The IRS Large Business and International Division (LB&I) has
announced (LB&I-04-0812-010) that it will no longer use its
"tiered issue process" to manage audit issues. Instead,
LB&I is creating a knowledge management network with issue
practice groups (IPGs) for domestic issues and international
practice networks (IPNs) for international issues.
The tiered issue process was established in 2006 to promote
greater consistency and accountability in the resolution of
"high-risk" compliance issues. Under the process, many
issues were assigned to one of three tiers and managed by issue
management teams. These teams were responsible for developing
resolution strategies and tools, and each tier carried specific
requirements for coordinating audit issues. Examiners were required
to address any Tier I issues on a return, though having a Tier I
issue did not mean a taxpayer's return would automatically be
selected for audit.
