Date Issued
Report Number
2019-40-044
Report Type
Audit
Joint Report
Yes
Participating OIG
Treasury Inspector General for Tax Administration
Agency Wide
Yes (agency-wide)
Questioned Costs
$0
Funds for Better Use
$0
Recommendations
The Commissioner, Large Business and International Division, should ensure that criteria is added to the Research Credit selection risk tool to identify high-risk carryforward Research Credit discrepancy claims on returns selected for examination and determine if the carryforward claims taken by the taxpayers are accurate. Based on the results of examining these returns, determine if examination criteria should be expanded to include other carryforward claims with discrepancies.
The Commissioner, Small Business/Self-Employed Division, should identify and examine returns with discrepancies of General Business Credit carryforward claims. Based on the results of examining these returns, determine if examination criteria should be expanded to include all business and individual carryforward claims containing discrepancies.
The Commissioners, Large Business and International and Small Business/Self-Employed Divisions, should Prepare and submit an information technology request *******2****** **************************************2************************************* ********2******* selection criteria to determine if the carryforward claim is valid.
Recommendation rejected by IRS
The Commissioners, Large Business and International and Small Business/Self-Employed Divisions, should ensure that examination case management systems capture information related to carryforward credit and deduction claim discrepancies addressed during examinations to allow for tracking and measurement of compliance risk.
The Commissioners, Large Business and International and Small Business/Self-Employed Divisions, should develop a strategy to evaluate possible revisions to tax forms to capture carryforward claim information similar to what is currently required for the corporate Foreign Tax Credit. While the strategy is being developed, implement an educational campaign ***************************************2************************************** **********************2*******************.