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IRS LB&I sharpens compliance detection

The IRS Large Business and International Division has launched a new application of data analytics for identifying its largest and most complex corporate taxpayers.

An IRS office building in East Harlem
An IRS office building in the East Harlem neighborhood of New York

This Large Corporate Compliance program replaces the Coordinated Industry Case program and covers compliance oversight for LB&I’s largest corporate taxpayers.

LCC automatically applies large case-pointing criteria, such as gross assets and gross receipts, to determine the LCC population.

Previously, this had all been done manually, on a local basis. The IRS expects the new systems to yield a “more objective” determination of which companies should be part of population. The program is expected to improve continuously, as field teams, practice networks and data scientists provide feedback on its results.

After the population is determined, data analytics are also used to identify individual returns that pose the highest compliance risk.

LCC works with LB&I agents and examiners who apply their experience and expertise in undertaking compliance actions and determining compliance treatment streams of the biggest and most-complex corporate taxpayers.

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