Evaluating Internal Controls

IRS IRC § 42 Audit Technique Guide — Part I (Introduction and Pre-Contact Analysis) · 2026 edition · updated 2026-07-29 · United States

Examiners need to understand how a taxpayer has delegated or separated duties related to the operation of the low-income housing to ensure that the project is in compliance with IRC §42 requirements. In other words, does the taxpayer have sufficient internal controls in place that allow an examiner to rely on the records and information presented by the taxpayer?

Information about the taxpayer's internal controls can be obtained by interviewing the taxpayer, observing the internal controls in place during the tour of the project, and by testing the taxpayer's books and records.

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▸Contents — IRS IRC § 42 Audit Technique Guide — Part I (Introduction and Pre-Contact Analysis)

IRS IRC § 42 Audit Technique Guide — Part I (Introduction and Pre-Contact Analysis)

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