Improvements Are Needed in the Estate and Gift Tax Return Examination Process

The Commissioner, Small Business/Self-Employed Division, should ensure that the Workload Selection and Delivery (WSD) group creates a version of the classification sheet that will be consistently legible to be used during classification sessions and that the classification sheets are reviewed during the meetings to verify they are understandable and complete.

The Commissioner, Small Business/Self-Employed Division, should update the IRM to include detailed guidance for the classification, prioritization, and assignment processes.

The Commissioner, Small Business/Self-Employed Division, should consider changes to the gatekeeper function and internal controls so that one person does not make all of the final examination referral decisions.

The Commissioner, Small Business/Self-Employed Division, should require that quality standards be documented for the national gatekeeper's work and that managerial reviews are conducted and documented to ensure that estate and gift tax cases are being properly prioritized for examination assignment.

The Commissioner, Small Business/Self-Employed Division, should conduct a review of the Estate and Gift Tax Program's examination selection process to identify process improvements to achieve improved compliance results.