Audit techniques for conducting examinations of tax-exempt organizations are field, office and correspondence/OCEP (Office Correspondence Examination Program). Field examinations of large, complex organizations that require a team of specialized revenue agents, as well as coordination between IRS functions and other governmental agencies, are conducted using team audit procedures. The appropriate audit technique for each case is based on the potential issues, the scope of the examination and the most effective way to gather required information. The group manager and agent assigned to the examination are responsible for determining the appropriate audit technique. Generally, group manager approval is required to expand the scope of an audit, where scope is defined as the extent and boundaries of an audit .
The examiner may contact third parties (for example, a bank or a government agency) in situations where organizations are unable to provide information, or information provided requires verification. Such contacts generally involve providing limited information to the third party, such as the organization's name. The law prohibits the IRS from disclosing any more information than is needed to obtain or verify the information sought. At least 10 calendar days before making a third party contact, the IRS must have notified the taxpayer - generally, by issuing Publication 1, Your Rights as a Taxpayer, and organizations may request a list of those contacted.
For a discussion of appeal procedures for unagreed issues in exempt organizations cases, see Publication 892.