IRS to test new large business examination program.

• Author: Gribens, Bruce K.
• Position: Brief Article

The Service will begin to implement a new Large Business Examination Program (LBEP) to select and classify tax returns. The LBEP will be a separate program in addition to the Coordinated Examination Program (CEP).

Based on internal studies within the IRS and an external study conducted by the General Accounting Office (GAO), the Service designed an enhanced selection and classification process for corporate tax returns with ending assets of $10 million or more. The Service excluded CEP and CEP-related taxpayers from this program.

The GAO report contained five recommendations, of which four related to Examinations. The IRS agreed to these recommendations. The Service designed a Large Business Examination Classification and Selection Program (LBECS) as part of the LBEP. The LBECS was in response to two of the recommendations: (1) provide more specific...