IRS TEGE extends COVID-19 modifications to examination procedures

TAX ALERT  | 

Authored by RSM US LLP


The Tax Exempt and Government Entities Division (TE/GE) of the IRS recently issued an internal memorandum extending the use of modified Information Document Request (IDR) enforcement timelines and examination activities until further notice, due to the COVID-19 pandemic.

Background

In response to the COVID-19 pandemic, the IRS implemented its People First Initiative, which included suspending all in-person contacts and some compliance actions through July 15, 2020. Read the RSM Tax Alert

Subsequently, TE/GE announced that after July 15 and until further notice, it would modify IDR enforcement and exam activity to provide flexibility for taxpayers unable to reply timely or completely to an IDR due to the COVID-19 pandemic. Read the RSM Tax Alert.

Update

TE/GE further extended this relief in its December 15 memorandum, allowing examination agents and managers to use their business judgment in granting taxpayers flexibility with respect to otherwise rigid IDR timelines. This modification applies to taxpayers who are unable to reply timely or completely to an IDR or follow-up request due to the COVID-19 pandemic.

Modified exam activity

TE/GE has resumed normal examination activity, except for the following modifications:

  • In-person contact will be permitted only when necessary.
  • When in-person contact is necessary, it must be accompanied by appropriate COVID-19 precautions, such as reasonable social distancing and face coverings. 
  • Virtual appointments can be via teleconference or WebEx.