The Internal Revenue Service (IRS) recently published a guide for the New Markets Tax Credit (NMTC) program. The guide is used to provide guidance to IRS revenue agents on how to conduct examinations and audits of federal tax returns involving new markets tax credits. The document includes:
- an overview of the NMTC program;
- techniques for auditing a community development entity (CDE);
- techniques for auditing investors;
- issues related to not-for-profit entities;
- the disclosure of tax information; and
- how the report is to be written by the agent.
