Taxpayers and exam teams have significant roles to play in audits, the Internal Revenue Service said in new examination guidelines unveiled by the agency's Large Business & International (LB &I) Division.
The publication offered guidelines for the so-called Quality Examination process for the nation's largest taxpayers. Planning is a major part of the initiative and taxpayers and audit teams should be communicating throughout the entire process, IRS said.
LB &I tax returns are among the most complicated IRS receives, and examining those returns can be time-consuming and challenging, the agency said
“Timely, clear, and consistent communication between taxpayers and IRS exam teams can help keep exams moving forward to conclusion,” IRS said.
A key element of the audits is planning, the guidelines said. As an initial step, the exam team is required to do a pre-exam analysis to gather and review all pertinent information about the taxpayer that is available publicly and within IRS.
Text of the examination guidelines is online at http://www.irs.gov/pub/irs-utl/publication4837.pdf.
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