The Internal Revenue Service Should Revise the Approach Used to Identify Foreign Corportations That Do Not File Required U.S. Income Tax Returns

The Commissioner, Large Business and International Division, should assess the success of the campaign based on the 22 examinations referrals from the first 50 soft letters issued and consider whether limited examination resources warrant campaign continuation or whether a significant change in the methods to identify nonfilers is warranted.

If the IRS is going to continue with the Form 1120-F Non-Filer Campaign, the Commissioner, Large Business and International Division, should establish controls over case building, case selection, and soft letter issuance processes to ensure consistency, documentation, and timely case actions.