IRS Examination Program Still Burdensome to the Taxpayer Requiring Effective Representation

The Correspondence and Discretionary Examination Program (the Program) conducts examinations otherwise known as AUDITS exclusively by mail to reduce Internal Revenue Service (IRS) operational costs and minimize the burden on taxpayers. I along with other taxpayer advocates have expressed concerns with:

• the length of the examination process, 
• the lack of consideration given to information sent to the IRS, and
• treatment by IRS employees. 

The Treasury Inspector General for Tax Administration (TIGTA) recommended that the IRS ensure all Program employees: 

• follow mail processing guidelines when working Program cases until the mail model process is fully implemented in all sites and 
• follow Program guidelines for handling, responding to, and considering taxpayer correspondence. 

The audit findings by the TIGTA and subsequent recommendations address results that showed IRS employees did not adhere to established procedures and/or guidelines when processing correspondence taxpayers submit for examinations of their tax returns. When employees do not adhere to IRS guidelines and procedures, it is simply a wrongful error that unduly burdens the taxpayer and quite frankly does little but create billable hours for people like me. I believe that when these errors occur, taxpayers are at risk of not receiving their rights, entitlements, and protection of due process when they question the accuracy of tax liabilities resulting from Program examinations unless they are properly represented which happens to cost $$$. 

I agree with the conclusion that PROGRESS HAS BEEN MADE TO RE-ENGINEER THE EXAMINATION PROGRAM AT THE IRS, BUT ADDITIONAL IMPROVEMENTS ARE NEEDED TO REDUCE TAXPAYER BURDEN. To view the report, including the scope, methodology, and full IRS response, go to: http://www.treas.gov/tigta/auditreports/2011reports/201130016fr.html. 

John R. Dundon, EA - 720-234-1177 - jddundon@comcast.net - http://prep.1040.com/jd/ - Enrolled with the United States Department of Treasury to Practice before the IRS - Enrolled Agent # 85353. Under contract with the IRS as a Certified Individual Taxpayer Identification Number (ITIN) Acceptance Agent - I am a Federally Authorized Tax Practitioner (USC 31 Section 330 + IRC 7525a.3.A) regulated under US Treasury Cir. 230.