Status of GAO financial IRS audit.

At the beginning of the GAO's audit of the IRS's fiscal year 2006 financial statements, 72 financial management-related recommendations from prior audits remained open because the IRS had not fully addressed the issues that gave rise to them. During the FY 2006 financial audit, the IRS took actions that enabled the GAO to close 25 of those recommendations. At the same time, the GAO identified additional internal control issues resulting in 28 new recommendations. In total, 75 recommendations remain open.

Broken down by topic, these recommendations deal with:

* Safeguarding of assets and security activities (19);

* Proper recording and documenting of transactions (33); and

* Effective management review and oversight (23).

For the full report on the recommendations, visit www.gao.gov/cgi-bin/ getrpt?GAO-07-629.