The Large Case Examination Selection Method Consistently Results in High No-Change Rates
Report Information
Date Issued
June 22, 2020
Report Number
2020-30-031
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, LB&I Division, should test the newly developed formulas on available examined returns from more current tax years in addition to the testing on TYs 2010 and 2011 returns.
The Commissioner, LB&I Division, should weight the examination results data when conducting data analysis in order to appropriately consider the breadth of scope of past examinations.
The Commissioner, LB&I Division, should consider the noncompliance issues found in past examinations and trend those returns' commonalities to identify returns with potential similar compliance risks for consideration during return selection.
The Commissioner, LB&I Division, should use accurate and complete examination data, including both tax assessments and refunds, to monitor and evaluate whether the DAS model is achieving the LB&I Division's objectives.