1.4.50  Collection Group Manager, Territory Manager and Area Director Operational Aid (Cont. 1)

1.4.50.7  (01-25-2013)
Recognition and Awards

  1. Awards are opportunities for group managers to recognize and reinforce positive performance and behavior.

  2. You are responsible for maintaining a working knowledge of the awards process.

  3. Complete information regarding awards can be found on the Human Capital website at: http://hco.web.irs.gov/perfmgmt/awards/index.html.

  4. Resources:

    • IRM 1.4.1.8.3, Recognition and Awards

    • 2012 National Agreement II, Article 18, http://hco.web.irs.gov/lrer/negagree/natagree/

    • IRM 6.451.1, Awards and Recognition, Policies, Authorities, Categories and Approvals

    • The local Human Resources Specialist

1.4.50.8  (01-25-2013)
Field Collection Workload Management

  1. You are responsible for effectively managing the group's workload. To accomplish this you must:

    1. Ensure priority cases are worked.

    2. Assign cases based on grade and risk level. See IRM 1.4.50.8.4 and IRM 1.4.50.10.1.

    3. Maintain targeted inventory levels and make adjustments as appropriate .

    4. Balance inventories within your group.

    5. Ensure case activity is progressing toward resolution.

    6. Continually strive to improve production, work processes, and/or to increase the quality of the work directed.

1.4.50.8.1  (01-25-2013)
Total Inventory Management (TIM)

  1. Strive for currency of inventory by encouraging revenue officers to take the right action at the right time on each case.

  2. Communicate to revenue officers that you expect them to work their inventory as a whole.

1.4.50.8.2  (01-25-2013)
Using ENTITY

  1. ENTITY is the primary case Management System for group managers. Group managers should familiarize themselves with IRM 5.3.1, ENTITY Case Management System. ENTITY includes both group level and queue information.

  2. ENTITY extracts and organizes information about case and RO activity from the Integrated Collection System (ICS), and the Delinquent Investigation/Account Listing (DIAL).

  3. Use ENTITY to:

    1. Assist revenue officers in managing their inventories.

    2. Identify cases with which the revenue officer may need assistance, such as listed in (4) below.

  4. You can use the automated features of ENTITY to select categories of cases for review, such as pyramiders, trust fund repeaters, statute, no activity, etc.

  5. You can also use ENTITY to:

    1. Review the group queue using various sort options to select cases for assignment to revenue officers.

    2. Study workloads in particular zip codes.

    3. Examine historical inventory levels to support a request for additional staffing or grade structure change.

    4. Quickly identify inventories which deviate from targeted inventory or case difficulty levels.

    5. Generate a group inventory risk level statistical report.

  6. Resources:

    • IRM 5.3.1, ENTITY Case Management System

    • ENTITY website: http://mysbse.web.irs.gov/Collection/collsystems/entity/default.aspx

1.4.50.8.2.1  (01-25-2013)
Management Information Systems (MIS) Reports

  1. The ENTITY system serves as an integral tool in management of the entire group’s inventory. There is no expectation that every available report/query will be run. Rather, you should identify those that best reflect the individual needs of your group, and run those as needed. In general, reports should not be run merely for the purpose of requesting a “status update” from an employee. Use Management Information Systems (MIS) reports to establish ASED and CSED controls necessary per IRM 1.4.50.11. In addition, utilize the reports and queries to:

    • Identify inventory trends

    • Identify inventory in need of additional attention

    • Monitor progress made on previously-identified trends

  2. Resources:

    • ENTITY website: http://mysbse.web.irs.gov/Collection/collsystems/entity/default.aspx

1.4.50.8.3  (12-16-2011)
Queue

  1. The queue is an electronic file holding pending assignments for Field Collection. Work goes into the queue and is categorized using a risk score.

  2. Work can go into the queue from both ACS and Field Collection.

  3. IDRS assignment number "AOTO7000" is used for cases in the queue.

1.4.50.8.4  (12-16-2011)
Case Risk Level

  1. All cases are assigned a Risk Level. Risk levels:

    • 99-108 are high priority

    • 201-208 are medium priority

    • 301-303 are low priority

    Exception:

    Risk Level 399 is a default risk level for non-IDRS assignments and is not associated with the priority of the case. For example, an OI issued by Centralized Case Processing (CCP) for collection on a pyramiding in-business taxpayer may be assigned Risk level 399 but is a High risk case.

  2. The case risk scoring criteria were designed to provide the field with a more current workload with an increased emphasis on recent business trust fund taxpayers and selected cases. Cases are scored while in the group designation hold file, RO inventory and in the queue on a weekly basis using the following criteria:

    1. High Risk 100:"Taxpayer Contact Required" cases are driven by the TSIGN (64xx/65xx), which alerts ICS that the case originated from Compliance Services Collection Operation (CSCO) or ACS and carries a sub code of 601 (IMF), 602 (BMF), or 603 (NMF). Sub code 604 (Large Dollar ) was established to identify those cases where ACS personnel have determined the existence of substantial equity in assets. Mandatory FTD Alerts are also scored High Risk 100.

    2. High Risk 101 through Low Risk: The balance due, return types, timeliness (tax period), last return amount, and/or selection code are considered in calculation of the risk score.

1.4.50.9  (01-25-2013)
Hold Files

  1. Group designation hold files are established for every group (mandatory) and are sometimes referred to as GM hold files. The assignment code for these hold files is: "AOTOxx00" . Group designation hold files (mandatory) are not the same as group hold files (optional). Group hold file assignment codes may be established to control cases meeting specific criteria. See IRM 1.4.50.9.2 for more information about group hold files.

1.4.50.9.1  (01-25-2013)
Group Designation Hold File

  1. Certain BAL DUE or DEL RET cases move directly from notice status to active collection by Field Collection (FC). These cases bypass both ACS and the queue and are assigned directly to ICS (cases will be sent directly to the manager’s hold file). See IRM 5.1.20.2.3.1, Cases that Bypass ACS and the Queue that go Directly to ICS. Other types of cases will also arrive in your hold file, including FTD Alerts, OIs, case transfers, etc.

  2. Manage your hold file by conducting weekly reviews to determine:

    1. Which cases to assign and which to send to the queue. See IRM 5.1.20.2.3.3, Cases that Cannot be Moved to the Queue.

    2. Whether cases meet the requirements for mandatory assignment. See IRM 5.1.8.5,Mandatory Assignments, and IRM 5.7.1.4, Receipt of FTD Alerts.

    Reminder:

    FTD alerts must be assigned to an RO within seven calendar days from the date the alert arrives in your hold file. Do not assign Federal Agency Delinquency (FAD) cases to ROs.

  3. If you suspect you have received erroneous assignments in your hold file, contact your IQA and determine the appropriate resolution for such cases. See IRM 1.4.50.9.1.1.

  4. Do not shelve any case unless authorized by a specific policy directive or memorandum issued by the Headquarters staff. See IRM 1.4.50.9.1.1.

  5. To decrease cycle time, do not keep cases in the group designation hold file (AOTOxx00) more than 45 days after receipt. When you must keep a case in the hold file for more than 45 days, document the case history to show the reason.

    Reminder:

    There should not be any cases assigned directly to your GM assignment number ending in 01 . When you see cases assigned to AOTOxx01, take immediate action to move them to the appropriate assignment code (group designation hold file, RO assignment or return to queue).

  6. "Taxpayer Needs Assistance" (H 100 risk level) cases must be promptly assigned to a revenue officer unless it is evident that the risk level coding is erroneous. Erroneously coded cases may be returned to the queue. Because many "Taxpayer Needs Assistance" cases come from a Campus, Toll Free Operation, or ACS, they may arrive without a clear explanation. If the contact request cannot be verified, document the ICS case history, update the case sub code as appropriate, and send any non-restricted case to the queue.

    1. For non-ACS accounts, look for a Form 4442, Inquiry Referral, transmittal, or annotation on IDRS.

    2. For ACS accounts, secure a copy of the account transmittal. It may be helpful to review the AMS history.

  7. When reassigning the inventory of a departing revenue officer, review all considerations in IRM 1.4.50.10.3, Reassignment of Departing Revenue Officer Inventory. Per guidance in that section, add such cases to your group designation hold file only after exhausting other assignment options.

1.4.50.9.1.1  (01-25-2013)
Shelving Erroneously Assigned Cases

  1. Occasionally, you may find that your hold file contains erroneously assigned cases that cannot be normally processed to the queue. When you suspect you have received such erroneous assignments contact your IQA for information about related Headquarters instructions.

  2. Headquarters provides guidance about erroneously assigned cases on a situation specific basis. Do not shelve any case/module unless authorized by a specific policy directive or memorandum issued by Headquarters staff.

  3. If Headquarters instructions advise shelving as described in this section, you may transfer the following cases to IQA hold files (designated XXXX-6297) for shelving using TC530 CC39 or TC598 CC57 procedures:

    • Medium and low risk cases received with CSEDs less than six months

    • NMF cases below the revenue officer assignment threshold

    • Medium and low risk cases that fall outside the range normally assigned to your group

  4. Unless specific headquarters guidance states otherwise, erroneously assigned high risk/short CSED (less than 6 months) cases may not be transferred to the IQA for shelving. The IQA staff will only shelve the specific module(s) with less than six months remaining on the CSED via the input of TC530/CC39. You may then evaluate the high risk case for appropriate assignment (i.e. return to queue if not restricted or assign to RO).

    Advance correspondence between group managers and IQAs is required when high risk, short CSED modules will be shelved according to these instructions. Send the IQA a secure email request identifying the taxpayer, TIN and module(s). The IQA staff will review the ICS history and take the necessary actions.

  5. Document the ICS case history with the following information to ensure correct processing and control of shelved cases/modules:

    • Correct CSED date

    • Case risk level

    • Reason the case (medium/low risk) or module (high risk) is being shelved by the IQA

    • Reference to the Headquarters guidance allowing use of shelving procedures

  6. The instructions above are limited to those erroneously assigned cases that cannot be normally processed to the queue and does not cover any case currently assigned to a revenue officer or any hold file case with a prior revenue officer assignment within the past 60 days.

1.4.50.9.1.2  (01-25-2013)
Federal Agency Delinquency Cases

  1. Field Collection is not to work Federal Agency delinquency (Balance Due and Delinquent Returns) cases, except in special circumstances. See IRM 5.1.7.6.2.1,Federal Agency Cases in the Collection Field Function.

  2. Federal agency delinquency (FAD) cases are identified by the "Employment code - F." This code is located on:

    • The Integrated Collection System (ICS) on the "Other Entity Information" screen for Business Master File (BMF) taxpayers.

    • IDRS on the "ENMOD" and "SUMRY" screen.

  3. Federal Agency Delinquency (FAD) cases receive a unique collection assignment number. The inventory delivery system (IDS) will route these cases to the FAD unit in Brookhaven and use TSIGN 21008300.

  4. Situations may arise in which Field Collection receives cases through misrouting. The FAD unit should identify these accounts, reassign them on IDRS to the new group assignment, and contact the assigned revenue officer or group manager and advise them of the transfer. ICS does not have the ability to reassign cases to 21008300. The FAD unit uses IDRS to complete all actions.

  5. If these cases appear in your group designation assignment queue, do not assign to revenue officers. Review the entity information of cases which may appear to be Federal agencies to ensure they are not assigned.

    Note:

    If you need to assign inventory from the queue and a Federal agency delinquency account cannot be by-passed due to accelerated issuance designation, assign the case to a revenue officer with immediate reassignment to the Group Designation hold file when the case reaches the field.

  6. If a Federal Agency Delinquency case is assigned to a revenue officer in error or directly assigned to a revenue officer, you should re-assign the case to the group designation hold file. If you need a case removed from your hold file before FAD reassigns it, you may contact the FAD unit directly at :http://serp.enterprise.irs.gov/databases/who-where.dr/fad_contacts.html

  7. As with any case that remains in the group designation hold file for more than 45 days, document the case history with the reason. See IRM 1.4.50.9.1.

  8. Resources:

    • IRM 5.1.7.6.2.1,Federal Agency Cases in the Collection Field Function

    • IRM 1.4.50.9.1, Group Designation Hold File

1.4.50.9.2  (12-16-2011)
Group Hold Files

  1. There are certain situations in which cases become inactive and warrant removal from revenue officer inventories, but must still be maintained in the collection group. In order to accommodate these situations, group hold files are authorized as specified below. Use of a Group Hold File is optional and is left to local management's discretion. However, if Group Hold Files are utilized, the following procedures must be followed.

  2. In order to maintain consistency, hold files must be designated specific assignment numbers and will be limited to the types of cases as described below:

    Assignment Number Group Type of Cases Explanation
    AOTOxx99 Field Revenue Officer Collection Due Process (CDP) OIs OIs on timely CDP cases when no revenue officer monitoring is needed. See IRM 5.1.9.3.4 Controlling and Monitoring Cases While in Appeals.
    AOTOxx99 Field Revenue Officer Pending adjustments, Pending suits, ATAT-CIP Cases in which no revenue officer action or monitoring is needed.
    AOTOxx96 Offer in Compromise Rejections Offer rejections pending the 45-day appeal period.
    AOTOxx97 Offer in Compromise Independent Reviewer Offers sent to the Independent Reviewer
    AOTOxx98 Offer in Compromise Counsel Offers sent to Counsel for review
  3. Cases should not be assigned to these hold files if action or monitoring is required on the part of the revenue officer or offer specialist. The revenue officer or offer specialist will document the case history with the specific reason the case is being reassigned to the group hold file and submit the request to the manager for approval. The manager will determine whether the case warrants assignment to the group hold file, document approval in the case history, and reassign the case to the specified number as noted above.

  4. A central point in the group may be established for maintaining the paper files associated with these cases, or the paper files may remain with the revenue officer as determined by the group manager.

  5. You must conduct quarterly reviews of the cases in these assignment numbers to ensure timely responses to the requested actions. The review should also determine whether the case should remain assigned to the hold file or be reassigned to the revenue officer or offer specialist for action. Document the ICS case history as appropriate.

1.4.50.10  (01-25-2013)
Assigning Work

  1. You are responsible for ensuring that cases are assigned at the proper grade and risk score, based on all indicators of case difficulty. Within grade and case criteria, an appropriate mix of cases (IMF/ BMF, Del Ret/Bal Due), as determined by local guidance, should be assigned to revenue officers. Generally, assign high risk cases before low risk cases. Consider the current workload as well as developmental needs of each RO and, when possible, avoid assigning only one type of case to any particular inventory.

  2. In general, you will first assign priority cases/mandatory assignments remaining in your group designation hold file. Next, evaluate accelerated cases in ENTITY for assignment. Finally, evaluate non-accelerated cases in ENTITY for assignment.

    Note:

    See below for information about certain mandatory assignments.

  3. When assigning inventory, you should consider both High Risk cases in the queue and High Risk non-IDRS cases in the group designation hold file. After assigning available High Risk cases, assign the next best case from Medium, then Low Risk inventory.

  4. Assignments should be made from the group queue using the GM Case Assignment option from the ENTITY View Menu. Decision analytics have been implemented to more effectively route cases. ENTITY first identifies and presents accelerated cases for assignment. These cases are listed as GM Case Assignments and should be assigned expeditiously to any grade appropriate revenue officer in the group before other cases in the queue. Additional clarification can be found in IRM 5.3.1.2.1, Case Assignment Procedures.

    Note:

    Note: There are many considerations when assigning work such as: risk level, case grade, current inventory, geographical issues, etc.

  5. You may find MapInfo services helpful in determining optimal alignment of inventory. Visit the MapInfo website:http://mysbse.web.irs.gov/collection/collsystems/autosupport/contacts/18826.aspx

  6. Review ENTITY reports monthly to ensure ROs are not working over 25 percent direct time above grade. This can be accomplished by reviewing the Time Report, "Above Grade Direct Time Report" . You may retain cases in inventory that do not match the RO's grade when:

    1. High priority cases had to be assigned to a revenue officer below his/her grade level (e.g., a TFRP assessment originating from an in-business case currently in inventory).

    2. There would be an unacceptable delay in working the cases if you reassigned them to other revenue officers.

    3. There is a need to maintain continuity of contact with the taxpayer.

    4. The revenue officer is in a one-person post of duty.

    5. Transfer of the case would cause unreasonable travel.

    6. The revenue officer needs or requests a higher-level case for developmental purposes.


    Per the 2012 National Agreement II, Article 16, a revenue officer may spend up to 25 percent of his/her direct time during any four month period, working higher graded cases for developmental purposes.

    Caution:

    If you allow revenue officers to work higher graded cases it is essential that you track the percentage of direct time spent on higher graded work to ensure the 25 percent threshold is not being exceeded. Employees who exceed the 25 percent level for any four month period may be entitled to a temporary promotion.

  7. Mandatory FTD Alerts are issued quarterly via the Integrated Collection System (ICS). When assigning cases, plan for the arrival of FTD Alerts during the third month of each quarter. Inventories should be at a level that will allow for the immediate assignment of these mandatory FTD Alerts without exceeding the inventory level that you have determined is appropriate; however, in no circumstances should the assignment date exceed seven calendar days from the date the alert arrives in the group designation hold file.

  8. Use judgment when selecting cases from the queue for assignment when one or more of the modules has less than six months remaining on the Collection Statute Expiration Date (CSED.) Normally, modules with less than six months remaining on the CSED will not be assigned. Refer to IRM 5.1.19.5,Imminent CSED, for additional information.

    Note:

    Potentially egregious in business trust fund taxpayers (repeaters/pyramiders) should be considered for assignment despite imminent CSED.

  9. As appropriate, assign related TFRP assessments to the revenue officer actively working the underlying trust fund case.

    Example:

    1. The underlying entity is a trust fund repeater as described in IRM 5.7.8, In-Business Repeater Trust Fund Taxpayers

    2. The person assessed the TFRP has previously been the subject of such assessments

    3. There are assets from which the TFRP may be immediately collected.

  10. Assign related entities to the same RO as appropriate. Due to the change in treatment of Limited Liability Companies (LLCs) after 2009, you may wish to treat certain LLCs as related entities for assignment purposes. In general, assign taxpayer cases related to a present assignment to the same RO. See IRM 1.4.50.10.1 for case grade considerations.

  11. Certain Other Investigations (OIs), are mandatory and need to be assigned to the next available revenue officer. See IRM 5.1.8.5,Mandatory Assignments, for additional information. Upon receipt of an OI from Insolvency to investigate potential TFRP assessments, ensure that an ATFR case is created at the time the OI is assigned to a revenue officer.

  12. Discretionary OIs may be assigned based on case risk level. See IRM 5.1.8.6, Discretionary Assignments. If you are not currently assigning like-risk level cases and cannot assign the OI to a revenue officer, the case may be returned to the originator by the due date of the OI. When returning an OI you will include an explanation in the remarks section explaining the reason the OI cannot be assigned.

  13. Resources:

    • MapInfo:http://mysbse.web.irs.gov/collection/collsystems/autosupport/contacts/18826.aspx

    • IRM 1.4.51–9, Guide for ASED Report (Field Insolvency)

    • IRM 5.1.7.6.2.1,Federal Agency Cases in the Collection Field Function)

    • IRM 5.1.8.5,Mandatory Assignments

    • IRM 5.1.8.6, Discretionary Assignments

    • IRM 5.1.8.7.1.3, Unassessable Erroneous Refunds Recovery Procedures

    • IRM 5.1.21, Collecting From Limited Liability Companies (LLCs)

    • IRM 5.7.1.4, Receipt of FTD Alerts

1.4.50.10.1  (01-25-2013)
Case Grade

  1. Balance Due and Delinquent Return investigations are issued with a case grade of GS–09, –11, or –12. Some GS-13 work is systemically delivered as well. These case grade levels reflect the anticipated level of difficulty of the entity. IRM Exhibit 1.4.50-1 reflects the criteria used to determine the case difficulty level.

  2. Testing of systemic delivery of GS-13 revenue officer cases is in process but not all grade 13 work is systemically identified. When manual identification of GS-13 case work is necessary use the Revenue Officer Case Assignment Guide, in Exhibit 1.4.50-1.

  3. You are responsible for reviewing and maintaining the correct case grade. Case grade levels can be either increased or decreased. There are systemic processes in place to predict the grade level of a case. If, based on receipt of additional information or change in case circumstances, the predicted case grade does not appear to be accurate, you may re-grade the case. A list of criteria that should be considered in conducting case grade analysis is shown in Exhibit 1.4.50-1, Revenue Officer Case Assignment Guide. This can be done at any time: upon receipt, upon assignment to RO and during case reviews. Revenue officers should be encouraged to bring misgraded cases to your attention. See IRM 5.1.20.2.4.2(3), Targeted Inventory Levels.

  4. Document the factors used in determining a new case grade in the ICS history. The ICS pick list meets this documentation requirement. The following choices, if selected from the drop down menu, are written to the case history; Nature of Entity, Range of Case Issues, Personal Contacts, and Impact of Enforcement Action. If additional explanation is needed you should write a narrative history as well. See ICS User Guide, Chapter 23, Changing Case Grade Levels, for more information. Access the User Guide electronically at: http://icsweb.web.irs.gov/Docs/HTML/user_guide.htm

  5. You will not normally change the grade of a case unless it meets at least three of the four factors at the lower or higher level. Document in the case history the reason for not using at least three of the four factors when applicable.

  6. When you determine that the difficulty level of a case has changed, adjust the grade level by using the ICS Change Grade Level process. This will change the case grade level on ICS and upload the new determined grade level (DGL) to IDRS.

  7. You may need to consider a reassignment of the case if a grade level change is made. See IRM 1.4.50.10.2.

  8. In general, assign taxpayer cases related to a present assignment to the same revenue officer. If the new case is a lower grade than the original, re-grade it only if it meets the CAG criteria independent of the original assignment.

    Note:

    Though this may result in an appearance that the RO's inventory is "under-graded", the value of ensuring cross-compliance and effective use of RO time should outweigh this concern. See Exhibit 1.4.50-1.

1.4.50.10.2  (01-25-2013)
Maintaining Targeted Inventories

  1. You are responsible for monitoring inventory levels to ensure each revenue officer has an appropriate number of cases within the established ranges that can be resolved most effectively and efficiently based on his/her grade level, experience, and expertise. The guidelines below provide flexibility for group managers to adjust inventories as needed. You must monitor the effectiveness of each revenue officer to determine the optimal inventory level based on the individual facts and circumstances of each RO. Factors to consider include, but are not limited to: developmental needs, performance issues, extensive geographic territory, and complex casework.

  2. Absent indications to the contrary, consider limiting new assignments to five per work week. Certain circumstances could necessitate assigning more than five cases, including, but not limited to:

    • Field RO is assigned from one group to another without his/her full inventory

    • Field RO returns from a temporary assignment, such as training or a detail, without an inventory

    • Field RO had previously been relieved of all or part of his/her inventory and needs replacement/additional inventory

    • Unforeseen circumstances in which cases must be assigned/reassigned, such as: extended absence of RO, need to avoid missing statute deadlines and/or RO requests additional cases be assigned

    Note:

    Excessive simultaneous assignments could adversely impact the revenue officer's ability to make timely initial contact and take appropriate and timely follow up action. Regardless of what inventory level you have determined to be appropriate, avoid assigning a large number of cases at one time whenever possible.

  3. When additional cases need to be assigned, you should look to the following sources for additional work:

    1. The group designation hold file

    2. The highest level risk cases from the queue

    3. Other revenue officers

    4. Other groups (with concurrence from your territory manager)

  4. The standard inventory ranges of taxpayer cases (a taxpayer case constitutes all accounts/investigations on a single entity) for revenue officers are:

    Grade 13: 34–50
    Grade 12: 34–50
    Grade 11: 53–79
    Grade 09: 70–95
    Grade 5/7: 59–89


    Inventory levels for Grade 13 revenue officers will include approximately 60 percent Grade 13 cases and approximately 40 percent cases below the Grade 13 level. Due to the complexity of the Grade 13 case work, the inventory level for a Grade 13 will be kept at or near the bottom of the standard inventory range. See IRM 1.4.50.10.1.

  5. The Standard Inventory Ranges apply only to revenue officers with case inventories of Bal Dues, Del Rets, OIs, FTD Alerts, and CIPs.

  6. Standard inventory ranges give you flexibility to consider a variety of circumstances when monitoring individual revenue officer inventories.

  7. When a revenue officer’s assigned inventory exceeds the maximum level of the standard range, you should reduce it to a level within the standard range within 10 work days. If you cannot reduce the inventory within 10 days, you must relieve the revenue officer, in writing, of the IRM requirements regarding prompt initial and follow-up contacts until the inventory is within range. Once the inventory level no longer exceeds the maximum level of the standard range, provide written notification to the employee. Maintain such documentation in the affected employee's EPF.

    Reminder:

    Encourage your revenue officers to discuss unmanageable inventory problems with you at any time. Collection Consultation sessions provide an appropriate forum for such a discussion.

  8. If inventories in the group are above the standard range, the following options should be considered:

    1. Reassigning cases to the group designation hold file on a temporary basis, preferably no longer than 45 days

    2. Detailing in additional revenue officers

    3. Adjusting group boundaries (by zip code)

  9. If revenue officers are still above their standard inventory level after using the above measures, you may return cases to the queue unless they are:

    1. Accelerated issuance.

    2. Restricted from moving to the queue (see 5.1.20.2.3.3 , Cases that Can't be Moved to the Queue).

    3. Have no lien determination. If not filed, confirm there is an ICS history notation that explains the reason.

    4. Cases that reflect fewer than 6.5 months (195 days) before the Collection Statute Expiration Date (CSED) expires.

    5. Awaiting pending enforcement action (outstanding levy, summons, Letter 1058, or appeals actions).

    6. In-business trust fund cases.

    7. Trust fund cases with less than one year remaining on the ASED and no trust fund determination made.

    8. Cases with taxpayer contact within the last 6 months (180 days).

1.4.50.10.2.1  (01-25-2013)
Inventory Adjustments

  1. When appropriate, you may reduce an RO's inventory to a level that is below the bottom of the established targeted range by using an Inventory Adjustment. Adjustments that reduce inventory levels below the bottom of the targeted ranges should be addressed in accordance with guidance below.

  2. ENTITY Case Management System (ENTITY) requires managers to enter an explanation whenever an inventory adjustment is made. Managers should discuss adjustments to inventory during a territory manager's operational review.

  3. An Inventory Adjustment is a percentage-based adjustment to the standard range. It is based on an evaluation of time spent on activities other than work on assigned cases (direct case time) and normal overhead. Examples of situations where you may consider an Inventory Adjustment are:

    1. Collateral assignments (e.g., NTEU Representative, EEO Counselor/Investigator, details out of office, instructing assignments, coaching, etc.)

    2. Customer Service assignments (e.g., Servicing walk-in taxpayers during filing season, ACS walk-in taxpayers)

    3. Part-time revenue officers (tour of duty less than 80 hours per pay period)

    4. Automation support

    When an adjustment to a revenue officer's inventory is warranted because of any of these circumstances, use the projected time expenditure by the revenue officer to determine the appropriate adjustment.

    Example:

    You review a GS-12 revenue officer's time over the last six months and determine the employee appropriately spent 25% of her/his time on collateral assignments. An adjustment of 25% is indicated in this case and the new inventory range for the revenue officer is between 26-38 taxpayer cases.

    Inventory levels may be re-adjusted as warranted. Perform quarterly reviews of actual time your employees spend on collateral assignments and make adjustments as needed. Adhere to these guidelines when considering any adjustments to revenue officer inventories.

    Note:

    You may use "Joining/Leaving" as a reason for inventory adjustment if you need to incrementally increase or decrease the inventory level of an RO who is joining or leaving the group. In such cases, the percentage adjustment should be based on the individual circumstances of each RO.

  4. Resources:

    • ENTITY User Guidehttp://mysbse.web.irs.gov/Collection/collsystems/entity/userguides/default.aspx. See Chapter 6, Employee Management.

1.4.50.10.3  (12-16-2011)
Reassignment of Departing Revenue Officer Inventory

  1. Where inventory will be abandoned for periods of 90 days or more (for example a revenue officer is reassigned, on extended leave, or long term detail) you will consider performing the following actions:

    1. Holding assignment of additional work (after confirmation of the revenue officer’s effective date for detail, reassignment, retirement, etc.)

    2. Reviewing all inventory with the departing revenue officer, (including cases on the ATFR system) and identifying those which can be (1) resolved prior to the RO leaving, (2) returned to the queue (such as new cases, no contact, or other similar types), or (3) reassigned to the remaining revenue officers in the group. The transfer of these cases should be completed within a reasonable period of time, normally within 45 days. When appropriate, re-grade cases based on the post assignment criteria.

    3. When remaining inventory cannot be returned to the queue, you must decide how to proceed with disposition/assignment of those cases. RO inventory levels may not be raised above the target range for more than 10 days without relieving the receiving employee of certain time frame constraints. If you decide to raise revenue officer(s)’s inventory levels above maximum targets to accommodate the remaining inventory, you must then suspend contact and follow up time frames in writing for the revenue officers affected. See IRM 1.4.50.10.2 for further explanation. Consider discussing with the territory manager other options such as having RO's detailed to the group, re-arrangement of zip code assignments by updating the Assignment Rules Table on ICS, etc.

    4. When a revenue officer is reassigned between groups where the inventory remains within the commuting area, the affected group managers should consider retention of the transferring revenue officer’s inventory.

    5. After all above actions have been exhausted group managers may consider assigning the cases to their group designation hold file (AOTOxx00). If you assign the cases to the group designation hold file, you should consider these cases as priority, and take appropriate action (i.e., assign these within the next 45-60 days).

1.4.50.10.4  (12-16-2011)
Caseload Rotation

  1. Where feasible, revenue officer geographic areas and/or caseloads should be rotated every three years. This will give revenue officers additional experience and avoid over-familiarity with taxpayers in a particular geographic area. Rotate between revenue officers of the same grade at the same post of duty. Do not change revenue officers’ posts of duty to meet this objective. If necessary, contact a Collection Policy Analyst for assistance with group or case load realignments.

  2. Where feasible, periodically rotate assignments located in High Assault Risk Areas (HARAs). See IRM 5.1.12.8, Taxpayer in High Assault Risk Area.

  3. In large metropolitan areas with multiple groups and/or Posts of Duty (PODs), it may be possible to rotate caseloads by realigning zip codes between groups and/or PODs.

1.4.50.11  (01-25-2013)
Group Controls

  1. An important aspect of workload management and quality control for Collection managers is the establishment of group controls and reviews. Use the EQ managerial review process to conduct case reviews.

  2. On a monthly basis, use the ENTITY and ATFR systems to monitor and maintain controls in these areas: pyramiding, CSED, ASED, Large Dollar, no touch/activity for specific time period, RO inventory levels, higher graded duties, RO time usage (focusing on field and administrative time), TFRP investigations, and In-Business Trust Fund cases. Take corrective actions when warranted. Many of these reports are currently available on the ENTITY Month End report. Establish appropriate controls for non-IDRS cases (FTD Alerts, Other Investigations, CIPs, etc.). Any negative trends identified should be addressed on a RO-by-RO basis. You should also utilize ICS "Notifications" to monitor ongoing case activities.

    Reminder:

    Reports available in ATFR include: ATFR ASED , Pending Determination , Pending 4183, Pending 1153, and Pending 2749 to CPM . Verify the calculation has been performed and shared with taxpayer.

  3. On a monthly basis, use the ENTITY system to monitor all cases with outstanding employment tax liabilities greater than $10,000 for which no NFTL has been filed or the normal lien determination period has been extended. If the NFTL is unfiled more than 60 days after receipt of the module, determine whether an immediate lien filing or non-filing determination is required. See 5.12.2.4.2.3(1) , Lien Non-filing, Deferring, and Extension Approval, for GM documentation requirements.

    Note:

    You may, if appropriate, monitor other lien filing determinations as well. If you decide to establish monitoring/controls for non-mandatory items, base your decision on individual facts and circumstances.

  4. Once established, these control reports can be utilized to identify cases needing regular review and follow-up by the manager. Reviews should address issues such as:

    1. Are timely and effective actions being taken to appropriately resolve the case?

    2. Is the accuracy of high priority cases (CSED, ASED) being verified?

    3. Are taxpayer rights being observed?

    4. Is the revenue officer providing good customer service?

1.4.50.11.1  (03-21-2013)
Remittance Control Reviews

  1. You are required to maintain control procedures per IRM 5.1.2.4.5, Form 795 Control, to ensure delivery and acknowledgement of remittance packages to Submission Processing. Periodically (at least once annually) conduct a review of control procedures established to ensure staff is complying with the procedures in IRM 5.1.2.4, Daily Report of Collection Activity. This control review should include the procedures for remittance packages prepared by revenue officers working away from the POD on extended field calls or telework. This control review should include reviewing procedures for remittance packages prepared by revenue officers within the group but located in satellite/remote PODs.

    Note:

    This control review is not a review of Form 5919, Teller's Error Advice. This control review is not a periodic check to ensure remittances/posting documents match the Form 795/795A being transmitted to Submission Processing.



    At a minimum your control review should confirm and document there is a process for and the group is complying with the following review points:

    • Form 3210 is used to transmit multiple Form 795/795As to Submission Processing per IRM 5.1.2.4, Daily Report of Collection Activity - Form 795/795A. This may be done by looking at both the Form 3210 control copies and the acknowledged Form 3210s.

      Note:

      Per IRM 5.1.2.4(4), Form 3210 must be completed and two copies included when sending more than one revenue officer sealed envelope to Submission Processing.

    • Form 3210 lists only documents transmitted, does not list any documents that were not transmitted, and is not missing transmitted documents.

      Note:

      When the Form 3210 is missing transmitted documents (i.e. documents are transmitted with the form but not listed on the form), Submission Processing is required to annotate the acknowledgement copy with documents received but not listed .

    • Form 795/795As are prepared timely according to IRM 5.1.2.4. This may be done by comparing the Form 795/795A dates with the remittance received dates for remittances listed on the Form 795/795A.

    • Form 795/795As and envelopes are prepared properly per IRM 5.1.2.4.3, Procedures for Preparing and Processing Form 795/795A. This may be done by comparing prepared Form 795/795As and envelopes with the requirements listed in IRM 5.1.2.4.3.

    • Control copies of Form 3210 are maintained per IRM 5.1.2.4.4, Procedures for Mailing Form 795/795A to Submission Processing. This may be done by looking at the location/file containing the Form 3210 control copies.

    • Control copies of Form 795/795A are maintained per IRM 5.1.2.4.3. This may be done by looking at location/file containing the Form 795/795As control copies.

    • A procedure is established to handle processing of remittances and returns for those employees away from the office per IRM 5.1.2.4. This may be done by verifying with employees the process used to ensure payments are processed the same day or no later than the next business day for those employees away from the office.

    • All document transmittal forms are reconciled on a biweekly basis to ensure that all transmittals were received per IRM 5.1.2.4.4(2). This may be done by looking at the location/file of the Form 3210 control copies for copies older than two weeks.

    • The actions in IRM 5.1.2.4.5.1, Form 795 Follow up, have been taken for document transmittals (Form 3210, or in the case of one envelope, Form 795/795A) without an acknowledgement and 14 days have passed since transmission. This may be done by reviewing the control documents, verifying they were all acknowledged and any that were not acknowledged were followed up on within 14 days. Verify the designated clerical contact knows the follow-up requirements contained in IRM 5.1.2.4.5.1, Form 3210 and Form 795/795A Follow Up.

    • Verify revenue officers in each post of duty have access to a "United States Treasury" stamp to meet the requirements of IRM 5.1.2.6.3.1, Overstamping or Endorsing.

    Note:

    To verify remittance packages prepared by revenue officers working away from the POD on extended field calls or telework, the ENTITY query system may be used to select payments secured on days the revenue officers were working away from the POD on extended field calls or Telework.



    You must document your review. An optional template containing the minimum documentation is contained in Exhibit 1.4.50-10, Remittance Processing Transmission Control Review Template. If the template is not used, the review documentation must, at a minimum, notate the date the review was completed, the name of the reviewer, each of the review points listed in the template , whether the review point's IRM requirement was met or not met, and any corrections/comments for each review point.

    The documented review must be retained for the appropriate period required under the records management guidelines per IRM 1.15, Records and Information Management. A copy of the documented review may be forwarded to the TM for review .

1.4.50.11.2  (01-01-2004)
CSED Accounts

  1. Generate a report from ENTITY at least monthly to identify accounts for which the Collection Statute Expiration Date (CSED) will expire within the next 12 months. Review those cases to:

    1. Verify the accuracy of the CSED, and take corrective action if needed (see below).

    2. Ensure that timely and effective action is taken.

  2. The CSED displayed may be invalid in certain cases. The CSED shown is always for the earliest assessment on the module. If that assessment is paid, the true CSED is for a later assessment (for example, an adjustment or deficiency assessment). If that is the case, request command code CSEDR to eliminate erroneous CSEDs from future monthly reports. Update the CSED date on ICS or instruct the revenue officer to take that action.

  3. See IRM 5.1.19.5.3(3) , Documenting Imminent CSEDs, for necessary actions when the CSED will expire in 120 days or less.

  4. If a statute expires, see IRM 5.16.1.2.2.5, Report of Statute Expiration. Reports are not required for statutes that expire while cases are in the queue.

1.4.50.11.3  (01-25-2013)
ASED Accounts

  1. Generate a report from ENTITY at least monthly to identify accounts where the Assessment Statute Expiration Date (ASED) for the Trust Fund Recovery Penalty (TFRP) will expire within the next 12 months. Ensure that these cases are loaded on the ATFR System. Review and comparison of ENTITY reports and ATFR reports should ensure accurate identification of all potential ASED issues.

    Note:

    You may wish to review these reports more frequently during the period January through April.

  2. Review potential ASED modules where no penalty determination appears to have been made, and the case has been in inventory for greater than 5 months.

  3. When appropriate, instruct revenue officers to:

    1. Proceed with trust fund investigation.

    2. Prepare Form 4183, Recommendation Re: Trust Fund Recovery Penalty Assessment for approval.

    3. Secure Form 2750, Waiver Extending Statutory Period for Assessment of Trust Fund Recovery Penalty, from all persons who appear to be responsible for the trust fund taxes, but did not collect, account for and/or pay the taxes. This consent must be completed and signed by both the taxpayer and by a Service representative on or before the ASED expiration to be a valid extension of the ASED.

    4. Proceed with assessment.

      Caution:

      Taxpayers have the right to refuse to extend the limitations period. See IRM 5.7.3.6.1, Form 2750 Waiver.

  4. Check to ensure the revenue officer made a determination on ATFR, appropriately documented the ICS case history concerning TFRP development and the ASED Review indicator (ASED-R) is properly recorded on IDRS.

    "1" Penalty assessed
    "2" Unable to locate responsible persons
    "3" No collection potential for any responsible person
    "4" All trust fund amounts paid
    "5" Penalty not applicable

  5. Report the expiration of any ASED per instructions in IRM 5.7.3.8, Reporting Expiration of TFRP Statute.

1.4.50.11.4  (12-16-2011)
Monitoring Trust Fund Recovery Penalty (TFRP) Accounts

  1. The Automated Trust Fund Recovery (ATFR) application provides several reports to facilitate monitoring of TFRP assessments. Monitor ATFR reports at least monthly to ensure investigations are conducted and recommendations are made timely. Use these reports to:

    • Monitor the determination period and ensure revenue officers make timely TFRP determinations .

    • Determine whether imminent statute cases have been addressed.

    • Match the ATFR inventory with inventory assigned to the group and resolve any discrepancies semi-annually.

    • Ensure Forms 4183 are submitted timely for approval.

    • Ensure Letter 1153 is provided timely to responsible parties.

    • Ensure trust fund assessments are forwarded timely to Control Point Monitoring (CPM).

  2. The ATFR application is also used to approve revenue officer actions such as:

    • Delay of determination.

    • Nonassertion Recommendation of Uncollectible Trust Fund Recovery Penalty.

    • Recommendation of Trust Fund Recovery Penalty Assessment.

    • Cases closed to the queue or In-Business Installment Agreement.

  3. The following ICS case history entries should be automatically generated by ATFR:

    • Approved Delay Determination date

    • Pursue Determination date

    • 4183 sent for approval date

    • 4183 approved date

    • 4183 approval denied

    • 4183 amendment request

    • 4183 amendment approved

    • Disposition date and type

    • Form 2750 Extension date and Responsible Party SSN

    Reminder:

    Due to ex parte communication rules on documentation after receipt of a TFRP protest, ensure that the TFRP assertion recommendation is fully documented and supported prior to approving Form 4183.

  4. Resources:

    • IRM 5.7.4, Investigation and Recommendation of TFRP

    • ATFR web page: http://mysbse.web.irs.gov/Collection/collsystems/atfr/default.aspx

1.4.50.11.5  (01-25-2013)
Timely Processing of Collection Due Process (CDP) and Equivalent Hearing (EH) Requests

  1. The CDP Tracking System (CDPTS) provides a report to monitor processing of CDP and EH requests. These reports are accessible by the designated CDP coordinator for the area. The CDP coordinator monitors these reports to identify hearing requests that appear to be aging in field inventory and on a quarterly basis will issue an alert to the territory and/or group manager for appropriate follow-up.

  2. Use these reports to ensure the hearing request is withdrawn or processed to Appeals as appropriate and the necessary updates are made to the CDPTS. Refer to IRM 5.1.9.3.3, Processing CDP and EH Requests, for time frames for processing hearing requests.

1.4.50.11.6  (01-25-2013)
Suspicious Activity Report (SAR) Monitoring

  1. By memorandum issued by Commissioner, SBSE, on March 29, 2011, certain compliance employees of SBSE are now authorized electronic access to SAR information in connection with active and assigned cases.

  2. Revenue officers regularly assigned ATAT cases and all GS 13 field collection revenue officers will be authorized online access to SARs, but only after they and their managers have been trained in the proper handling of SAR information.

  3. Managers of employees with electronic access to SARs must conduct online reviews of SAR audit trails for their employees’ logons, logoffs, and SAR records access no less than annually and for a period of no less than 30 days of SAR access within the past year.

  4. Managers of employees authorized to electronically access SARs will be provided instructions for completing the audit trail review and will be assisted in gaining the appropriate WebCBRS permission.

  5. If the Area SAR gatekeeper is an Area analyst, the Area Director may delegate another area management official the responsibility of completing the online review of SAR audit trails for the Area Gatekeeper.

  6. Resources:

    • Additional SAR Guidance can be found at :http://mysbse.web.irs.gov/Collection/toolsprocesses/sar/sarguidance/default.aspx

1.4.50.12  (01-25-2013)
Quality

  1. The IRS vision focuses on three high level goals: service to each taxpayer, service to all taxpayers and productivity through a quality work environment. IRS has developed a set of Balanced Measures in three major areas: Customer Satisfaction, Employee Satisfaction and Business Results, with Business Results comprised of measures of quality and quantity.

  2. You are responsible for the quality of all work assigned to your group and for all work which leaves your group regardless of the methods you use. You must devise a system of quality control which works for you. Consider:

    1. Encouraging revenue officers to work with you in your efforts to improve the quality of their work

    2. Devising a plan to ensure a high level of quality in your group

    3. Using reports available through the EQ system as diagnostic tools to focus attention on specific quality issues. The EQRS application used by front line managers and the NQRS application used by centralized reviewers mirror each other and feature numerous reporting capabilities that will facilitate comparison of results from both reviews at various levels of the organization. For example, if specific aspects of NQRS reports for a certain Area Office start to decline, area, territory and even group results for the same aspect measured under the managerial EQ review can be viewed to help isolate potential root causes.

  3. In planning your program, keep in mind that the best use of your time is coaching revenue officers and assisting them in the successful resolution of cases, especially those that are more complex.

  4. Reviews can help you determine your revenue officers’ needs for training and development. This will help you decide how much time to devote to each revenue officer.

  5. You may also choose from the following reviews and controls in designing your plan:

    1. Field visitations

    2. Office observations

    3. Spot reviews of open and closed cases

    4. Formal inventory analysis

    5. Time utilization reviews

    6. Reviews of work submitted for approval

    7. Initial contact reviews

    8. TFRP cases pending determination or recommendation

    9. Regular reviews of high priority cases:
      • Pyramiding
      • CSED accounts
      • Assessment Statute Expiration Date (ASED) accounts
      • Large dollar accounts
      • In-business accounts

1.4.50.12.1  (01-25-2013)
EQRS

  1. In reaching our goals we consider our impact on customer and employee satisfaction while we strive to improve quality and achieve quantifiable results. The Embedded Quality (EQ) process was developed to support Balanced Measures objectives.

    1. EQ is a tool designed to assist managers in identifying areas of strength and need in their employees’ individual performance. Case actions are evaluated against attributes that are designed, in accordance with IRM requirements, to identify actions that move cases toward closure through appropriate and timely case activity. The attributes link individual performance to organizational goals and are used by both Managers and National Quality Reviewers to assess significant case actions.

    2. EQ enables you to measure the quality of both individual and group performance. It allows National Quality Review to assess the quality of the function to facilitate recommendations for improvement through policy changes, training and updated procedural guidelines.

    3. The focus of EQ is on improving performance while the performance occurs. The attributes can be measured on open or closed cases. EQ is designed to identify gaps in quality case work at the earliest point in activity. It assists you in targeting corrective steps that positively impact performance.

    4. To conduct employee case reviews, use the Embedded Quality Review System (EQRS) to rate case actions against the attributes. EQRS also provides you with tools to capture and share review feedback to show employees how they performed in relation to both the attributes and their CJEs. This should assist managers in providing employees with specific examples of how to sustain or enhance their performance.

1.4.50.12.2  (01-25-2013)
NQRS

  1. National quality reviewers use a similar web-based system called the National Quality Review System (NQRS). A cornerstone of EQ is that quality reviewers and managers use the same basic set of attributes. This should minimize the concern that national reviewers are applying different criteria than managers when reviewing cases. However the national quality reviews will not be used to evaluate individual employee performance. NQRS attributes are not linked to employee CJEs; instead each attribute is mapped to one of five Quality Measurement Categories:

    1. Timeliness

    2. Professionalism

    3. Procedural Accuracy

    4. Regulatory Accuracy

    5. Customer Accuracy

1.4.50.12.3  (01-25-2013)
EQ Consistency Reviews

  1. Consistency Reviews will be conducted to assist users in rating EQ attributes consistently by using the Attribute Job Aids, EQ website guidance, employee Critical Job Elements and IRMs. You may participate in one or more EQ consistency reviews each year. The goal of Consistency Reviews is to improve the understanding and application of the EQ rating guidelines. Group managers and territory managers within a territory will review the same case, compare attribute results, and discuss how rating guidelines can be applied to achieve consistency on attributes where significant rating inconsistencies occurred.

  2. Territory managers will schedule and conduct EQRS Consistency Reviews with group managers annually. Area Directors may add additional reviews when consistency among managers needs improvement. Consistency Reviews require all managers within a territory to review the same case to compare attribute results and discuss how rating guidelines can be applied to achieve consistency. Refer to IRM 5.13.1.5.3, Territory Office Responsibility, for review procedures and guidelines.

  3. Reviews are documented by preparing a written narrative to include the date the review was completed, observations and actions taken to achieve consistent application of EQ attributes.

  4. Refer to IRM 5.13.1, Embedded Quality Administrative Guidelines, for information and guidance about EQ.

1.4.50.12.4  (01-25-2013)
Revenue Officer Case Documentation

  1. It is extremely important that case documentation is timely, clear, accurate, and complete. Specific guidance for revenue officer case documentation is provided in various sections of the IRM, including Part 5. A list of common documentation references can be found in Exhibit 1.4.50-4.

  2. Incomplete documentation will negatively affect:

    1. Subsequent revenue officer case actions.

    2. Ability to review and evaluate case activity.

    3. Actions by other employees.

    4. Quality Review System results.

    5. Cases presented in legal proceedings.

    For Example: Ensure that revenue officers clearly document the reason(s) why they have determined that the filing of a NFTL is not appropriate.

1.4.50.13  (01-25-2013)
Territory Manager Operational Aid

  1. Guidance in this section is for Field Collection Territory Managers. An optional template to assist you with planning operational reviews can be found in Exhibit 1.4.50-8 .

1.4.50.13.1  (01-25-2013)
Role of the Territory Manager

  1. TMs have oversight responsibility for program delivery as well as administrative/compliance conformance.

    • Program Delivery focuses on group operations and ensuring appropriate guidance and direction is given to group managers to assist them in successfully delivering the program outlined in the Business Plan and Letters of Engagement.

    • Administrative/Compliance Conformance focuses on ensuring adherence to service-wide managerial requirements and law, regulation and policy. Such items may or may not seem directly related to program delivery. Examples include: 1204 certifications, hiring, travel authorizations/vouchers, remittance control reviews, etc.

1.4.50.13.2  (01-25-2013)
Operational Reviews

  1. Operational reviews are used to monitor and document progress toward achieving organizational goals and objectives.

  2. Operational Reviews have two components: Program reviews and Administrative/Compliance Conformance reviews.

  3. While oversight responsibility is ongoing, TMs must periodically conduct appropriate reviews and document findings with a memorandum.

  4. Conduct follow up reviews when appropriate.

  5. These procedures apply to all general collection and ATAT groups (excludes OIC).

    Program Review Purpose: The program review of individual groups is intended to evaluate the effectiveness of the manager, assess the group’s performance and to provide guidance and direction intended to improve business results, foster effective casework and managerial engagement. The program review will assess the group’s progress in areas such as performance efficiencies and quality. Use the review to identify trends, assess skills, training needs and overall performance. GM communication and leadership of the group are addressed in this process. Program reviews should focus on assisting the group manager to improve performance and quality of case actions.

    Administrative/Compliance Conformance Review Purpose: The purpose of the administrative and compliance review is to ensure conformance with servicewide managerial requirements and compliance with guidance related to law, regulation, and policy.

1.4.50.13.3  (01-25-2013)
Frequency

  1. Program and/or administrative/compliance reviews may be conducted during the fiscal year as a single phase comprehensive review or may take the form of an on-going series of multi-phased reviews that focus on specific aspects of the group’s performance.

  2. Information from periodic GM briefings could also be incorporated in a multi-phased approach. Briefings are an optional method used to ensure periodic communication on group progress and other areas of interest.

  3. Feedback about program review findings is expected to occur continuously throughout the review cycle.

1.4.50.13.4  (01-25-2013)
Documentation

  1. When using a comprehensive review option, one narrative will be prepared to document findings.

  2. When using the multi-phase approach, prepare a narrative to document each component at the time the review is completed. For example, you may conduct reviews of specific program aspects, such as NFTL determinations or trust fund activity, providing group specific feedback.

  3. When using the multi-phase approach, you may choose to review program aspects across the territory and provide group specific feedback or review targeted aspects for a specific group.

  4. The narrative should be written with the GM as the intended audience. Attachments that provide additional detail may be used as appropriate.

  5. Share review documentation with the group manager within 60 days of completing the actual review.

1.4.50.13.5  (01-25-2013)
Program Reviews

  1. When developing a group program review plan, consider the experience level of the GM and the group’s overall current performance. Additionally, TMs that are new to the existing groups should conduct a review that would ensure complete familiarity to the groups in the territory.

  2. Provide a framework for the group operational reviews at the beginning of each fiscal year based on the above criteria.

  3. Exhibit 1.4.50-8, Operational Review Plan Guide, may be used to develop the framework for the Operational Review.

  4. Confer with the Area Director (AD) for concurrence on a plan that is tailored for each group’s unique circumstances.

  5. Plan the review based on your analysis of territory and group performance results and program trends. A variety of management information system (MIS) reports should assist in determining areas of focus for the review.

  6. The review plan will be tailored to the needs of each group in order to assess progress on objectives and ensure employee skills are developed, customers serviced timely, and the group’s performance is enhanced in both quality and productivity.

  7. Critical items that should be addressed in each group Program Review include: leadership, communication, case reviews, quality of case actions, and employee performance feedback.

1.4.50.13.5.1  (01-25-2013)
Program Review Planning

  1. When planning your review, incorporate mandatory review items and consider including other group appropriate items.

  2. The list below reflects commonly selected review components. Items annotated “mandatory” must be addressed in your annual operational review.

    Reminder:

    Mandatory items could be added to your oversight responsibility after this IRM is published. Incorporate these and any subsequent guidance issued into your reviews as appropriate.

1.4.50.13.5.2  (01-25-2013)
Commonly Selected Review Components

  1. Items annotated “mandatory” must be addressed in your annual operational review.

    • Case reviews – At a minimum, review 2 to 3 cases per RO in the group. The reviews should assess whether the case is moving toward a logical resolution, if the RO is using good workload management techniques, and whether there are any trends that may be adversely impacting group performance. The TM review is a higher level review that considers if actions taken on the case are appropriate and are effectively moving the case toward a logical resolution. As part of the case review process, customer service considerations may be assessed by determining if taxpayer contacts were timely and whether the RO has been responsive to taxpayer requests. In addition, confirm that RO has appropriately observed valid POAs on file. When case reviews are conducted, it is mandatory to ensure that managers are addressing TP rights, particularly with respect to direct contact provisions.

      You may also include “mirror” reviews of cases which the GM has already reviewed in order to assess the accuracy of the GMs EQ attribute review and if proper direction was given by the GM as part of the review. You may use the EQ review reports to determine if the GM reviewed the appropriate number and mix of cases during both the mid and annual appraisal segments. This may also be accomplished at the mid year approval if the TM has elected to approve the mid year appraisal of each RO. See IRM 1.4.50.5.2.2, Requirements For Annual Case Reviews. Additional considerations include: annual field visit conducted, annual time utilization reviews conducted, follow-up review conducted, and whether the reviews were provided to the RO timely.

    • Lien determination accuracy (Mandatory) You must review an adequate sample of cases to determine if the GM and your approval, as TM, of NFTL determinations was secured when necessary and if the lien determination decisions were appropriate. See IRM 5.12.2 for mandatory lien determination guidelines.

    • Collection Consultation Process – The Consultation Process is designed to ensure that cases move as efficiently as possible and group managers provide guidance to ROs in an informal setting. Consultations emphasize timely contacts and actions that facilitate appropriate case resolutions. TMs should ensure the Consultations include a resolution based discussion between the GM and RO.

      Confer with each group manager at the beginning of each fiscal year to develop a consultation plan for his/her group. The plan should include a determination of the type and frequency of consultations planned for each RO (Mandatory)

      Review monthly consultation reports to ensure the GM is meeting the requirements of IRM 1.4.50.4.1, Consultation Process, and to verify managerial involvement and that appropriate guidance is being provided.

      Observe a Consultation meeting between a revenue officer and group manager at least annually, if possible. Consider a biannual observation for a seasoned manager or more frequently for those GMs that are new or who are not conducting effective consultations. Observe consultations with a new (or long-term acting manager) during their first six months in the position.

      Provide a written narrative to the GM after each meeting observed to include observations, recommendations, etc., focusing on strategies to make the consultation process more effective. This narrative can stand on its own or it can be included in the program review narrative if held in conjunction with that review.

    • Quality - Group quality should be analyzed using available EQ/NQ reports. These resources can be used to identify trends that may need further attention.

    • Alternative Case Resolutions – Ensure that GMs are effectively utilizing resources such as Counsel, ATAT, FTAs, etc. This can be accomplished by CCI observation, EQ direction by GM, and compliance counsel participation.

    • TFRP/ATFR – Monitor TFRP timeliness trends as needed. Monitoring needs should be determined based on group performance and experience of the group manager. ATFR/TFRP timeliness trends may be addressed with the group manager during periodic briefings and summarized in the program review.

    • ENTITY/MIS reports analysis - On an ongoing basis, conduct analysis of ENTITY and MIS reports in areas such as currency of inventory, NFTL filing determinations, activity lapses, pyramiding, large dollar, multiple modules, and other performance indicators. Identify possible case trends and provide guidance designed to achieve Area/Territory targets/objectives. Observation and results of your analysis may be addressed during periodic briefings with the group manager and then summarized in the program review narrative.

      Note:

      A written narrative should be prepared and shared with the GM more frequently if any issues or concerns exist.


      See http://mysbse.web.irs.gov/Collection/collsystems/entity/default.aspx for guidance on ENTITY and MIS reports.

    • GM controls – Ensure that GMs have established adequate controls for priority cases such as ASED, CSED, ATFR, large dollar, activity lapses, etc.

      Note:

      TM briefings are one control point to assess controls and GM knowledge of the priority cases in their control.

    • EPF review – Determine if the OPM guidelines for document retention and items included in EPF have been followed. Evaluate whether performance documentation supports the evaluation rating. Verify that the appropriate reviews have been conducted at the appropriate time.

    • Communication – Look for indicators that GMs are effectively communicating procedure and policy changes affecting overall quality of work. Assess the quality of GM guidance concerning effective case resolution. Review group meeting minutes to determine if Area and Territory information is shared as appropriate. You may also wish to conduct focus group or individual discussions to evaluate whether key information and message are delivered in a timely appropriate fashion.

    • Employee satisfaction – These issues can be assessed by ensuring Survey or workgroup questionnaire issues are addressed and discussed on an ongoing basis. Ascertain if appropriate EEO and diversity practices are discussed, such as: Reasonable Accommodation, hardships, EEO etc. Discussion of training, employee development, CLPs, timely feedback to RO, timely evaluations, targeted inventory levels and inventory mix should be considered. Many of these areas are addressed during periodic briefings and can be confirmed through GM completion of online mandatory briefings.

    • Customer satisfaction – Look for indicators that customers are receiving timely and appropriate actions, and are receiving fair and equitable treatment from the RO to assist in bringing their case to an appropriate resolution.

    • ATAT Program – TMs of ATAT groups need to ensure case actions are tailored to the type of scheme. When reviewing cases, look for collaboration with Exam, Counsel and others as necessary. Time charging to the appropriate compliance designations should be assessed.

    • Group Time Reporting and Analysis- On a monthly basis review ENTITY reports and reports provided by the Area Analysts, to evaluate a group’s use of Direct Compliance Time, Field Time, Administrative Time, 809 Time, etc. These items may be addressed during periodic briefings as well.

    • Group Productivity and Efficiency- Conduct an analysis of the group’s efficiency in case resolution using productivity and cycle time reports provided by Area analysts. Productivity measures are a result of case work efficiencies, including simultaneous case actions, closing cases in a timely manner and working cases with resolution in mind.

    • Annual Appraisal/Performance Document Approval - You are responsible for ensuring timely feedback and appropriate ratings of employees. This should be an ongoing process during the year through approval of the annual rating. Ensure consistency between the Form 6850 critical job element rating/narrative and the performance documentation contained in the EPF. Review for potential 1204 violations/ ROTERs during this process.

      Ensure that the GM has a review schedule that includes all required reviews such as mid year, field visits, etc. A mutually agreeable review schedule should be established at the beginning of each fiscal year. Ensure that GMs conduct mid year reviews between the fifth and seventh month of the rating cycle. Annual reviews/ratings should be completed at least 60 days prior to the end of the rating period so that employees have enough time to demonstrate improvement if necessary.

      Discuss GM compliance with review schedules during periodic briefings and document compliance in the program review annual narrative.

1.4.50.13.5.3  (01-25-2013)
Suggested Optional Components

  1. Suggested Optional actions that can be included in the Program review are shown below (this list is not all inclusive). These can be completed during the actual review or anytime throughout the year and included in the annual narrative:

    • Fraud program/identification and FTAs involvement

    • Inventory ranges and assignment practices/inventory delivery process

    • Above grade work

    • Multi-module strategy

    • Trends and pattern report – teller errors

    • Span of control

    • Review the managers hold file, group designation hold file and inventory deliver process to ensure the receiving and delivering of the inventory is completed in a timely manner

    • Attend at least one group meeting per year with each group

    • Field visitations to determine the effectiveness of the GM in ensuring TP rights and timely and appropriate actions taken by the RO.

1.4.50.13.6  (01-25-2013)
Administrative/Compliance Reviews

  1. Administrative/Compliance Reviews are used to monitor and document oversight of operational items not included in program reviews. TMs are required to provide oversight for administrative/ compliance review areas. These reviews may be conducted at anytime during the fiscal year.

  2. Document results of mandatory Administrative/Compliance review items in a clearly identified subsection of your annual comprehensive program review or prepare a separate narrative review (at least annually) to summarize results.

  3. Documentation is required for those items noted as mandatory as well as items for which findings indicate non-compliance and/or a need for improvement.

1.4.50.13.6.1  (01-25-2013)
Common Components

  1. Items to be reviewed during the fiscal year include, but are not limited to:

    • Remittance Controls: (Mandatory) Ensure adherence to IRM 1.4.50.11.1, Remittance Control Reviews.

    • Remittance Processing: (Mandatory) Ensure that GMs are properly reviewing remittance processing procedures. See IRM 5.1.2.1, Remittance Processing Overview, and IRM 5.1.2.4, Daily Report of Collection Activity - Form 795/795A.

    • EPF/Drop file reviews: Some components of the EPF maintenance are addressed under program reviews. However, for the administrative and compliance review, assess compliance with established guidance.

      Suggested resources:
      IRM 1.5.3.5/ receipt of critical job elements
      IRM 1.5.3.5.3/ position descriptions
      IRM 6.735.1.4/ outside employment and business activity requests
      IRM 1.15.1/ records maintenance
      IRM 6.4.30.2.4.5/ employee performance file
      Telework agreements
      AWS request forms

    • Controls : Determine if appropriate and sufficient controls are in place for items such as:
      Statutes/ IRM 5.1.19.5
      Trust fund/ IRM 5.7.10.2
      CDP/ IRM 5.7.10.2
      Remittances/ IRM 1.4.50.11.1

    • Timekeeping/SETR: Review the GM control timekeeping process to ensure that established timekeeping guidance is being followed. See IRM 6.630.1.1.2, Administration of the Federal Leave System – Manager Responsibilities.

    • Security : Security responsibilities include, but are not limited to:
      Verification of GM after hours security checks and subsequent remedies. See IRM 10.4.1.8.1, Functional Reviews.
      Verification that GM has reviewed Form 5081 accesses and need for access to all computer systems for their employees. See IRM 10.8.1.5.2.4, Access Authorization (OL5081).
      Ensuring that taxpayer returns and other sensitive records are protected. See IRM 10.5.1.5.1, IRS Employees.

    • Transmittal logs/F3210: Ensure that the GM has a process in place to monitor Form 3210 transmittals and that the forms are retained for the appropriate retention period. See IRM 5.1.20.2.4.1.1, Document Routing, and IRM 1.15.28-1, Records Control Schedule for Collection.

    • Correspondence/File Retention: Identify the GMs correspondence and file retention procedures to ensure they comply with IRM 1.15.28-1, Records Control Schedule for Collection

    • Travel Vouchers/Authorizations: Ensure that the GM is approving authorizations and vouchers timely and monitoring for correct coding, receipts and expenses that are appropriate. See IRM 1.32.1, Servicewide Financial Policies and Procedures, Official IRS Local Travel Guide and IRM 1.32.11, Servicewide Financial Policies and Procedures, Official IRS City-to-City Travel Guide.

    • Credit Bureau: Ensure the GM is approving credit bureau requests as required and has a system in place to monitor for proper documentation. See IRM 5.1.18.17, Consumer Credit Reports.

    • Purchase Cards/Supplies Orders: Review the group's purchase card procedures to verify they are in compliance with established guidance. See IRM 1.32.6.9, Documentation Requirements for Purchases and the Purchase Card Guide.

    • 1204/ROTERS: On an ongoing basis, screen case and performance documentation for inappropriate use of ROTERs. Quarterly, complete the 1204 self certification and certify the group manager’s completion of their self certification. See IRM 1.5.3.6.3

    • EQ Consistency Reviews: Conduct an EQ consistency review at least annually to promote consistent application of EQ Attributes. Document the consistency review per IRM 5.13.

1.4.50.14  (01-25-2013)
Area Director Operational Aid

  1. See Exhibit 1.4.50-9 , Area Director Operational Aid

Exhibit 1.4.50-1 
Revenue Officer Case Assignment Guide

The data IDRS uses to assign case grades is shown below under the title" IDRS Criteria for Grading TDAs and TDIs" . IDRS sums the Resources and Workload Management System (RWMS) scores for all Taxpayer Delinquent Accounts (TDAs) on the taxpayer plus the Taxpayer Delinquency Investigation (TDI) entity score, and assigns a grade accordingly. Under the title" Manual Criteria for Grading TDAs and TDIs " you will find the criteria you can use to grade cases manually.
You may consider non-IDRS work items in determining the correct grade for a case. Other Investigations (OIs) and Offers in Compromise (OICs) generally have the same grade as the underlying accounts. Ols for routine assignments, such as serving a Notice of Levy or summons, are GS–9 work. Higher graded Ols include:

  GS-13: Expert witness requests and all other cases meeting grade 13 criteria in the OPM classification standards for revenue officers.
  GS–12: Investigations for Department of Justice; complicated decedent cases and insolvencies; all other cases meeting grade 12 criteria in the OPM classification standards for revenue officers.
  GS–11: Investigations for U.S. Attorney and Area Counsel; investigations requiring special handling; investigations on decedents, insolvencies, potentially dangerous taxpayers; all other cases meeting grade 11 criteria in the OPM classification standards.

     
  IDRS Criteria for Grading TDAs and TDIs
  Grade 12: Total RWMS score for entity = 30,001 or higher
  Grade 11: Total RWMS score for entity = 8,001 to 30,000
    — Potentially Dangerous Taxpayers (unless they meet GS–12 criteria)
    — TDAs for Forms 1041, 730, 706, 709 (unless they meet GS–12 criteria)
  Grade 9: Total RWMS score for entity = 0 to 8,000
 
Note: Testing of systemic delivery of Grade 13 work is in progress in certain Areas. Manual grading of certain cases may still be necessary. Areas without systemic delivery need to identify all Grade 13 work using the Manual Criteria for Grading TDAs and TDIs (below).
  Manual Criteria for Grading TDAs and TDIs
  Use the following criteria for regrading cases after assignment to revenue officers. You will not normally change the grade of a case unless it meets at least three of the four factors at the lower or higher level. Managers will document in the case history the reason for not using at least three of the four factors when applicable. The factors are:
Factor 1   Nature of Entity
  Grade 13:
  1. BMF Cases: Total gross income≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

  2. IMF Cases: Self-employed individuals with a Total Positive Income (TPI)≡ ≡ ≡ ≡ ≡ or assets/expenses that would require this level of income to maintain or obtain these assets/expenses.

  Grade 12:
  1. BMF Cases: Total gross income>≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

  2. IMF Cases: Self-employed individuals with a Total Positive Income (TPI)≡ ≡ ≡ ≡ ≡ ≡

  Grade 11:
  1. BMF Cases: Total gross income≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  2. IMF Cases: Total Positive Income (TPI) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  Grade 9:
  1. BMF Cases: Total gross income≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

  2. IMF Cases: Total Positive Income (TPI) ≡ ≡ ≡ ≡ ≡ .

Factor 2   Range of Case Issues
  Grade 13:
A. Cases requiring investigation into complex subterfuges that conceal income and assets and delay collection. Examples include:
  • Wire transfers

  • Multiple sets of books

  • Records from layered entities

  • 1040NR filing

  • ATAT cases

  • Extensive Counsel involvement


B. Unique or sensitive forms of assets and income that may also require coordination with Federal, State & Local Agencies. Examples include:
  • Hazardous materials

  • Gaming issues

  • Hospitals and care centers

  • Professional sports teams

  • Nursing homes

  • Large oil companies

  • Estate cases with assets >$10M

  • Counties or municipalities >100,000 population and/or budget in excess of $10M

  • State governmental entities

  • Employee leasing companies

  • E-commerce internet based businesses


C. Income reported is at least 10 percent less than required to support assets with no clear explanation or basis (e.g. minimal income with substantial assets; individuals with no assets and no income but a high standard of living).
D. Highly complex forms of ownership designed to shield income or assets. Examples include:
  • multi-layered entities

  • LLCs with one or more non-individual members

  • Two or more asset trusts

  • Intermediary cases

  • Offshore entities and transactions three or more entities with same owner/ management structure.


E. Cases requiring complex investigative techniques that require methods not specifically described in relevant IRMs, such as:
  • Multiple-entity nominee/alter-ego investigations

  • Indian tribal rights and assets

  • Injunction and repatriation investigations

  • Jeopardy assessments/levies in which the taxpayer has concealed ownership

  • Assets in multiple states

  • 1099 OID income aggregate of $100,000+

  • Fuel tax credits

  • 1041 filings as part of an abusive scheme

  • Identity theft relating to three or more identities resulting in loss to the government


F. Entities with complex financial structure and multiple business entity relationships, including:
  • Parent corporations or entities with three or more subsidiaries

  • Large Federal contractors cases


G. Joint investigations with Exam, CID, and DOJ, for example:
  • Abusive scheme promoters

  • Settlement initiatives

  • Parallel investigations

  • ATAT cases

  Grade 12:
A. In depth, detailed financial investigations involving sophisticated and difficult issues (e.g. electronic funds transfers between multiple accounts) (ATAT cases included)
B. Income and assets that are difficult to trace, specialized, highly valuable or unique.
C. Imbalance between income and assets with no clear explanation (e.g. income is not enough to support existing assets).
D. Complex forms of ownership designed to shield income or assets (e.g. LLC’s, offshore entities, transactions, fraudulent conveyances, and family relationships).
E. Complex investigative techniques (e.g. nominee, alter ego, suits, jeopardy levies).
F. Large business entities with standard financial structure or mid-size size business with multiple entity relationships and a complex financial structure.
G. Regular interaction with Counsel, Exam, CID, and Appeals
  Grade 11:
A. Detailed financial investigations. Complex verification of income and assets.
B. Income and assets that are difficult to trace and identify.
C. Some imbalance between income and assets, but able to identify reason.
D. Complex forms of business ownership (e.g. LLC’s).
E. Standard investigative techniques. Assets are subject to competing lien claims and may be difficult to determine rights (e.g. discharges, subordinations, redemptions, foreclosure suits, etc.).
F. Mid-size business entity with standard financial structure or small business with multiple entity relationships and a complex financial structure.
G. Some interaction with Counsel, Exam, CID, and Appeals.
  Grade 9:
A. Basic financial investigations and analysis. Routine verification of income and assets (summons use included).
B. Income and assets that are easy to identify.
C. Minor imbalance between income and assets, but able to identify reason.
D. Standard forms of business ownership with a simple organizational structure with small number of employees (e.g. Corp., Partnership, Sole Prop.). For case grading purposes, LLCs are not included in the category of standard forms of business ownership.
E. Routine investigations with few complicated issues to identify assets. (TFRP investigation included). Assets are not subject to competing lien claims.
F. Small business entities with standard financial structure.
G. Infrequent interaction with Counsel, Exam, CID, and Appeals.
Factor 3   Impact of Enforcement Action
  Grade 13:
A. Cases with extensive economic impact including:
  • Large business with assets over $10M

  • Action impacting >60 employees

  • Ripple effect for interrelated entities or feeder industries (e.g. large factoring company that has multiple businesses relying on factoring funds) (refer to Factor 1 criteria)*

.
B. Potential for intense, recurring media scrutiny and strong public reaction that has a regional/national audience such as:
  • Network television

  • Radio, magazines, and newspapers (i.e. New York Times, Washington Post)


C. Far-reaching compliance* impact by:
  • Initiating suits and civil injunctions against promoters or entities marketing ATAT related products

  • ATAT coded cases

  • High profile individuals


*Refers to national or regional impact.
  Grade 12:
A. Pronounced community or economic impact (e.g., large to medium business: action impacting > 31 employees).
B. Potential for media scrutiny and public reaction.
C. State or local compliance impact.
  Grade 11:
A. Moderate community or economic impact (e.g., medium business: action impacting between 10-30 employees).
B. May involve media coverage.
  Grade 9:
A. No significant community or economic impact (e.g., small business: action impacting <10 employees).
B. Not expected to generate public interest.
Factor 4   Personal Contacts
  Grade 13:
A. Representatives to include partners or principals from prominent accounting and/or law firms and financial institutions that command upscale fee structures. Cases that may:
  • Utilize complex strategies

  • Have multiple representatives for the same issue

  • Have the need for sophisticated interview techniques and complexity awareness


B. Cases involving:
  • National political figures

  • Nationally known high profile individuals, business owners/officers, or organizations to include:

    • Entertainers

    • Sports figures

    • Promoters

    • Influential individuals/ businesses (may be listed in publications such as Dunn & Bradstreet)

  • Business locations in multiple states with >60 employees


C. Cases requiring ongoing involvement with:
  • Chief Counsel, Area Counsel, Department of Justice, and U. S. Attorney’s Office

  • Exam, CID, and Appeals

  • High-level federal and state government agency representatives

  • Need for expert testimony

  • CI in parallel investigations

  • Exam and large shelter cases

  • Multiple suit/nominee/ transferee recommendations arising from a single case

  • International issues, treaties


D. Owners or corporate officers of foreign entities reporting complex business transactions.
  Grade 12:
A. Representatives from large state and regional accounting firms, law firms, and financial institutions.
B. Large business owners or corporate officers, often well known within the State. State and local political figures. High profile individuals or organizations/individuals at the state or local level.
C. Routine interaction with Area Counsel, Exam, CID, Appeals, and other internal stakeholders.
D. Owners or corporate officers of foreign entities reporting limited transactions (e.g., foreign return penalty assessments, asset ownership with no or limited financial transactions).
  Grade 11:
A. Representatives from moderate size local accounting firms, law firms, and financial institutions.
B. Mid-size business owners or corporate officers of mid-size companies, often well known in the immediate geographic area. Interaction with state and local taxing authorities to address competing lien interests.
C. Limited interaction with Area Counsel, Exam, CID, and Appeals.
  Grade 9:
A. Taxpayers and their representatives from small accounting firms or financial institutions.
B. Small business owners or corporate officers of small businesses. Interaction with state and local officials in financial investigations.
C. Limited interaction with Area Counsel, Exam, CID, and Appeals usually after consultation with the group manager and tech advisor.

Exhibit 1.4.50-2 
Criteria for Review of Completed Work

Currently Not Collectible Accounts
A. Hardship
  (1) Check Collection Information Statement (CIS) — is it less than one year old?
    (a) Has RO analyzed CIS?
    (b) If equity in assets, should accounts be reported CNC? Was equity verified and the value either collected or accounted for?
    (c) Has information on CIS been appropriately verified?
      1. For accounts between the amounts in IRM 5.16.1.2.9(4):
        - Was the CIS compared to the taxpayer's Total Positive Income on the last filed return using RTVUE/TRDBV?
        - Were return schedules reviewed to determine ability to pay and whether discrepancies exist between returns and CIS?
        - Were information sources such as IRPTR/SUPOL used to resolve discrepancies?
        - Did RO perform Currency and Banking Retrieval System (CBRS) research when IRPTR reflects that a taxpayer has filed a Foreign Bank Account Reporting (FBAR)
      2. In addition to the above for accounts exceeding the amounts in IRM 5.16.1.2.9(5):
        - Real property records
        - Personal property records
        - Motor vehicle records
        - RAR if available
        - AMDIS if an Exam is open
        - Full credit report
    (d) Has a lien determination been made?
    (e) Does case meet criteria for installment agreement instead?
    (f) Has all pertinent information, including results of full compliance check and summarizing entry been documented in history?
    (g) Have taxpayer rights been documented?
    (h) Has an offer-in-compromise been considered?
    (i) Have allowable expenses been used accurately and any deviations documented and explained?
    (j) Have third party contacts been recorded?
    (k) Have all open filing requirements been resolved?
    (l) If appropriate, has the case closing letter been prepared pending GM approval?
  (2) Check Form 53 for accuracy, completeness, and correct closing code. Are all modules on IDRS SUMRY included? Were appropriate TC 130 inputs requested in accordance with IRM 5.16.1.2.1(12)?
B. Unable to Locate
  (1) Check documentation
    (a) Have available sources been checked?
      1. Internal sources, such as directories and IDRS
      2. Post office
    (b) For accounts with an aggregate assessed balance over the amount in IRM 5.16.1.2.1(4), have other sources been checked?
      1. Field call required if aggregate unpaid balance of assessment exceeds amount in IRM 5.16.1.2.1(6)
      2. Property records (real, personal, motor vehicle)
      3. Employment commission
      4. Business licenses
      5. Local licensing authorities
      6. On-line services
      7. Latest return filed
      8. Currency and Banking Retrieval System (CBRS) research when IRPTR reflects that a taxpayer has filed a Foreign Bank Account Reporting (FBAR)
    (c) Locator tools, such as Accurint, are mandatory for accounts with balances above the amount shown in IRM 5.16.1.2.1(4)
    (d) Full credit report is mandatory for accounts with balances over the amount in IRM 5.16.1.2.1(7)
    (e) AMDIS check if the UBA is over the amount in IRM 5.16.1.2.1(8)
    (f) Has all pertinent information been documented in history?
    (g) Have third party contacts been recorded?
    (h) If UBA exceeds amount in IRM 5.16.1.2.1(8),International, is a passport check indicated?
  (2) Check Form 53 for accuracy, completeness and correct closing code. Are all modules shown on IDRS SUMRY included? Were appropriate TC 130 inputs requested in accordance with IRM 5.16.1.2.1(12)?
C Unable to Contact
  (1) Check documentation
    (a) Is enough information documented to show that this would probably be a CNC case even if TP was contacted?
    (b) For accounts with an aggregate assessed balance over the amount in IRM 5.16.1.2.1(4) and (6), has research been conducted same as in case of unable to locate?
    (c) Has a lien determination been made?
    (d) Has all pertinent information been documented in history?
    (e) Have third party contacts been recorded?
    (f) If UBA exceeds amount in IRM 5.16.1.2.1(8), International, is a passport check indicated?
  (2) Check Form 53 for accuracy, completeness, and correct closing code. Are all modules shown on IDRS SUMRY included? Were appropriate TC 130 inputs requested in accordance with IRM 5.16.1.2.1(12)?
D In-Business and Defunct Corporations, Exempt Organizations, Limited Partnerships, and Limited Liability Companies
  (1) Has Trust Fund Recovery Penalty been recommended if appropriate?
  (2) Check CIS, is it less than one year old (if in-business)?
    (a) Does data on CIS support RO’s decision to report accounts CNC?
    (b) Has information on CIS been verified?
      1. Real property records
      2. Personal property records
      3. Motor vehicle records
      4. Latest income tax return
    (c) Was BRTVU checked as required for UBA over the amount in IRM 5.16.1.2.6(7)?
    (d) Is case fully documented?
    (e) For UBA over the amount in IRM 5.16.1.2.6(9) was the Revenue Agents audit file, formerly known as the RAR, reviewed, if applicable?
    (f) For UBA over the amount in IRM 5.16.1.2.6(7) was AMDIS checked?
    (g) Has all equity in assets been collected or accounted for?
    (h) Have transferee assessments been considered if appropriate?
    (i) Have all necessary adjustment actions been submitted/approved?
  (3) Have third party contacts been recorded?
  (4) Have taxpayer rights been documented
• for the corporation?
• for potentially responsible individuals?
  (5) Check Form 53 for accuracy, completeness, and correct closing code.
  (6) If the entity is in-business, review for the following in addition to items 1 through 5 above.
    (a) Is the taxpayer in compliance and has the taxpayer agreed to remain current?
    (b) Have Trust Fund Compliance Program procedures including issuance of Letter 903 been considered? See IRM 5.7.2, Letter 903 Process.
    (c) Does Form 53 have a mandatory follow-up scheduled in 18 to 24 months?
Request for Adjustment
  (1) Is supporting documentation attached?
  (2) Has the adjustment been explained to the taxpayer, i.e., reasons for full or partial relief?
  (3) Is Form 3870 completed correctly?
    (a) Is a closing code required? When the requested action will satisfy the module, the module can be closed as Adjustment on ICS. ICS automatically uploads TC470 CC90 (on status 26 modules) upon managerial approval of these closings. If the requested action will not fully satisfy the account, the remaining balance should be full paid or resolved by installment agreement or currently not collectible determination.
    (b) Is there an entry in Items 1, 2, 3, 4, 5, 6, 7, 10, 11, 12, 13, 14, 29 and 30 of Form 3870?
    (c) Has taxpayer signed the form in Item 12 or is taxpayer’s letter or request attached?
  (4) If less than 12 months remain in the statutory period for collection, has the Form 3870 been flagged for expedite action? See IRM 5.1.15.5(6), Adjustments-General Procedures.
    (a) If less than 6 months remain in the statutory period for collection, the Bal Due should remain in RO’s inventory and no closing code entered on Form 3870.
    (b) If 6 to 12 months remain in the statutory period for collection the Bal Due should be closed and closing code should be entered on Form 3870. See Exhibit 1.4.50-2 (3)(a).
  (5) In cases involving requests for abatement of penalties, have the criteria for reasonable cause been met?
    (a) Is the reason for noncompliance documented in writing by taxpayer?
    (b) Does the reason include sufficient detail to determine whether ordinary business care was exercised?
    (c) Was the penalty the result of carelessness or forgetfulness?
    (d) Does the amount of penalty justify closer scrutiny of the case?
  (6)   If the adjustment will result in full payment and the collection investigation on the taxpayer is concluded, has the case closing letter (if appropriate) been prepared pending GM approval?

Note:

The Refund Statute Expiration (RSED) is generally three years from the Return Due Date or Extended Due Date for prepaid credits if a return was filed, or two years from the payment date for other payments whichever is later. See IRC 6511: If the module credit created by the posting of an adjustment exceeds the amount of the credit that can be refunded or offset due to the recomputation of tax, penalties or interest, the revenue officer must transfer the barred portion of the overpayment to Excess Collections via Form 8758 and forward to CCP. A manual refund may be needed to allow the correct refund. Check to ensure the revenue officer has made an RSED determination, has documented in ICS, and has input required RSED date on applicable 3870. This will apply to all Form 3870s routed to CCP except Form 3870s for TFRP, TIN, CAWR/FUTA or SFR .

Payment Tracer and Credit Transfer
A. Payment Tracers
  (1) Has request been made on Form 4159, Payment Tracer Request?
  (2) Has sufficient information been furnished to trace the payment?
    (a) Copy of payment, front and back
    (b) Name, address and TIN of taxpayer
    (c) Type and period of tax
    (d) Amount, type and date of remittance
    (e) Endorsing IRS office if check, money order, etc.
    (f) Date of IRS endorsement
    (g) Date of receipt, receipt number, and type of receipt
  (3) Have results been explained to the taxpayer?
  (4) If the credit transfer will result in full payment and the collection investigation on the taxpayer is concluded, has the case closing letter been issued?
B. Credit Transfers
  (1) Has request been made on Form 2424, 3870, or 4159?
  (2) Has the module containing the credit been identified?
  (3) Has module to receive transfer of credit been identified?
  (4) Has the taxpayer been advised of the transfer?
Installment Agreements
A. General
  (1) Have all applicable taxpayer rights been documented?
  (2) Has full compliance been discussed, documented and totally accounted for in the agreement?
  (3) Check the CIS, is it current and complete?
    (a) Has CIS been thoroughly analyzed and verified if required?
    (b) Was payment requested from taxpayer prior to entering into IA?
    (c) Has liquidation of any available assets been considered?
    (c) Is agreement for maximum amount available from taxpayer after consideration of any seasonal/periodic fluctuations?
    (d) Have increases in payments been scheduled, if applicable?
    (e) Has CIS been signed by taxpayer? If the CIS was received in the mail, the absence of a signature, if all entries appear to be reasonable, does not prevent approval of an agreement.
    (f) Have allowable expense guidelines been followed and are any deviations documented and reasonable?
  (4) Does the agreement provide for full payment prior to the CSED? If not, has it been identified as a Partial Pay Installment Agreement (PPIA)?
  (5) Have TC 971 AC 43 and AC 63 been input when appropriate?
  (6) Have prior IA proposals been sent to the Independent Reviewer prior to rejection?
  (7) Has a lien filing determination been made?
  (8) Has the correct ICS closing method been selected (i.e., Routine, Streamlined, etc.), as appropriate?
B. BMF Agreements
  (1) Has cause and cure of the delinquency been addressed?
    (a) Are FTDs current?
    (b) Is delinquent taxpayer a repeater and/or a pyramider?
    (c) Have Trust Fund Compliance Program procedures been considered? See IRM 5.7.2, Letter 903 Process.
  (2) If appropriate, has Trust Fund Recovery Penalty been recommended?
    (a) Should assessment be made to have an additional means of collection available?
    (b) If the TFRP assessment will be suspended while the BMF taxpayer remains compliant with the installment agreement, ensure that the TFRP assessment has been added to the BMF IA to be placed in Status 63 and the TC 130 reversed.
    (c) Has RO secured a waiver from all potentially responsible persons to extend the ASED?
  (3) If the entity is a disregarded LLC and owes for both pre- and post 01/01/2009 liabilities, have the procedures in IRM 5.14.7.3.2 been followed for establishment of an SMO/LLC IBTFIA?
  (4) Has the correct ICS closing method been selected? For example, Routine (TP is OOB with no open employment tax filing requirements), IBTF/IBTF Express (TP is in business with employees), etc.
C. Direct Debit Installment Agreements
  (1) Is this a DDIA (Routine) or DDIA Streamlined IA?
    (a) Were the procedures in IRM 5.14.10.4 followed when establishing the agreement?
    (b) Was the Form 433-D (containing the TP signature and bank information) scanned and emailed to CSCO at *SBSE PSC CSCO DDIA?
    (c) Was the closed case file sent under cover of the generated Form 3210 to CCP at Mail Stop 5-E04.115?
  (2) Is this an IBTF-Express DDIA or IBTF-IA DDIA?
    (a) Was the agreement established per the guidelines in IRM 5.14.10.5?
    (b) Upon approval was the Form 433-D (containing the TP signature and bank information) scanned and emailed to CSCO at *SBSE PSC CSCO DDIA?
    (c) For IBTF-Express DDIAs, was the closed case file sent under cover of the generated Form 3210 to CCP at Mail Stop 5-E04.115?
    (d) For IBTF-IA DDIAs, was the case file sent to CCP for monitoring under cover of the generated Form 3210 (Mail Stop 5-E04.117)?
Trust Fund Recovery Penalty
A. Initial actions
  (1) Has RO taken into account all periods of liability?
  (2) Have all responsible persons been interviewed?
  (3) Have those interviewed signed Form 4180?
  (4) Have potentially responsible individuals been given their rights?
  (5) Have third party contacts been recorded where applicable?
B. Preparation of Form 4183, Recommendation Re: Trust Fund Recovery Penalty Assessment
  (1) Recommendations for Assessment
    (a) Is all applicable information documented on Form 4183?
    (b) Is basis for recommendation adequately explained including the aspects of willfulness and responsibility?
    (c) Has collectibility been addressed?
    (d) Have core documentation items been secured and documented?
    (e) If a core documentation item was not secured, is the reason documented in the ICS history?

Note:

Request for input of TC 130 no longer needs to be made manually. That input is now generated systemically based on ATFR inputs.

  (2) Recommendations for Non-Assertion
    (a) Is basis for non-assertion sufficiently documented?
      1. If individual considered not responsible, case history as well as Form 4183 should contain full explanation, including the aspects of willfulness and responsibility.
      2. If recommendation for non-assertion is because it is not collectible, does it meet the relevant criteria?
    (b) If future collection potential appears to be nonexistent because of advanced age and/or deteriorating health:
      1. Has taxpayer’s latest income tax return been reviewed?
      2. Has a current CIS been secured and verified? If real estate involved has a suit for judgement been considered?
      3. Has a full compliance check been conducted and fully documented?
    (c) In unable to locate situations, has a thorough CNC investigation been conducted?
      1. Have normal investigative techniques been employed to try to locate the individual?
      2. Have all in-house sources been checked in an attempt to determine social security number?
  (3) If future collection potential exists, but account is currently not collectible, have pre-assessment procedures been considered?
    (a) Has trust fund recovery penalty been recommended on Form 4183?
    (b) Has Form 53 been prepared?
    (c) Has Form 2749 been annotated to the effect that Form 53 prepared?
    (d) Has taxpayer been advised that one notice will be sent?
    (e) Has taxpayer been advised that Notice of Federal Tax Lien will be filed, if appropriate?
C. Trust Fund Recovery Penalty Dispositions
  (1) No Response-Unagreed Cases
    (a) For regular assessments, have the procedures in IRM 5.7.6.2, Revenue Officer Assessment Actions, been followed?
    (b) For prompt assessments, have the procedures in IRM 5.7.6.3, Quick and Prompt Assessment Actions, been followed?
    (c) Has ATFR been updated and the case correctly routed to CPM?
  (2) Appealed-Unagreed Cases
    (a) If assessment being appealed, has taxpayer complied with requirements stated on reverse of Letter 1153 (DO)?
      1. Was the appeal received timely? See IRM 5.7.6.1(1), Taxpayer’s Response to Letter 1153(DO).
      2. Does the case file and history confirm there is sufficient basis and documentation to support the assertion of the proposed assessment?
      3. The protest letter must contain sufficient information to process the appeal.
    (b) Ex Parte Considerations
      1. Review the TFRP case file and histories to ensure no ex parte communications are included before approving transmittal of the case to Advisory.
      2. Document ICS history with your concurrence
      3. Refer to guidance for manager actions in IRM 5.7.6 if the TFRP case file or history contains ex parte communications which should either be shared with the taxpayer or removed.
    (c) For cases being sent to Appeals, is case file adequately prepared for transmittal to Appeals through CPM?
      1. All information and documents submitted in support of a protest should be included in the file.
      2. Documents forming the basis of the penalty recommendation should be in the file.
      3. All documents should be arranged in order of receipt (with the latest on top) under the appropriate case file tabs.
      4. All duplicate items should be removed from file.
      5. Has ATFR been updated?
  (3) Agreed Cases
    (a) For regular assessments, have the procedures in IRM 5.7.6.2, Revenue Officer Assessment Actions, been followed?
    (b) For prompt assessments, have the procedures in IRM 5.7.6.3, Quick and Prompt Assessment Actions, been followed?.
  (4) Other TFRP dispositions
    (a) OIC Closure Approval-Obsolete.
    (b) Return Case to the queue- used when a cases is updated to queue assignment on ICS.
    (c) IBIA- used when the requirements in IRM 5.7.4.8.1(4) , Considerations for In-Business Installment Agreements are met.
    (d) LLC – cases determined to be treated as a disregarded entity with no trust fund potential.
    (e) Corporate Case Full Paid- TFRP amount has been calculated to be fully paid.
    (f) Below IRM Criteria- Cases meeting criteria in IRM 5.7.4.1.1, Factors to Consider When Applying IRM 5.7.3 Criteria.
    (g) Created in Error/Other- case created in error or assigned after all ASEDs have expired.
    (h) Opened in Error/Partnership- cases determined to be Partnership entities with no trust fund potential.
    (i) Opened in Error/Sole Prop- cases determined to be Sole Proprietorships with no trust fund potential.
    (j) All Parties Not Responsible and/or Form 9327- Manager has approved Form 4183 with the appropriate Not Responsible or Not Collectible (Form 9327) determination.
    (k) All Parties Non-Assert Form 9327 Only- Manager has approved Form 4183 with the appropriate Not Collectible (Form 9327).
Seizure
A. Pre-seizure Considerations - verify the following prior to seizure:
  (1) No prohibited seizure proposed. See IRM 5.10.1.2
  (2) Liability verified. See IRM 5.10.1.3.1
  (3) Alternatives considered/Risk Analysis. See IRM 5.10.1.3.2
  (4) Net proceeds determination. See IRM 5.10.1.3.3
  (5) Records check <30 days before approval. See IRM 5.10.1.3.3(12)
  (6) Individual Taxpayer - Exempt Assets Considered. See IRM 5.10.1.3.3.3(2)
  (7) Individual Taxpayer - Business Assets/Other assets were considered. See IRM 5.10.1.3.3.3(3)
  (8) NFTL filed on all modules shown on 668-B; Letter 3174 sent if appropriate. See IRM 5.10.1.7.1
  (9) Letter 1058 sent for all modules on Form 668-B at least 30 days prior to seizure/additional warning if + 180 days and no enforcement. See IRM 5.10.1.7
  (10) Pub 1, 1660, 594 delivered. See IRM 5.10.1.7
  (11) PALS contacted to discuss FMV, expenses of sale. See IRM 5.10.1.3.3(3) and 5.10.1.3.3.1(2)
  (12) Attempt made to personally advise taxpayer of proposed seizure/911/TAS/GM. See IRM 5.10.1.7.2
B. Post-seizure Considerations
  (1) Has Form 2433, Notice of Seizure, been prepared correctly and timely?
  (2) Has Form 6888, U.S. Government Purchase Order-Invoice Voucher, been prepared correctly and timely, as applicable?
  (3) Were appropriate release documents issued?
Delinquent Returns
A General
  (1) Has full compliance been documented in the ICS history?
  (2) Has the appropriate ICS closing option been used and the reason for use documented in the ICS history?
B Reasonable cause determinations when delinquent returns secured.
  (1) Has reasonable cause criteria been met?
  (2) Is a written statement from the taxpayer or a Form 4571, Explanation for Late Filing of Return, attached?
C Returns without full payment
  (1) Has taxpayer been contacted and demand made for full payment of the liability?
  (2) Has pre-assessment action been taken?
  (3) Has a control (e.g., ICS-only module, request for case assignment) been established to complete the investigation if the liability is not resolved by full payment, installment agreement, or CNC, and there will be no continuing open assignment?
D Minimal or no tax due on returns (P–5–133)
  (1) Has the anticipated tax due for each period been computed and documented in the ICS history?
  (2) Has basis for determination been fully documented?
E Returns prepared under IRC 6020(b)
  (1) Has Form 5604, Section 6020(b) Action Sheet, been prepared correctly?
  (2) Has liability been computed accurately?
  (3) Does documentation adequately explain the basis for requesting the assessment?
  (4) Are the returns signed and is the statement pertaining to IRC 6020(b) typed or printed at bottom of return?
Collection Due Process (CDP) Cases
A General Considerations
  (1) Has the type of hearing request, CDP or Equivalent, been correctly determined?
  (2) If new information or alternatives arose after the request was filed and the taxpayer was willing to work with Collection, was contact made with the taxpayer in an effort to resolve the issue?
  (3) Does the case require GM contact?
  (4) Was an OI established to control the CDP modules while in Appeals?
  (5) Were updates to the CDP tracking system requested?
  (6) Was the Form 12153-A completed correctly? See IRM 5.1.9.3.3.3,Form 12153-A, Referral Request for CDP Hearing and Request for CDPTS Input.
B Ex Parte Considerations
  (1) Confirm that any narrative statement included on the Form 12153-A, is limited to a neutral list of documents and neutral statements regarding actions taken and documented in the case history without any further discussion regarding the strengths and weaknesses of the taxpayer’s appeal.
  (2) The manager must ensure the requirement in (1) above is met and that no prohibited ex parte communications are included before approving the transmittal of the case to Appeals. See IRM 5.1.9.5, Communications with Appeals.
Offer in Compromise Cases
  (1) Is the offer package being forwarded to the correct COIC site and within 24 hours of 656 receipt?
  (2) Is Form 657 complete and attached?
  (3) Is the Form 656 date stamped?
  (4) Is the ICS history attached?
  (5) Is the CIS and substantiation attached?
  (6) Are Forms 2848 and 656A included (if applicable)?
  (7) Have the applicable fees and deposits been attached?
  (8) Has the TFRP been completed or the taxpayer warned that the OIC will not be investigated until the penalty is assessed as applicable?
  (9) Is Form 3210 attached?

Exhibit 1.4.50-3 
Target Inventory Levels and Inventory Adjustments Q&A

Q. Who determines inventory levels? A. You as the group manager are responsible for determining the appropriate inventory level depending on the individual circumstances.
Q. What documentation is required by the group manager to justify an inventory adjustment? A. The ENTITY Case Management System (ENTITY) requires managers to select a reason code whenever they make a percentage adjustment to inventory. You should be able to explain any adjustments to inventory when asked.
Q. Since the maintenance of appropriate inventory levels is a major concern, who should verify that appropriate decisions are being made? A. The SBSE Area Director is responsible for ensuring inventory levels are appropriate. The territory managers should include reviews of inventory determinations as part of normal operational reviews of their GM's activities.
Q. A revenue officer was assigned to assist with the walk in taxpayers at the customer service counter for eight hours in a month. Does this mean the RO's inventory is adjusted by 5 per cent for the month? A. No, inventory adjustments only apply to long-term or recurring collateral assignments. If an RO is required to assist with walk-in taxpayers for eight hours a month on a regular basis, then an inventory adjustment may be appropriate. Time is reported as detail out on ICS so that the reason for the inventory adjustment can be determined in a review.
Q. Should inventories be adjusted because of assignment as acting group manager? A. This is a judgment area. You should use discretion when determining whether to adjust inventory within range, or if a percentage adjustment is necessary. Factors to consider include length of detail and the duties to be performed during this assignment. Certain acting assignments could be considered to be developmental and may justify a reduction within range, but not a percentage to inventory.
Q. Is this a new policy? A. No. The original establishment of the maximum-targeted inventory levels was based on the number of cases on which a fully successful revenue officer should be able to make timely contact and follow up actions. This assumes that the revenue officer has no other duties/assignments and is working cases appropriate for his/her grade level. When the actual situation differs from this, it is necessary to make adjustments.
Q. Is the decision to keep an RO at a particular inventory level within the target range more subjective than the inventory adjustment determination? A. Yes. The inventory adjustment is based on an evaluation of how time is spent on activities other than work on assigned cases (direct case time) and normal overhead; it should be a calculated number. The factors that determine assignments within range are more judgmental and more often subject to reevaluation as cases are closed and new cases selected for assignment to the employee.
Q. How should managers handle getting revenue officer trainees inventories to within target inventory ranges? A. By using sound judgment, and evaluating each revenue officer's situation individually. They should also confer with the trainee's coach (OJI) and/or training manager in order to assess the individual trainee's performance throughout the training period, and the level of performance at the completion of the training period. While some employees will be fully capable of taking on the additional inventory with little or no impact on their performance, others may require a slightly longer transition period before they are comfortable working within the new target inventory range. Factors to be considered are as follows:
• Inventory Composition (e.g., type of cases, grade level of cases, etc.)
• Size of Geographical Area
• Current assignment area of trainee (e.g., Is trainee simply going from a trainee status to regular RO status within same Area, Territory, Group ? Will trainee be reassigned to another Area, Territory, Group?)
• Will the employee be receiving an entirely new inventory? In the case of a revenue officer moving to another Area, Territory, Group and receiving entirely new inventories, these inventories may need to be built up gradually.
• Employee's experience/knowledge/aptitude (i.e. ability to handle additional workload without significant impact on performance). Look to the trainee's coach (OJIs) and /or trainee's manager for feedback .
Q. A revenue officer has an inventory of taxpayers in hard to reach locations spread over an extensive area. It takes the revenue officer 4 to 5 hours driving time to reach each taxpayer. In some instances, the revenue officer must travel by airplane into a rural destination to meet with the taxpayer. Is an adjustment appropriate? A. An Inventory Adjustment is not used to address this issue. Address such situations by determining the appropriate level of inventory within the established targeted range. The appropriate inventory level would be at your discretion after reviewing with the employee the time and distance traveled .
Q. A revenue officer is working a case where a taxpayer operates several related limited liability partnerships. Each entity continuously pyramids trust fund liabilities. The revenue officer cannot locate any assets that can be used to satisfy the tax liability. The revenue officer must determine the culpability of each partnership and is working with Advisory and Area Counsel to pursue injunctive relief to stop the taxpayer from pyramiding trust fund taxes. Should an adjustment be made to the revenue officer's inventory? A. An inventory level near the bottom of the established target range may be appropriate after the you and the employee have discussed the facts of the case and determined that such a change is critical to their ability to meet the deadlines of this potentially complex case.
Q. How can a revenue officer manage an inventory of taxpayers who are geographically spread apart? A. You must ensure that the revenue officers use sound workload and travel management practices to promote efficient use of resources when working inventories in geographically extended areas. When there is a need to travel to remote locations, encourage your revenue officers to schedule multiple taxpayer contacts and meetings in one area as opposed to them traveling several hours for a single contact. For example, traveling into town the night before and meeting with (5) taxpayers the following day is a more effective approach than a revenue officer making appointments on 5 different days and traveling several hours each day to meet with taxpayers.
Q. As a group manager, how do I review inventory levels to determine if they are appropriate? A. In order to determine the appropriate inventory level you should be communicating with your revenue officers to determine if there are circumstances that warrant a reduction to the lower end of the target inventory range. If there are no circumstances that warrant a reduction, and additional cases can be worked effectively, you should increase the inventory level using the GM Case Assignment feature on ENTITY. For Inventory Adjustments, you should compare the hours charged to duties other than direct and overhead time on the RO Inventory Adjustment and Timecode Report from the Time Reports Section in ENTITY. The percent adjustment should be substantiated by the time reported by the revenue officer. If the percent adjustment cannot be substantiated, then the percent adjustment should be modified or removed to match the time actually spent working duties other than revenue officer duties.

Exhibit 1.4.50-4 
Revenue Officer Case History Documentation Requirements

IRM Section Title
5.1.9.3.2.5(2) Separate Timeliness Determination
5.1.9.3.3(2) Processing CDP and EH Requests
5.1.9.3.3.1 Processing Withdrawal of Request for Collection Due Process Hearing
5.1.9.3.4 Controlling and Monitoring Case While in Appeals
5.1.9.3.8 CDP and Equivalent Hearing Fast Track Mediation
5.1.10.3.2 Effective Initial Contact
5.1.10.7 Case Histories
5.1.11.2.3 Full Compliance Check
5.1.11.6.1 Enforcement Determination
5.1.11.7 Del Ret Closures
5.1.17.3.1(4)e Advance Notification Requirements
5.1.17.5 Recording Third Party Contacts
5.1.17.8.1(1) Taxpayer Authorized Contact
5.1.17.8.2(2) a & b Jeopardy
5.1.17.8.3(4) Reprisal
5.1.17.8.4(6) & (9)a Employee Determinations
5.1.23.4.1(1),(2) Case History Recordations
5.1.23.5(6) By-Passing a Taxpayer’s Representative
5.1.23.5.1(2) By-Pass Warning Procedure
5.7.1.4(2) Receipts of FTD Alerts
5.7.2 Letter 903
5.7.2.2.1 Revenue Officer Follow-up- after Letter 903 Issuance
5.7.2.3 Referrals for Civil Enforcement
5.7.4.2.1(1) Form 4180
5.7.4.2.4(1) Evidence That May Support Recommendations
5.7.4.5(6) Form 4183 Penalty Assessment Recommendations
5.7.8.4 Working Repeater Trust Fund Taxpayers To Address Pyramiding
5.10.1.3.1(2) Verifying the Liability
5.10.1.3.3.3(1) Equity Determination - Exempt Assets
5.10.1.3.2 Alternative Methods of Collection
5.10.1.3.3 Equity Determination
5.10.1.3.3.1 Equity Determination - Expenses of Sale
5.10.1.8(2), (3) Pre-Seizure Activity for Courtesy Seizures
5.10.2.2(1) Tangible Personal Property or Real Property (Other than Real Property Which is Rented) Used in the Trade or Business of an Individual Taxpayer
5.10.2.13(7) Consent or Writ Determination
5.10.2.17(3) Securing Managerial Approval of Seizure Action
5.10.2.19(4) Post-approval Actions
5.10.3.2.1(3) Conducting the Seizure — Consent Denied
5.10.3.3(3) Exigent Circumstances
5.10.3.6.1(2) Controlling Seized Property Stored in IRS Offices
5.10.3.6.4(3) Seizures Involving Computer Equipment
5.10.3.9(7) Notice of Seizure Form 2433 — Preparation
5.10.3.14.4(4) Money Market Funds, Mutual Funds, Securities, and Negotiable Instruments Received Through Form 668–A, Notice of Levy
5.10.3.20(1) Property that is Tampered With, Rescued, or Stolen
5.10.3.21(2), (9) Transfer of Custody to PALS
5.10.3.22(2) Transfer of Custody of Assets Back to the Field
5.10.4.5(5), (13), (14) Actions to Release and Return Property
5.10.4.8(4) Establishment of the Minimum Bid
5.10.4.8.1(2) Decision to Bid In the Property for the Government
5.10.4.8.2(2) Delivery of Form 4585, Minimum Bid Worksheet
5.10.4.8.5(3) PALS Agrees Partially With Challenge to Minimum Bid
5.10.4.15(1) Pre-Sale Procedures for Perishable Goods
5.10.4.16(1) Arrangements to Convert or Deposit Cash
5.10.9.1(1) Definition and Purpose (results of appraisals performed by Property Appraisal and Liquidation Specialists (PALS)
5.11.1.2.2.7(2)a Timeliness of Notice
5.11.1.3.7(1) Repeated Levies on the Same Source
5.11.5.6.2(4) Systemic Monitoring of Continuous Levy Payments
5.11.5.6.3 Manual Monitoring of Continuous Levy Payments
5.11.7.2.5(2) Recognizing and Handling a FPLP Case
5.14.1.3 Identifying Pending and Approved Installment Agreements on IDRS
5.14.1.6 Multi-Functional Installment Agreement Authority
5.14.2.1.3 Waiver Procedures for Partial Payment Installment Agreements (Form 900 Waivers)
5.14.2.1.4(2) Preparing Partial Payment Installment Agreements for Approval and Processing
5.14.2.1.5(2) Group Manager Approval of Partial Payment Installment Agreements
5.14.2.1.6 Partial Payment Installment Agreements (PPIA) with Payroll Deduction Installment Agreements (PDIA) and Direct Debit Installment Agreements (DDIA)
5.14.2.2(19) Collection Statute Expiration Date (CSED): Law, Policy and Procedures (managerial approval)
5.14.3. Setting Deadlines and Receiving Payments
5.14.3 Installment Agreement Requests Made to Delay Collection Action
5.14.4.5 Withdrawal of Installment Agreement Requests
5.14.7 Summary of Interview and Financial Analysis for Business Accounts
5.14.7. Payments on Trust Fund Accounts During Approved In-Business Trust Fund Installment Agreements
5.14.9.2 Managerial Approval
5.14.9.7 Independent Administrative Review after Recommended Rejection of Installment Agreement Requests
5.14.10.3(6) Preparation and Distribution of Form 2159, Payroll Deduction Agreement
5.14.11.3(2)d Reasons for Proposing Termination (Defaulting) Installment Agreements
5.14.11.5(1)f Lien Determinations: Defaulted/Terminated Installment Agreements
5.16.1.1(7) Currently Not Collectible Policy and Procedure Overview
5.16.1.2.2.1(3) Imminent Statute Expiration
5.16.1.2.8(1) Insolvent Financial Institution
5.16.1.3.1(2) Transferee Cases
25.5.5.5.3(4) Suspension of Interview
25.5.10.2(3) Appearance, Compliance and Non compliance with a Summons
25.5.10.4.1.1(3) Referral

Exhibit 1.4.50-5 
Action Steps For Acceptable Level Of Competence Determination if an employee Within Grade Increase (WGI) is due.....

Within and the employee's last rating is... and the employee's performance is projected as... You must.....
90 days Fully successful or above Fully successful or above Do nothing. WGI will be automatically generated.
90 days Fully successful or above Below Fully Successful
1. Refer to WGI denial procedures in Article 17 for BU employees.
2. Consult with Labor Relations personnel and issue letter of intent to deny WGI 60 days prior to WGI due date.
3. If a fully successful rating is achieved after issuing intent letter, consult with LR regarding written notification to employee that WGI will become effective on original due date.
4. If a fully successful rating is not achieved after 60 days following issuance of intent letter:
•Consult with LR regarding written notification to employee denying WGI
•Prepare Form 6850-BU as you normally would at the end of the rating period except:
– indicate period covered from last annual rating to date WGI was due and
– annotate that "WGI Denied"
– submit signed form to the Transactional Processing Branch (TPB) at least 15 days prior to WGI due date to ensure that the WGI is not processed.
59 days or less Fully Successful or above Below Fully Successful
1. Refer to WGI denial procedures in Article 17 for BU employees.
2. Consult with LR and issue letter of intent to deny WGI. Letter will provide for required 60 day notice period.
3. As soon as possible, prepare Form 6850-BU. Complete appropriate blocks and annotate "Postpone WGI" .
4. Submit signed form to the TPB at least 15 days prior to WGI due date to ensure the WGI does not process.
5. If a fully successful rating is achieved at the end of 60 day notice period:
•Consult with LR regarding written notification to employee that WGI will become effective retroactive to original due date
•Prepare Form 6850-BU. Complete appropriate blocks and annotate "Release WGI." Submit signed form to the TPB within 3 days of advising employee.
6. If a fully successful rating is not achieved at the end of the 60 day notice period:
•consult with LR regarding written notification to employee that WGI is being denied
•prepare Form 6850-BU as if annual rating except:
– indicate period covered from last annual rating to date of WGI due
– annotate "WGI Denied"
– submit completed form to the TPB within 3 days after denial letter is issued to employee; and
– immediately have SF-52 prepared for denial of WGI
59 days or less Below Fully successful and the WGI was previously denied Fully Successful or above
1. Prepare Form 6850-BU as if annual rating except:
• indicate period covered from date WGI was last due to the date of this form being prepared and
•annotate "WGI Released"
2. Advise employee that the WGI will become effective the following pay period.
3. Submit completed form to the TPB within 3 days of completing form.
59 days of less Below Fully Successful and WGI was not previously denied. Fully Successful or above No action necessary.

Exhibit 1.4.50-6 
Suggested Action Steps For Unacceptable Performance

If… And… Then…
During a workload review you note a performance deficiency(ies) based on employee's Critical Job Elements (CJE) (e.g. 2C Protection of Public Interest, issue: filing of liens and/or extension of lien determination)   You should…
•Take informal steps to correct performance deficiencies such as:
1. Query ICS for two oldest cases in revenue officer's inventory to review whether identified deficiencies are prevalent in these two cases.
2. Go to ICS and select additional cases to determine if there is a consistent pattern for the identified deficiencies.
3. While reviewing employee documentation, see if you can determine other factors that may have caused the identified deficiencies.
•Counsel employee as to what is considered appropriate action on cases reviewed. Indicate which CJE or CJE's are identified as not being met at this time.
•Schedule additional dates to review employee casework.
•Require employee to obtain managerial approval to extend lien determination date (if applicable).
•Continue to use ENTITY to identify lien indicator cases and perform a query of the cases on ENTITY. Indicators to check are:
1. When case received in field
2. When case assigned to revenue officer
3. When lien filed
•All discussion(s) with employee must be fully documented and a copy of the documentation is provided to employee with a copy placed their EPF.
•Continue to closely observe/monitor employee performance using managerial tools available to you.
You continue to closely observe, monitor, review, and correct (if necessary) the performance deficiency(ies) the employee's performance improves • No additional action needed.
You continue to closely observe, monitor, review, and correct the performance deficiency(ies) the employee's performance does not improve
• Begin formal counseling.
• Consult with Labor Relations regarding the issuance of an opportunity letter to establish a formal period to show improvement to acceptable level of performance. The opportunity letter must include:
1. Critical elements/performance standards that are not acceptable.
2. Exact nature of deficiencies,
3. Improvement expected,
4. Fact that failure to improve could result in proposal to remove employee from current grade or the Service,
5. Specific period of time to demonstrate acceptable level of performance (usually 90 days),
6. Stated commitment to work with employee,
7. If on telework, suspension of telework until performance improves.
• With the continued assistance of Labor Relations, follow procedures outlined in Article 40 of the 2012 National Agreement II for BU employees.
• Plan a review schedule. At this planning session discuss:
1. Number of reviews planned;
2. Types of reviews;
3. Types of cases to be reviewed;
4. Number of cases at each review;
5.Time frames for review schedule (one a week, twice a month etc.)
6. In summary, tailor the planned reviews to the needs of the employee and you.
• May continue to use ENTITY to identify lien indicator cases and perform a query review of the cases on ENTITY. Indicators to continue to check are:
1. When case received in field
2. When case assigned to revenue officer
3. When lien filed
• Review, approve, or disapprove (with comments) lien extension determination(s) made by employee (if applicable).
• Document all reviews, provide copy of documentation to employee, and place in their EPF.
You continue to closely observe, monitor, and review employee performance based on the provisions of the opportunity letter. the employee's performance becomes minimally successful or fully successful
• Consult with Labor Relations personnel and issue a letter informing employee of this fact.
• If employee's telework was suspended during this period, consider resuming the schedule.
You continue to closely observe, monitor, and review employee performance based on provisions of the opportunity letter. the employee's performance does not improve
• Consult with Labor Relations regarding the issuance a 30 day advance notice of reduction in grade or removal.
• Make sure all documentation is in order and copies provided to employee with copies filed in their EPF.
• Follow procedures outlined in Article 40 of the 2012 National Agreement II for BU employees with the continued assistance of Labor Relations.
• Provide a written decision to the employee within 30 days after the date the advance notice period expires.
— If no written decision is made within this 30 day period, then the advance notice period may be extended for one additional 30 day period only.
• Provide a written decision to employee within extended 30 day advance notice period.
• Initiate action to reduce in grade and/or removal based on unacceptable performance once the written decision is issued.
However, when a 30 day advance notice is being considered reassignment, voluntary reduction in grade, retirement or disability retirement is also being considered in lieu of notice
• Consult with Labor Relations personnel.
• Exercise options under consideration.
– All but disability retirement option may preclude or delay processing of an action to reduce in grade or remove employee.
– An application for disability retirement will not preclude or delay processing of an action to reduce in grade or remove the employee.
If written decision is issued to reduce in grade and/or removal based on unacceptable performance the personnel action is effected, the employee
• Has appeal rights to Merit Systems Protection Board.
• BU employee may alternatively choose to appeal through the negotiated grievance procedure.

Exhibit 1.4.50-7 
Collection Group Managers’ EQRS Review Documents, Form 6850, and Narrative, General Guide

EQRS, Form 6850, and narratives are important in all actions regarding revenue officer performance. The review documents should justify the numerical ratings and average indicated on the F 6850.

These documents will assist you in substantiating your decision to take any action regarding the performance of a revenue officer or other employee. These actions can include awards, reduction of a rating of record, or removal from telework. These documents should be clear and concise. They should provide the employee with a clear understanding of their level of performance.

EQRS review documents, narratives and other evaluative documents should provide positive feedback and specific strategies for improvement as applicable. The narrative should be specifically written to enhance performance, identify weaknesses, and explain potential consequences when warranted.

Ensure that your reviews are written and encompass a wide spectrum of cases from the RO’s inventory. Include pyramiders, large dollar, IBTF, no touch, etc. If warranted, review more cases than the minimum required by IRM 1.4.50.5.2.2.

When performing case reviews utilizing the Embedded Quality Review System :

  1. Review actual hard copy case file(s). This is to ensure documents that will expedite case resolution are included, (e.g., financial statements, bank records, etc.) and that an appropriate evaluation of case direction has been made.

  2. Ensure clear comments are included for each case reviewed. If the revenue officer is performing well, document it in the comments.

  3. If case direction is needed, ensure your directions are specific. If warranted, reference specific documents reviewed in the case file.

When preparing the review documentation you should:

  1. Ensure the RO’s actions were appropriately documented on each case.

  2. Base your comments on actions pertaining to the applicable CJE and sub-element.

  3. Ensure conformity with the revenue officers’ CJE’s by utilizing the revenue officer’s Performance Plan, Document 11491 .

  4. When appropriate, reference relevant IRM sections, subsections, and case file documents.

  5. Document strategies for improvement .

  6. Be realistic in expectations.

  7. Prepare a narrative of your overall findings.

Meet with the employee and engage in an open dialogue. Be sure to discuss the positive as well as the negative aspects of the employee’s performance. Discuss the comments on the EQRS Feedback Report given on each case and ensure the revenue officer understands.

  1. Ask for their input regarding your interpretation of their actions.

  2. If warranted, discuss the documents included in the case file, and address any that are missing

  3. If appropriate add their proposed actions to your comments as additional action items

  4. Ensure that time lines are realistic.

  5. Ensure that case direction is clear.

Discuss the EQRS Feedback Report narrative with the revenue officer to ensure they understand the document and its possible impact on their annual appraisal/evaluation (positive or negative).
You should have the employee sign for receipt of both the Individual Feedback Report and any accompanying documents. Document and date the Individual Feedback Report and narrative if the employee refuses to sign.

Annual Appraisal Document Form 6850:

Form 6850 is the numerical representation of the revenue officer's performance during the course of the evaluation period. It must be consistent with the revenue officer's casework and evaluative documents prepared during the course of the evaluative period. You should ensure that the preparation of Form 6850 is in accordance with Article 12 of the 2012 National Agreement II. Base your appraisal of the revenue officer on documented materials such as:

  1. Evaluative documents retained in the revenue officer's EPF, such as EQRS Individual Feedback and/or Cumulative Feedback Reports. Also see IRM 1.4.50.5 ,Performance Management, and IRM 1.4.50.5.2, Reviews, for other considerations.

  2. Taxpayer correspondence

  3. Internal customer correspondence

  4. All awards received during the period

Performance and Evaluative Narratives:

Narratives are an effective tool in documenting and informing a revenue officer of their performance. They should be used to emphasize the positive as well as the negative aspects of the revenue officer's performance. They can be used as either stand alone documentation (EQRS Individual and/or Cumulative Feedback Reports) and/or with the Form 6850 (when appropriate). See Article 12, Section 4N, of the 2012 National Agreement II, regarding Form 6850 narratives. Effective narratives:

  1. Are clear and concise.

  2. Address each Critical Element and its accompanying sub-element (for Form 6850).

  3. Reference prior reviews and other evaluative documents completed during the course of the evaluation period and the dates completed or received.

  4. Are of sufficient length for the employee to have a clear understanding of their current level of performance and what is expected from them in the future.

  5. Summarize your findings during the course of a review or the overall performance during an evaluative period. You may choose to use specific examples or sanitized case references.

  6. Refer to specific Critical Job Elements and sub-elements.

  7. Describe strengths and weaknesses found within specific element(s).

  8. Describe strategies for improvement (if necessary).

  9. Identify the level of performance (overall and within a specific CJE).

  10. Describe potential consequences if performance is at an unacceptable level or regressing

  11. Note that you are available for assistance.

In conjunction with the steps to address employee performance as outlined in Exhibit 1.4.50–6 of this handbook ensure that:

  • Your prescribed action is specifically documented and appropriately worded. Consult with your territory manager or Labor Relations Specialist as appropriate.

  • Your documentation includes a description of any problems and documentation of the discussion with the employee involved. Inform the employee of possible consequences if the issue is not resolved. You may inform the employee verbally, but confirm the discussion via memorandum. The proposed resolution of the issue should include a specific time period for completion. The resolution may include actions the employee must take and meetings between yourself and the employee to resolve the problem.

    Note:

    The employee is entitled to request representation by the Union when the employee and the supervisor or other management official meet to discuss action or potential action, based on unacceptable performance.

Note:

When taking any performance action, contact your servicing Labor Relations Representative and your direct supervisor.

Exhibit 1.4.50-8 
Operational Review Plan Guide

Program Review Areas:

  • Case file reviews

  • NFTL determination accuracy

  • Consultations process

  • Quality – EQ/NQ analysis

  • Quality – Consistency reviews with GM

  • Alternative case resolution discussion – are we fully utilizing Counsel, FTAs, CI and our ATAT and OIC resources?

  • TFRP/ATFR process

  • ENTITY/Management Information Systems (MIS) analysis of trends in performance indicators.

  • GM controls

  • Employee Performance File (EPF) reviews

  • Communications

  • Employee Satisfaction

  • Customer Satisfaction

  • ATAT Program

  • Group Time Reporting and Analysis – relating to productivity and cycle time

  • Group Productivity and Efficiency

  • Annual Appraisal/Performance Document Approval

  • Fraud program/identification and FTAs involvement

  • Inventory ranges and assignment practices/ Inventory delivery process

  • Above grade work

  • Million dollar case assignments

  • Multi-module strategy

  • Trends and patterns report – teller errors

  • Span of control

  • Summons errors

  • Hold file composition and time in hold file – review for any issues with assignment and staffing

  • Group Meeting attendance

  • Field Visits

  • Other/Local

Administrative and Compliance Reviews/ TM Oversight Mandatory

  • Remittance control reviews (Mandatory verification/documentation)

  • Remittance processing reviews (Mandatory verification/documentation)

  • EPF – administrative review

  • Controls monitoring

  • SETR and timekeeping

  • Security – after hours and computer systems

  • F3210 transmittals review

  • Correspondence and file retention

  • Travel vouchers and authorizations

  • Credit bureau

  • Purchase cards and supplies

  • 1204/ROTERS

  • EQ consistency review for Territory

  • Sensitive Case Reports- timely and appropriate

  • GMs Employee review schedule at beginning of fiscal year

  • Other

Optional: One on One Briefings – Periodic scheduling:

  • GM is scheduled for periodic briefings during the months of: (fill in)

  • Topics covered will include: (fill in )

Exhibit 1.4.50-9 
Area Director Operational Aid (ADOA)

Operational Reviews:

Purpose - To assess territory manager (TM) performance in achieving Area, HQ and Territory business plan goals and to improve Employee Satisfaction and Customer Satisfaction while enhancing Business Results.

Frequency - Operational Reviews are to be performed on an annual/fiscal year basis with follow-up reviews to be performed when appropriate.

Scope – All general and specialized Collection territories

Documentation - All Operational and Follow-up Reviews are to be documented in a memorandum format. These documents should be shared with the territory manager within sixty (60) days of completion of the actual review. The operational review should also include a candid discussion regarding the territory manager’s performance.

Pre-Operational Review Actions:

Trend Analysis - To identify and evaluate trends that may require managerial involvement.

Technique – Utilize cumulative data acquired during the fiscal year, identifying areas of achievement and those that require improvement. (See Trend Analysis, under Additional Reviews and Actions). A comparison to the prior year as well as the current goals may be appropriate. The Operational Review narrative should indicate what the trend analysis revealed, areas of concern or achievement, additional actions taken in the operational review as a result of the trend analysis, recommendations, etc.

Note:

Territory managers should be submitting completed operational reviews and mid-year feedback to Area Directors (AD) in preparation for Area Operational Reviews.

Operational Reviews should include at a minimum, assessments of the following:

Territory Operational Reviews/Follow-ups - To ensure that territory managers are addressing issues identified in the Territory Manager’s Operational Aid (TMOA) as well as Area goals.

Technique – Review territory manager operational and follow-up reviews to ensure adherence to guidelines set by the Territory Manager’s Operational Aid. Ensure that areas identified as concerns are being proactively addressed in territory operational reviews and follow-ups and corrective actions are prescribed when applicable.

Territory Manager Performance - To ensure that 1) TM activities are promoting the achievement of the Area’s Collection Business plan and 2) group managers are establishing proactive commitments and goals and are fulfilling the requirements of their Critical Performance Expectations.

Technique-

  1. Determine if TM is proactively contributing to the Area’s Collection Business Plan.

  2. Ensure territory managers are issuing operational, follow-up, and mid-year feedback in a timely manner. Ensure TM compliance with the established review schedule.

  3. Ensure territory manager mid-year feedback is addressing proactive actions established in the manager’s initial performance agreement. These reviews should identify areas of accomplishment as well as those in need of improvement with recommended strategies. This should also be apparent in operational reviews and final performance evaluations.

  4. Determine if territory managers’ evaluations of group managers align with mid-year feedback and other evaluative documents. If discrepancies are noted or concerns exist, ensure appropriate actions are taken.

Training - To ensure managers are receiving appropriate training to facilitate efficient group operations.

Technique- Discuss with territory manager what training has been made available to group managers. For some courses budgetary ramifications must be considered.

Communication - To ensure territory managers are effectively communicating to group managers the goals of Headquarters, the Area, and Territory.

Technique- Review minutes of territory meetings. Ensure territory managers are discussing special interest cases within their groups, e.g., suits, seizures, fraud referrals. Include your observations from territory meeting(s) you have attended. Consider conducting focus group interviews with group managers and/or revenue officers.

Employee Satisfaction - To ensure that employees’ and manager’s concerns are being addressed to facilitate effective and appropriate casework.

Technique-

  1. Review territory operational reviews to ensure TM’s are adhering to Employee Satisfaction guidelines of the TM aid and addressing managerial adherence to established policies and procedures.

  2. Ensure TM and GMs are addressing issues raised in most recent employee survey.

Case File Reviews - To promote proactive, timely, and appropriate case actions and managerial involvement when appropriate.

Technique- Based upon trend analysis results and Area goals, select a mix of cases representative of the inventory.

Alternative Case Resolutions - To ensure that all possible forms of case resolution are investigated.

Technique- Discuss with the territory manager their involvement in promoting the appropriate use of the Fraud Technical Advisor, Counsel, and Criminal Investigation.

Customer Satisfaction - To ensure customers are receiving timely and appropriate actions, and receiving fair and adequate treatment to assist in resolving their delinquency issue(s).

Technique- Assess territory manager’s involvement in addressing customer service issues. This should be evident in operational reviews and discussions with territory managers (For additional reference see TMOA).

EQRS Consistency Reviews - To ensure territory managers are conducting EQRS Consistency Reviews annually and actions are taken to promote consistent application of the EQ attributes.

Collection Consultation Process - To ensure that the program is having a positive effect on case resolution and reducing cycle time.

Technique-

  1. Discuss with the territory manager the overall performance of the territory and how it was affected by the Consultation Process. The AD may consider holding a focus group meeting with group managers and/or revenue officers.

  2. Ensure that territory managers are participating in Consultations as appropriate.

    Note:

    Consider reviewing the monthly Collection Consultation Report provided by the Area Policy Analyst, to determine the nature and value of managerial comments.

Documentation- Provide a written narrative of concerns, recommendations, etc., focusing on items that may make the consultation process more effective.

ATAT Program - To ensure that territory managers with ATAT groups are effectively monitoring the engagement of the ATAT manager with the revenue officers on resolving these egregious cases.

Technique- When reviewing cases and operational reviews ensure the following actions are being conducted:

  1. Active engagement with Examination and Area Counsel on the more complex cases.

  2. Cases reflect actions tailored to the type of scheme.

  3. Managers are reviewing ATAT direct time charges to determine if the revenue officers should be designated on ENTITY to the Special Compliance Program.

OIC Program - Area Director operational review requirements are contained in IRM 1.4.52.4.4.2.

Additional Reviews and Actions to be Completed During the Fiscal Year:

Mandatory actions:

Trend Analysis - To identify possible case trends on a monthly and cumulative basis, and ensure appropriate actions are being taken to achieve Headquarters and Area goals.

Technique- Engage the Area’s Collection Policy Analyst to identify trends in accordance with Area goals and other pertinent indicators such as time utilization (field , 809, and administrative time), large dollar cases, ATFR controls, no touch (60 – 75 days) reports, etc.

Frequency- Reports and trends should be reviewed on a monthly basis.

Suggested Optional Actions:

Field Reviews - To ensure revenue officers are effectively contacting taxpayers and making optimum use of field time.

Technique-

  1. Review a sampling of field visitation reviews completed by at least two group managers in a territory.

  2. Accompany a revenue officer during a field visit. (When budgetary guidelines allow).

Frequency- The frequency should be established by the facts and circumstances of the territory and group.

Documentation- Provide a written narrative to the territory manager or discuss the findings.

Communication - To ensure expectations of performance are understood and managerial concerns are heard and addressed.

Technique-

  1. Convene Area meetings including territory managers, Area Collection Policy Analyst, and Area Technical Advisor to ensure that trends and goals are being monitored and acted upon in an appropriate and timely manner.

  2. Hold Area/Town Hall meetings to discuss goals and concerns with group managers and territory managers. This should also include involvement of peripherally involved divisions such as Labor Relations, Counsel, Appeals, etc.

  3. Attend at least one territory meeting between managers and territory manager for each territory.

  4. Attend a sample of group meetings to ensure top down messages are understood and encourage open communication lines.

Frequency- All meetings are subject to budgetary constraints as well as facts and circumstances of the Area. Preferably these meetings would be held in person, but attendance via conference call is also acceptable.

  1. Area meetings should be held at least quarterly.

  2. Area/Town Hall meetings should be held once each fiscal year if possible.

Exhibit 1.4.50-10 
Remittance Processing Transmission Control Review Template

Remittance Processing Transmission Control Review
Date of Review: Name of Reviewer: Group Number:
Post of Duty Reviewed:
Review Point Results Correction/Comment
Form 3210 used per IRM 5.1.2.4 and Form 3210 accurately lists only documents transmitted and includes all documents transmitted. IRM requirement met. Y/N  
Form 795/795As timely per IRM 5.1.2.4 IRM requirement met. Y/N  
Form 795/795As and envelope are prepared properly per IRM 5.1.2.4.3 IRM requirement met. Y/N  
Control copies of Form 3210 maintained per IRM 5.1.2.4.4 IRM requirement met. Y/N  
Control copies of Form 795/795A maintained per IRM 5.1.2.4.3 IRM requirement met. Y/N  
A procedure is established to handle processing of remittances and returns for those employees away from the office per IRM 5.1.2.4 IRM requirement met. Y/N  
All document transmittal forms are reconciled on a biweekly basis to ensure that all transmittals were received per IRM 5.1.2.4.4(2) IRM requirement met. Y/N  
Follow-up actions taken for Form 795s without acknowledgement and 14 days have passed since transmission per IRM 5.1.2.4.5.1 IRM requirement met. Y/N  
Revenue officers within each Post of Duty have access to a "United States Treasury" stamp to meet the requirements of IRM 5.1.2.6.3.1, Overstamping or Endorsing Y/N  

More Internal Revenue Manual