The IRS's New Audit Project

The IRS used to conduct Taxpayer Compliance Measurement Program (TCMP) audits to gather statistics for its general audit program. These "super audits" were discontinued several years ago after taxpayers and Congress complained that they were too intrusive. As one taxpayer described it, undergoing a TCMP audit was like an autopsy without the benefit of death.

Now the IRS has a new plan for gathering audit statistics. This plan involves auditing approximately 50,000 2001 tax returns under a project called the National Research Program. The Service plans to use information gained from these audits to measure how well taxpayers are complying with the tax law and to help it develop new formulas for the audit selection process.