National Research Program.IRS An abbreviation for the Internal Revenue Service, a federal agency charged with the responsibility of administering and enforcing internal revenue laws. examiners selected nearly 90% of 46,007 cases for face-to-face audits in the first phase of its National Research Program (NRP (Network Resource Planning) The planning, scheduling and control of a computer network. It includes documentation writing and network diagramming, analyses of traffic and congestion, analyses of application behavior and demand, procedures for failsafe and disaster ), despite hopes that it could handle more cases less intrusively.
Background: The NRP was instituted to help the Service isolate isolate /iso·late/ (i´sah-lat)
1. to separate from others.
2. a group of individuals prevented by geographic, genetic, ecologic, social, or artificial barriers from interbreeding with others of their kind. problem compliance areas, so that it could better target its enforcement efforts. It replaces the highly controversial Taxpayer Compliance Measurement Program (TCMP TCMP Taxpayer Compliance Measurement Program
TCMP TMD Critical Measurements Program
TCMP 2-chloro-6-(trichloro-methyl) pyridine
TCMP Texas Coastal Management Plan
TCMP Transportation Control and Movement Plan ), which eventually was terminated amid cost overruns Noun 1. cost overrun - excess of cost over budget; "the cost overrun necessitated an additional allocation of funds in the budget"
cost - the total spent for goods or services including money and time and labor and taxpayer complaints of intrusiveness in·tru·sive
1. Intruding or tending to intrude.
2. Geology Of or relating to igneous rock that is forced while molten into cracks or between other layers of rock.
3. Linguistics Epenthetic. .
The IRS chose 1,817 tax returns (3.9%) for correspondence audits, while only 2,535 returns (5.5%) were accepted as accurate. Of the remaining returns, 0.9% (402) were accepted with an adjustment, while 0.4% (186) had been previously audited.
Audit reasons: The Service initially estimated that a larger number of returns would be accepted without change or selected for correspondence audits.
There are several possible reasons for the outcome. One is that the final design of the sample to be examined required the selection of more complex, higher-income returns. Another is that the classification procedures had not been fully developed when the initial estimates were released. A third is that the IRS was "overly optimistic op·ti·mist
1. One who usually expects a favorable outcome.
2. A believer in philosophical optimism.
op " as to the types and numbers of compliance issues that it could handle via correspondence audit.
Future plans: The agency will be implementing new audit selection formulas in early 2006 and expects a fairly decent improvement in the no-change rate.
Despite higher-than-expected numbers of face-to-face audits, the process is still less burdensome than TCMP's rigorous examinations; taxpayers generally have given the NRP positive feedback.
Although the first round of NRP audits yielded large amounts of data and preliminary numbers on the tax gap, the Service is still defining what the numbers mean. Overall, it is too soon to say how the information will affect the agency's long-term compliance initiatives.