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Market Segment Specialization Program
MSSP — revolutionizing the way IRS conducts its business!
What Is The Market Segment Specialization Program?
The Market Segment Specialization Program (MSSP) is an effort to enhance the overall professional competence and expertise of examiners. Through MSSP, IRS will increase the efficiency and effectiveness of examinations through the development of issues of merit and provide a high degree of consistency in the treatment of those issues by having examiners develop specialized knowledge of a market segment.
Market segments include:
Industries
Construction
Health Care
Real Estate
Finance
Issues
Tip Income
Passive Activity Loss
Capital Losses
Professions
Doctors
Contractors
Truck Drivers
Lawyers
A MAJOR GOAL of MSSP is to conduct more effective examinations with less burden to the taxpayer. It also provides a vehicle to educate taxpayers and to clarify and simplify applicable tax laws and regulations. Examiners get specialized training and expertise that help them understand the business operations and the environment in which a market segment operates.
How Does MSSP Work? Examiners are identified to develop specific expertise and approaches in examining a particular market segment. They study the market thoroughly toidentify unique operating procedures, accounting practices, issues, and applicable tax laws. Discussions are also held with industry and business associations to gain a better understanding of their business practices.
Examination works closely with Collection, District Counsel, Appeals, Disclosure, the Fed/ State Coordinator, the Industry Specialist Program (ISP) Coordinator and others while working with a market segment. After the research is completed, an Audit Techniques Guide (ATG) is prepared covering the practices and peculiarities of the market segment. This guide is provided to examiners nationwide. It is also available to the general public. Public release of the ATG's is intended to provide awareness of concerns the IRS has regarding non-compliance with specific market segments and the initiatives and methods being used to address those concerns.
How is the MSSP Approach Different? The major difference is that the examiners are trained to work the cases as "specialists" instead of generalists.
The examiners learn how the market segment operates, become familiar with its accounting/operation practices and procedures and develop specific audit techniques. They will keep current with changes in the market segment through trade publications, trade seminars, and sharing information with other specialists.
Major Benefits of MSSP
Out Reach and Customer Service
Examiners may initiate Out Reach training seminars for specific market segments explaining application of tax law, proper filing procedures, and federal tax responsibilities. Examiners are often asked to address practitioner organizations and speciality industries to discuss their area of expertise.
Audit Techniques Guides Available to the Public
These guides can be obtained by examiners from the MSSP Bulletin Board or ordered through the Education Branch Chief. Taxpayers can obtain the guides in a number of ways:
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