Internal Revenue Bulletin:  2011-37 

September 12, 2011 

Sampling Plan Standards

Taxpayers are required to have a written sampling plan prior to the execution of a sample. The plan must include the following items:

  (1) The objective of the plan including a description of what value is being estimated and for which tax year(s) the estimate is applicable;
  (2) Population definition and reconciliation of the population to the tax return;
  (3) Definition of the sampling frame;
  (4) Definition of the sampling unit;
  (5) Source of the random numbers, the starting point or seed, and the method used in selecting them;
  (6) Sample size, along with supporting factors in the determination;
  (7) Method used to associate random numbers to the frame;
  (8) Steps to be taken to insure that the serialization of the frame is carried out independent of the drawing of random numbers;
  (9) Steps to be taken in evaluating the sampling unit; and
  (10) The appraisal method(s) to be used in appraising the sample.

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