Tax Administration: IRS Faces Several Challenges as It Attempts to Better Serve Small Businesses: GGD-00-166

August 2000
GAO Reports;8/10/2000, p1
Government Document
As part of its plan to fully embrace customer service as a core organizational value, the IRS is restructuring operations around specific groups of taxpayers. One new organizational unit, the Small Business and Self-Employed Operating Division, will focus on the needs of small business. According to IRS, small businesses are more likely than other taxpayers to have compliance problems. They may not always have the resources needed to deal with filing, reporting, and deposit requirements placed on them or complex tax issues such as employment taxes and depreciation. Many small businesses are unaware of IRS services developed specifically for small businesses or are reluctant to go to the IRS for help. Structured along functional and geographic lines, IRS has not operated in a way that best enables it to serve small businesses. Its focus on back-end correction of problems versus up-front prevention is problematic for small businesses that need assistance up front and that, absent that help, are at a high risk of going out of business if problems arise.


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