In collaboration with LB&I (Large Business & International) and key stakeholder groups, the IRS has completed and posted Publication 5125, The LB&I Examination Process. Effective as of May 1, 2016, Publication 5125 outlines the new Examination Process, which describes an enhanced process focused on an issue-based approach for conducting professional examinations from beginning to resolution. Roles and responsibilities for both LB&I examiners and taxpayers are established as well as specific expectations regarding claims for refund.

Each phase of the examination, including Planning, Execution, and Resolution, is highlighted in the new publication, which will replace Publication 4837, Achieving Quality Examinations Through Effective Planning, Execution and Resolution. Updates to IRM 4.46 sections 1, 3, 4, and 5 will be published on or before May 1, 2016. For in-process cases as of May 1, the IRS will transition the LEP process by adopting changes in the Execution and Resolution phases (IRM 4.46.4 & 4.46.5).

Some key changes identified in Publication 5125:

  1. Claim for Refunds Requirements—Requires adherence to Treas. Regs. 301.6402-2 and 301.6402-3 and defines time period for the acceptance of informal claims.
  2. Sets forth an Issue Driven Examination Process focusing the right resources on selected issues and encouraging collaboration of all parties.
  3. Provides an Issue Development Model that relies on active dialogue and fact sharing among all parties and updates IRM 4.46 to include the directives issued on the Information Documentation Request (IDR) Process.

Click Publication 5125 to read the full Publication, and click IRS Release to read the IRS’s summary of Publication 5125.