GAO Finds IRS Lacks Full Measure of Service Benefits
A Government Accountability Office report says the agency tracks only how service investments affect taxes paid, not broader gains such as customer satisfaction.
Updated on Nov. 10, 2026 in Taxes
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The Government Accountability Office released a report on how the Internal Revenue Service measures the return on its customer service investments. The IRS currently measures how taxpayer services affect the amount of taxes paid but does not measure other benefits, such as improved customer satisfaction.
Why it matters
The IRS has faced budget and staffing cuts in recent years, making decisions about where to spend limited resources on taxpayer services more consequential. The gap in measurement may leave service investment decisions based on an incomplete picture of their value to the agency and to taxpayers across the United States.
The GAO identified five IRS studies on how services affected compliance or satisfaction and 12 international studies measuring taxpayer service benefits. IRS officials have not committed to analyzing satisfaction or burden data in the current research effort.
The players
Internal Revenue Service
The federal agency responsible for administering and enforcing U.S. tax laws, which provides taxpayer services through its website, telephone assistance, correspondence and in-person assistance centers.
Government Accountability Office
The independent, nonpartisan audit and investigative arm of Congress that reviews federal agency programs and spending.
The details
The GAO reviewed IRS studies and studies from other national tax administrations. The IRS has begun research intended to inform service investment decisions based on their costs and revenues, and in 2024 the agency requested a reexamination of how its actions affect its revenue.
Timeline
2007 and 2008: IRS reports called for more analysis of compliance and revenue benefits to support service investment decisions.
2013: An IRS study found that dissatisfaction with services may contribute to noncompliance.
2022: The Inflation Reduction Act provided funding to improve IRS taxpayer services.
2024: The IRS requested a reexamination of how its actions affect its revenue.
November 10, 2026: The GAO released its report on IRS customer service investment measurement.
Market Dynamics
The GAO report follows a 2013 IRS study finding that taxpayer dissatisfaction with services may contribute to noncompliance. It shows that the IRS has long been urged, including in 2007 and 2008 reports, to analyze compliance and revenue benefits to support service investment decisions.
Taxpayers who rely on IRS phone, online or in-person help may see service changes shaped by how the agency weighs costs against revenue gains. Because the IRS currently tracks mainly tax-revenue effects, the level of assistance available to filers could depend on that narrower measure.
The takeaway
Measuring only revenue effects can understate what taxpayer services are worth. Filers who struggle to get help may be less likely to comply, so satisfaction data could matter for future IRS decisions.
Further reading
For more on how federal tax policy affects filers, explore Taxes coverage.
Source note: This article includes information reported by Accounting Today.
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