IRS aims to streamline LB&I process

The Internal Revenue Service is looking to cut the case cycle times for corporate taxpayers.

The Interim Guidance Memorandum “Reinforcing the Customer Focused, High Efficiency Large Business & International Examination Process” highlights changes intended to streamline examination resources, facilitate timely issue resolution, reduce interest costs, expedite tax certainty and reduce deficiencies.

The IGM provides guidance for:

• Phasing out the AOF Document Request process in exams. The Acknowledgement of Fact Information Document Request process will be eliminated by 2026 due to concerns over limited value and extended timelines. Through this year, taxpayers can choose whether to use AOF.
• Expanding use of AIR. The memo clarifies that Accelerated Issue Resolution applies to large corporate cases (formerly under the Coordinated Examination Program). AIR closing agreements allow resolved issues to apply across all filed return years in the current audit cycle.
• Stronger review of FTS denials. To more broadly support the Fast Track Settlement process, the IRS now requires additional internal reviews and approvals before denying a taxpayer’s request. 

Throughout implementation of these changes in 2025 and 2026, feedback can be sent to LBI.Policy.Feedback@irs.gov.