Completing the Issue Code Data Grid

The pre-selected examination method is the standard approach for examinations.

This method requires you to review the return and all supporting information to determine the scope of the examination and which specific issues you will examine.

Classification will normally identify issues that the examiner should address in the examination. Based on your pre-examination, you will determine if any additional issues need to be addressed. The addition of issues generally requires group managerial approval.

If you determine that a pre-determined issue does not apply or is not appropriate to the return, include your analysis leading to that conclusion in your workpapers.

Your examination of a pre-selected issue may require examination of aspects of a related issue. That may be a component of the pre-selected issue. This would not be the opening of a new issue.

If your examination of the related issue results in a determination that the item is not in compliance with the Internal Revenue Code, e.g., the issue raises a qualification concern, then this would equate with opening of a new issue.