The IRS must take additional steps to ensure that accuracy-related penalties are appropriately considered when assessing correspondence audits. ...

A TIGTA review of 229 correspondence audits closed in Fiscal Year 2008 found that 211 (92%) of the audits were not considered and assessed in accordance with IRS procedures for accuracy-related penalties. ... Appropriately assessing this penalty would have resulted in estimated increased revenues of $3.5 million.