TAX ADMINISTRATION

The Ministry of Finance and the Tax Department (TD) will implement the project with help from the U.S. Internal Revenue Service (IRS). The TD will be upgraded by developing an organizational plan and job descriptions for staff members. The administrative capability of top-level TD management personnel will be upgraded through a comprehensive training program. A participant training program in the U.S. will include: observational programs at IRS for 14 senior executives to examine the interrelationship of various tax administration functions and of decisionmaking techniques; IRS/INTAX Middle Management seminars for 18 division chiefs to examine practical tax administration management; and four functional management training seminars conducted by IRS for eight managers focusing on training, examination, collection, and computer management. Finally, 12 personnel will participate in a tax administration course at the University of California to study tax areas not covered by IRS. A Tax Training Institute will be established for in-house training of technical personnel. A training curriculum will be developed consisting of 35 courses in processing, assessment, and delinquent returns. At least three procedure manuals will also be prepared on income tax examination and collection and on automated data processing (ADP). An ADP division of the TD will be set up and staffed with personnel trained in systems analysis and programming. This division will process tax assessment information from third-party documents and transmit the data to the Examination Division. Plans for an expanded ADP facility and an integrated taxpayer master file utilizing taxpayer identification numbers will be drawn up. More accurate and inclusive tax assessments will be performed under a new auditing program of return classification and selection by which the quality rather than the quantity of the audits is emphasized. Programs for examining several taxes concurrently will also be developed. A bibliography (XD-AAF-830-1) is included. Project amendment No. 1 of 2/24/83 extends the project 18 months and funds two additional long-term advisors (one for collection and the other for examination) and a computer needs study for the GOE Department of Taxation. (PD-AAM-672)