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May 21, 2019
2019-0964

IRS's Large Business and International Division announces new compliance program

The IRS's Large Business and International Division (LB&I) announced (IR-2019-095) a new Large Corporate Compliance (LCC) program, which replaces the Coordinated Industry Case program.

To determine the LCC population, the LCC program applies an automated application to consider large-case-pointing criteria, such as gross assets and gross receipts. Once the population is determined, the LCC program uses data analytics to identify the returns with the highest compliance risk.

In conjunction with the LCC program, LB&I agents and examiners address compliance actions and determine compliance treatment streams.

Additionally, the LCC program uses an agile model principle that allows it to monitor and improve, depending on the feedback received from stakeholders, such as field teams and data scientists.

Implications

LB&I's announcement reiterates its on-going efforts to improve its compliance risk capabilities with the use of data science applications and leveraging access to internal and external source information, including information obtained from treaty partners. These efforts will significantly change the audit and issue selection process for large businesses in the future.

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Contact Information
For additional information concerning this Alert, please contact:
 
Tax Controversy and Risk Management Services
• Heather Maloy(202) 327-7758
• Frank Ng(202) 327-7887
 

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