IRS Spent $33 Million to Store Paper Tax Records
The Internal Revenue Service paid approximately $33 million for paper tax records storage services in fiscal year 2013, and as of March 2014, and the agency had 5.42 million cubic feet of paper tax records stored at various Federal Records Centers across the country, according to a new report.
The report, from the Treasury Inspector General for Tax Administration, pointed out that inefficient management of costs related to records storage reduces the resources that the IRS has available to deliver its mission.
TIGTA identified two areas in which controls over records storage costs could be improved. Specifically, TIGTA found that, as of June 2013, the IRS had 238,523 cubic feet of records past due for disposal for which it was obligated to pay ongoing monthly storage costs. As a result, unnecessary costs of more than $700,000 were incurred for those records. Read more on Accounting Today.