IRS Corporate Audit Hours Spent on Nonproductive Examinations Increasing

IRS Division Corporation Asset Size Revenue Agent Hours: Change in Revenue Agent Hours (FY 2006 vs FY 2001) Productive* Nonproductive* Productive Nonproductive Nonproductive (differential change)** FY 2001 FY 2006 FY 2001 FY 2006 SBSE no balance sheet 65,945 76,797 14,501 17,386 16% 20% 3% < $250,000 135,070 175,954 47,099 88,538 30% 88% 58% $250,000 < $1 million 141,826 100,551 54,402 50,081 -29% -8% 21% $1 < $5 million 185,288 64,213 75,043 33,697 -65% -55% 10% $5 < 10 million 98,738 32,400 41,607 21,503 -67% -48% 19% LMSB $10 < $50 million 286,339 416,066 101,452 209,447 45% 106% 61% $50 < $100 million 146,399 128,035 25,309 43,278 -13% 71% 84% $100 < $250 million 283,594 176,055 31,685 49,028 -38% 55% 93% $250 million and up 3,620,193 3,801,532 46,164 98,632 5% 114% 109% Total 4,963,392 4,971,603 437,262 611,590 0% 40% 40%

* "Productive" is time spent on audit with recommended tax changes. "Nonproductive" is time spent on audits with no change.   ** Differential rate of change in nonproductive hours relative to productive hours. This is calculated as difference between changes in nonproductive and productive rates of growth or decline. Transactional Records Access Clearinghouse, Syracuse University Copyright © 2007