GAO says IRS financial statements are fairly presented

The Government Accountability Office published its financial audit of the IRS Thursday 12 November 2026. The agency said the IRS collected more than $5.5 trillion in taxes in fiscal year 2026.

The Government Accountability Office said the IRS’s fiscal years 2026 and 2025 financial statements were fairly presented in all material respects. The agency also said the IRS maintained effective internal control over financial reporting as of September 30, 2026, although its internal controls could be improved.

The IRS paid out about $670 billion in tax refunds, credits, and other payments in fiscal year 2026. Its tax collection activities were described as significant to overall federal receipts.

According to the report, the Government Accountability Office found no instances of reportable noncompliance for fiscal year 2026. Its tests covered selected provisions of applicable laws, regulations, contracts, and grant agreements.

System limitations and other deficiencies in the IRS’s accounting for federal taxes receivable and other unpaid assessment balances continued during fiscal year 2026. The report said these control deficiencies affected the IRS’s ability to produce reliable financial statements without using significant compensating procedures.

The deficiencies were significant enough to merit attention from those charged with governance of the IRS. The Government Accountability Office said they collectively represented a continuing significant deficiency in internal control over financial reporting. It said management attention was needed to address the deficiency. The IRS said it was pleased to receive an unmodified opinion and would continue working to improve internal controls.