The CAS Program is a Large Business and International (LB&I) organization managed by the DFO-SC within the WCPA. The CAS Program’s primary responsibility is to support field examinations involving the use of large electronic data files received from taxpayers and support tax issue development where complex data analysis using advanced programming skills is required. Field employees in the CAS Program consist of CASs and statistical sampling coordinators.

A CAS is a trained revenue agent who has completed an intensive computer-training program concentrating on large computer systems that process voluminous amounts of data. While their primary activity is to support large and medium sized corporate and pass-through examinations focusing on various tax issues, CAS will also work on assigned projects requiring complex data analysis or application development.

A statistical sampling coordinator (SSC) is a CAS with advanced training in statistical analysis and methodology. SSCs review taxpayer statistical samples used to generate amounts on a tax return or apply statistical sampling methodology to support tax issues raised during LB&I field examinations. Please refer to IRM 4.47.3 for guidelines and procedures a CAS or SSC should follow when considering the use of statistical sampling.

By law, the IRS has the authority to conduct examinations under Title 26, Internal Revenue Code, Subtitle F – Procedure and Administration, Chapter 78, Discovery of Liability and Enforcement of Title, Subchapter A, Examination and Inspection, which includes, but is not limited to, the following IRC sections:

For additional information see IRM 4.10, Examination of Returns, and IRM 4.46, LB&I Examination Process.

The Director, WCPA, is responsible for the policies and procedures in this IRM section.

The DFO-SC has responsibility for the CAS program and the contents of this IRM. All inquiries, correspondence, reports, etc., pertaining to the CAS Program and any materials in this IRM should be directed to the DFO-SC. The DFO-SC will:

To support CAS Program goals, the DFO-SC will:

CAS territory manager - The CAS territory manager’s role is to:

CAS team manager - The CAS team manager's role is to:

The Security Officer for all CAS Program equipment will be the CAS team manager. This person will:

Computer Audit Specialist (CAS) - The role of the CAS is the LB&I information specialist with regard to large complex computerized accounting systems. The CAS is also a recognized expert in the application of statistical sampling techniques. To fulfill this role, the CAS is involved in:

The effectiveness and efficiency of the CAS Program is monitored by management using automated systems, periodic time reports and other sources of information. The information gathered is to be used to evaluate the effectiveness of the CAS Program. It is not to be used to evaluate individual CAS. All levels of management must ensure adherence to current IRS policy and guidance, such as IRM 1.5.2.11.2, which prohibits the use of Records of Tax Enforcement Results (ROTERS) in evaluating employee performance. This information is used to evaluate and monitor the CAS Program objectives.

Program Goal: The organizational goal of the CAS Program is to provide efficient access to and analyses of electronic records to support the activities of the LB&I business unit. To accomplish this goal, the CAS Program will:

Program controls for the CAS Program include CAS system security, which is described in IRM 4.47.1.4 , CAS System Security.

The CAS Program uses the Specialist Referral System to manage CAS service requests. See IRM 4.47.1.3 , Referrals - Requests for CAS Services, for details.

The table below contains commonly used acronyms:

Technical and procedural information used by CAS to accomplish program goals are described in IRM 4.47.2, CAS Technical and Procedural Information.

Technical and procedural information used by SSC to accomplish program goals are described in IRM 4.47.3, Statistical Sampling Auditing Techniques.

More information about the CAS Program may be found in the Virtual Library: Computer Audit Specialist Knowledge Base.

All systems and peripheral equipment shall be kept in a controlled area when possible, which can be monitored by authorized users during working hours and locked after hours.

Whenever a non-IRS person, such as a maintenance service employee, enters the controlled area, at least one IRS employee knowledgeable of the system will accompany the person and monitor his or her activity.

When transferring taxpayer data from digital storage devices that will be running after hours and not in a controlled area, the digital storage device must be properly secured to prevent loss.

All users must be cleared to handle taxpayer data, but access to files will be limited, to those with a need to know.

Taxpayer data which is on magnetic media will be afforded appropriate security and maintained or destroyed in accordance with established record retention policy. Printed data will be kept secured until distributed or destroyed. Hard copy to be destroyed should be shredded, placed in a shred bin maintained in office space, or otherwise rendered unreadable. Magnetic media containing taxpayer data which are to be discarded should be turned in to IT for proper disposal. Refer to IRM 10.5.1, Privacy Policy, and IRM 10.5.1.6.10, Disposition and Destruction, for additional guidance on proper disposal of hard copy paper and electronic media.

Backups of application files will be taken as frequently as is prudent for a particular site. A systems file backup and an application files backup will be stored away from the computer room so as to preclude total loss of data from a localized fire or other disaster. Original backups may be used for this purpose; duplicate backups are not required. All backups will be kept in a secured location.

Sensitive data will be cleared from the screen upon "logoff" or leaving a terminal.

Computer room(s) will be cleaned by janitorial service personnel only during working hours.

In order to monitor issue related applications, the CAS and CAS manager should ensure that the appropriate Uniform Issue Listing (UIL) codes are used when preparing audit plans and as time is charged to each case.

The UIL codes used by other audit team members should be used by the CAS when providing support and assistance directly to the development of the issue. Time spent developing applications, gathering or analyzing data or interpreting results in the development of an issue should be charged to the same UIL codes as the other members of that issue team.

CASs are primarily intended to be used in the examination of LB&I tax returns by performing case related applications which are consistent with the role of the CAS as defined in the IRM. Case related is defined as all computer applications where time is properly chargeable to direct examination time on the ERCS Monthly Time Report.

Case related applications also include TE/GE, SB/SE, CI, Appeals, Counsel, and Grand Jury activities even though time may properly be charged to non-direct examination time, and regardless of the case’s status on AIMS. The application must involve analyzing data from the taxpayer’s books and records and/or the analysis of other information to determine compliance with the Internal Revenue Code.

Non-case related is defined as all management reports and applications which do not relate to the examination of the taxpayer’s books and records or other relevant data. Non-CAS staff should be used to the maximum extent possible for these types of applications.

Non-case related applications requiring more than 16 hours of CAS resources require CAS territory manager approval. Non-case related applications requiring 16 hours or less of CAS resources requires CAS team manager approval.

CASs should identify and explore potential computer applications that may have broad nationwide use to expedite or reduce the cost of investigations, examinations, and special projects. These ideas may be developed during examination or special project work. These ideas should be submitted to the DFO-SC as early as possible in the development stage so they can be reviewed before extensive resources are expended and possible duplication of effort takes place.

All CASs and their managers must solicit voluntary use of necessary computer facilities from taxpayers under examination where computer assisted audit techniques will be used. It is desirable to use the taxpayer’s computer for computer assisted auditing techniques since the equipment is compatible with the records, and the taxpayer’s ADP staff is familiar with the data.

Taxpayer facilities shall not be used for other purposes or for longer than is necessary to complete the examination.

On occasion, another government agency may permit CASs to use its computer facilities. When such facilities are used, even if provided without charge, Area and Territory Security and Disclosure functions must be notified to ensure that appropriate security is maintained.

The CAS Program secures time-sharing systems and local off-site data processing facilities for use by CASs. These services should be used only when the use of taxpayer computer facilities, IRS facilities or other Commercial government owned equipment is not possible. The most cost-effective system should be selected for the intended application.

Funds for securing ADP services are provided in accordance with regular fiscal procedures.

The DFO-SC must approve all applications using local service bureaus or commercial time-sharing services that will exceed $10,000 in cost.

The requirement to file GSA Form 2068-A, Quarterly Report of ADP Services, has been eliminated by GSA.

Area and Territory Security and Disclosure functions should be contacted and all security requirements shall be adhered to.