Definition of a successful large-case program.

• Author: McCormally, Timothy J.

Definition of a Successful Large-Case Program

Mike Bernard (TEI's President), Linda Burke, and I thank you for inviting Tax Executives Institute to Denver on February 28 to discuss the issue of "Defining a Successful CEP" with you and members of your CEP task force. Linda and I were impressed by the progress the task force had made in identifying the various components of a successful large-case program and appreciated your willingness to share your ideas with us and, equally important, to weigh our views on the various proposals the task force is considering.

There can be no question that better communication between the various participants in the Coordinated Examination Program will facilitate the move toward mutually beneficial changes in the program. By including TEI (and other prime customers of the CEP program) in discussions at the front end, you have taken a significant step in ensuring such communication and, as you indicated Commissioner Goldberg put it, "giving taxpayers a say in how the tax laws are administered." In short, notwithstanding any concerns we might have about the specific steps that are being contemplated, we are very pleased with the process your task force has adopted.

Overview

As Linda said at the outset of the meeting, the task force's proposed mission statement that - [a]

successful coordinated examination

program conducts

cost effective, quality examinations

with the least burden on

both the government and the

taxpayer, thereby promoting

the highest degree of voluntary

compliance - is

something no reasonable person would disagree with. The key question is, how can the Internal Revenue Service best accomplish that mission? In this regard, we appreciate that the outline of "the measures of a successful CEP" which you distributed represents a "work in progress" and, consequently, that the specific items identified during our Denver meeting (together with possible remedial steps) may well be significantly modified before the task force's work is completed. Nevertheless, we did want to take this opportunity to reiterate TEI's concerns about some of the issues we discussed during our meeting. [Discussion of various materials relating to TEI's position on the Coordinated Examination Program omitted.]

Training

TEI wholeheartedly agrees with the task force that a competent, well-trained, experienced staff is of the utmost importance in implementing a successful CEP. We further agree that the IRS needs to establish a clear strategy for training and to take steps to see that it is fully implemented. The Institute pledges its support in arguing that it is the equivalent of robbing Peter to pay Paul when training dollars are diverted to other programs.

Currency: Resolving Issues

at the Lowest Level

TEI believes that currency should be a major measure of the success of a CEP examination. More to the point, whereas taxpayers and the IRS may disagree over other measurement tools (e.g., return on investment), both will ordinarily agree that currency is a laudable goal. Again, the question is, how do we get there from here?

TEI has long believed that, along with...