The IRS received approximately 87,000 information referrals in fiscal year 2015.
Reports by the public of suspected underreporting of taxes or other tax violations can help the IRS detect millions of dollars in taxes that would otherwise go uncollected, the report pointed out. Productive referrals can help address the net $385 billion tax gap—the difference between the amount of taxes paid voluntarily on time and the amount owed.
The report noted that the IRS has incomplete documentation of the procedures for the information referral process, increasing the risk of delays and added costs in routing the information for further action. One-quarter of the information referrals in fiscal year 2015 were sent for destruction after screening, even though the IRS has no documented procedures for supervisory review of those referrals prior to destruction.... read more