GAO Gives IRS Unmodified Opinion on FY 2026 and FY 2025 Financial Statements
IRS financial statements for FY 2026 and FY 2025 are deemed fairly presented; controls effective except for a noted deficiency, effective Sept. 30 2026
The Government Accountability Office issued an unmodified audit opinion that the Internal Revenue Service's consolidated financial statements for fiscal years 2026 and 2025 are fairly presented in all material respects. GAO also concluded that IRS maintained effective internal control over financial reporting as of September 30, 2026.
In fiscal year 2026 the IRS collected about $5.6 trillion in taxes and paid out about $670 billion in refunds, credits, and other payments. The audit's highlights note that the agency collected more than $5.5 trillion in taxes during the same period.
GAO identified system limitations and other deficiencies in IRS's accounting for federal taxes receivable and other unpaid assessment balances. These deficiencies constitute a continuing significant deficiency in internal control over financial reporting and require attention from those charged with governance.
IRS responded that it was pleased to receive the unmodified opinion and reiterated its dedication to the highest standards of financial management and accountability, while committing to further improve internal controls.
GAO conducts the audit as part of its mandate to review the consolidated financial statements of the U.S. government, testing compliance with applicable laws, regulations, contracts, and grant agreements. No instances of reportable noncompliance were found for fiscal year 2026.
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