This should include noting which provisions cannot be reviewed along with an explanation why.

On February 28, 2024, we alerted the ERC Team Lead of our concern and recommended that the IRS review the 997 tax returns we identified and consider them for post-refund compliance review to recover potentially erroneous ERC paid.

On February 28, 2024, we alerted the ERC Team Lead of our concern and recommended that the IRS review the 139,993 and 44,930 Tax Years 2020 and 2021 returns and consider them for post-refund compliance to recover any potentially erroneous ERC paid.

The Commissioner, Small Business/Self-Employed Division, should ensure that the 923 entities we identified receive a disallowance letter to prevent erroneous ERC claims from being paid.

The Commissioner, Small Business/Self-Employed Division, should ensure that any subsequent analysis to identify businesses for recapture letters uses accurate wage data and takes into consideration lessons learned from the Tax Year 2020 recapture letters.

Direct NC State to demonstrate to NSF that its policies, procedures, and systems applicable to IUCRC awards ensure compliance with award requirements, including timely and accurate certification and tracking of program income receipts and expenditures.

Direct NC State to strengthen controls to ensure it spends CAFS membership dues only on CAFS IAB-approved projects or administration.

Develop a formal work planning process that incorporatesthe selection criteria from the Handbook and requires thatACO teams clearly document the criteria used to selecteach agency in the inspection plans and reports.

Revise Standard Operating Procedure 2.2, section 12, toexplicitly require the inspection teams to document theanalyses they conduct to support their findings andrecommendations.