Questions Responses TCJA Modeling 042120.xlsx.pdf

Question

Number Question Government Response

I am reaching out to learn if there is an incumbent contract in which work for the TCJA International Modeling Tool is being performed, or is this a new requirement? Also, if this is a new requirement, is this anticipated to be valued more than $250k?

There is no incumbent contract. The value could potentially be more than $250k.

What type of technology do LB&I revenue agents have access to when in the field? Does the technology have internet access?

The "field" refers to agents located around the country who are not in "headquarters" roles.

Generally, agents have PC laptops with internet access, including connectivity with many IRS computer systems.

Would the tool need the ability to download taxpayer data while in the field?

Yes, it would be preferable for the modeling tool to be able to be configured to download some taxpayer data. The extent of the data to be downloaded would be determined in the course of the project.

Could the government explain the LB&I auditing process, with an emphasis on the activities this tool would support and how it would benefit LB&I revenue agents? How would the tool be used in each phase of a tax examination

(e.g., case selection, planning, development, and resolution)?

There are many possible applications. For example, a modeling tool could be used by agents to do any or all of the following: (i) conduct before/after scenario analyses to determine the tax consequences of transactions, (ii) conduct before/after comparisons to determine the high-level effects of potential adjustments to particular line items, and/or (iii) demonstrate the interaction of different tax provisions for training purposes.

Questions and Responses TCJA Modeling

What tools do LB&I revenue agents currently use to calculate the impacts of different potential adjustments on tax liability and forecast?

Agents and tax computation specialists have access to various internally and externally developed software.

Does LB&I anticipate that this tool would be used to support specific LB&I campaign/audit types, or would it be used for all audit types?

It would be preferable for the tool to be useable for all audit types and training purposes. It is expected that the tool would focus on taxpayers that file the

Form 1120 series of returns.

Is the government only interested in a custom developed tool or would a Commercial Off the Shelf (COTS) option be considered?

The expectation is that either a custom tool or a

COTS tool that has undergone customization for the

IRS's purposes is required. Because of the IRS's unique role and responsibilities, it is considered unlikely that a COTS tool by itself will be effective.

Is the tool meant to enable dialog with the taxpayers being audited, or would the tool/information be used exclusively by the revenue agent?

It is expeted the modeling tool would be used by IRS revenue agents primarily for internal purposes.

The RFI indicates that the tool would need to handle 8,000-

10,000 records, with an average record size of 20 gigabytes. What type of information is contained in these records that results in such a large average record size?

A record estimates the size of electronic tax return data for a large corporate taxpayer for a single tax year

Will multiple IRS professionals need to access the same taxpayer’s data at the same time?

Likely only one agent would need to access the same data at a time. However, please provide additional information in your response if this is an important restriction.

Will the tool be used to prepare official tax calculations in support of a Notice of Proposed Adjustment or be used solely for modelling?

The tool is intended to support high-level modelling and prioritization of work at the exam team level.

Official calculations for taxpayers will likely be performed through different tools and processes.

What is meant by a “record” in the Requested Information, Item 13 (referencing 8,000-10,000 “records”)?

A record estimates the size of electronic tax return data for a large corporate taxpayer for a single tax year

What types of data comprise the 20 Gigabytes of data per record referenced in Requested Information, Item 13

(average record size of 20 Gigabytes)?

A record estimates the size of electronic tax return data for a large corporate taxpayer for a single tax year

Are there anticipated to be restrictions on the geographic location or nationality applicable to the professionals developing the software, other than the limitations on disclosure of IRS proprietary or sensitive data?

The majority of the work related to this requirement can be accomplished virtually. Documentation must be provided showing naturalization or resident alien status for individuals born outside of the U.S.