Exam Reengineering - Small BusinessSelf-Employed

By Lisa Hernandez,2014-07-09 12:36
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Exam Reengineering - Small BusinessSelf-Employed ...

    Exam Reengineering Project Fact Sheet

The Small Business/Self-Employed (SB/SE) Operating Division of the Internal Revenue

    Service (IRS) is launching an initiative called the "SB/SE Exam Process Reengineering

    Project ” to redefine the way the IRS conducts audits. Through this initiative, the IRS will increase compliance and customer satisfaction, and become a more effective and

    efficient agency. The IRS will start implementing the recommended changes to the

    exam process starting in 2002.

IRS exam selection and collection processes have remained relatively the same for

    over 20 years. The IRS has been reorganized, and the time has come to review major

    work processes and tailor them to reflect the new organization’s goals and objectives,

    including increasing voluntary compliance, administering the tax laws more effectively,

    and increasing customer satisfaction. The Exam Reengineering Project is also exploring

    opportunities to apply commercial and government leading practices to achieve these

    goals. Additionally, stakeholders are being interviewed to identify improvement

    opportunities and to learn what they want out of the Project.


The Exam Reengineering Project will create a blueprint to improve the exam process

    using a step-by-step approach.

? First, the scope and objectives of the Exam Reengineering Project will be defined.

    ? Next, discussions with stakeholders, including IRS employees, will build knowledge

    and understanding of the issues,

    ? Finally, the first two steps will enable us to create a vision for the future or a

    “blueprint” for action.

The key step in this approach involves designing and implementing solutions to

    bridge the gap between where the IRS is today and where they want to be in the

    future. Once these steps are completed, the IRS can develop an implementation plan

    that will build on current processes and structures, bringing them in line with the future



? Streamline examination processes, reduce taxpayer time and expense in dealing

    with the Service;

    ? Increase IRS effectiveness and timeliness in examining returns, collecting taxes, and

    resolving taxpayer issues, and;

    ? Reduce and redirect expenditures within the IRS to improve operational results.


    SB/SE Commissioner Joseph Kehoe and Deputy Commissioner Dale Hart established the priorities for the examination work processes and the products and services to be reviewed and reengineered. IRS employees from around the country volunteered to serve on the Exam Reengineering team headed by Project Director Bill Conlon. Together they are providing the institutional knowledge and field experience that is integral to the Project.

    SB/SE is also partnering with two key industry experts: Booz-Allen & Hamilton, a renowned consulting firm with expertise in analytical, strategic, objective change processes, and business process reengineering, and Deloitte and Touche, a big-5 accounting firm with a broad knowledge of tax administration, financial/audit best practices, and involvement in taxpayer facing associations. The diversity of these IRS-consultant teams is contributing to the overall success of this critical initiative.


    It's imperative that the IRS make continual improvements while seeking efficient and effective new ways to achieve its mission of service to each taxpayer through a quality work environment. These goals can be met only by making specific changes to examination work processes and developing approaches that are specifically tailored for the agency's customer base and employee needs. Moreover, the Exam Reengineering Project isn't just about change; it's about making a long-lasting, positive impact on the entire organization. Commissioner Kehoe said, “We’re going to give our employees the means to work smarter and more efficiently, and when we’re done, we will not only meet but exceed the expectations of our employees and our customers."

    The IRS leadership believes that all stakeholders--including employees--have the opportunity to contribute to the Exam Reengineering effort by providing input into process improvements as they evolve. Commissioner Kehoe said, “Improving our business processes is a team effort, and by sharing your knowledge and experience, the Exam Reengineering Project will be a success. Incremental change isn't enough to bring us closer to our goal of providing the best service to our customers. Together, we can rebuild the Exam Reengineering process, and when we’re done, we will all reap the

    benefits of working better and smarter for years to come.”

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