1.4.17  Compliance Managers Guide

1.4.17.1  (03-01-2006)
Compliance Managers Overview

  1. The purpose of this section of the Internal Revenue Manual (IRM) is to provide managers with various techniques, methods and guidelines for managing employees in Compliance campuses and area offices.

  2. This section is a supplement to the general guidelines for all managers contained in Sections 1 through 8 of IRM 1.4, Resource Guide for Managers. These sections are to be referenced for generic guidelines, as well as the APM Guide Web Site (http://apm.web.irs.gov/), Administrative Procedures for Managers.

  3. Compliance activities have been divided into those that require face-to-face interaction and those that do not. The structure of the Compliance organization is aligned around these activities. The organization framework for the Compliance structure is:

    • Compliance Services

    • Compliance Policy

    • Compliance Field Force

  4. The Compliance Services Organization will handle those compliance activities not requiring significant face-to-face interaction with taxpayers. Under the direction of the Compliance Services Field Director, the three functional groups in this organization include:

    • Insolvency

    • Service Center/Campus Compliance (includes examinations conducted through correspondence, Automated Under Reporter (AUR), Automated Collection System (ACS), ACS Support, Examination and Service Center Collection Operation)

    • Case Processing (includes examination support and processing (ESP) and collection support)

  5. Compliance Policy is composed of both examination and collection staff to ensure policies and procedures are consistent and reflect organizational priorities. This staff works with other components of the IRS to ensure that compliance policies are consistent with the overall goals of the Service. In addition, all exam selection activities are centralized into the Compliance Policy Group to ensure adequate separation of duties for the selection of return and conduct of examination.

  6. The Compliance Field Force is a geographically deployed entity handling exam and collection activities requiring significant face-to-face interaction with the taxpayer. This significant field presence ensures that taxpayers are afforded the opportunity to meet face-to-face with IRS Compliance staff when needed. While the Small Business/Self Employed (SB/SE) Taxpayer Education and Communication (TEC) staff takes the lead role, Compliance staff assists taxpayers during the filing season with face-to-face assistance in interpreting the tax law, preparing returns and other taxpayer requirements.

1.4.17.2  (03-01-2006)
Compliance Management

  1. The mission of SB/SE Compliance is to provide prompt, professional and helpful service to all customers. This focus will include increasing overall compliance and fairness of compliance programs as we study and evaluate small business needs and trends. Compliance will provide educational guidance and community outreach and apply appropriate compliance treatments based on facts, circumstances and risk. The Compliance workforce will be empowered, flexible and accountable in providing world class customer service.

  2. The mission of Wage and Investment (W&I) Compliance is to fairly and effectively assist taxpayers in the determination and fulfillment of their tax obligations. By providing accurate and consistent application of the tax law and using a risk-based approach to examination and collection, with a focus on remote disposition, we will ensure efficient, equitable and effective taxpayer assistance and satisfaction.

1.4.17.2.1  (03-01-2006)
Compliance Functional Guidelines

  1. Compliance organization responsibilities are listed in IRM 21.1.1.3, Accounts Management and Compliance Services Overview.

  2. For additional information on Compliance support services, (e.g., Collection Field functions, and Exam Field functions) see IRM Part 4 Examining Process and IRM Part 5, Collecting Process.

  3. Additional managerial specific information is included in subsequent sections of this IRM.

  4. The Compliance Quality Review process is based on statistical techniques. This ensures reliability, objectivity and consistency. The quality review system uses systematic random sampling to verify the quality and productivity within Compliance without reviewing each piece of work. This data is used to identify trends, problem areas and overall site quality.

    Note:

    Quality Review results will not be used to evaluate individual employees. However, review results may reveal strengths and weaknesses of employees and identify the need for managerial monitoring and review to evaluate employee performance. Managerial monitoring and review is independent from quality reviews.

  5. For additional information on general Compliance Services Processes Quality Review Program, see IRM 21.10.1, Accounts Management and Compliance Services Quality Review Program.

  6. Specific information for the Examination Function Quality Measurement is included in IRM 4.8.3, Examination Quality Measurement System (EQMS).

  7. Specific information on the Collection Quality Measurement System is included in IRM 5.13.1, Collection Quality Measurement System (CQMS) Administrative Guidelines.

1.4.17.2.2  (03-01-2006)
Compliance Nature of Workload

  1. Implementation of the Compliance Service mission for ensuring compliance not only entails the collection process, but also supports the Revenue Protection Strategy initiative and the operations in Service Center Examination. Examination operations include Automated Under Reporter (AUR), Combined Annual Wage Reporting (CAWR), the Federal Unemployment Tax Act (FUTA). (Refer to IRM 4.19, Liability Determination and IRM 5.18, Liability Determination)

  2. Your employees may be answering telephones, making outgoing telephone contacts, working written referrals of taxpayer inquiries or correspondence, or working other paper processes. This work is outside of the AUR, CAWR and FUTA current year program processes.

  3. Compliance Managers in campuses and area offices are responsible for managing one, all, or any combination of the following:

    • Telephone operations

    • Paper operations

    • ACS inventories

  4. Proper workload management is essential for timely responses to customers and prompt account transactions. Due to the variety and complexity of work in Compliance Service, managers must be familiar with the many aspects to managing workloads such as:

    • Establishing controls and priorities

    • Requesting adequate staffing and terminals

    • Conducting reviews

    • Processing work within established time frames

    • Correcting imbalances in work inventory

    • Providing adequate training

    • Being involved in the daily operation of the unit

    • Managing time effectively

    • Using available reports and management tools to monitor the operation

  5. All workloads must be processed using the guidelines provided in the following IRMs:

    • Part 4 - Examining Process

    • Part 5 - Collecting Process

    • Part 13 - Taxpayer Advocate Service

    • Part 20 - Penalty and Interest

    • Part 21 - Customer Account Services

    • Part 25 - Special topics

    Please note this list is not all inclusive.

  6. There are peak and non-peak periods in each function to be aware of in planning for staffing and training. They can be anticipated by doing the following:

    • Looking at current work schedules and work plans

    • Checking historical data

    • Getting updated information from the Operations and/or Department Manager

  7. Once you have determined your peak and non-peak periods, prepare for workload peaks in the following manner:

    1. Cross-train employees on all programs worked in the unit

    2. Recall seasonal employees in time to give them refresher training

    3. Hire additional staff if necessary

    4. Survey other areas for staff available for details

    5. Ensure you have an employee trained to access NMF information

1.4.17.2.3  (03-01-2006)
Compliance Mandatory Reviews

  1. All Compliance managers will conduct the following applicable reviews:

    • Telephone monitoring (where applicable)

    • Workload reviews and on-line reviews

    • IDRS (Integrated Data Retrieval System) adjustment reviews
      (See IRM 2.11, Information Systems Security and Privacy.)

    • Evaluative reviews

    • Non-evaluative reviews

    • Clerical reviews

  2. Focus reviews on effective case resolution according to IRM guidelines. Emphasize the achievement of quality service.

  3. Area managers, Territory managers, Operations managers and Department managers will set review requirements for their respective operations. Conduct a balance of these reviews throughout the year and include a variety of types of reviews. When necessary conduct side by side non-evaluative reviews for skill development

  4. Refer to http://www.shr.web.irs.gov for additional information on performance reviews.

1.4.17.2.3.1  (03-01-2006)
Compliance Operation Reviews

  1. An operational review is a review of a subordinate manager and his/her organizational component and is imperative for his or her growth. It provides an opportunity to improve overall effectiveness of the unit/section and branch. The review should cover Employee Satisfaction in the unit and include receiving feedback from the manager's employees.

  2. Be sure to praise all accomplishments, identify areas needing improvement, target completion dates established and schedule a follow-up review.

  3. These reviews may be of organizational as well as individual performance. These reviews should be:

    • Evaluative and direct

    • Completed annually (unless more frequent reviews are warranted either to address inexperience or poor performance)

  4. The scope of operational/team reviews by upper management should include at least the following issues: (Others may be added at the discretion of the reviewer.)

    • Desk instructions (adequacy, need, technical accuracy) maintained in the unit

    • Work schedules (timeliness, how backlogs are handled)

    • Schedule of employee work reviews (telephone monitoring, paper reviews)

    • Quality of supporting narratives for workload reviews in EPFs

    • Quality of supporting documentation for annual ratings (relationship between EPF documentation and assigned ratings)

    • Communications within the unit (meeting minutes, floor supervision, informal communication, listening skills, etc.)

    • Use of time, identification of problems, implementation of solutions

    • A sampling of work (for example, telephone monitoring or cases selected from ACS TEACH listings)

    • Use of the ACD telephone reports or other timekeeping controls to ensure adherence to hours of duty

    • Maintenance of reference material (e.g., IRM maintenance and availability within the unit)

    • Timekeeping and employees' time reporting

    • The unit manager's technical ability

    • Staff utilization

    • Use of management information reports

    • Clerical support

    • Cover a representative sampling of all work under the jurisdiction of the team or group manager being reviewed

1.4.17.2.3.2  (03-01-2006)
Compliance Workload Reviews

  1. Workload reviews are performed primarily for the following reasons:

    • Make an objective assessment of an employee's performance

    • Protect the rights of customers

    • Identify training needs

  2. Work reviews should focus on effective case resolution according to IRM guidelines.

  3. In addition, reviews should focus not only on your employee's ability to complete his/her assignments, but also on their ability to set priorities and complete assignments independently and expeditiously.

    Note:

    Perform workload reviews for each employee a minimum of two times per quarter.

1.4.17.2.3.3  (03-01-2006)
Compliance IDRS Adjustment Reviews

  1. IDRS adjustment reviews help prevent unpostables and ensure prompt correction of errors. Review a sample of IDRS adjustments with source documents, focusing on the following areas:

    • Appropriate source documents

    • Accurate and complete input data

    • Proper hold codes

    • Correct priority codes

    • Accurate source codes

    • Appropriate blocking series

    • Appropriate reason codes

    • Complete remarks section

  2. IDRS adjustment reviews may be delegated to a work leader or peer, but employees may not conduct a review of their own cases. If this review is delegated, the employee conducting the review will brief the manager and the employee involved.

  3. IDRS security reviews may not be delegated.

1.4.17.2.3.4  (03-01-2006)
Compliance Evaluative Reviews

  1. Evaluative reviews must be recorded in accordance with the National Agreement established between National Treasury Employees Union (NTEU) and management.

  2. Conduct a minimum of two evaluative reviews (phone or paper) for each employee. The number and times for monitoring will be set by the Operations or Department Manager.

    Note:

    When an employee works in a blended environment (phone or paper) you should strive for a proportionate mix to review throughout the rating period.

  3. Evaluative reviews must be conducted by a manager or an individual in an official acting manager capacity.

  4. When conducting reviews, ensure recordation is input into the Embedded Quality Review System (EQRS).

    Note:

    EQRS is a standardized data repository with trend analysis capabilities and reporting capabilities to use for employee evaluations.

  5. Use the Employee Feedback Report on EQRS for sharing evaluative monitoring results. Share results of phone monitoring within three workdays. (If incorrect information is given, the results must be shared within eight (8) business hours.) Notate the reason on the review sheet if you do not meet these time frames, (i.e., due to unexpected leave, etc.).

  6. Obtain the employee's acknowledgment on the designated form. Provide one copy to the employee and retain the other copy for the Employee's Performance Folder. (EPF). Be sure to sanitize when appropriate.

1.4.17.2.3.5  (03-01-2006)
Compliance Non-Evaluative Reviews

  1. The primary purpose of a non-evaluate review is to help the employee develop and enhance their job skills. Effective non-evaluate reviews foster open lines of communication between the employee, the manager, and the lead technical employee. This enables the manager and/or their lead to receive employee feedback and transfer operational goals informally.

  2. Non-evaluative reviews do not contain a written rating. Share the results orally. Some documentation is appropriate to establish that it actually occurred. (EQRS may be used to track employee development for this purpose.) Have the employee initial and date any documentation. Provide one copy for the employee and retain the other copy in the employee's drop file.

1.4.17.2.4  (03-01-2006)
Compliance Managerial Reports

  1. In order to properly manage your workload, a Compliance manager must be familiar with productivity, control and inventory reports and quality, customer satisfaction reports. The majority of these reports can be found on the Electronic On-line Network System (EONS). This system can be accessed through the Intranet (http://notes3.aus.swr.irs.gov/SPHome.nsf) or can be loaded directly onto your personal computer.

  2. The following information reports can be accessed through EONS:

    • CCA (Controlled Case Assignment) - gives detailed information on all cases controlled under specific IDRS Unit numbers

    • PERS (Performance Evaluation Reporting System) - gives specific information on hours reported under different organizational units

    • WP&C (Work Performance and Cost) - gives detailed and specific information on the hours used and the efficiency achieved under each individual program code by site. This information is calculated based on the work schedules for a specific time period.

  3. Additional information on these reports and others can be found in IRM 3.30, Work Planning and Control, IRM 5.2, Collection Reports and IRM 21.2 , Systems and Research Programs.

  4. See also IRM 1.4.20 for information on Automated Collection System (ACS) reports.

  5. It is your responsibility to ensure that all data reflected in the summary reports is accurate. In order to determine accuracy, verify the hours used under your organization with your employee's time sheets. Also verify the receipts and closures shown with your employee's individual inventory reports.

  6. You are also responsible for ensuring that the workload is being managed in a timely and efficient manner. Reviews of IDRS reports will indicate the overall age of the controlled inventory for each particular group. IDRS reports also provide individual controlled inventory reports and must be monitored to ensure that all cases are controlled and worked timely.

1.4.17.3  (03-01-2006)
Compliance Insolvency Management

  1. The mission of Compliance Insolvency is to address all issues ensuring compliance with the Bankruptcy Code and ensuring consistent treatment of taxpayers who have filed bankruptcy across 15 insolvency sites at a national level.

  2. Managers must ensure that taxpayers who file bankruptcy under the Federal Bankruptcy Code are adequately protected and that Internal Revenue Service tax debts receive appropriate and fair treatment consistent with the Federal Bankruptcy Code laws.

1.4.17.3.1  (03-01-2006)
Insolvency Management Functional Guidelines

  1. Ensure that the Insolvency function is in compliance with the requirements of the Bankruptcy Code Compliance Program.

  2. Ensure case processing is complete within five (5) workdays of receiving notification of a new bankruptcy including the following:

    1. Load case information into the Automated Insolvency System as soon as possible.

    2. Run Insolvency Interface Program Processes C and D daily. Work Potentially Invalid TIN (PIT) and Cross-Reference TIN Reports daily.

    3. Contact Automated Collection System (ACS), Territory Field Function or Compliance Services Collection Operations on cases in Status 22, 26, 60 and 71. (Listing generated during the IIP process.)

  3. Ensure Bankruptcy Code violations are resolved as soon as possible but not later than two (2) working days after notification from outside Insolvency or identification within Insolvency's Document Automated Insolvency System, note history with actions taken.

1.4.17.3.2  (03-01-2006)
Insolvency Management Nature of Workload

  1. Insolvency offices are noted for large volumes of work and a work force constantly in transition. These factors require continuous attention to workload management issues. These factors require continuous attention to workload management issues.

    1. Analyze processing steps with Insolvency.

    2. Eliminate unnecessary or low value tasks to streamline processing.

    3. Identify potential bottle-necks or "trouble spots" .

    4. Develop contingency plans to divert other Insolvency resources during peak periods.

    5. Store bulk-processed work items (when possible) where they are easily observable.

    6. Ensure work items are completed on a first in-first out basis (when possible).

  2. Managerial involvement is critical to success in managing the Insolvency workload.

    1. Use available reports to identify problem areas and/or areas for review.

    2. Periodically spot check areas previously identified as at risk for back-logging or lack of timeliness.

    3. Promptly address identified problem areas.

  3. Monitor service to customers to ensure that:

    1. Quality and tone of written correspondence is appropriate

    2. Correspondence is answered within prescribed time frames

    3. Correspondence contains Insolvency's employee badge number, return address, and telephone number

    4. Time required to return telephone calls is appropriate

    5. Processing and case actions are in compliance with the Internal Revenue Manual (IRM)

    6. Case file histories are completely documented with action(s) taken

    7. Commitments made to customers are honored timely

    8. Follow-up is timely on issues important to customers (e.g., refunds)

1.4.17.3.3  (03-01-2006)
Insolvency Management Mandatory Reviews

  1. First-line managers should conduct a minimum of one review (usually at mid-year) with each employee during the annual appraisal period.

    1. Conduct employee reviews simultaneously with reviews of Insolvency processes, operational reviews or program reviews to maximize review time.

    2. Concentrate review efforts on employees requiring more attention.

    3. Document review results and highlight good performance as well as work needing improvement.

    4. Schedule and conduct follow-up reviews of employees, operations, or programs as needed.

    5. Expand performance appraisal ( Form 6850) discussion with employees to include performance plans for the upcoming year, career counseling and individual development.

    6. Be alert to individual or group training needs throughout the year.

    7. Look for procedural or systemic problems warranting attention.

    8. Problems impacting service to unit or Insolvency customers must be given the highest priority.

  2. Insolvency second-level (Territory) managers must perform an operational review of each subordinate manager at least once each year. Document the review by memorandum and include significant accomplishments and provide direction for areas needing improvement. As this review provides a major portion of the manager's annual performance evaluation, be sure to follow up after a reasonable time.

    1. Give full coverage to the bankruptcy and lien functions.

    2. Concentrate review activity in the three key areas: business results, customer satisfaction and employee satisfaction.

    3. Review employee performance folders concentrating on depth and scope of employee reviews, evaluations and development.

    4. Be alert for any P-1-20 violations.

    5. Analyze workload management skills and quality control

    6. Check for accomplishment of organizational and Personnel Management Recognition System objectives.

    7. Comment on communications within the unit and between the employees and the manager.

    8. Analyze Survey/Feedback/Action results to target areas for emphasis.

    9. Analyze accomplishment of objectives.

    10. Sample reviews of work in major program areas.

    Note:

    Second level managers should review each major Insolvency program at lease once a year. (This may be delegated to a qualified subordinate.)

  3. See See IRM 1.4.17.3.3. through 1.4.7.2.3.5 for information on other Compliance reviews.

1.4.17.3.4  (03-01-2006)
Insolvency Managerial Reports

  1. Use the wide variety of reports currently available to monitor the quality and timeliness of bankruptcy case processing.

  2. Automate Insolvency System reports include:

    • Proof of Claim Follow-up

    • Bar Date

    • Large Dollar Cases

    • Unfiled Plans

    • Court Closure Follow-up

    • Confirmed Plan Delinquent Report

    • Satisfied Plan Report

    • Courtesy Investigation Report

    • ASED/CSED Report

    • Follow-up and No Follow-up

    • Bankruptcy Code Compliance Reports

  3. Litigation Account Management System (LAMS):

    • Post Petition Case Listing

    • Insolvency Match Listing

    • Closed Case Listing

    • Not found on Automated Insolvency System Case Listing

    • Unfiled Returns Case Listing

    • Potentially Erroneous Records Listing

    • Non Insolvency Case Listing (for you Advisory Manager)

1.4.17.4  (03-01-2006)
Service Center (Campus) Examination Management

  1. Wage and Investment (W&I) Remote Exam and Small Business/Self Employed (SB/SE) Campus Examination (both collectively referred to as either Examination, Service Center Examination, or Correspondence Examination) supports the mission of the Service by maintaining an enforcement presence and encouraging the correct reporting by taxpayers of income, estate, gift, employment, and certain excise taxes.

  2. Service Center (Campus) Examinations Operation encourages the correct reporting by taxpayers of income, estate, gift, employment and certain excise taxes. Among the concerns of this operation are:

    • Correspondence Examination

    • Earned Income Tax Credit Compliance Initiative

    • Deferred Adverse Tax Consequences/Alternative Strategies for Tax Administration

    • Tax Shelters

    • Document Matching

    • Estate and Gift Tax

    • Audit Reconsiderations

    • District Office support

    • Research and Development

    • TEFRA

    • Excise (CSC Only)

    • CAWR (SB/SE)

    • SSA-CAWR (SB/SE)

    • FUTA (SB/SE)

  3. All plans for program objectives incorporate the following:

    • Centralizing workload to take advantage of varying efficiencies

    • Increasing direct time on cases

    • Generating more productive cases

    • Providing widespread compliance coverage

    • Improving the level of access for customers

    • Increasing telephone contact for earlier resolution

  4. Additional information on Examinations Operations is in IRM Part 4.

1.4.17.4.1  (03-01-2006)
Examination Functional Guidelines

  1. For general Compliance management responsibilities, refer to IRM 1.4.1, Resource Guide for Managers - Management Roles and Responsibilities and the APM Guide Web Site (http://apm.web.irs.gov/), Administrative Procedures for Managers.

  2. Specific Examination guidelines are included in IRM Part 4 - Examination Process (Filing and Reporting Compliance)

  3. Manager's responsibilities for the Audit Information Management System (AIMS) are shown in IRM 4.4.1.2.

  4. Specific Quality Review guidelines are located in IRM 21.10.1, Accounts Management and Compliance Services Quality Review Program and IRM 4.8.

1.4.17.4.2  (03-01-2006)
Examination Nature of Workload

  1. Service Center Examination Operations consist of Telephone Operations, Incoming Correspondence, Internal Action Requests and Classification Requests.

  2. Field Examination Operations consist of face–to–face taxpayer interviews, taxpayer assistance, and initiating account actions.

  3. All Examination Operations may involve tax, penalty and interest adjustments to individual and/or business accounts.

1.4.17.4.3  (03-01-2006)
Examination Mandatory Reviews

  1. A listing of mandatory reviews is included in See IRM 1.4.17.2.3. for all Compliance managers.

  2. The Campus Examination Operation Manager (or designee) is responsible for receiving all return orders and for perfecting and processing them to Martinsburg Computing Center on a cycle basis. Additional information can be found in IRM 4.19.1.2.26, Liability Determination-Service Center Campus Examination Operations.

  3. In addition, a Correspondence Examination manager can perform any of the following reviews:

    • In Process Review - a review of a case, at any point in the examination process, from the issuance of the ICL until the case is ready for closing

    • Close Case Review - a review of a completed examination

    • On the job visit - a review of an employee's work either at the desk or at the time the employee is assigned to telephone duty.

    • Time on case review - a review to determine if all the direct examination time is charged properly on each case and on Form 3081 .

  4. When performing reviews, you should ensure that the employee has complied with the seven auditing standards. See IRM 21.10 for the auditing standards.

  5. Managers must sign and date the work papers of any case they have reviewed.

  6. See See IRM 1.4.17.2.3. through 1.4.7.2.3.5 for information on other Compliance reviews.

1.4.17.4.4  (03-01-2006)
Examination Managerial Reports

  1. It is necessary for each manager to monitor the reports in IRM 1.4.17, Resource Guide for Managers -Compliance Managers Guide.

  2. AIMS, the Audit Information Management System, is a computer system designed to give Examination information about returns in inventory and closed returns. An AIMS database is maintained in each campus and contains Master File and Non-Master File accounts. While the return is charged to Examination the AIMS data base tracks its location, age and status.

  3. Reports and statistical tables are generated/produced from the AIMS data base at the Detroit Computing Center (DCC) and at each campus.

  4. The Detroit Computing Center refers to AIMS as the AMIR program. The three basic types of AMIR data contained in the statistical tables are:

    • Inventory

    • Return accomplishments

    • Applied examination staff years

      Note:

      Excluded from these tables are error records which are uncorrected.

  5. AIMS generates weekly, monthly and quarterly operating reports at each campus in addition to those which are generated upon request. Reports to note are:

    • AIMS Weekly Update Report

    • Service Center Correspondence audit Report

    • Status Workload Review

    • Table 4.0 (Statute cases)

    Refer to IRM 4.4.27.6 and IRM 4.4.17-4 for additional information and examples of these and other reports.

1.4.17.5  (03-01-2006)
Document Matching Program Management

  1. Document matching programs are those programs where income document Forms W-2 (Wage and Tax Statement), 1098 (Mortgage Interest Statement), 1099 DIV (Dividends and Distributions), etc. are matched or cross-referenced by payer/payee to the appropriate tax returns. These programs are unique in that they each rely on a separate automated inventory control system to monitor their program.

  2. The document matching programs worked in the Compliance function include:

    • SFR/ASFR - Substitute for Return/Automated Substitute for Return

    • AUR - Automated Under Reporter

    • CAWR - Combined Annual Wage Reporting

    • SSA-CAWR - Social Security Administration/Combined Annual Wage Reporting

    • FUTA - Federal Unemployment Tax Act

    • TIN Matching - 972CG Program

    • BWH A and B - Back Up Withholding Notice A and B (also a TIN matching program)

    • Return Delinquency Program - Matches IRP documents with the Return Transaction File (RTF)

1.4.17.5.1  (03-01-2006)
Document Matching Functional Guidelines

  1. For general Compliance management responsibilities, refer to IRM 1.4.1, Resource Guide for Managers - Management Roles and Responsibilities and the APM Guide Web Site (http://apm.web.irs.gov/), Administrative Procedures for Managers.

  2. Specific program inventory guidelines are located in IRM Part 4 and IRM Part 5.

  3. Specific Quality Review guidelines are located in IRM 21.10.1, Accounts Management and Compliance Services Quality Review Program and IRM 5.13.

1.4.17.5.2  (03-01-2006)
Document Matching Nature of Workload

  1. Document matching programs consist of initiating outgoing correspondence (usually notices), incoming responses and/or telephone calls.

  2. Specific manager instructions regarding CAWR program start-up is included in IRM 4.9.4.12.23.

  3. Depending on the campus policy, late replies to the document matching programs (replies received after the account has been adjusted) may or may not be worked in the Compliance function.

1.4.17.5.3  (03-01-2006)
Document Matching Mandatory Reviews

  1. In addition to the reviews mentioned in See IRM 1.4.17.2.3. for all Compliance managers, the following program specific reviews are required or recommended:

    • SFR/ASFR

    • Adjustments to accounts resulting from filed returns

    • ASFR weekly error lists

    • AMRH transcripts

    • Excess collection transfers

    • AUR - See IRM 1.4.19, Automated Underreporter Managers and Coordinators Handbook

    • CAWR - Random Notice review

    • FUTA - Random Notice Review

    • Tin Matching/BWH - Random Notice Review

  2. See See IRM 1.4.17.2.3. through 1.4.7.2.3.5 for information on other Compliance reviews.

1.4.17.5.4  (03-01-2006)
Document Matching Managerial Reports

  1. It is necessary for each manager to monitor the reports in IRM 1.4.17, Resource Guide for Managers -Compliance Managers Guide.

  2. Each program generates it's own set of unique reports. In addition, each program has certain reporting requirements to Headquarters. The reports and full descriptions are listed in the following IRMs:

    • SFR/ASFR - IRM 5.18.1.7 (The two most important output reviews are the 200(MIS) and 201(Priority). From these reports the manager can determine which statuses on the ASFR system may not be up to date. In addition, you can generate listings (according to ASFR status) from that report and use those listings to monitor systemic trends and trends within the group.)

      Note:

      Additional information on these and other reports can be found in IRM 5.18.1.7.

    • AUR - I IRM 1.4.19 and IRM 4.19.2.9, Automated Underreporter Control System.

    • SSA-CAWR - IRM 4.19.4.12.20 (Full explanations of the Error Listing Report (CWR–03–40) and CAWR Delete Listing Report are included in IRM 4.19.4.12.25.)

    • FUTA - IRM 4.19.5.4.12

    • TIN matching/BWH - IRM 120.1.7.3.4.11 and IRM 5.19.3

1.4.17.6  (03-01-2006)
Offer in Compromise (OIC) Program Management

  1. General Compliance management responsibilities are included in See IRM 1.4.17.2.1..

  2. Specific program inventory guidelines are located in IRM 5.8 and IRM 5.19.7.3.

  3. Specific Quality Review guidelines are located in IRM 5.13:

    • Chapter 4 contains documentation guidelines and standards

    • Chapter 5 contains reviewer guidelines

1.4.17.6.1  (03-01-2006)
Automated Offer in Compromise (AOIC)

  1. The OIC program utilizes the Automated Offer in Compromise (AOIC) application to track and control offers.

  2. The AOIC shares a common database that contains relevant OIC information used by:

    • The Centralized Offer in Compromise (COIC) sites

    • Area/Territory Offices

    • Campus Compliance Services

1.4.17.6.2  (03-01-2006)
Nature of OIC Workload

  1. Taxpayers send Form 656, Offer in Compromise, to one of the two COIC sites; located at the Memphis or Brookhaven Campus.

  2. COIC determines if the OIC is processable, builds the case and forwards processable offers to offer examiners at the sites or to a territory office for investigation.

  3. Accepted offers are sent to one of the seven compliance campuses for monitoring terms of the OIC. Monitoring campuses: Andover, Atlanta, Austin, Fresno and Kansas City = W&I; Brookhaven and Memphis = SBSE.

  4. Returned or rejected/withdrawn offers are mailed back to the taxpayer with a cover letter.

1.4.17.6.3  (03-01-2006)
OIC Managerial Reports

  1. Each segment of the AOIC program contains a set of reports to be used by field, COIC or campus management for reviews.

  2. OIC case data is complied monthly from the AOIC for compliance campus, territory and COIC reports.

1.4.17.6.4  (03-01-2006)
Area Managerial Reviews

  1. Depending on the amount of the compromised liability, management and counsel approval is required for accepted offers.

  2. Potential rejected offers require mandatory review by an independent reviewer.

  3. Rejected/withdrawn and accepted offers are randomly selected by the AOIC application for quality review and shipped to the quality review site in Atlanta.

  4. When accepted offers are reviewed; the Form 656 , Form 7249 and the Acceptance Letter are forwarded to the compliance campus so that the monitoring process is not held up due to quality review.

  5. When quality review is completed, the originals are sent to the appropriate campus to be associated with the copy file.

1.4.17.6.5  (03-01-2006)
Campus Mandatory Reviews

  1. Campus management must review the following reports to determine if timely and appropriate actions have been addressed during the OIC monitoring process. Procedures for accessing all the reports can be found in the AOIC Compliance Center Users Guide.

    • New Work (NW) Listing: This list will show new incoming cases from the territory and COIC offices; these cases have not been accepted into the campus inventory. Generate a NW list every 30 days to validate receipt of case files and required documentation. Case files not received as listed and those received with incomplete or missing required documentation should be resolved within 15 days. These cases will be placed in NW sub code MC for missing case and IC for incomplete case. Those not resolved in the 15-day timeframe will be returned to originator with an AOIC history note.

    • Journal Payment Due Date Report: This report must be generated monthly via AOIC using the following date parameters: 01-01-1995 to 30 days prior to the run date.

    • AOIC Follow-up Listing: This listing must be reviewed bi-monthly using the following date parameters: query the AOIC system with a beginning date of 01-01-1995 to 30 days prior to the run date. A corresponding entry should be in the case history for each item on the follow up listing.

    • Open Refund Recoupment Report: This report must be generated by May 31 and November 30 each year.

    • Other Investigations (OIs): Generate a report quarterly on Form 2209, Other Investigations, with a beginning date 90 days prior to the run date to determine over due responses. Instruct tax examiners to follow up with the Territory or COIC to ensure OIs are being addressed and responded to.

    • Aged 5M Inventory Listing: This listing must be reviewed monthly using the following date parameters: query the AOIC system with a beginning date of 01-01-1995 to 30 days prior to the run date.

    • Open Collateral Report: This report should be run annually in November with a follow up within 60 days.

    • Employee (Open) Inventory Report: This report must be generated monthly for each employee to ensure timely intake into inventory and appropriateness of actions.

    • Closed Offer Deposit Disposition Report: This report must be generated monthly to ensure that deposits have been disposed of for rejected/withdrawn or terminated offers.

    • Quarterly generate a report on current open offers on AOIC for all statuses except for Journal Payment and 5M to determine if they are in the correct status and timely and effective action is being taken.

  2. Use the AOIC Follow-up Report to ensure that the Follow-up screen was updated and case actions were timely and appropriate.

1.4.17.7  (03-01-2006)
Compliance Field Force Management

  1. The Field Force Operation is one of the most visible areas of the Service. Performing Field and TEC functions provides us with an opportunity to enhance our image while assisting taxpayers with tax compliance.

1.4.17.7.1  (03-01-2006)
Compliance Field Force Functional Guidelines

  1. For general Compliance management responsibilities, refer to IRM 1.4.1, Resource Guide for Managers - Management Roles and Responsibilities and the APM Guide Web Site (http://apm.web.irs.gov/), Administrative Procedures for Managers.

  2. Specific Field Force guidance is located in IRM Part 4 and IRM Part 5.

  3. Specific Quality Review guidelines are included in IRM 21.10.1, Accounts Management and Compliance Services Quality Review Program IRM 4.8 and IRM 5.13.

1.4.17.7.2  (03-01-2006)
Compliance Field Force Nature of Workload

  1. Specifics of the Field Examination workload can be found in IRM Part 4.

  2. Specifics of the Field Collection workload can be found in IRM Part 5.

1.4.17.7.3  (03-01-2006)
Compliance Field Force Mandatory Reviews

  1. In addition to the reviews included in See IRM 1.4.17.2.3. of this section, Examination Field Function reviews include:

    • Workload reviews

    • On-the-job visits

    • Completed case reviews

    • Work-in-Progress Reviews

    • Analysis and review of Examination Technical Time Reports

    Specifics of the Field Examination mandatory reviews can be found in IRM Part 4.

  2. In addition to the reviews included in See IRM 1.4.17.2.3. of this section, Collection Field Function reviews include:

    • Field Visitations

    • Office Observations

    • CSED/ASED Reviews

    • Activity Lapse Review

    • Closed Case review

    • Work-in-Progress Reviews

  3. See See IRM 1.4.17.2.3. through 1.4.7.2.3.5 for information on other Compliance reviews.

1.4.17.7.4  (03-01-2006)
Compliance Field Force Managerial Reports

  1. Specific Field Examination reports can be found in IRM Part 4.

  2. Specific Field Collection reports can be found in IRM 5.2.4, Collection Reports for Field Managers.

  3. Refer to IRM 1.4.20 for information on AIMS reports.


More Internal Revenue Manual