The House Ways and Means Oversight Subcommittee today held a hearing to consider testimony about the IRS audit selection process and internal controls of the Exempt Organizations (EO) unit of the Tax Exempt and Government Entities (TE/GE) division.
In connection with the hearing, the U.S. Government Accountability Office (GAO) released a report (GAO-15-753T) about the IRS audit selection process. The GAO found:
… there are several areas where EO's controls were not well designed or implemented. The control deficiencies GAO found increase the risk that EO could select organizations for examination in an unfair manner—for example, based on an organization's religious, educational, political, or other views. * * *
The GAO also concluded:
EO management does not consistently monitor selection decisions.
The title of the GAO report is: IRS Examination Selection: IRS Should Strengthen Internal Controls for Exempt Organization Selection (GAO-15-753T (July 23, 2015)).
For more information, contact:
D. Greg Goller | +1 (703) 286-8391 | email@example.com
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.