IRS Kicks Off New Reporting Compliance Study 10/23/2007

Starting this month, the IRS will begin sending initial contact letters advising randomly selected taxpayers that their 2006 return has been selected for audit as part of the latest National Research Program (NRP) study. This NRP study will examine about 13,000 tax year 2006 individual returns, which will be selected over time to include returns filed on extension. In News Release IR-2007-113, which was issued on 6/6/07, the IRS noted that the majority of individuals will have specific lines of their returns confirmed through in-person audits with an IRS examiner. However, some of the individuals whose returns are selected for inclusion will not be contacted if the IRS can obtain matching and third-party data that confirms the accuracy of their return. The IRS added that similar sample sizes will be used in subsequent tax years, which will enable it to make annual updates to its compliance estimates and develop more efficient workload plans on an annual basis.


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