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Motor Vehicle Industry Overview - Introduction - June 2004

Affected IRM: X.XX.X 

"This document is not an official pronouncement of the law or the position of the Service and cannot be used, or cited, or relied upon as such."


A.  Purpose of Industry Overview

This overview is designed to provide industry-related information to all Large and Mid-Size Business (LMSB). This is the first step in the effort of LMSB to develop a greater level of expertise in the industry or industries to which you will be assigned. This overview is one of a series of industry specific overviews. See the Appendix for a complete listing of available overviews.

B.  Use of the Intranet and Internet

Each technical advisor has established a web site on the LMSB Intranet.  These web sites contain more detailed information on each Technical Advisor area.  Topics that have been included in this Industry Guide are sometimes expanded upon and new topics may be added.  Each web site also has a “What’s New” section where Technical Advisors can highlight the latest developments such as new court cases, new technical advice memorandums, new revenue rulings, etc.  A section called “Forum” has been established where individuals will be able to write questions they have about various issues.  Others reading the question may be able to help you with your issue.

C.  General History of Industry Specialization Program (ISP)



The Service was restructured in 1952 into a highly decentralized organization consisting of seven regions and 58 districts.  This reorganization was implemented in part to achieve greater sensitivity and responsiveness to pubic needs.  District Directors were given wide latitude and authority in administering the Service's policies, procedures and programs.  While decentralization of the Service proved to be a progressive action, communication between the regions and districts was made more difficult because of their quasi‑autonomy.  Positions taken by the Service on industry issues could differ significantly from one region to another on the same issues.


The Service implemented the Industry Wide Examination Program to concurrently examine the major taxpayers in a given industry, coordinate selected issues common to that industry and to resolve those issues uniformly and consistently among all the industry taxpayers.  Under the direction of project coordinators (usually large case branch chiefs), the industry wide examinations were largely successful in achieving uniform and consistent treatment of issues.  Industry wide examinations were conducted in several industries between 1971 and 1979 and the ability to communicate freely across district and regional lines proved to be invaluable to the success of these examinations.


The Industry wide Examination Program had one major drawback.  Since they existed for only two or three tax years and were then terminated, the program failed to provide continuity.  To correct this situation, a major study group was created in 1977 to review the Service's Coordinated Examination Program.  The study recommended that permanent positions be established for several Industry Specialists and a National Industry Coordinator.  In addition, the study group identified basic industries to which it recommended specialists be assigned.  The duties and responsibilities of the Specialists and the Coordinator were to be much broader than the former Project Coordinators whom they replaced.


The recommendations of the study group were implemented greatly expanding the scope and depth of the Industry wide Examination Program.  The term, Industry Specialization Program, eventually evolved as a name that could encompass the varied concepts of Industry Specialists, National Industry Coordinator, Coordinated Issues, and the many refinements suggested by the study group. 


As part of the Internal Revenue Service’s restructuring, the Industry Specialists were assigned to Pre-Filing and Technical Guidance which is part of LMSB, Headquarters.  The “Industry Specialists” are now called Technical Advisors.  Each of them was placed in one of the five industry areas and is managed by a Technical Advisor manager.

D.  History of the Motor Vehicle Technical Adviser


June 1987-December 1988

Motor vehicle industry studied and proposed for inclusion in the Industry Specialization Program

August 1989

Motor Vehicle Industry Specialization Program (MVISP) formally established and an Industry Specialist (ISP) appointed.


  MVISP team grows to include an Assistant ISP, a Revenue Agent team member, and several support staff. 
The Motor Vehicle Industry Specialization Information System (ISIS) industry bulletin board was established.

May 1991

1st MVISP Industry Wide Meeting – Cincinnati, Ohio

Oct. 1994

2nd MVISP Industry Wide Meeting – Detroit, MI

June 2000

MVISP becomes part of the new Large and Midsize Business Division in the Pre-Filing and Technical Guidance Division
Motor Vehicle Industry Specialist is renamed the Motor Vehicle Technical Advisor

E.  Technical Adviser Staffing (LMSB)

Name of Specialist Telephone & Fax E-mail
Terri  S Harris
Technical Advisor


Terri S. Harris
Michael J. Willemsen
Technical Advisor
Michael J. Willemsen







F.  Industry Staffing

The Technical Advisor is assigned to the Pre-Filing and Technical Guidance Division that is a part of LMSB Headquarters.  Each industry is assigned to one of the five Industry Functional Divisions.  Industry Specialists are known as Technical Advisors in LMSB and are supervised by a Manager, Technical Advisors.  Information relative to the management in the Industry Division to which this industry is assigned as well as the Manager of the Technical Advisor(s) of this industry is as follows:





Charlie L. Brantley

Industry Director


Iselin, NJ

Steve Whiteaker

Field Operations Director


Downers Grove, IL

David Horton

Field Operations Director


Downers Grove, IL

Dorothy Livaudais

Manager, Technical Advisors


Paterson, NJ

G.  Description of Motor Vehicle Industry

The Motor Vehicle Industry encompasses all aspects of a new or used vehicle’s life cycle from manufacturing/importing to distributing, retailing, renting, and leasing.  The motor vehicle industry includes all types of foreign and domestic vehicles such as cars, trucks, buses, motorcycles, boats, recreational vehicles, and heavy equipment.  Aftermarket products and services also comprise a large part of the industry.  The aftermarket consists of original equipment parts manufacturers (OEM), remanufacturers, parts wholesalers, retailers, and vehicle converters.  Manufacturers, distributors, and dealers provide a wide array of insurance and financial products including vehicle financing, extended service contracts, and credit life insurance.  Companies may also establish related finance companies or insurance companies.  

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Page Last Reviewed or Updated: 22-Jan-2015