Article: Treasury: IRS Division Should Focus More on High-Risk Deals.

WASHINGTON -- The tax-exempt bond division of the Internal Revenue Service needs to work harder to target bonds with a high risk of noncompliance for audits and misconduct examinations in order to increase its productivity and improve compliance in the municipal sector, according to a Treasury report.

While acknowledging that the office is pursuing a "focused, ambitious compliance program," the Treasury Inspector General for Tax Administration report, released yesterday, contends that the division needs to re-evaluate the way it uses its enforcement resources because about half the Section 6700 exams and more than half the regular bond exams it has conducted ...

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