Agenda - Council - 05/12/1981 - Laserfiche WebLink

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,. ' 'I:HEWEEK IN REVIEW-81-19 -6- May8, 1981_ · Allow oral presentations in major rule makings, including cross-examination where needed to resolve factual issues · Require agencies to review major rules every 10 years to determine if they should be revised or withdrawn · Prohibit the courts from presuming that agency interpretations of law are val- id and require their determinations to have substantial support · Require agencies to publish a semi-annual agenda of regulatory actions. A major rule is defined as a rule which will (1) impose compliance costs of $100 million or more, (2) substantially increase prices or costs for wage earners and consumers, or (3) have significant adverse effects on employment or productivity of U.S. businesses. The sections of the bill relating to cost/benefit analysis and review of agency rules would not become effective until January 1, 1983. In this way, enactment of the proposals would not prevent or de- lay the President's on-going efforts to reduce regulation. Taxes IRS ANNOUNCES NEW GUIDELINES FOR TAX ACCRUAL WORKPAPERS Since changes were made in the I RS Audit Manual last year, the I RS has received severe criticism from corporations and their auditors that examining agents routinely were requesting tax accrual workpapers as a standard procedure in nearly all examinations (TWIR 3/20/81 }. The I RS reviewed the large number of complaints received on this issue and has just announced new guidelines that its agentsmust follow before any tax accrual workpapers may be requested: · Schedule M-1 of Form 1120 must be reconciled. This schedule generally pro- vides for a reconciliation between income reported on a company's finan- cial statements and that reported on its tax return. · The examination must be substantially completed. - · Specific issues must be identified. · All known facts must be requested from the taxpayer which relate to the is- ' sues'and any supplementary analyses {not necessarily contained in the workpapers) of facts relating to the issues must have been requested from the taxpayer's accountant. After an examiner has followed these steps and if he still determines there is a need to request access to the tax accrual workpapers, the request must be: · Approved by the Chief of the Examination Division; and, · Limited to those portions of the tax accrual workpapers that are material and relevant and related to the specific issue or issues ~dentlfied. In announcing these changes, Roscoe L. Egger, Commissioner of the IRS, emphasized that the new procedures will require a high level of management approval by the IRS before an examiner may