AICPA National Tax Conference hosts senior IRS executives.

• Author: Goldstein, Benson S.

THE AICPA HOSTED A NUMBER OF SENIOR IRS executives at the institute's National Tax Conference on October 26, 2010. IRS speakers included representatives from the Small Business/Self-Employed (SB/SE) Division, the Large Business and International (LB&I) Division, the Wage and Investment (W&I) Division, and the offices of the Electronic Tax Administration (ETA), Appeals, and the National Taxpayer Advocate. This item gives an overview of the policies or programs that these speakers discussed, which will have a significant impact on the practices of CPA members and their clients.

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Faris Fink, Deputy Commissioner, SB/SE Division

Small Business/Self-Employed (SB/SE) Division Deputy Commissioner Faris Fink discussed the IRS's employment tax audits being conducted as part of its National Research Program. He mentioned that about 75% of the employment tax audits involving 2008 tax returns are currently in process, with about 10% of the examinations closed. The IRS will not announce any of the audit results until all cases have been closed.

Fink also reviewed the IRS's upcoming program to send 10,000 letters to tax return preparers, which will be followed up with approximately 2,500 office visits with preparers from December 2010 through April 2011. He stated that the IRS will try to do a better job of targeting the preparers who have been selected for contact under the program, in answer to the significant complaints raised by tax preparers last year.

Heather Maloy, Commissioner, LB&I Division

Commissioner Heather Maloy reviewed the IRS's rationale for changing the name of the Large and Mid-Size Business Division to the Large Business and International Division. The new name highlights LB&I's continued focus on large business taxpayers and its emphasis on improving international tax compliance. The division's realignment will improve the IRS's ability to identify emerging international tax issues more quickly and will house all IRS staff with international expertise in one operating division, as opposed to having staff spread among many areas.

The LB&I's current emphasis on the disclosure of uncertain tax positions on Schedule UTP should enable the IRS to more efficiently focus on potentially significant issues during an examination. In essence, the UTP initiative should allow the IRS to select the best examination cases to work. Maloy also discussed the IRS's plans to make the Compliance Assurance Program (CAP) a permanent...