### **[Exam Reengineering Project]{.underline} Fact Sheet**

The Small Business/Self-Employed (SB/SE) Operating Division of the
Internal Revenue Service (IRS) is launching an initiative called the
\"SB/SE Exam Process Reengineering Project " to redefine the way the IRS
conducts audits. Through this initiative, the IRS will increase
compliance and customer satisfaction, and become a more effective and
efficient agency. The IRS will start implementing the recommended
changes to the exam process starting in 2002.

IRS exam selection and collection processes have remained relatively the
same for over 20 years. The IRS has been reorganized, and the time has
come to review major work processes and tailor them to reflect the new
organization's goals and objectives, including increasing voluntary
compliance, administering the tax laws more effectively, and increasing
customer satisfaction. The Exam Reengineering Project is also exploring
opportunities to apply commercial and government leading practices to
achieve these goals. Additionally, stakeholders are being interviewed to
identify improvement opportunities and to learn what they want out of
the Project.

-   What Is Exam Reengineering, Exactly?

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| The Exam Reengineering Project will create a blueprint to improve the |
| exam process using a step-by-step approach.                           |
|                                                                       |
| -   First, the scope and objectives of the Exam Reengineering Project |
|     will be defined.                                                  |
|                                                                       |
| -   Next, discussions with stakeholders, including IRS employees,     |
|     will build knowledge and understanding of the issues,             |
|                                                                       |
| -   Finally, the first two steps will enable us to create a vision    |
|     for the future or a "blueprint" for action.                       |
|                                                                       |
| **The key step in this approach involves designing and implementing   |
| *solutions* to bridge the gap between where the IRS is today and      |
| where they want to be in the future.** Once these steps are           |
| completed, the IRS can develop an implementation plan that will build |
| on current processes and structures, bringing them in line with the   |
| future vision.                                                        |
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|                                                                       |
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-   **[What are the goals of the Exam Reengineering
    Project?]{.smallcaps}**

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-   Streamline examination processes, reduce taxpayer time and expense
    in dealing with the Service;

-   Increase IRS effectiveness and timeliness in examining returns,
    collecting taxes, and resolving taxpayer issues, and;

-   Reduce and redirect expenditures within the IRS to improve
    operational results.

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-   **[Who Is In Charge Of the Exam Reengineering
    Project?]{.smallcaps}**

SB/SE Commissioner Joseph Kehoe and Deputy Commissioner Dale Hart
established the priorities for the examination work processes and the
products and services to be reviewed and reengineered. IRS employees
from around the country volunteered to serve on the Exam Reengineering
team headed by Project Director Bill Conlon. Together they are providing
the institutional knowledge and field experience that is integral to the
Project.

SB/SE is also partnering with two key industry experts: Booz-Allen &
Hamilton, a renowned consulting firm with expertise in analytical,
strategic, objective change processes, and business process
reengineering, and Deloitte and Touche, a big-5 accounting firm with a
broad knowledge of tax administration, financial/audit best practices,
and involvement in taxpayer facing associations. The diversity of these
IRS-consultant teams is contributing to the overall success of this
critical initiative.

-   **[Why Is the IRS Undertaking This Process Now?]{.smallcaps}**

It\'s imperative that the IRS make continual improvements while seeking
efficient and effective new ways to achieve its mission of service to
each taxpayer through a quality work environment. These goals can be met
only by making specific changes to examination work processes and
developing approaches that are specifically tailored for the agency\'s
customer base and employee needs. Moreover, the Exam Reengineering
Project isn\'t just about change; it\'s about making a long-lasting,
positive impact on the entire organization. Commissioner Kehoe said,
"We're going to give our employees the means to work smarter and more
efficiently, and when we're done, we will not only meet but *exceed* the
expectations of our employees and our customers.\"

The IRS leadership believes that all stakeholders\--including
employees\--have the opportunity to contribute to the Exam Reengineering
effort by providing input into process improvements as they evolve.
Commissioner Kehoe said, "Improving our business processes is a team
effort, and by sharing your knowledge and experience, the Exam
Reengineering Project will be a success. Incremental change isn\'t
enough to bring us closer to our goal of providing the best service to
our customers. Together, we can rebuild the Exam Reengineering process,
and when we're done, we will all reap the benefits of working better and
smarter for years to come."

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