Page 75 - IRS Plan
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Initiative 3.2 Expand enforcement for large corporations
The IRS will increase enforcement activities to help ensure tax compliance of large corporate
taxpayers
Where we are heading 2. Refine approaches for large corporate
enforcement and explore new treatments
Due to constrained resources, large corporate using data and analytics. Use advanced
enforcement activities have decreased in recent analytics to identify the most appropriate
years, with the audit rate falling from 10.5% compliance treatments to address potential
in 2011 to 1.7% in 2019. Large corporations noncompliance given issue-specific levels
4
have complicated, voluminous tax filings that of risk. Deploy appropriate treatments to help
involve a variety of tax issues such as cross- taxpayers resolve compliance issues—while
border activities, financial product issues and applying sufficient treatments to promote
transfer-pricing transactions. Ensuring that large compliance.
corporations pay the taxes they owe is a complex
endeavor and requires significant resources Milestones
and a range of specialists.
FY 2023
We will increase audit rates and other compliance 1 First wave of specialists hired and
treatments, focusing on the largest corporate onboarded to work toward increasing
taxpayers where audit rates have been too low. compliance coverage rates for large
We will use data and analytics to improve our corporations
understanding of these complex tax filings.
We will pursue noncompliance through a variety
of mechanisms, including audits and non-audit 2 FY 2025
contacts. Refined approaches and treatments
piloted for large corporate enforcement
What success would look like 3 Ongoing
Workforce hired and onboarded
Success for this initiative would include an to achieve compliance coverage
increase in audit coverage and other types rates for large corporations, including
of enforcement of large corporate taxpayers specialists and experienced hires
to improve voluntary compliance.
Key projects Key dependencies
1. Hire, onboard and train the staff needed to 3.2 depends on projects in initiatives:
achieve appropriate compliance coverage 1.3, 3.1, 3.7, 4.5-4.7, 5.1, 5.4-5.8
rates. Strategically focus on hiring and training
to ensure appropriate resources to address Initiatives dependent on projects in 3.2:
the variety of skill sets needed. Increase staff None
in the Independent Office of Appeals to resolve
any tax controversies arising from enhanced
compliance efforts. Increase staff in the Office
of Chief Counsel to support both compliance
and appeals and to litigate cases when
necessary.
68 IRS IRA Strategic Operating Plan
Part II: Objectives and Initiatives
