The IRS prioritizes compliance risks

The Large and Mid-Size Business Division (LMSB) of the IRS is implementing an Industry Issue Focus (IIF) approach to compliance as part of its overall issue management strategy. The goals of this approach are:

*Consistency in resolution across industry lines
*Improved currency
*Increased coverage of non-compliant taxpayers by
maximizing limited resources
*Greater oversight on and accountability for
important issues

Under this approach, compliance issues are identified by the field through examinations, Schedule M-3 reviews, and other sources. These issues are prioritized or tiered based on how prevalent they are across industry lines and the level of compliance risk they present.