Limited Issue Focused Examination (LIFE) |
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The IRS Large and Mid-Size Business (LMSB) Division has implemented a new streamlined examination process called Limited Issue Focused Examination or LIFE. This process requires enhanced interaction between the IRS and the taxpayer. In a LIFE examination, the taxpayer and examiner work together on the most significant issues on the tax return. This should result in a more focused examination and reduce resource utilization. LIFE is an effort by LMSB to institutionalize "best practices" and provide consistency in the treatment of taxpayers.
- IR-2002-133 -December 4, 2002 News Release
IRS Implements New Limited Issue Focused Examination (LIFE) Process
- LIFE is an accelerated, issue driven examination process that embodies unique characteristics .
- Why Participate in LIFE?
In April 2003, an interim review of the LIFE process was completed. Both LMSB personnel and outside stakeholders provided feedback on the process. Based upon this feedback, modifications and clarifications were made. An explanation of these changes can be viewed in the Interim Review Summary .
- Frequently Asked Questions will help you understand the process.
- A Memorandum of Understanding (MOU) is the cornerstone of a LIFE examination. It is an agreement between the IRS and the taxpayer to govern key aspects of the examination. It establishes the roles and responsibilities of each party.
- Several misconceptions about the process were identified during the interim review. These have been clarified through the Facts of LIFE .
Share your perspectives with the IRS LIFE Team at: LMSB Post Filing Design Team
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Page Last Reviewed or Updated: June 24, 2008