Additional Improvements Are Needed to Measure the Success and Productivity of the Partnership Audit Process

The Commissioner, LB&I Division, and the Commissioner, SB/SE Division, should coordinate with the Director, Office of Research, Analysis and Statistics (RAS), to develop a strategy to measure the success and productivity of all partnership audits [both Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA) and non-TEFRA). This may include, but is not limited to the amount of the audit adjustments and the taxes assessed (or refunds issued) for the partners.

The Commissioner, LB&I Division, and the Commissioner, SB/SE Division, should work with the Chief Technology Officer to develop a system capable of determining the amount of taxes assessed as a result of all partnership audits [both Tax Equity and Fiscal esponsibility Act of 1982 (TEFRA) and non-TEFRA].

The Director, Campus Reporting Compliance, SB/SE Division, should work with the Chief Technology Officer to develop a system capable of ensuring that audits of each individual partner's return closed by the CTF are captured and included in performance measurements.

The Director, Campus Reporting Compliance, SB/SE Division, should evaluate whether it would be cost beneficial to develop and implement updates to the CTF audit report writing software in an effort to better accommodate certain types of adjustments and calculations.

The Commissioner, LB&I Division, and the Commissioner, SB/SE Division, should coordinate with the Department of the Treasury's Office of Tax Policy and the IRS Office of Research, Analysis, and Statistics (RAS) to analyze the impact that the proposed tax law changes related to Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA) audits would have on the IRS's partnership audit process.