Market Segment Specialization Program Law and Legal Definition

The Market Segment Specialization Program (MSSP) refers to the method used by the Internal Revenue Service (IRS) to determine the tax returns for audit. MSSP usually focuses on the industry to which the taxpayer belong instead of the type of return filed by the taxpayer, or the amount of gross income reported, or the ratio of deductions to income. Industries such as construction, a professional group such as attorneys, or an issue such as tax shelter transactions is treated as a market segment. Each individual market segments are then allotted to examiners with auditing experience, training and research responsibilities in that area.