Ann Arbor, MI
Farmington Hills, MI
Houston, TX - UHY Advisors Only
Kansas City, MO
New York City, NY
Orange County, CA
Rye Brook, NY
Saratoga Springs, NY
St Louis, MO
Sterling Heights, MI
UHY Advisors Alliance
News & Events
Audit & Assurance Services
Audits of Financial Statements
Audits of Employee Benefit Plans
Audit & Assurance Related Services
Audit Committee Advice
Information Technology Audits
SOC and SSAE 16 Services
Vendor, Contract and Construction Audits
State and Local
Forensic, Litigation & Valuation
Business Insurance Consulting
Employment and Personal Injury
Fraud and Forensics
Internal Audit, Risk and Compliance
Contract Compliance Services
Enterprise Risk Management
Assurance and Compliance Services
International Business Services
Canada U.S. Tax Team
Management and Technology Consulting
Business Process Outsourcing
Power & Utilities
Transportation, Distribution & Marketing
Manufacturing & Distribution
Aerospace & Defense
Not-For-Profit & Education
Professional Employer Organizations
Find a Professional
News & Events
News & Events
New IDR Enforcement Process Announced
Last summer, the IRS listed new guidelines for Large Business & International (LB&I) examiners and specialists to follow related to Information Document Requests (IDRs) for LB&I companies under IRS examination. Any corporation, subchapter S corporation or partnership will be subject to the LB&I guidelines if their assets are greater than $10 million.
Earlier this month, the IRS issued a directive which provides guidance on the new IDR enforcement process that will be effective January 2, 2014. The main focus of the new process is to clearly identify and state the issue that has led to the IRS examination of the LB&I company. As addressed in the guidance, the examiner must discuss the IDR with the taxpayer in advance of issuing the IDR, as well as determining and discussing with the taxpayer, a reasonable timeframe as to when a response to the IDR is adequate.
The guidance also set forth the process which will be used when a taxpayer does not respond in a timely manner to the IDR. If a LB&I company does not respond to an IDR, the examiner is required to enforce the IDR in three graduated steps: 1) a Delinquency Notice; 2) a Pre-Summons Letter; and 3) a Summons.
The new IDR enforcement process related to LB&I companies are believed to result in a more efficient and transparent examination, reducing the need to enforce summonses.
Again, the new process will be effective January 2, 2014. Any LB&I taxpayer that is currently under examination should have the guidance communicated to them by December 15, 2013.
For more information or questions on this topic, please contact your local UHY LLP professional.