TEI-IRS liaison meeting.

February 13, 2009

AGENDA

On February 13, 2009, a delegation from Tax Executives Institute meet with the Honorable Douglas H. Shulman, Commissioner of Internal Revenue, and other senior officials of the Internal Revenue Service to discuss issues of concern to TEI's membership. The agenda for the meeting is reprinted below. Minutes from the meeting will be posted on TEI's website as soon as they become available, and will be reprinted in a future issue of The Tax Executive.

1. Welcome and Introduction

2. Commissioner's 2009 Priorities

   TEI invites a discussion on the Commissioner's 2009 priorities and key elements of the IRS's 2009-2013 Strategic Plan, especially as they affect the business community.

3. Transition Matters

   With the change in administration, and the departure of key IRS, Treasury, and Counsel personnel, we invite a discussion on particular issues and priorities that are being focused on during the transition period.

4. The Economic Downturn and Its Effect on Tax Administration

   a. Recently released 2008 enforcement data shows declines in various categories, including total enforcement revenue and staffing for key enforcement, while reflecting a nearly flat percentage change in the number of large corporate tax returns examined (2007- 27.2% and 2008 -27.4%). Other reports have suggested that new international corporate sources for the "tax gap" are being explored. What specific steps, if any, is the IRS considering to ratchet up enforcement activity to mitigate the growing budget deficit?

   b. Corporate tax departments have not been immune to the effects of the economic downturn. In many cases, they have sustained large budget cutbacks and significant staff reductions. In light of these developments, TEI invites a discussion of steps that could help mitigate the effects of the economic downturn on tax administration and compliance, including:

   i. Mechanisms to accelerate tax refunds for early corporate filers;

   ii. Modifications to internal administrative examination-related deadlines, e.g., response time for IDRs; and

   iii. Other steps to streamline filing and audit procedures.

5. Examination-Related Matters

   a. Tax Data Utilization. Audit currency and compliance risk identification are closely linked. A central tool developed has been the Schedule M-3 (Net Income (Loss) Reconciliation for Corporations with Total Assets of $10 Million or More) which was designed to provide greater transparency regarding book-tax differences, thereby...