Internal Revenue Bulletin:  2011-37 

September 12, 2011 

APPENDIX B
Sampling Documentation Standards
Sample Execution Documentation

Taxpayers must retain adequate documentation to support the statistical application, sample unit findings, and all aspects of the sample plan and execution. The execution of the sample must be documented and include information for each of the following:

  (1) The seed or starting point of the random numbers;
  (2) The pairing of random numbers to the frame along with supporting information to retrace the process;
  (3) List of the sampling units selected and the results of the evaluation of each unit;
  (4) Supporting documentation such as notes, invoices, purchase orders, project descriptions, etc., which support the conclusion reached about each sample item;
  (5) The calculation of the projected estimate(s) to the population, including the computation of the standard error of the estimate(s);
  (6) A statement as to any slips or blemishes in the execution of the sampling procedure and any pertinent decision rules; and
  (7) Computation of all associated adjustments. (An example of an associated adjustment would be the amount of depreciation allowable based on a probability determination of an amount capitalized).

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