Small business owners lose sleep over it. CFO’s, controllersandtax manager’s get gray hair during it. Shareholders canlosesignificant capital because of it. Bankers, suppliers andcustomerssometimes walk away from long term business relationshipsas aresult of it. Individuals and families unfortunatelysometimessuffer as a consequence of it.
CPA’s and attorneys advise clients they must assume thateveryreturn, deduction and accounting practice will bequestioned.Though that is not the case, when an audit does occurthere is a50/50 chance that a tax deduction will be disallowed.
The 2010 IRS Data Book reports that over 100,000 AdditionalTaxrecommendations were sent to corporations after return andfieldaudit examinations. Audit tax risk is a significant challengeforall sized businesses.
IARP: (IRS Audit Risk Program)
IARP is an audit risk management road map targeting IRSIndustryFocus Issues (IFI). Industry Focus Issues are guidelinesIRSexaminers use to enforce oversight of tax laws. IFI outlinesastatute specific risk based approach to examination oversightandaudit engagement rules. IFI outlines focus areas ofheightenedagency scrutiny targeting specific issues that arereported on taxfilings.
IARP assists small and mid-size businesses (SME) to determinetaxaudit exposures to Tier I, II and III risk factors.
The IARP is a threat management and scoring tool thatuncovers,ascertains, manages and mitigates tax audit risk for eachIFI riskfactor.
The IARP ranks, aggregates and groups all tax riskexposures.Managers and tax advisers can then take considered actiontomitigate exposure, prepare for tax audits and organizedefensiveresponses for potential mediation, arbitration orlitigation of taxaudit disputes.
The IARP is a necessity for SME’s, private equityfirms,financial services firms, companies conducting business inforeigncountries, corporations utilizing offshore structures,companiesengaged in innovative transactions, R&D programs,carry trade,recognize and book revenue from diverse sources oremploysophisticated tax strategies.
The IARP is a resource for CFOs, compliance officers,riskofficers and corporate counsel. CPA’s, attorneys with a focusoncorporate tax, compliance and risk consultants and otherindustryservice providers will find the IARP an indispensableclientengagement tool.
The IARP scoring methodology is designed to determine auditriskexposure and level of preparedness to meet audit risk factorsas itguides users through a thorough risk assessment. The IARPhelpsmanagers formulate and initiate actions required to mitigatethethreat of audit risk exposures.
IARP identifies and calculates expenses associatedwithmitigation initiatives while assisting managers to tracktheprogress of mitigation responsibilities assigned to staffmembersand outside service providers.
IARP links to issue specific IRS resources and documentationthatexplains tax issues, documentation requirements andagencyengagement guidance pertaining to the specific IFI riskfactor.These critical tax compliance resources helps to quicklydeterminethe severity of risk factors and aligns corporateresources neededto address aggregated corporate exposures.
Product features:
Audit Risk Scoring Methodology
Identify Audit Risk Exposures
Identify Mitigation Initiatives
Manage Mitigation Initiatives
Prioritize Aggregated Risk
Assign Tasks and Track Open Issues
Calculate Mitigation Expenses
Align Staff and Service Providers
Links to Issue Specific IRS Guidance
IRS Form Library and Search Engine
FASB and AICPA Guidance
The IARP is an Mobile Office MS Excel© App. IARP MobileOfficeApp requires a Mobile Office App a PDF reader and a Zipfilemanager for Android users. All available for no charge onGooglePlay. The app directs users to a Drop Box to pick up zipfile.