Chapter 10: IRS Audits of Colleges & Universities

10.1 TYPES OF AUDITS

10.2 THE INITIAL CONTACT

10.3 THE EXAMINATION

(a) The Information Document Request Process
(b) Tours of Facilities and Interviews of Personnel
(c) Requests for Information on Students
(d) Information Requests by the IRS During the Examination

(i) Internal Documents
(ii) External Documents
(iii) Documents Relating to Indirect Cost Allocations
(iv) Financial and Other Information

(e) Review and Analysis of Factual Information

10.4 PRESENTATION OF IRS FINDINGS

10.5 CONCLUSION OF THE AUDIT

10.6 EXTENDING THE STATUTE OF LIMITATIONS

10.7 CLOSING AGREEMENTS

10.8 TECHNICAL ADVICE PROCEDURES

10.9 TIPS ON PREPARING FOR, AND PARTICIPATING IN, AN AUDIT

10.10 THE APPEALS OFFICE PROCESS

10.11 BEYOND THE APPEALS OFFICE—LITIGATION OF THE TAX CASE

10.12 THE ATTORNEY-CLIENT AND WORK PRODUCT PRIVILEGES

(a) Attorney-Client Privilege

(i) Elements of the Privilege
(ii) Issues Relating to In-House University Counsel
(iii) Waiver of the Attorney-Client Privilege
(iv) Dissemination of Privileged Information within the College or University
(v) Dual-Purpose Communications and Tax Returns
(vi) Maintaining the Privilege with Respect to Tax-Related Work By Accountants

(b) Tax Practitioner Privilege
(c) Work Product Privilege

(i) Elements of the Work Product Privilege
(ii) The “In Anticipation of Litigation” Standard
(iii) The Preparation of Work Product
(iv) Qualifications on Work Product Protection
(v) Waiver of the Work Product Privilege
(vi) Scope of Waiver

(d) Guidelines