ALI-ABA Course of Study Tax Controversy Practice: From Administrative Audit Through Litigation

Transcription

1 59 ALI-ABA Course of Study Tax Controversy Practice: From Administrative Audit Through Litigation Sponsored with the cooperation of the ABA Section of Taxation June 12-13, 2008 Chicago, Illinois Internal Revenue Service Large and Mid-Sized Business Division (LMSB) Submitted by James Roosey Internal Revenue Service Downers Grove, Illinois

2 60 2

3 61 ALI-ABA Tax Controversies June 12-13, 2008 James J. Roosey Director, Field Operations East Retailers, Food, Pharmaceuticals & Healthcare Industry LMSB Taxpayer Population Return filings of over 193,000 include corporations, sub-chapter S corporations, and partnerships with assets greater than $10 million. Over 44,700 filings by corporations with assets $10M<$250 and over 12,500 filings by corporations with assets >$250M. Includes over 5,500 publicly traded companies. 1

4 62 LMSB Strategic Challenges Globalization The integration of international economies creates opportunities for taxpayers to exploit differences in tax rules of differing countries. Evolving taxpayer business models and structures The evolution of mega enterprises with sub-entities and joint venture relationships spread across the world increases complexity and the Potential for increased compliance risks. LMSB Strategic Challenges (cont.) Aggressive tax planning LMSB taxpayers continue to use aggressive tax planning as a tool to compete with world-wide competitors. Governance Increased governance resulting from SOX, FASB 109, PCAOB provides increased regulatory scrutiny, and the potential for reduced risks for tax issues. 2

5 63 LMSB Program Priorities Employ a strategic approach to issue management and resolution that strengthens issue focus and ensures consistent treatment of issues. Leverage technology and improved data to enhance the quality and timeliness of risk identification models and issue development. Increase coverage through non-traditional approaches and real-time evaluation of risks; touch more taxpayers with fewer resources. LMSB Program Priorities (cont.) Maintain and institutionalize productivity efficiencies to achieve coverage and compliance work-plan goals. Leverage international expertise to address effects of Globalization. Develop strong leadership and workforce initiatives that improve hiring ability, strengthen workforce skills, and provide for leadership succession. 3

6 64 Issue Focused Examinations Issue Focus approach was initiated to concentrate on high risk tax issues and ensure that LMSB employs a strategic approach to managing them. The issues are coordinated to promote consistency in resolution across industry lines, to improve focus on issues with the highest risk, to enhance oversight and accountability for high risk issues, and to provide the field with clear and consistent guidance on addressing significant compliance issues. Issue Focused Examinations Tier I High Strategic Importance Significant impact on one or more Industries. Tier I issues could involve a large number of taxpayers, significant dollar risk, substantial compliance risk or high visibility, where there are well established legal and/or LMSB positions. Tier II Significant Compliance Risk Potential high non-compliance and/or significant compliance risk to LMSB or an Industry. Includes emerging issues, where the law is fairly well established, but there is a need for further development, clarification, direction and guidance on LMSB s position. 4

7 65 Issue Focused Examinations (cont.) Tier III Industry Importance Industry-related, and have been identified as issues that should be considered by LMSB teams when conducting their risk analyses. Tier I Issues and Executive Owners 118 Abuse Lavena Williams 162(f) Government Settlements Sergio Arellano 936 Exit Strategies - Sergio Arellano Foreign Tax Credit Generators Walter Harris Int l Hybrid Instrument Transactions Walter Harris Cost Sharing/Transfer of Intangibles Offshore Patricia Chaback Maria Hwang Domestic Production Deduction IRS 199 Charlie Brantley Foreign Earnings Repatriation Barry Shott Mixed Service Costs Keith Jones Research & Experimentation (R&E) Credit Claims Lavena Williams 5

8 66 Tier II Issues and Executive Owner Backdated Stock Options Laura Prendergast Casualty Loss: Single Identifiable Property/Capital vs. Repair - Keith Jones Cost Sharing-Stock Based Compensation Maria Hwang Super Completed Contract Method - Paul Cordova Enhanced Oil Recovery Credit IRC 43 - Keith Jones Extraterritorial Income Exclusion Effective Date and Transition Rules - Larry Barnes Gift Cards: Deferral of Income James Roosey Healthcare Accounting Issues: Contractual Allowance James Roosey Interchange Merchant Discount Fees Phil Catalano Non-performing Loans Kathy Robbins Specific Liability Loss, IRC 172(f) - Paul Cordova Upfront Fees, Milestone Payments & Royalties in the Biotech & Pharmaceutical Industries - Carol Poindexter LMSB Initiatives Compliance Assurance Process (CAP) Fast Track Pre-Filing Agreement (PFA) Modernized E-File 6

9 67 Compliance Assurance Process The primary objective of CAP is to improve service to taxpayers and enhance compliance with tax laws through real time monitoring, review and issue resolution IRS interacts directly with the taxpayer to: Understand the business operations Review significant business transactions Conduct risk assessment to evaluate tax compliance and tax reserve impacts Identify compliance issues for resolution Provide compliance guidance Compliance Assurance Process Positive results in customer satisfaction, employee satisfaction, business results quality / timeliness / productivity, compliance diagnostics. 73 participants for TY 2007 Approx taxpayers (to date) in program for TY 2008 To date, some of the top issues reviewed in CAP include: R&E Credit (IRC 174) Instrument Transactions Exit Strategies (IRC 936) Transfer Pricing (IRC 482) Repatriation (IRC 965) Foreign Tax Credit (IRC 901,902) 7

10 68 Fast Track Resolution Provides taxpayers resolution of case/issue earlier than the traditional Appeals process Provides LMSB examiners an avenue to resolve audit issues utilizing Appeals Settlement authority and mediation FY 08 Fast Track Settlement Cases: (as of 3/31/08) Accepted 34 Closed 30 Cases in Process 23 Agreed Closures (settled) 25 Average days to settle 76 (as of 2/08) Pre-Filing Agreements (PFAs) In FY 2008 (through 04/30/08), LMSB has received: 23 applications, accepted 11, and completed closing agreements on 11 Since the program s inception in 2001 through 04/30/2008, LMSB has received: 297 applications, accepted 196, and closed 131 with an agreement PFAs Most Common Issues Research and Experimental Credits Worthless Stock and Bad Debts Acquisition/Disposition of a Subsidiary 8

11 69 Modernized E-file Corporations of any size can electronically file Required of those filing Form 1120 or 1120S and that have assets of $10 million or more and file at least 250 returns annually. Also required of certain partnerships (Form 1065) Improved return selection Identify emerging issues more quickly Return delivery will be improved, helping to reduce overall cycle time. 47,500 LMSB corporations and 17,500 LMSB partnerships e-filed during CY

12 70 IRS Issue Resolution Tools April 2008 Prepared by RFPH Headquarters PROGRAM CONTACT DESCRIPTION Issue Resolution - Taxpayer Specific Pre-Filing Agreements (PFA) LMSB-Pre-Filing Revenue Procedure and IRM Services Melanie Perrin, Senior Program In order to participate in a PFA, one consideration is the Analyst probability of being able to enter into the closing agreement (202) by the proposed date for filing the earliest return to which pfa.info@irs.gov the PFA relates Determination of facts or application of well-established legal principles to known facts; determines the tax treatment of completed transactions or events whose tax treatment has not yet been reported on a return Also available for methodolgy issues, e.g.used to determine the appropriate amount of an item of income, allowance, deduction or credit PFA team will utilize auditing standards and procedures to develop issues (See IRM (5)b) All LMSB taxpayers; other taxpayers require operating division concurrence Requests are submitted to LMSB Team Manager, if under examination. If not under current examination, then application can be mailed or faxed to PFA program manager. Allows IRS and taxpayers to address certain issues over a limited number of future taxable years. Industry Director will make final decision as to whether to proceed with PFA; INTL issues require CC:INTL concurrence PFAs are confidential return information exempt from disclosure under FOIA User fee to participate is $50,000 for each separate and distinct issue, payable within 15 days of notification that the issues have been selected. Fees are generally not refundable. Prior to the execution of the PFA, either party may withdraw Inspection of records does not preclude later examination Execution prior to filing of the return, copy of PFA attached to filed return; execution after filing, taxpayer files amended return with copy of PFA attached if filed return inconsistent with terms of PFA. 1

13 71 IRS Issue Resolution Tools April 2008 Prepared by RFPH Headquarters PROGRAM CONTACT DESCRIPTION Issue Resolution - Taxpayer Specific Determination Letters David Lindenbaum, Revenue Procedure (Updated Annually) and Senior Program IRM Analyst (202) IRS and taxpayer agree on treatment of completed transaction on a filed, or required to be filed, return Applies principles and precedents previously announced to a specific set of facts. Taxpayer requests determination in writing from a Director of the IRS; subject to a user fee. Inspection or review of books and records prior to filing is not considered an audit Not concluded with a Closing Agreement so there is less finality. Not reviewed by Office of Chief Counsel Determination Letter made public without identifying information Determination Letter attached to return when filed Letter Rulings Office of Associate Revenue Procedure (Updated Annually) and IRM Chief Counsel - Varies Depending Taxpayer requests written determination from the on Type of Issue - Office of Chief Counsel; PLR applies the tax laws See Rev. Proc. to the taxpayer's specific set of facts Request is subject to a user fee Issued on proposed (not hypothetical) or completed transaction prior to the filing of the return and identical issue not on earlier return that is being examined, in Appeals, or in litigation PLR is taxpayer specific and cannot be relied upon by other taxpayers Letter ruling made public without identifying information - taxpayer submits statement identifying information to be deleted. Letter Ruling attached to return when filed 2

14 72 IRS Issue Resolution Tools April 2008 Prepared by RFPH Headquarters PROGRAM CONTACT DESCRIPTION Issue Resolution - Taxpayer Specific Technical Advice (TAM) LMSB - Pre-Filing Revenue Procedure (Updated Annually) and IRM Office; Shirley Lee, Senior Program Analyst Taxpayers strongly encouraged to participate in process, failure to participate in a "material" stage will constitute a waiver of rights to a taxpayer conference regarding proposed adverse ruling. (202) Exam or Appeals requests written determination from Office of Chief Counsel on technical or procedural question regarding the proper application of tax law, treaties, regulations, etc. on a specific set of facts Presubmission conference required A Director may withdraw request prior to receipt of the signed TAM TAM is taxpayer specific and cannot be relied upon by other taxpayers Includes cases under examination or in Appeals; does not include frivolous issues, matters involving the collection of taxes, or if the same issue of the same taxpayer or a related taxpayer is in a docketed case for any taxable year. TAMs may lead to published guidance which promotes uniformity in the treatment of tax issues. PROGRAM CONTACT DESCRIPTION Issue Resolution - Taxpayer Specific Delegation Order 4-24, - formerly LMSB - Team Internal Revenue Manual Delegation Order 236 (Rev. 3) - Manager Application of Appeals Settlement to LMSB Taxpayers Settlement authority conferred on exam where same or related taxpayer is involved in prior Appeals settlement in same, previous or subsequent tax period Settled by Appeals independently of other issues. Limited authority to accept settlement delegated to LMSB Team Manager Facts substantially the same as in the settled period Legal authority on the issue is unchanged Settlement results in a closing agreement or use of Form 870 AD 3

15 73 IRS Issue Resolution Tools April 2008 Prepared by RFPH Headquarters PROGRAM CONTACT DESCRIPTION Issue Resolution - Taxpayer Specific Delegation Order 4-25 (Rev. 1) LMSB Team Internal Revenue Manual Settlement Authority for Managers Coordinated Issues Technical guidance coordinated issues can be settled by team manager only if Appeals has issued written settlement guidelines Team manager must ensure that the issue is fully developed prior to settlement discussions with taxpayer Proposed settlement and Closing Agreement and/or Form 870 AD approved by the appropriate Technical Advisor and Appeals ISP Coordinator Accelerated Issue Resolution LMSB - Team Revenue Procedure and IRM Manager Examination process to apply resolution of same or similar issues arising from an examination of an LMSB from one or more tax periods to other tax periods; applicable to IC taxpayers subject to some limitations Unlike Delegation Order 4-24, no added settlement authority for managers Though the request for an AIR is formally initiated by the taxpayer, the Service can suggest that a taxpayer make such a submission The issues must be developed consistent with auditing standards as well as auditing work or verification performed on the subsequent year adjustments Certain issues are excluded, e.g., TEFRA issues, and others require approval of other offices, e.g., ISP coordinated issues Inspection of records for AIR does not preclude later examination of records; no re-opening procedures required AIR closing agreement must be reviewed by LMSB Area Counsel to determine legal sufficiency and enforceability. Either party can withdraw prior to the execution of any closing agreement Utilizes either a Closing Agreement or standard partial and/or fully agreed deficiency procedures Certain issues are excluded or require approval of other offices or functions 4

16 74 IRS Issue Resolution Tools April 2008 Prepared by RFPH Headquarters PROGRAM CONTACT DESCRIPTION Issue Resolution - Taxpayer Specific Early Referral to Appeals LMSB - Team IRC Sec. 7123; Revenue Procedure and Manager IRM Taxpayer requests early referral to Appeals of developed unagreed issue in an open audit (prior to 30-day letter) Taxpayer and LMSB agree issue should be referred early Remaining issues are not expected to be completed before Appeals could resolve early referral issue Certain issues excluded but includes Industry Specialization Program (ISP) Excluded issues include issues designated for litigation, requests for competent authority assistance, and "whipsaw" issues Closing Agreements executed if agreement is reached If agreement is not reached, taxpayer may request mediation or if the early referral issue is the only issue, will be issued a statutory notice of deficiency PROGRAM CONTACT DESCRIPTION Case Resolution - Taxpayer Specific Fast Track Settlement Appeals Division Revenue Procedure ; IRM and Procedure LMSB - Team Manager All Fast Track (FT) resolved issues follow Appeals procedures In the FT settlement procedure, the FTS Appeals Official will not perform in a traditional Appeals role, but will use dispute resolution techniques to facilitate settlement between the parties Either the taxpayer or Team Manager may suggest participation; both sign an agreement to mediate Issue accepted into FT only if sufficiently developed Structured to promote resolution within 120 days of the date the Appeals officer is assigned to the case Initiate only after 5701 issued and taxpayer provides written response but before 30-day letter Certain cases excluded such as issues designated for litigation, requests for competent authority assistance, "whipsaw" issues, issues identified as excluded in a Chief Counsel Notice, etc. The Appeals Official or the LMSB Team Manager may terminate FT if either one determines that meaningful progress toward resolution of the issues has stopped Communications during the FT settlement are confidential Ex parte rules do not apply because Appeals personnel are not acting in their traditional settlement role Mediator has no authority to require acceptance of resolution - taxpayer may withdraw Any unresolved issues receive the usual appeal rights 5

17 75 IRS Issue Resolution Tools April 2008 Prepared by RFPH Headquarters PROGRAM CONTACT DESCRIPTION Case Resolution - Taxpayer Specific Fast Track Mediation SB/SE & Appeals Revenue Procedure Procedure Administer Generally similar to Fast Track Settlement Procedures Within Appeals Mediation Appeals Division Revenue Procedure Available for any qualifying issues that are already in the Appeals administrative process; available only after Appeals settlement discussions are unsuccessful. Mediation is requested by taxpayer. Factual issues and legal issues are eligible for mediation, as are Industry Specialization Program (ISP), Appeals Coordinated Issues (ACI) if previously discussed with ISP or ACI coordinator during Appeals settlement disucssions, and a variety of issues. Certain cases excluded such as issues designated for litigation, docketed cases, frivolous cases and collection cases. The mediation process is confidential. No ex parte communications Either party may withdraw from the process at any time before reaching a settlement. Objective and neutral third party will assist taxpayer and Appeals to negotiate a settlement, arbitration may be available if mediation is unsuccessful. PROGRAM CONTACT DESCRIPTION Issue Resolution - Taxpayer Specific Arbitration Procedures for Appeals Division Revenue Procedure and IRM Appeals Program is generally available for cases in which a limited number of factual issues remain unresolved following settlement discussions in Appeals. Arbitation is not available for legal issues; other excluded issues include issues docketed in a court, "whipsaw" issues, frivolous issues, etc. Arbitation is optional for both the taxpayer and Appeals. Upon approval of a request to arbitrate, the parties will enter into a written agreement to arbitrate Arbitration process is confidential No ex parte communications By mutual agreement the parties may withdraw from the arbitration process to reach a final Appeals settlement at any time prior to the date of the arbitration session. Arbitrator will prepare and submit a written report not later than 30 days after completion of the arbitration proceeding. Neither party may appeal the decision of the Arbitrator or contest the decision in a judicial proceeding. 6

18 76 IRS Issue Resolution Tools April 2008 Prepared by RFPH Headquarters Issue Resolution - Generic Industry Issue Resolution (IIR) LMSB - Pre-Filing Revenue Procedure and IRM and Office David Lindenbaum, Issues should have two or more of five specified Senior Program characteristics Analyst (202) Submission of issues from business taxpayers, industry (202) fax associations and other interested parties pftg2@irs.gov Issues must be under the jurisdiction of the LMSB or SB/SE operating divisions Not subject to user fee Focus on resolving issues arising in future years Objective is to identify frequently disputed or burdensome tax issues that may be resolved through published or administrative guidance Inappropriate issues for IIR would include issues that are unique to one or a few taxpayers, e.g., transfer pricing issues, etc. Will potentially result in the issuance of some form of published or administrative guidance, e.g., a Revenue Procedure PROGRAM CONTACT DESCRIPTION Issue Resolution - Generic Advanced Pricing Agreements - APA Program of the Revenue Procedure ; Announcement and IRM APA Office of Associate Chief Counsel Taxpayers formally initiate the process for an APA to resolve transfer pricing issues Prospective nature lessens taxpayer burden by providing certainty Program's central goal is the prompt, proper, and fair resolution of APA requests consistent with principles of sound tax administration Taxpayers may request a bilateral, multilaterial or unilaterial APA If the U.S. Competent Authority and the relevant foreign competent authority reach a mutual agreement, the taxpayer and the Service may execute one or more APAs consistent with that mutual agreement. A taxpayer may request a prefiling conference with the APA Program to determine suitability Materials submitted with the request will NOT be returned An APA request must include all supporting documents and a comprehensive table of contents; perjury statement required in request User fees are based on gross income Failure to provide all required materials may result in rejection of the APA The taxpayer may request that the Service consider a "rollback" of the transfer pricing method to earlier years APA is a binding agreement between taxpayer and the IRS APA has no legal effect except with respect to the subject taxpayer, years and subject transactions For each taxable year covered by the APA, the taxpayer must file a timely and complete annual report demonstrating compliance. 7

19 77 IRS Issue Resolution Tools April 2008 Prepared by RFPH Headquarters PROGRAM CONTACT DESCRIPTION Issue Resolution - Generic Compliance Assurance Program LMSB - Team Announcement (CAP) Manager CAP is a voluntary program for taxpayers which began in tax year 2005 Through CAP, the IRS will work with taxpayers in the program throughout the filing year to identify and resolve issues contemporaneous with the completion of transactions Taxpayers and IRS sign memorandum of understanding to ensure commitment on issues such as cooperation, transparency, and timely access to records and personnel 8

20 78 Tax Information For Businesses Understanding the Large and Mid-Size Business (LMSB) Examination Process Understanding the LMSB Examination Process is a comprehensive guide to examinations conducted by the LMSB Division of the Internal Revenue Service. The guide provides an overview of the examination process for large and mid-size business taxpayers who may be the subject of an IRS examination. Small Business and Self-Employed One- Stop Resource This section offers a broad range of resources across federal and state agencies, as well as industry/profession specific information for self-employed entrepreneurs, employers and businesses. Industry Issue Focus The Large and Mid-Size Business Division (LMSB) of the IRS is implementing an Industry Issue Focus (IIF) approach to compliance as part of its overall issue management strategy. Under this approach, issues are identified and prioritized based on industry impact and level of compliance risk. The International Tax Gap Find resources on this page pertaining to the international tax gap the difference between the amount of tax that taxpayers should pay and the amount that is paid voluntarily and on time. The tax gap can also be thought of as the sum of non-compliance with the tax law. e-file for Large and Mid-Size Corporations Certain large and mid-size corporations are required to electronically file their Forms 1120 and 1120S. Other corporations may do so voluntarily. This site provides e-file information for corporations that prepare and transmit their own electronic corporate income tax returns and those that use the services of third party tax professionals.

21 79 Income from Abroad is Taxable There have been recent reports about the interest of the Internal Revenue Service (IRS) in taxpayers with bank accounts in Liechtenstein. The interest of the IRS, however, extends beyond bank accounts in Liechtenstein to financial accounts anywhere in the world. Consequently, the IRS reminds you to report your worldwide income on your U.S. tax return and lists the possible consequences of hiding... Job Opportunities Now Available in LMSB Hundreds of GS-12 and GS-13 positions in the Large and Mid-Size Business Division are being advertised nationwide to external candidates. Employee Tool & Equipment Plans The Internal Revenue Service has established a compliance team to address the marketing and mistreatment of employee tool and equipment plans as taxfavored accountable plans. Qualified Alternative Fuel Motor Vehicles (QAFMV) and Heavy Hybrid Vehicles Manufacturers of the vehicles in this list have provided appropriate information and have received from the Service acknowledgement of the vehicles eligibility for either the Credit for Heavy Hybrid Vehicles or the Qualified Alternative Fuel Motor Vehicle Credit. IRS Seeking ETAAC Applicants from Large Businesses IRS is seeking applicants from large businesses for membership on the Electronic Tax Administration Advisory Committee (ETAAC). We are trying to balance the membership to include representatives from large businesses who file annual corporation and partnership tax returns. Private Debt Collection Program You've been contacted by a private collection agency concerning your overdue taxes. Now what? Click here for more. Tax Information For Corporations Information for corporate taxpayers about pre-filing initiatives, e-file information, Appeals programs, S Corporations, technical resources, and other pertinent corporate taxation topics. Abusive Tax Shelters and Transactions The Internal Revenue Service has a comprehensive strategy in place to combat abusive tax shelters and transactions. This strategy includes guidance on abusive transactions, regulations governing tax shelters, a hotline for taxpayers to use to report abusive technical transactions, and enforcement activity against abusive tax shelter promoters and investors.

22 80 IRS Job Opportunities for Instructors and On-the-Job Instructors The Large and Mid-Size Business (LMSB) Division of the IRS is looking for retired employees, including executives and managers, with Internal Revenue Agent experience to serve as Instructors and On-the-Job Instructors. Audit Techniques Guides (ATGs) The Audit Techniques Guides (ATG) focus on developing highly trained examiners for a particular market segment. These Guides contain examination techniques, common and unique industry issues, business practices, industry terminology and other information to assist examiners in performing examinations. Coordinated Issue Papers - LMSB The IRS works to identify, coordinate, and resolve complex and significant industry wide issues by ensuring uniform application of the law through the issuance of coordinated issue papers. Although these papers are not official pronouncements on the issues, they do set forth the Service's current thinking. EFTPS: The Electronic Federal Tax Payment System Electronic Federal Tax Payment System (EFTPS). Free from the U.S. Treasury. Employment Taxes for Businesses The subject of employment taxes is not as formidable when you consult our comprehensive resources. Estate and Gift Taxes The Estate and Gift Tax web site contains information that will give you a better understanding of how much money or property you can give away during your lifetime or leave to your heirs at your death before any tax will be owed. Excise Tax The Excise Tax Web pages contain information associated with the manufacture, sales or consumption of certain commodities. Excise Tax has several general tax programs and one of the major components is motor fuel. These pages will assist you in finding out information about the various programs, databases, and activities within Excise Tax. Federal Payment Levy Program Certain payments made to contractors/vendors doing business with the federal government and disbursed by or administered through the Department of the Treasury, Financial Management Service (FMS) may be subject to a 15 percent or 100 percent levy through the Federal Payment Levy Program (FPLP) to pay your delinquent tax debt. Find out your appeals rights and how to resolve any dispute.

23 81 Filing Late and/or Paying Late Before you decide not to file your tax return on time or not pay all of your taxes when they are due, consider this. HCTC: Health Plan Administrators - Overview This section of the website is intended to provide health plan administrators with the information you need as partners in the HCTC program. We organized the information around three topic areas. Industry Issue Resolution Program The Industry Issue Resolution (IIR) Program resolves frequently disputed or burdensome tax issues. IRS solicits suggestions for issues for the program from taxpayers, representatives and associations. Information for Large and Mid-Size Businesses This page provides links which are helpful for large to mid-size businesses with assets greater than $10 million Information Returns Processing The Information Reporting Program Website is designed to help you meet your Information Reporting Requirements. Included are help-line telephone numbers and direct links to aid you in reporting information returns. You will also find information about how to file returns electronically or magnetically. LMSB Industry Director Guidance LMSB Directives provide industry-related and administrative guidance to LMSB examiners to ensure consistent tax administration. The Directives do not establish Service position on legal issues and are not legal guidance. Market Segment Understandings (MSU) The MSU Program, first introduced in 1993, is a means of enhancing tax compliance while reducing taxpayer burden. This Program envisions that the IRS and taxpayers in particular market segments, work together to improve tax compliance in those areas through educational efforts and other collaborative approaches rather than through traditional audit techniques. Office of Taxpayer Burden Reduction (TBR) As a part of IRS s effort to reduce burden on taxpayers, the IRS formed the Office of Taxpayer Burden Reduction (TBR) in early TBR s mission is to achieve significant burden reduction for taxpayers by coordinating and championing burden reduction throughout IRS. Online Ordering for Information Returns and Employer Returns Order information returns and employer returns online.

24 82 Research Credit Guidelines and audit technique guide are provided for field examiners on the examination of Research Credit cases. Research Credit Recordkeeping Agreements (RCRA) Signed June 08, 2005, the Internal Revenue Service (IRS) announced the execution of letters of understanding with Toyota Motor North America, Inc. and Subsidiaries, and American Honda Motor Co., Inc. and Subsidiaries, outlining the terms of a Research Credit Recordkeeping Agreement (RCRA). Small Business Products Online Ordering Looking for a tool to help you meet your tax requirements? Choose from our free products, developed especially for the Small Business/Self-Employed person, and obtain updated information on existing products. Order today online or by calling (800) Tax Code, Regulations and Official Guidance The place to start for researching publicly accessible versions of the Internal Revenue Code, Treasury (Tax) Regulations, or other forms of official IRS tax guidance. SEP and SIMPLE IRA Retirement Plan Information on Free CD-ROM Do you have a SEP or SIMPLE IRA plan or have you thought about setting one up? Maybe you're interested in learning more about your traditional or Roth IRA. The IRS has a new CD-ROM containing one-stop information about traditional and Roth IRAs and IRA-based retirement plans. Order yours today! Disaster Assistance and Emergency Relief for Individuals and Businesses Special tax law provisions may help taxpayers and businesses recover financially from the impact of a disaster, especially when the president declares their location to be a major disaster area. Depending on the circumstances, the IRS may grant additional time to file returns and pay taxes.