Management Discussion and Analysis Page 48 GAO-05-103 IRS’s Fiscal Years 2004 and 2003 Financial Statements INTERNAL REVENUE SERVICE Management Discussion and Analysis For the Fiscal Year Ended September 30, 2004 34 Rate of Filing Compliance The rate of filing compliance is the percentage of individual returns that are filed timely for a given tax year. This rate for individual taxpayers is computed by dividing the estimated number of returns filed on time for a given tax year by the estimated number of all returns required to be filed. Taxpayer Delinquent Investigations (TDI) x Automated Collection System (ACS) Closures - TDI Description : The measure reflects the number of ACS TDI taxpayer dispositions minus any TDI taxpayer cases systemically removed from inventory after being in the non-active inventory for approximately one year. x Field Collection - Number of Cases Closed - TDI Description : The number of Taxpayer Delinquency Investigation (TDI) investigations that moved to immediate resolution status or delayed resolution status/no results status excluding surveyed investigations. Includes all TDIs regardless of whether or not they are associated with an open Tax Delinquent Account. FY 2004 Performance: ACS closures - TDI: Target Achieved . TDI performance results show improvement over last year. There is an increase in notices sent to potential non-filers, who subsequently provided returns shortly after cases moved to ACS status. Several factors contributed to improved performance, including: x Reengineering efficiencies that elevated employment tax cases with delinquencies less than a year old to the highest priority x A programming anomaly that resulted in unscheduled case creation x Automatic closure of 17,000 cases to Correspondence Exam x Improvements to the automated 6020(b) substitute for return program Field Collection closures - TDI Target Achieved. The TDI closure rate is more than 25 percent above the Plan. A large portion of the high-priority cases are employment tax delinquencies and IRS is working them more efficiently at an earlier stage. By intervening in the pattern of delinquency earlier, delinquencies are smaller in scale and can be resolved more quickly. Taxpayer Delinquent Investigations Plan Actual 152,153 197,499 Field Collection - Cases Closed TDI 119,451 140,737 150,190 198,155 295,010 FY 2001 FY 2002 ACS Closures – TDI 297,791 190,411 197,517 FY 2003 FY 2004 This is trial version www.adultpdf.com . year old to the highest priority x A programming anomaly that resulted in unscheduled case creation x Automatic closure of 17,000 cases to Correspondence Exam x Improvements to the automated. Description : The measure reflects the number of ACS TDI taxpayer dispositions minus any TDI taxpayer cases systemically removed from inventory after being in the non-active inventory for approximately. estimated number of returns filed on time for a given tax year by the estimated number of all returns required to be filed. Taxpayer Delinquent Investigations (TDI) x Automated Collection