Tax Executives Institute--Internal Revenue Service Large and Mid-Size Business Division liaison meeting.

February 3, 2004

On February 3, 2004, Tax Executives Institute met with Deborah Nolan, Commissioner of the IRS' s Large and Mid-Size Business Division, and other representatives of LMSB. TEI President Raymond G. Rossi led the Institute's delegation to the meeting. The agenda for the meeting is reprinted below. Minutes of the meeting will be published in a future issue of the magazine.

1. Introduction

2. The Audit Breakthrough Initiative

   1. Currency

      * IRS Commissioner Everson has announced an initiative for making audits more current. A recent survey of TEI members reveals that the push for currency is moving forward in the field. TEI supports this initiative, but cautions that a balanced approach to enforcement, and to taxpayer rights, is needed. Flexibility and communication remain the keys to efficient and timely audits.

      * To further its currency goal, LMSB has held meetings to engineer a fundamental shift in the agency's approach to and process for ensuring compliance with the tax laws for large corporate taxpayers. TEI is pleased that several TEI members and staff participated in the meetings on December 18 and January 15.

      * During the liaison meeting, we invite discussion of the breakthrough initiative and other related issues, including:

      * The effect of the currency initiative on taxpayers. already undergoing a Limited Issue Focused Examination (LIFE). Is it intended to affect agreements already worked out with taxpayers? Several TEI members have reported that the time limits agreed upon in their LIFE memorandum of understanding have been adjusted to respond to this new initiative.

      * Corporate governance issues. One topic discussed during the reeingeering meetings is how corporate governance developments (at the Securities and Exchange Commission and other agencies) may affect tax administration. Has LMSB been in touch with other government agencies to discuss such issues? Will the IRS request copies of a taxpayer's documentation prepared for purposes of complying with the Sarbanes-Oxley Act? During the liaison meeting, we request a status report on this aspect of the initiative.

      * The effect of becoming more current on Appeals. Speeding up the conduct of examinations will undoubtedly have an effect on Appeals. What steps are being taken to ensure that Appeals has the resources it needs to consider cases in a timely and efficient manner?

      * The time required to respond to an information document request. One proposal under consideration...