Client Alert
The U.S. Treasury recently released a report from the Treasury Inspector General for Tax Administration that states that the Internal Revenue Service more than doubled the number of bond examinations conducted per year from the number of examinations it conducted during previous reporting periods. The Treasury Report, which covers IRS enforcement activities of the Tax Exempt Bonds Office from FY 2005 to FY 2010, also shows that the TEB assessed more that $84 million of additional amounts for noncompliance based on bond examinations for such fiscal years. TEB assessed such amounts while also decreasing the amount of time TEB staff spends on each examination from more than 100 staff days to approximately eight staff days per examination.