The Treasury Inspector General for Tax Administration has released Annual Audit Plan — Fiscal Year 2010:

The Office of Audit Fiscal Year (FY) 2010 Annual Audit Plan communicates the Treasury Inspector General for Tax Administration’s (TIGTA) audit priorities to the Internal Revenue Service (IRS), Congress, and other interested parties. Many of the activities described in the Annual Audit Plan address the fundamental goals related to the IRS’s mission to administer its programs effectively and efficiently.

Each year, the TIGTA identifies and addresses the major management and performance challenges facing the IRS. The Annual Audit Plan is organized by TIGTA’s listing of the major challenges facing the IRS for FY 2010 (Appendix II). Emphasis is placed on the mandatory coverage imposed by the IRS Restructuring and Reform Act of 1998 (RRA 98)1 and other statutory authorities and standards involving computer security, taxpayer rights and privacy issues, and financial audits. The American Recovery and Reinvestment Act of 20092 (Recovery Act) contains multiple tax law changes that the IRS is charged with administering. TIGTA has several audits planned to monitor Recovery Act issues as shown in Appendix XIX.

The balance of TIGTA’s audit work is concentrated on high-risk areas and will focus on the IRS’s progress in achieving its strategic goals and eliminating identified material weaknesses. In addition, audits will address areas of concern to the IRS Commissioner, the IRS Oversight Board, the Secretary of the Treasury, Congress, and other stakeholders. The IRS’s goals and objectives for the next fiscal year are highlighted in Appendix III.

To identify FY 2010 high-risk areas for audit coverage, TIGTA uses a risk-assessment strategy within its core business areas. The Assistant Inspectors General for Audit advise the Deputy Inspector General for Audit on the major risks facing the IRS in their respective program areas and annually propose a national audit plan based on perceived risks, stakeholder concerns, and followup reviews of previously audited areas with significant control weaknesses. In addition, to keep apprised of operating conditions and emerging issues, the Office of Audit executives maintain liaison and working contact with applicable IRS executives, the IRS Oversight Board, Department of the Treasury and Government Accountability Office officials, and congressional staffs.