Friday, July 30, 2010
The Treasury Inspector General for Tax Administration yesterday released Trends in Compliance Activities Through Fiscal Year 2009 (2010-30-066), which reports that gross federal tax collections declined $400 billion in FY 2009 (to $2.35 trillion from $2.75 trillion in FY 2008):
The FY 2009 Collection function activities showed mixed results compared to FY 2008.Some declines may be attributed, at least in part, to the declining economy. The Collection function experienced declines in dollars collected on delinquent accounts, an increase in taxpayers with delinquent accounts assigned to the Queue, including amounts owed on these accounts, as well as an increase in gross accounts receivable. However, FY 2009 showed continued increases in the use of collection enforcement tools and Taxpayer Delinquency Investigations closed due to receipt of delinquent tax returns.
The Examination function hired approximately 2,000 revenue agents and tax compliance officers during the last fiscal year, which was the most hiring performed in the last 5 years. The IRS will not receive an immediate benefit from this hiring, and the Examination function compliance activities showed mixed results in FY 2009.