The IRS today announced a “key advancement” concerning a new application of data analytics for determining the population of the largest and most complex corporate taxpayers.
As noted in the IRS release—IR-2019-95—the new large corporate compliance (LCC) program replaces the coordinated industry case program and covers compliance oversight for the IRS Large Business and International (LB&I) largest corporate taxpayers.
The new LCC program uses automatic application of the large case-pointing criteria to determine the population of LCC taxpayers. As noted by the IRS, the pointing criteria include such items as gross assets and gross receipts. Previously, this review was conducted on a manual, localized basis. After the population is determined, data analytics are used to identify returns that pose the greatest compliance risk. The LCC program then coordinates with LB&I agents and examiners who apply their experience in undertaking compliance actions and determining compliance treatment streams of the largest and most-complex corporate taxpayers.
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