Academic journal article Journal of Accountancy

IRS Postpones TCMP Audits

Academic journal article Journal of Accountancy

IRS Postpones TCMP Audits

Article excerpt

The Internal Revenue Service has postponed for 60 days the taxpayer compliance measurement program (TCMP) audits. Originally scheduled to begin October 1, 1995, they are expected to start on December 1.

The TCMP is a line-by-line verification of over 150,000 tax returns. The program will provide Congress with data to formulate tax policy and create statistical models. It also will provide the basis for the computer program that scores all tax returns to make selections for the IRS's regular audit programs.

A spokesperson in the IRS national office in Washington, D.C., told the Journal that the delay would give the IRS time to analyze the implications of any budget constraints imposed by Congress. "By postponing the audits for 60 days we can review and determine what is feasible with the compliance program given the uncertainty of the appropriations budget for 1996," he said. President Clinton's budget proposed $405 million for the first year of TCMP audits, but House Republicans cut the 1996 budget for compliance audits to $266 million, while the Senate voted for no financing.

The IRS said it would re-evaluate all compliance programs within the TCMP and assess resources that may be needed to deliver critical activities or programs in other parts of the IRS, such as taxpayer services. "Much of the preparation is complete," said the spokesperson. "The returns already have been identified and selected for audit based on market segmentation."

The House Ways and Means Oversight Subcommittee held hearings on the TCMP in July 1995. …

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