New audit priorities.

• Author: Laffie, Lesli S.
• Position: IRS

The IRS is realigning its audit resources to focus on key tax noncompliance areas, a new direction for the agency's compliance effort.

Following months of research and planning, the new approach will target high-risk noncompliance areas. The Service's effort will generally focus first on promoters, then on participants. The initiative will feature new and enhanced efforts in six priority areas:

* Offshore credit card users.

* High-risk, high-income taxpayers.

* Abusive schemes and promoter investigations.

* High-income nonfilers.

* Unreported income.

* The National Research Program.

Increased resources will be devoted to these projects in fiscal year 2003, which will be a year of transition and training as new audit cases move into the IRS system.

The Small Business/Self-Employed Division will handle the new effort in audit areas affecting individuals and businesses. Compliance efforts will continue in other parts of the agency (e.g., the tax-shelter initiative in the Large and Mid-Sized Business Division).

This initiative reflects part of a broader, agency-wide...