Supporting Statement

OMB Supporting Statement

IRS Large & Mid-Size Business Division

COMPLIANCE ASSURANCE PROCESS (CAP) SURVEY 2009

Background

LMSB historically has been in a continuous audit relationship with its largest customers. Both customers and LMSB are seeking innovative ways to improve relationships, save resources and make compliance with tax law easier. Selected customers have volunteered to be part of a pre-filing program called Compliance Assurance Process (CAP). CAP is a good faith attempt to resolve all issues and reach agreement between IRS and its customer prior to the customer filing their corporate tax return.

The program provides for pro-active comprehensive disclosures of information on all significant completed business transactions, continuous collaborative interactions, and accelerated issue resolution. IRS interacts directly with customers to understand the business operation of the customer, review significant business transactions, and conduct risk assessment to evaluate tax compliance and tax reserve impacts. Purpose is to identify compliance issues for resolution. Key CAP components are real-time customer interaction with issue identification and resolution.

Objective

A primary goal for the contractor shall be to use the customer feedback to identify and prioritize service improvements the IRS should make in the improvement of CAP program. The survey questions will be designed to gather customer feedback and experiences with regard to ease of process, impact on reducing taxpayer burden, efficiency of issue resolution and professionalism of IRS personnel. The objective will be to gauge customer expectations and perceptions about LMSB services in relationship to CAP as opposed to the more conventional post return filing examination relationship. Each customer surveyed will be given an opportunity to express their opinion about the services they have received. The product of the CAP survey should facilitate more effective management of LMSB by:

• Providing insight from the customer’s perspective about possible improvements.

• Providing useful input for program evaluation and execution at the programmatic and field office level of service delivery.

Research Methodology

The methodology used in this survey will be a web based scripted survey. All 100 taxpayers who have volunteered for the CAP program will be invited to participate in the survey via email solicitation that will include a secure web link.

Information Collection Dates

The survey data collection is conducted once a year. All CAP Customers will be surveyed October 1-30, 2009. A final report of results will be issued November 30, 2009.

Data to be Collected

A scripted survey with questions will utilize a 1-5 rating scale, with 1 being very dissatisfied and 5 being very satisfied. Questions will cover the following seven key areas:

• CAP Preparation

• CAP Process

• Information Requests

• Audit Manager, Account Coordinator and Field Specialists

• Issue Resolution

• Proposed Adjustments

• Demographics

Estimated Burden Hours

Based on prior research with this audience and expected response rates from online surveys, we expect a response rate of 80%. Each survey will take about 2 minutes for pre-reads and about 10 minutes to complete survey. With soliciting a census of the CAP population for survey participation, total hours would be 16.7 hours.

100 potential participants x 80% participation rate = 80 participants and 20 non-respondents

20 non-respondents x 2 minutes/60 to read materials = .67 hours

80 respondents x 12 minutes (including 2 for reading materials) /60 = 16 hours

How data will be used

By surveying and analyzing this CAP customer base, it will afford LMSB management the opportunity to make informed business decisions to improve upon alternatives to the traditional audit and to improve customer satisfaction.

How data will be analyzed

The culmination of the responses will create a score that will be tabulated based on numerical scores given on the response questions. Scoring for this contract will be based on the Customer Satisfaction Survey Score response average keystone question – “Considering all the aspects discussed in the survey, but excluding the outcome of the CAP review, please rate your overall satisfaction with the CAP process.” Subsets of scores will be derived for each of the seven key areas.

Who is conducting research?

LMSB Planning, Quality, Analysis and Support contracts the survey which is conducted by an outside contractor, Pacific Consulting Group (PCG) and using their data collection subcontractor, Training Technologies, Inc. (TTI).).

Anonymous, Disclosure, and Security

The answers provided are anonymous and the business and individual identity information is not shared with the IRS. They are under no obligation to participate or complete the survey, it is completely voluntary. However, the participation solicitation email will encourage their participation so that their answers will help the IRS provide better service to the business community. Our contract with PCG authorizes them to collect taxpayer specific information. Therefore responding to the survey is not an unauthorized disclosure of taxpayer information. Prior to taking the survey, each participant who would like to verify the authenticity of the survey request, may contact Jim Morton, LMSB Program Analyst by phone (404-338-7127) or by email ([email protected]).

To access the survey, respondents will need to access the web survey link that is only provided to respondents. In addition, each respondent will be provided with a unique user name and password. These unique user names and passwords will protect access to the website and ensure security of responses from others who might access the website.

Estimated Cost

Cost of Survey is expected to be $42,000.

Contact

For questions regarding the study or discussion guide design, contact:

Jim Morton

Program Analyst, LMSB

Performance, Quality Assurance and Audit Assistance

401 W. Peachtree Street, Stop 151-R

Atlanta, GA 30308

404-338-7127

[email protected]

Attachment:

1. Survey Questionnaire Draft

2. Pre Note

3. Survey Solicitation

4. Survey Reminder