Our objectives were to (1) identify challenges the Advocate faces in managing program resources, (2) identify potential effects of workload fluctuations on program operations, (3) determine what information was available for advocacy efforts, and (4) assess the adequacy of performance measures IRS used to gauge program effectiveness. Resource Management Issues Present Challenges for the Advocate

We identified several resource management issues within the Advocate’s Office and PRP that could affect how efficiently and effectively taxpayers are helped by PRP. Specifically, (1) the Advocate’s Office did not know how many staff were working in PRP or the costs associated with that staffing; (2) the Advocate’s Office had to rely on resources provided by IRS’ operating functions, such as Customer Service, Collections, and Examination; (3) some Advocate Office and PRP staff reported that they lacked training that Advocate Office officials considered necessary; and (4) the Advocate’s Office faced obstacles, such as limited advancement opportunities, in acquiring and keeping qualified staff. However, it is too soon to tell how these changes will affect program operations. This should give the Advocate’s Office more control over PRP resources. Handling Workload Fluctuations Poses a Challenge as the Advocate’s Office Restructures

According to local advocates, dealing with workload fluctuations— especially increased workloads—poses a challenge for them as Advocate’s Office and PRP operations are restructured. However, the Advocate told us that he was committed to helping any taxpayer who contacts the office. We understand why the Advocate’s Office might not want to turn away any taxpayers seeking help. However, if the Advocate’s Office accepts cases that could be handled elsewhere in IRS, PRP could be overburdened, potentially reducing its ability to help taxpayers who have nowhere else to go to resolve their problems. Advocacy is key to the success of the Advocate’s Office because the improvements it generates could reduce the number of taxpayers who ultimately require help from PRP. In addition, because of limitations in the kind of information available to and compiled by the Advocate’s Office, there was little assurance that the time being spent on advocacy was being used most effectively. The Advocate’s Office Lacked Adequate Measures of Effectiveness

IRS lacked adequate measures of the effectiveness of the Advocate’s Office and PRP. The set of measures used by the Advocate’s Office during our review (1) provided descriptive information about program activities, such as the average amount of time it takes to close a PRP case, rather than information needed to assess effectiveness; (2) did not provide complete data; or (3) were not based on consistent data collection. Measures of effectiveness are important because they provide data to improve program performance, increase accountability, and support decisionmaking. Recommendations to the Commissioner of Internal Revenue

To better ensure that the Advocate’s Office effectively uses the resources available for advocacy and thus enhances its ability to prevent the recurrence of taxpayer problems and ultimately reduce the number of taxpayers who need help from PRP, we recommend that the Commissioner of Internal Revenue direct appropriate officials to define the requirements for and to develop a system that captures the kind of information needed to identify and prioritize potential advocacy projects and provide feedback to staff on ongoing and completed projects. 6. Prior IRS function(s)? 10. 11. 12. 14. 5. 7. 8. Years in PRP? 9. 13. 15. IRS Initiatives Place Demands on Program Resources

IRS officials said that part of the PRP workload increase can be attributed to an IRS initiative known as Problem Solving Days, which is the responsibility of the National Taxpayer Advocate.
Why GAO Did This Study

Pursuant to a congressional request, GAO reviewed the operations of the Internal Revenue Service's (IRS) Office of the National Taxpayer Advocate and the Problem Resolution Program (PRP) that it administers, focusing on: (1) challenges the Taxpayer Advocate faces in managing program resources; (2) the potential effects of workload fluctuations on program operations; (3) information available to help the Advocate determine the causes of taxpayer problems and prevent their recurrence; and (4) the adequacy of performance measures the IRS uses to gauge program effectiveness.

What GAO Found

GAO noted that: (1) there are various management and operational challenges facing IRS, the Advocate's Office, and PRP; (2) how these challenges are addressed could affect how efficiently and effectively taxpayers are helped by PRP; (3) the Advocate's Office faced resource management challenges because it lacked direct control over most PRP resources; (4) planned changes to the Advocate's Office and PRP, such as placing PRP resources under the control of the Advocate's Office, could mitigate some of these issues; (5) however, it is too early to evaluate the impact of these changes; (6) IRS faces challenges as it restructures the Advocate's Office to better handle variations in PRP's workload; (7) according to Advocate Office officials, in the past, because PRP operations depended on IRS functional units for resources, any fluctuations in PRP's workload were handled by adjusting the number of functional staff assigned to work PRP cases; (8) however, the Advocate's Office is moving away from a structure that relies on other IRS units for staffing, which may make it more difficult for the Advocate's Office to handle workload fluctuations, especially workload increases; (9) the Advocate told GAO that he was committed to helping any taxpayer who contacts the office; (10) while it is understandable why the Advocate's Office might not want to turn away anyone seeking help, accepting cases that could be handled elsewhere in IRS could overburden PRP; (11) the demands on the Advocate's Office to resolve individual taxpayer problems has left little time for staff to spend identifying the causes of recurring taxpayer problems and recommending solutions; (12) also, limitations in the kind of information available provided little assurance that the time being spent was being used most effectively; (13) these efforts on recurring problems, called advocacy, are key to the success of the Advocate's Office because the improvements they generate can reduce the number of taxpayers who ultimately require help from PRP; (14) IRS lacked adequate measures of the effectiveness of the Advocate's Office and PRP; (15) measures of effectiveness should cover the full range of Advocate Office operations so they can be used to improve program performance, increase accountability, and support decisionmaking; and (16) the set of measures used by the Advocate's Office during GAO's review focused on descriptive program events instead of program outcomes, did not provide complete data, or were not based on consistent data collection.