1.1.24  Large and Mid-Size Business Division

1.1.24.1  (11-01-2006)
The Large and Mid-Size Business Division

  1. The Mission of the Large and Mid-Size Business Division, commonly referred to as LMSB, is to provide Large and Mid-Size Business customers top quality service by helping them understand and meet their tax responsibilities and by applying the tax law with integrity and fairness to all.

  2. The LMSB Vision is to be a world class organization, responsive to the needs of our customers in a global environment, while applying innovative approaches to customer service and compliance. We will apply the tax laws with integrity and fairness through a highly skilled and satisfied workforce, in an environment of inclusion where each employee can make a maximum contribution to the mission of the team.

  3. The Commissioner, Large and Mid-Size Business Division, reports to, and is supervised by, the Commissioner of Internal Revenue and is responsible for the full range of planning, managing, directing and executing the global activities of the Large and Mid-Size Business Division, which are generally described in this Section.

  4. The LMSB Division is organized into Headquarters and Field functions. The Field is organized into five major industry groupings and each is headed by a Director. The Field Specialists comprises the sixth grouping and supports the Industries.

  5. The customers of the LMSB Division are corporations with assets greater than or equal to $10 million U.S. Dollars. The division also has responsibility for the related returns of partnerships and flow-through entities.

  6. To accomplish the mission, the LMSB Division:

    1. Develops and implements measures that balance customer satisfaction, employee satisfaction and business results.

    2. Designs, develops, and implements programs to assist LMSB customers in understanding their tax responsibilities and complying with all tax laws and regulations, including the development and implementation of pre-filing and educational activities.

    3. Ensures a consistent approach to taxpayer compliance across industries and by varying degrees of corporate complexity, as appropriate.

    4. Builds leveraged partnerships and collaborates with stakeholders and industry experts to increase taxpayer education, develop industry expertise in the Service, and clarify tax code issues.

    5. Provides interpretations of laws and procedures regarding revenue rulings and revenue procedures for the public, provides pre-filing services to LMSB customers, and issues technical advice and technical assistance to Service personnel regarding corporate, partnership, and related tax law.

    6. Administers all federal tax laws and tax treaty provisions applicable to LMSB customers through compliance checks and examination of returns.

    7. Contracts with other Service entities for the processing of LMSB customer returns and payments.

    8. Coordinates with Service-wide customer service operations to ensure that LMSB customer inquiries are handled expeditiously and correctly.

    9. Administers programs affecting LMSB customers through the examination of returns, with emphasis on protecting the interest of all taxpayers and providing them assistance in meeting their statutory requirements and other federal tax responsibilities.

    10. Conducts on-going cross industry and industry specific research programs to gather data relative to LMSB customers for directing pre-filing, educational, and compliance activities in actual or potential areas of non compliance.

    11. Advises, assists, and coordinates with foreign governments through tax treaty activities and assistance projects.

    12. Provides advice, assistance, and coordination throughout the Service, other government agencies, and Congressional Committees regarding the operations of LMSB and on legislation, regulation, litigation, and Freedom of Information Act matters and requests.

    13. Ensures all LMSB employees are educated and supported in industry practices, tax law, accounting systems, and audit techniques to meet customer needs.

    14. Participates in equal employment and diversity program activities.

  7. The Commissioner, Large and Mid-Size Business Division, together with the Deputy Commissioner and the Deputy Commissioner (International) of the Large and Mid-Size Business Division:

    1. Serves as the chief executive and advisor to the Commissioner and all Service functions on matters within his/her jurisdiction.

    2. Has supervisory responsibility for all LMSB personnel and offices, located throughout the United States and in foreign posts of duty.

    3. Assigns work, reviews work products, and appraises the performances of the Executive Leadership Team.

    4. Consistent with applicable personnel policies, may assign, reassign, and transfer LMSB personnel among any of the LMSB offices, across geographical lines or between organizational segments.

    5. Coordinates the work of his/her function with the other functions of the Internal Revenue Service, including other Business Operating Divisions, Counsel, and IRS Headquarters on all administrative, policy, and technical matters pertaining to areas within his/her responsibility.

    6. Serves as the principal liaison officer for LMSB Division with Congressional Committees, the Department of the Treasury, the Commissioner's Office, and other departments and agencies of the Government.

    7. Disposes of all matters under his/her jurisdiction, referring to the Commissioner, or other appropriate official, such matters he/she deems proper or as directed.

    8. Delegates, as appropriate, his/her authority, except where such re-delegation is expressly restricted or otherwise restricted by law, regulation, or policy.

  8. Exhibit 1.1.24-1 displays the LMSB Organizational Chart. The organizational functions are described in the following subsections.

1.1.24.2  (11-01-2006)
LMSB Division Headquarters

  1. LMSB division headquarters consists of the Commissioner, LMSB Division, the Deputy Commissioner, LMSB Division, the Deputy Commissioner (International), LMSB Division, the Senior Advisor to the Division Commissioner, LMSB Division, and the Directors and staffs of the following offices:

    • Equal Employment Opportunity and Diversity (EEOD)

    • International (U.S. Competent Authority)

    • Pre-filing and Technical Guidance (PFTG)

    • Strategy, Research and Program Planning (SRPP)

    • Management and Finance (M&F)

    • Performance Management, Quality Assurance and Audit Assistance (PQA)

    • Communications and Liaison (C&L)

    • Business Systems Planning (BSP)

  2. The mission of division headquarters is to support the LMSB Commissioner by providing strategic and operational support for the field and all functions within the division. As appropriate, division headquarters will also interpret, modify, and implement guidance issued by the national headquarters.

1.1.24.2.1  (11-01-2006)
EEO and Diversity

  1. The mission of the office of Equal Employment Opportunity and Diversity (EEOD) is to support LMSB’s prohibition of discrimination in all its programs and activities on the basis of race, color, national origin, gender, religion, age, disability, political beliefs, sexual orientation, or marital or family status.

  2. To accomplish its mission, the Office of Equal Employment Opportunity and Diversity:

    1. Develops and implements EEOD policies, procedures and programs for LMSB in accordance with overall Service guidelines.

    2. Advises the LMSB Commissioner, Deputy Commissioner and other LMSB management officials on EEOD issues.

    3. Establishes LMSB policy on reasonable accommodations, prevention of sexual harassment, and other EEOD issues.

    4. Provides training to LMSB staff on EEOD policy, procedures, and issues.

    5. Identifies and analyzes trends in the areas of EEO complaints and workforce profiles and recommends LMSB-wide solutions.

    6. Produces the Annual EEO and Diversity Program Status Report.

    7. Coordinates with LMSB Human Resources to identify and address recruitment, retention, and/or promotional barriers.

    8. Advises and acts as liaison to the LMSB EEO and Diversity Advisory Committee.

    9. Designs EEO and Diversity initiatives, policies, and practices to support business objectives specific to LMSB.

1.1.24.2.2  (11-01-2006)
International

  1. The mission of the office of the Director of International, as the United States Competent Authority, is to execute responsibility for U.S. Tax Treaties and Tax Information Exchange Agreements.

  2. To accomplish the mission, the Office of the Director of International:

    1. Implements U.S. Tax Treaties and Tax Information Exchange Agreements in a timely and effective manner.

    2. Pursues increased global coordination and identifies emerging international issues.

    3. Provides tax assistance to U.S. taxpayers located outside the United States.

    4. Assists foreign governments in strengthening their internal tax systems, as requested.

    5. Provides national program support, coordination and oversight for the effective operation of International field operations.

    6. Maintains liaisons and coordinates with all functions of LMSB, other Operating Divisions, LMSB Division Counsel, the Office of Associate Chief Counsel (International), and the Department of the Treasury to ensure effective administration of U.S. International Tax Laws.

  3. The four primary functions with the Office of the Director of International Programs are:

    • The Office of Overseas Operations.

    • The Office of Tax Administration Advisory Services.

    • The Office of Tax Treaty.

    • The Office of International Programs.

1.1.24.2.2.1  (11-01-2006)
The Office of Overseas Operations

  1. The Office of Overseas Operations:

    1. Provides administration support and oversight of the IRS posts located outside the United States and the one post located domestically.

    2. Administers and coordinates all Exchange of Information programs arising out of U.S. Tax Treaties and Tax Information Exchange Agreements.

    .

1.1.24.2.2.2  (11-01-2006)
The Office of Tax Administration Advisory Services

  1. The Office of Tax Administration Advisory Services:

    1. Provides assistance to tax administrations of other countries.

    2. Coordinates technical tax issues involving the U.S. Possessions on behalf of the U.S. Competent Authority.

    .

1.1.24.2.2.3  (11-01-2006)
The Office of Tax Treaty

  1. The Office of Tax Treaty:

    1. Negotiates mutual agreements, including double tax cases and bilateral Advanced Pricing Agreements (APA) and provides treaty negotiation assistance with the U.S. Department of Treasury.

    2. Provides responses to tax treaty interpretation requests, as requested.

    3. Coordinates policy and administration of the certification program for foreign treaty partner countries to grant treaty benefits to U.S. taxpayers.

    4. Participates in the Advanced Pricing Agreement Program.

1.1.24.2.2.4  (11-01-2006)
The Office of International Programs

  1. The Office of International Programs:

    1. Provides national program support, coordination and oversight for effective operation of International field operations.

    2. Maintains liaisons and coordinates with all functions of LMSB, other Operating Divisions, LMSB Division Counsel, the Office of Associate Chief Counsel (International), and the Department of the Treasury to ensure effective administration of U.S. International Tax Laws.

1.1.24.2.3  (11-01-2006)
Pre-filing and Technical Guidance

  1. The mission of the Office of Pre-filing and Technical Guidance is to provide top quality service to both internal and external customers in the areas of Pre-Filing Activities and Technical Guidance.

  2. To accomplish the mission, the Office of Pre-filing and Technical Guidance:

    1. Provides guidance, assistance, and support of domestic and international technical tax issue development and resolution.

    2. Provides guidance, assistance, and support of industry practices and tax issue development and resolution.

    3. Coordinates resolution of complex tax issues with Counsel and Treasury.

    4. Develops and implements Service-wide pre-filing activities for administration by field personnel.

    5. Develops activities to build leveraged partnerships and collaborates with stakeholders and industry experts to increase taxpayer education, develop industry expertise, and clarify technical issues.

    6. Provides support to the Office of Strategy, Research, and Program Planning to identify trends in emerging tax issues.

    7. Oversees the administration and implementation of the Schedule M - 3 initiative.

  3. The Office of Pre-filing and Technical Guidance is comprised of three functions:

    • Tax Shelter Analysis

    • Pre-Filing and Technical Services

    • Technical Advisors

1.1.24.2.3.1  (11-01-2006)
Tax Shelter Analysis

  1. Tax Shelter Analysis coordinates and focuses IRS tax shelter initiatives across divisions. To accomplish this, it:

    1. Plans, coordinates, and provides assistance and training to examiners working abusive corporate tax shelter issues.

    2. Serves as a clearinghouse for information that comes to the attention of the Service relating to potentially improper tax shelter activity by corporate taxpayers and promoters.

1.1.24.2.3.2  (11-01-2006)
Pre-Filing and Technical Services

  1. Pre-Filing and Technical Services coordinates pre-filing initiatives and technical guidance. To accomplish this, it:

    1. Designs, develops, implements and coordinates pre-filing initiatives such as Industry Issue Resolution and Pre-Filing Agreements to assist taxpayers with future tax compliance.

    2. Provides technical and administrative guidance on tax law to ensure consistent and uniform tax administration within LMSB and across all IRS operating divisions and offices.

1.1.24.2.3.3  (11-01-2006)
Technical Advisors

  1. Technical Advisors assist field operations and interact with external customers and stakeholders. To accomplish this, it:

    1. Identifies, develops and resolves industry-specific and cross-industry issues, both domestic and international.

    2. Provides educational opportunities to internal and external customers.

    3. Develops and maintains industry and issue expertise to advise and assist field operations.

1.1.24.2.4  (11-01-2006)
Strategy, Research, and Program Planning

  1. The mission of the Office of Strategy, Research, and Program Planning is to provide LMSB with the division-wide support required to conduct ongoing operations and prepare for the future, including the development of objectives, examination plans, and criteria for the selection of LMSB cases.

  2. To accomplish the mission, the Office of Strategy, Research, and Program Planning:

    1. Develops strategic objectives and examination plans for the Commissioner, LMSB Division, that further LMSB Strategic Initiatives and also monitors and executes those Plans.

    2. Coordinates staffing and funding issues and supports budget formulation with LMSB Management and Finance.

    3. Establishes return coverage across industry units based on voluntary compliance objectives and provides industry information by return types and audit classes.

    4. Supports cross-industry research that includes the development of mathematical models and expert systems to support audit selection.

    5. Maintains a high level of communication with Pre-filing and Technical Guidance and with Counsel to address changing customer needs and emerging compliance trends.

    6. Coordinates with Business Systems Planning and the Service-wide Modernized Information Technology System to design and establish automated systems to monitor examination plan execution, track examination processes to closure, gather key compliance information, capture management information, and provide statistical results.

    7. Coordinates with Counsel and analyzes tax law changes.

    8. Develops non-enforcement strategies for addressing non-compliance within industry groups.

  3. Strategy, Research, and Program Planning, is comprised of three units:

    • Strategic Planning

    • Research

    • Operations Support

1.1.24.2.4.1  (11-01-2006)
Strategic Planning

  1. The Strategic Planning Unit:

    1. Conducts environmental scans for LMSB.

    2. Identifies trends, issues, and problems across industry lines.

    3. Defines LMSB programs.

    4. Establishes the LMSB Strategic Plan.

1.1.24.2.4.2  (11-01-2006)
Research

  1. The Research Unit:

    1. Conducts cross-industry research projects for all industry segments.

    2. Provides key linkage with the Office of Pre-filing Technical Guidance and with the office of Performance Management, Quality Assurance, and Audit Assistance.

    3. Identifies compliance risks in the area of electronic commerce.

    4. Leverages with external academia and organizations with research expertise for identifying emerging issues and trends in tax administration and tax compliance.

1.1.24.2.4.3  (11-01-2006)
Operations Support

  1. The Operations Support Unit:

    1. Develops and manages the LMSB Compliance Plan.

    2. Supports the activities of the Flow-through Compliance Committee.

    3. Enhances and manages workload identification systems to ensure audit coverage within each industry.

    4. Coordinates compliance projects involving emerging international and domestic compliance issues.

1.1.24.2.5  (11-01-2006)
Management and Finance

  1. The mission of the Office of Management and Finance is to provide top quality service in support of LMSB employees, customers, and stakeholders.

  2. To accomplish the mission, the Office of Management and Finance:

    1. Formulates LMSB's budget submissions and responds to inquiries from internal and external stakeholders such as IRS National Headquarters, Department of the Treasury, Office of Management and Budget, and Congress.

    2. Manages the resource distribution process in coordination with the Industry Directors, including the development of the financial plan that supports the programs and priorities for LMSB.

    3. Manages the financial resources of LMSB, including tracking resource usage against targets.

    4. Establishes financial policies, procedures, and controls for LMSB in accordance with overall Service guidelines and procedures.

    5. Anticipates and plans for future staffing and competency needs to ensure that a technically knowledgeable staff is available to meet all LMSB customer needs and coordinates with other divisions to develop career paths that span division boundaries.

    6. Ensures employees’ continuous performance improvement and individual development through competency assessment and skill building.

    7. Develops educational strategies and designs curriculum focusing on developing LMSB key competencies.

    8. Provides workforce planning and strategic recruitment guidance.

    9. Oversees the Performance Management System process and conducts related activities within LMSB.

    10. Fosters partnership with National Treasury Employees Union throughout LMSB and negotiates issues and concerns relating to LMSB.

    11. Coordinates and oversees LMSB Headquarters and Field real estate and property requirements.

    12. Coordinates and serves as LMSB liaison for the Health, Safety, and Emergency Management programs.

  3. The Office of Management and Finance is comprised of three major components:

    • Finance

    • Human Capital Management

    • Learning and Education (Training)

1.1.24.2.5.1  (11-01-2006)
Finance

  1. The Finance component:

    1. Formulates the submission of the LMSB budget, develops the LMSB plan, manages resource distributions, and ensures that financial plans support division priorities.

    2. Tracks the use of resources and establishes financial policies, procedures, and controls in coordination with overall Service guidelines.

1.1.24.2.5.2  (11-01-2006)
Human Capital Management

  1. The Human Capital Management component:

    1. Develops, implements, and evaluates policies and programs that meet LMSB's unique strategic human resource needs.

    2. Supports LMSB with workforce forecasting, recruitment planning and identification, and resolution of Division-wide labor management issues.

    3. Coordinates with the Service's Human Capital Office and Agency-Wide Shared Services to ensure that corporate HR policies and personnel service delivery support the business objectives of LMSB.

1.1.24.2.5.3  (11-01-2006)
Learning & Education (Training)

  1. The Learning and Education component:

    1. Creates education and career management strategies, initiatives, and curricula.

    2. Develops and coordinates technical tax training.

    3. Develops and coordinates Leadership education, Leadership Readiness programs, Continuing Professional Education development and delivery, and Core employee training programs.

1.1.24.2.6  (11-01-2006)
Performance Management, Quality Assurance and Audit Assistance

  1. The mission of the Office of Performance Management, Quality Assurance, and Audit Assistance is to add value to the overall LMSB operation by providing all levels of the organization with assessments of operational effectiveness for in-process and closed examined cases, and by identifying and evaluating promising practices and success stories and promoting those practices among the industry groups.

  2. To accomplish the mission, the Office of Performance Management, Quality Assurance, and Audit Assistance:

    1. Provides expertise and staff support to the Commissioner, LMSB Division and Industry executives for program development, maintenance, and oversight.

    2. Provides assessments of operational effectiveness and compliance to the LMSB Commissioner, Deputy Commissioners, Industry Directors, Field Specialist Director, Field Operations Directors, Territory Managers, and other management personnel and special groups.

    3. Evaluates the quality of examinations to assess technical accuracy that is based on full factual development and with minimum burden to the taxpayer.

    4. Ensures focus and adherence to the three balanced measures of Customer Satisfaction, Employee Satisfaction/Engagement, and Business Results.

    5. Serves as liaison with other IRS Divisions on matters such as bankruptcy and interest and penalty abatement.

    6. Uses quality measurement data to provide guidelines and generate innovative quality improvements to the examination process and customer service.

    7. Coordinates a wide range of post-filing activities, issues, and programs such as Joint Committee Review, Fast Track, Remote Examinations, Statutes, and others.

  3. The Office of Performance Management, Quality Assurance, and Audit Assistance is comprised of four sections:

    • Performance Measures

    • Quality Assurance

    • Audit Assistance

    • Business Analysis Review

1.1.24.2.6.1  (11-01-2006)
Performance Measures

  1. The Performance Measures section:

    1. Gathers organizational performance data from a variety of field sources and headquarters functions.

    2. Oversees the administration of the annual Employee Survey process and the transactional Customer Satisfaction surveys, and others.

    3. Analyzes and reports on LMSB balanced measures of performance to division and IRS leadership and external stakeholders.

    4. Conducts continuous monitoring and analysis of performance data to report findings and make recommendations for process improvements.

    5. Identifies and shares promising practices and success stories for replication within the division.

    6. Assists headquarters and field operations with the preparation and administration of survey instruments.

    7. Develops measures for newly designed compliance processes and proposes revisions to existing process measures.

    8. Evaluates organizational performance using recognized performance criteria.

1.1.24.2.6.2  (11-01-2006)
Quality Assurance

  1. The Quality Assurance Section:

    1. Determines LMSB's balanced measures quality score using the LMSB Quality Measurement System (LQMS).

    2. Conducts closed case reviews and open case on-site reviews.

    3. Provides feedback on findings to optimize performance.

    4. Provides case quality data for special projects.

1.1.24.2.6.3  (11-01-2006)
Audit Assistance

  1. The Audit Assistance section:

    1. Prepares and reviews reports for all examined/surveyed cases with refunds over $2 million U.S. Dollars as required by the Congressional Joint Committee on Taxation.

    2. Develops and implements processes for a wide range of post-filing activities such as fraud, non-filer strategy, statutes, bankruptcy, complex interest, and others.

    3. Tracks systemic issues for reporting to the Taxpayer Advocate.

    4. Supports a wide range of LMSB programs such as Limited Issue Focused Examinations, Fast Track, and Remote Examinations.

    5. Collaborates with SB/SE and other operating divisions on common programs, as appropriate.

1.1.24.2.6.4  (11-01-2006)
Business Analysis Review

  1. The Business Analysis Review section:

    1. Reviews selected programs and initiatives to address LMSB's program review needs.

    2. Undertakes special projects identified by the LMSB Commissioner in support of LMSB's Mission and Vision.

    3. Supports the LMSB Commissioner’s ability to review activities and programs with a high level of confidence in the data.

    4. Controls review activities as liaison with the Treasury Inspector General for Tax Administration office and the Government Accountability Office.

1.1.24.2.7  (11-01-2006)
Communication and Liaison

  1. The mission of the Office of Communication and Liaison is to provide internal communications and stakeholder relationship management to support LMSB employees, customers, and stakeholders.

  2. To accomplish the mission, the Office of Communication and Liaison:

    1. Provides strategy and oversight for all internal and external communications affecting LMSB, including marketing and media relations.

    2. Coordinates all legislative issues within LMSB and serves as liaison between LMSB and National Legislative Affairs.

    3. Coordinates activities with the Service-wide Communication & Liaison office.

  3. The Office of Communications & Liaison provides external liaison services in the program areas of:

    • Fed/State

    • Disclosure

    • Strategic Relationship Management

1.1.24.2.7.1  (11-01-2006)
Fed/State

  1. The Fed/State Office:

    1. Coordinates Federal and State tax issues within LMSB.

    2. Serves as liaison between LMSB and National Government Liaison.

1.1.24.2.7.2  (11-01-2006)
Disclosure

  1. The Disclosure Office:

    1. Provides administrative guidance regarding disclosure and privacy issues.

    2. Coordinates demands for testimony, processing of Court Orders, and maintenance of effective Safeguard programs under the Internal Revenue Code § 6103, Freedom of Information Act, and the Privacy Act.

1.1.24.2.7.3  (11-01-2006)
Stakeholder Relationship Management

  1. The Stakeholder Relationship Management program:

    1. Guides the engagement process with external stakeholders.

    2. Coordinates LMSB activity with Service-wide strategy for key stakeholders at the national and local levels.

1.1.24.2.8  (11-01-2006)
Business Systems Planning

  1. The mission of the Office of Business Systems Planning is to provide top quality service to support Modernized Information Technology Services and business improvement technology.

  2. To accomplish the mission, the Office of Business Systems Planning:

    1. Identifies Information Technology (IT) systems improvement opportunities.

    2. Manages the delivery of IT business improvement and information technology projects.

    3. Identifies LMSB business needs and develops technological solutions to those needs.

    4. Advises LMSB leadership of any potential IT impact on LMSB business initiatives or activities.

    5. Interacts with the Division Information Office to provide ongoing support for technology issues.

  3. The Business Systems Planning office is comprised of three areas:

    • The Office of Planning and Oversight

    • The Office of Project Development, Testing, and Implementation

    • The Office of Operations, Support, and Deployment

1.1.24.2.8.1  (11-01-2006)
The Planning and Oversight Program Office

  1. The Planning and Oversight Program Office:

    1. Provides project management policy and support.

    2. Coordinates Information Technology project and improvement process planning.

    3. Supports LMSB's strategic initiatives and operational priorities.

1.1.24.2.8.2  (11-01-2006)
Project Development, Testing, and Implementation

  1. Project Development, Testing, and Implementation:

    1. Manages the development of information technology solutions within LMSB.

    2. Tests and implements information technology solutions.

1.1.24.2.8.3  (11-01-2006)
Operations, Support, and Deployment

  1. The Office of Operations, Support, and Deployment:

    1. Serves as liaison for LMSB on Modernized Information Technology Services issues.

    2. Manages hardware refreshment, Common Operating Environment Image/Software issues, and project deployment for LMSB.

1.1.24.3  (11-01-2006)
LMSB Field

  1. The mission of the LMSB Field is to support the Commissioner in the accomplishment of the LMSB mission by the administration of corporate tax laws, regulations, and procedures, and in compliance activities.

  2. The LMSB Field consists of the Director, Field Specialists and five Industry Directors who report to the Commissioner, LMSB Division, and Deputy Commissioner, LMSB Division.

  3. To accomplish the LMSB mission, the LMSB Field:

    1. Conducts examinations of tax returns for corporations with assets exceeding $10 million U.S. Dollars in assets, and associated Flow-through and Partnership returns.

    2. Prepares operational plans and allocations of industry resources to meet customer needs.

    3. Assists LMSB customers in understanding their tax responsibilities and complying with all tax laws and regulations.

    4. Administers all federal tax laws and tax treaty provisions applicable to LMSB customers through compliance checks and the examination of returns.

    5. Maintains professional knowledge of accounting principles, auditing standards, procedures, techniques, tax law, industry practices, and regulatory provisions and maintains the highest ethical standards of practice.

1.1.24.3.1  (11-01-2006)
Field Specialists

  1. The mission of the Field Specialists is to support the Industries within LMSB, assist other Operating Divisions, and provide customers with top quality service by providing Computer Audit, Economist, Employment Tax, Engineering, and Financial Products specialty services in pre-filing and examination processes.

  2. The Director, Field Specialists, reports to the Commissioner and Deputy Commissioner, Large and Mid-Size Business Division, and is responsible for the full range of planning, managing, directing and executing global activities of the Computer Audit Specialists, Economists, Employment Tax Specialists, Engineers, and Financial Products Specialist’s program areas.

  3. To accomplish its mission, the Director of Field Specialists:

    1. Formulates short and long range program policies, strategies, and objectives.

    2. Provides leadership and management of LMSB specialty services to meet customer needs.

    3. Delivers educational activities that assist customers with understanding their tax responsibilities and complying with all tax laws.

    4. Builds leveraged partnerships and collaborates with industry stakeholders and industry experts to improve business processes, clarify and resolve tax issues, and improve division industry knowledge.

    5. Administers all domestic and international federal tax laws and tax treaty provisions applicable to corporate taxpayers to ensure consistency in treatment.

    6. Provides specialist support to Strategy, Research and Program Planning and to the Pre-filing & Technical Guidance function.

    7. Prepares operational plans and allocations of specialty resources to LMSB and other IRS divisions to meet customer needs.

    8. Coordinates with Industry Directors to ensure computer audit expertise is available to provide examination support throughout LMSB and other divisions.

1.1.24.3.1.1  (11-01-2006)
Computer Audit Specialist

  1. The Computer Audit Specialist:

    1. Provides analyses of complex computerized accounting systems, including the evaluation of IRS internal controls.

    2. Determines/recommends the most effective method to provide audit data required by examiners, including statistical sampling techniques.

    3. Provides computer analyses of large volumes of data.

    4. Designs applications using both standard and custom computer programs.

    5. Searches for creative and innovative ways to use computer assisted auditing techniques.

    6. Assists examiners in developing examination documentation, from tax return to source documents, and in assuring that the computer records agree with the tax return.

    7. Assists all team members, including specialists, in the development of significant issues, both within an Industry and across Industries.

    8. Produces spreadsheets, databases, interactive menu-driven applications, and analytical reports.

1.1.24.3.1.2  (11-01-2006)
Economist

  1. The Economist:

    1. Provides expert economic research and analysis to identify and develop related issues across industry groups.

    2. Assists in determining the existence and significance of an issue and any required adjustment to present a fair representation of a transaction on a return.

    3. Resolves conceptual problems in the determination of value and/or price and in arriving at objective and sustainable adjustments.

    4. Develops innovative ways of combining data from varied sources to resolve an economic problem related to a tax issue, using advanced analytical and statistical techniques.

1.1.24.3.1.3  (11-01-2006)
Employment Tax Specialist

  1. The Employment Tax Specialist:

    1. Provides expert knowledge on employment tax issues by applying audit techniques to identify and develop related issues across industry groups.

    2. Identifies, develops and resolves employment tax issues based on materiality, consistency, and compliance considerations.

    3. Assists in determining resolution to issues involving employment tax, Corporate Executive Compensation, penalties, and other related issues.

    4. Conducts research and prepares reports on current and emerging issues.

1.1.24.3.1.4  (11-01-2006)
Engineer

  1. The Engineer:

    1. Provides expert knowledge on engineering matters by applying audit techniques to identify and develop related issues across industry groups.

    2. Assists in determining the amount of the tax liability based on technical considerations, engineering issues, or asset valuations.

    3. Performs valuations, provides technical assistance, and completes appraisal assignments for a variety of purposes.

1.1.24.3.1.5  (11-01-2006)
Financial Products Specialist

  1. The Financial Products Specialist:

    1. Provides expert knowledge for matters transacted with the use of financial products.

    2. Utilizes audit techniques to identify and develop issues of compliance potential to individual and/or all Industry groups.

    3. Identifies, develops and resolves financial product issues of national scope with significant dollar impact as critical to effective tax administration. Ensures the issue examinations are completed on a uniform and consistent basis.

    4. Performs effectively planned and managed examinations of financial product issues resulting in quality determinations with minimal burden to the Service and taxpayers.

    5. Accumulates and disseminates specialized audit techniques for identified tax avoidance and evasion schemes and other information useful in planning and executing examinations to the field.

1.1.24.3.2  (11-01-2006)
Industries

  1. The mission of the five Offices of the Industry Director is to provide Large and Mid-Size Business customers top quality service by helping them understand and comply with all applicable tax laws and by applying the tax law with integrity and fairness to all.

  2. Industries are grouped into business market segments to better serve the unique needs of customer groups. The five Industry segments are:

    • Financial Services

    • Retailers, Food, Pharmaceuticals and Healthcare

    • Natural Resources and Construction

    • Communications, Technology and Media

    • Heavy Manufacturing and Transportation

  3. Each Industry Director reports to the Commissioner and Deputy Commissioner, Large and Mid-Size Business Division, and is responsible for the full range of planning, directing, managing, and executing the global tax activities of the customers in their Industry and those geographically collocated within their areas of responsibility.

  4. To accomplish its range of responsibilities, each LMSB Industry:

    1. Formulates short and long range program policies, strategies, and objectives specific to the Industry’s operations.

    2. Provides leadership and management of LMSB services with emphasis on the Industry’s specific taxpayers and on other Industry’s customer segments that are geographically located within their area of responsibility.

    3. Administers pre-filing and post-filing issue management strategies.

    4. Provides educational activities and outreach that assists Industry customers in understanding their tax responsibilities and complying with all tax laws.

    5. Builds leveraged partnerships and collaborates with stakeholders and experts to increase awareness, improve business processes, clarify and resolve tax issues, and improve knowledge.

    6. Administers all domestic and international federal tax laws and tax treaty provisions applicable to customers and ensures consistency in treatment among taxpayers.

    7. Identifies emerging trends and issues for use in the development of strategic initiatives to improve customer service and compliance.

    8. Prepares operational plans and allocations of resources to meet customer needs.

    9. Ensures all specialty tax services are provided to meet customer needs.

    10. Identifies, designs and implements improvements to business processes and systems.

  5. Each Industry is comprised of:

    • Field Operations

    • Territories

    • Teams

1.1.24.3.2.1  (11-01-2006)
Field Operations

  1. Each Office of Field Operations is led by a Director who reports to one of the five Industry Directors of the Large and Mid-Size Business Division and is responsible for the full range of planning, directing, managing, and executing all activities related to the taxpayers assigned to that Industry and those geographically collocated within his/her area of responsibility. The Office of the Director of Field Operations:

    1. Provides complete tax administration services, including pre-filing educational outreach and post-filing compliance activities to meet the needs of the large and mid-size businesses that are within and among their assigned industries.

    2. Plans, develops, directs, and implements a comprehensive tax administration program that enhances compliance, ensures consistency in taxpayer treatment, and continuously improves business systems and processes.

    3. Prepares operational plans for resource deployment to meet customer needs.

    4. Ensures field specialist resources are available to support program mission.

    5. Advises in the use of pre-filing and post-filing issue management strategies.

    6. Collaborates with stakeholders and experts to increase taxpayer education and provides for and participates in opportunities for outreach events.

    7. Ensures employees are adequately trained in industry practices, issues, accounting systems and examination techniques.

1.1.24.3.2.2  (11-01-2006)
Territories

  1. Each Territory is led by a Territory Manager who reports to a Director of Field Operations and is responsible for the full range of planning, directing, managing, and executing all activities related to the taxpayers assigned to the Territory. The Territory Manager:

    1. Ensures the administration of tax services to meet the needs of large and mid-size businesses within his/her assigned territory.

    2. Plans, develops, directs, and implements tax administration programs that enhance compliance and ensure consistency in taxpayer treatment, and continuously identifies improvements to business systems and processes.

    3. Prepares operational plans for resource deployment to meet customer needs.

    4. Advises on the use of issue management strategies with territory customers.

    5. Collaborates with stakeholders and experts to increase taxpayer education and participates in outreach events.

    6. Ensures employees are adequately trained in industry practices, issues, accounting systems and examination techniques.

1.1.24.3.2.3  (11-01-2006)
Teams

  1. Each Examination Team is led by a Team Manager who reports to a Territory Manager of the Large and Mid-Size Business Division and is responsible for planning, directing, managing, and executing all activities related to the taxpayers assigned to his/her team. The Team Manager:

    1. Ensures the administration of tax services and compliance activities of the taxpayers assigned to the team.

    2. Plans, develops, directs, and monitors the case related activities of the Team Coordinator and Team Members assigned to each taxpayer case.

    3. Ensures consistency in taxpayer treatment, enhances compliance through educational opportunities, and identifies improvements to business systems and processes.

    4. Prepares operational plans for resource deployment to meet customer needs.

    5. Advises the examination team in the use of pre-filing and technical guidance services.

    6. Collaborates with industry stakeholder groups to increase taxpayer education.

    7. Ensures employees are adequately trained in industry practices, issues, accounting systems and examination techniques.

Exhibit 1.1.24-1  (11-01-2006)
Large and Mid-Size Division Organizational Chart

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