The IRS failed to conduct field performance reviews of volunteer tax filing sites used by millions of underserved taxpayers during last year’s filling season, an Inspector General report found.
More than 3.6 Million taxpayers used the sites in the 2014-15 filing season. The volunteer sites play a critical role in helping taxpayers of low to moderate income, elderly, and limited English abilities file taxes.
The Inspector General found that sites that were "incorrectly identified as inactive," and steps to properly identify the sites were "not followed" by the IRS.
"162 sites that were erroneously identified as inactive," despite the sites being "in operation and preparing tax returns." The sites include libraries, schools and shopping malls.
The investigation was launched "to determine whether the IRS’s Quality Statistical Sample (QSS) review program provides a sufficient evaluation of the accuracy of tax return preparation."
"The Quality Program Office was not performing field performance reviews as required during the 2014 or 2015 Filing Seasons," the reports states. "Analysts are not reporting all identified Quality Site Requirement errors which resulted in the Quality Site Requirements adherence rate being overstated."
Of the 103 sites reviewed, a quarter were incorrectly rated in their adherence to site requirements.
Additionally, over 100 sites used invalid Site Identification Numbers, but "actions were not taken to resolve these discrepancies."
The IG recommended that each tax analyst "accurately and consistently evaluate" site requirements and undergo individual performance reviews. The reviews ensure tax analysts are held accountable in their conduction of performance evaluations of filing sites.