Annual Audit Plan -- FY2005 - Department of the Treasury

Treasury Inspector General for Tax Administration - Office of Audit
Security of Remittances at the Ogden Submission Processing Center
Evaluate the physical and internal controls in the remittance processing areas of the
Ogden Submission Processing Center to determine whether taxpayer remittances,
taxpayer data, and remittance processing employees are properly safeguarded.
Math Error Usage and Potential Enhancements
Audit Objective: Determine if the improvements made to the math error process
improved notice effectiveness in communicating the changes that have been made to the
taxpayer’s account, and determine if the taxpayer’s responses are handled properly to
ensure the taxpayer’s rights are protected.
Tax Amnesty
Audit Objective: Assess the potential benefits and risks of implementing a broad
Federal Tax Amnesty Program and/or evaluate the IRS’ use of the State Amnesty
Program Tax information.
Effectiveness of the Small Business/Self-Employed Taxpayer Education and
Communication Function in Accomplishing its Mission
Audit Objective: Determine what methods the Taxpayer Education and Communication
(TEC) function uses to measure its effectiveness on taxpayer compliance and the
outcomes resulting from its work.
Evaluation of the Potential Uses for Business Information Returns
Audit Objective: Determine whether the IRS is effectively using the financial
information it receives via information returns for business taxpayers.
Matching of Schedules K-1 for Unprocessable Subchapter S Corporation, Partnership,
and Trust Returns
Audit Objective: Determine whether the IRS effectively ensures that only Partner’s
Share of Income, Credits, Deductions, etc. (Form 1065 Schedule K-1), Shareholder’s
Share of Income, Credits, Deductions, etc. (Form 1120S Schedule K-1), and
Beneficiary’s Share of Income, Deductions, Credits, etc. (Form 1041 Schedule K-1) for
the appropriate entities are included in the Schedule K-1 matching file; and determine
whether the Request for Information Services erroneously added Schedules K-1 to the
matching file for the unprocessable forms.
Fiscal Year 2005 Annual Audit Plan Page 49