In a new publication on its website, “Publication 4837 – Achieving Quality Examinations through Effective Planning, Execution and Resolution,” IRS has announced the implementation of the Quality Examination Process (QEP) – “a systematic approach for engaging and involving Large and Mid-Size Business (LMSB) taxpayers in the tax examination process, from the earliest planning stages through resolution of all issues.” It replaces IRS’s Audit Planning Process, and the LMSB Guide for Quality Examinations in Internal Revenue Manual § 4.46 is being updated to reflect this change.
LMSB revenue agents will review the publication with taxpayers at the start of most new tax examinations. The publication outlines the LMSB examination process from start to finish, explaining that the new guidelines emphasize the importance of ongoing dialogue between the exam team and taxpayer throughout execution of the exam plan. IRS says timely, clear, and consistent communication between its examiners and the taxpayer during the process can directly influence the scope of the examination and the depth of the analysis for issues under audit.
Information on the new LMSB examination process can be found on the IRS website (http://www.irs.gov/businesses/article/0,,id=224139,00.html)
