CEP's silver anniversary: IRS and taxpayers working together.

• Author: O'Hanlon, George A.
• Position: Coordinated Examination Program

Introduction: The Birth of the CEP Program

Several weeks ago, someone brought to my attention an article that appeared in the November 1967 issue of The Journal of Taxation. The article was found while we were looking for historical information to include in activities we are planning for the commemoration of the 25th Anniversary of the Coordinated Examination Program. After reading the article which was more than a quarter of a century old, I felt a renewed enthusiasm for a job I have been working at for nearly 32 years. I would like to share with you, the group that has influenced the success of CEP, my renewed enthusiasm and why I believe the success of CEP will positively influence the future of tax administration.

The title of this article was "Effective Tax Procedures." It was subtitled, "The Large Case Program - How the New Coordinated Examination by the IRS Works." The author was Donald W. Bacon, who was the IRS's Assistant Commissioner for Compliance in 1967. Don subsequently became a member of Tax Executives Institute, and indeed, was awarded TEI's Distinguished Service Award in recognition of his government service.

In his article, he explained how the IRS expected the new coordinated approach to corporate large-case audits to work and the three main changes that would take place in the audit process under the coordinated program. The changes meant that we would now:

* Use a team audit concept instead of the one-agent/

one-case concept.

* Require coordinated case control to expedite case

assignment and closures and to improve managerial

monitoring.

* Encourage pre-audit planning conferences so that all

parties could discuss the audit process and the issues

involved.

Mr. Bacon also wrote that, even though it was only the first year for these changes, they were already having the desired impact, and he predicted even greater future benefits. fits. His prediction was accurate and significant. The changes have produced one of the most successful programs in IRS history ... one that has continued to change and to improve.

Having been involved in Examination as a revenue agent and analyst in the large-case program for a good part of my career, I thought about the elements that make the CEP program such a success. I had reread parts of the article several times when one paragraph caught my attention. It was one that described the high level of optimism among the revenue agents who welcomed the changes made to CEP. It said the agents...