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Part 1. Organization, Finance and Management

Chapter 4. Resource Guide for Managers

Section 50. Collection Group Manager, Territory Manager and Area Director Operational Aid

1.4.50  Collection Group Manager, Territory Manager and Area Director Operational Aid

Manual Transmittal

December 16, 2011

Purpose

(1) This transmits a revision for IRM Part 1, Organization, Finance, and Management, Chapter 4, Resource Guide for Managers, Section 50, Collection Group Manager, Territory Manager and Area Director Operational Aid.

Material Changes

(1) 1.4.50.2(6) is revised to clarify that managers should conduct time verification activities prior to End of Month (EOM) report processing. Guidance is added to clarify verification requirements.

(2) 1.4.50.2.1.1 is revised to clarify the Risk Code definitions and emphasize the need to assign the next best case from available High Risk cases, including non-IDRS assignments.

(3) 1.4.50.2.1.2(2) is revised to clarify that testing of systemic assignment for Grade 13 cases is not yet complete and that manual grading of grade 13 work may still be necessary.

(4) 1.4.50.2.1.3(1) is revised to emphasize the need to expeditiously assign accelerated cases identified by the ENTITY Case Management System, GM Case Assignment.

(5) 1.4.50.2.1.3(4) is revised to note that potential egregious in business trust fund cases should be considered for assignment despite an imminent CSED.

(6) 1.4.50.2.1.3(6) adds guidance about mandatory OI case assignments, including the need to ensure that ATFR cases are created when TFRP OIs are received from Insolvency.

(7) 1.4.50.2.1.3.2 is revised to update guidance for Federal Agency Delinquency (FAD) cases.

(8) 1.4.50.2.1.4(1) is revised to clarify the latitude available to GMs as they determine optimal inventory levels for each RO.

(9) 1.4.50.2.1.4(2) is revised to add new guidance that, absent indications to the contrary, GMs should consider limiting new assignments to five per work week. Previous content about inventory ranges is re-located to (3).

(10) 1.4.50.2.1.4 (3) is revised to relocate information previously located in (2). Previous content about Inventory Adjustment is moved to (4).

(11) 1.4.50.2.1.4 (4) is revised to delete content concerning Within Range Adjustments . Content previously located in (3) is now located here.

(12) 1.4.50.2.1.4(7) is revised to delete content concerning application of both an Inventory Adjustment and a Within Range Adjustment. Content previously located in (8) is now located here.

(13) 1.4.50.2.1.4 (8) (9) and (10) are revised to relocate content to (7) (8) and (9) respectively.

(14) 1.4.50.2.1.4(11) is deleted and content moved to (10). Guidance about trust fund cases is added. Examples/additional manager considerations are deleted.

(15) 1.4.50.2.1.6 is re-named Group Designation Hold File to correspond with the ICS User Guide. Added clarification that the assignment code for this designation ends in 00.

(16) 1.4.50.2.1.6(4) is revised to specify that cases erroneously coded as "Taxpayer Needs Assistance" do not have to be assigned and may be returned to the Queue.

(17) 1.4.50.2.1.9(6) is updated to remove overage from the list.

(18) 1.4.50.2.1.9(7) is updated to remove the requirement for monthly monitoring of overage and potential overage cases.

(19) 1.4.50.2.1.9(8) is updated to change the amount of the lien monitoring criteria from $5,000 to $10,000 to align with new guidance. The time frame for monitoring unfiled liens through Entity has been extended from 45 days to 60 days to align with new initial contact guidelines.

(20) 1.4.50.2.1.9(10) is revised to note that systemically identified federal contractor cases in the Collection Consultation (CCI) process will now have their own business priority indicator, FedCntrctr.

(21) 1.4.50.2.1.9(11) is revised to clarify guidance concerning the requirement for GMs to 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.

(22) 1.4.50.2.1.9.2(2) is revised to change the time frame for reviewing potential ASED modules where no trust fund penalty determination appears to have been made from 6 months to 5 months.

(23) 1.4.50.2.1.9.2(3) is revised to clarify instructions regarding TFRP investigations and the completion of Form 2750 waivers.

(24) 1.4.50.2.1.9.2(4) is revised to clarify documentation requirements regarding trust fund determinations on ATFR and ICS.

(25) 1.4.50.2.1.9.3 is revised to clarify the monthly TFRP monitoring responsibilities of GMs.

(26) 1.4.50.2.2(2) is revised to reflect that certain performance observations can be documented outside of EQRS.

(27) 1.4.50.2.2(5) is revised to reflect that annual field/office observations now apply to all ROs. The note about collection consultations has been moved to 1.4.50.2.2.6.

(28) 1.4.50.2.2.1(2) is updated to remove the reference to overage.

(29) 1.4.50.2.2.2 is revised to incorporate IGM SBSE 01-0611-049, issued June 14, 2011, concerning requirements for Annual Performance Case Reviews.

(30) 1.4.50.2.2.3(4) is revised to add guidance about documenting performance observations using a summary narrative.

(31) 1.4.50.2.2.4(3) is revised to provide new guidance about documenting Time Utilization reviews.

(32) 1.4.50.2.2.6(1) is revised to incorporate new guidance about collection consultations.

(33) 1.4.50.2.2.6(2) is revised to delete overage and potential overage from the list of cases considered business priority.

(34) 1.4.50.2.2.6(6) is revised to clarify that the GM must ensure the Collection Consultation (CC) reminder is updated within 24 hours of the consultation so that the RO may access the updated CC reminder electronically - paper copies do not need to be printed.

(35) 1.4.50.2.2.6(10) is revised to relocate the note about collection consultations previously located in 1.4.50.2.2(2).

(36) 1.4.50.2.2.7 is renamed to conform with the updated reference to IRM 10.2.2 , Physical Security Compliance Reviews.

(37) 1.4.50.5.12(3) is revised to clarify that the right to make audio recordings does not extend to telephone interviews.

(38) Exhibit 1.4.50-1 is revised to update the Case Assignment Guide (CAG) and clarify the criteria for manually grading GS-13 cases.

(39) Exhibit 1.4.50–2 is revised to identify the need for GMs to ensure closing letters are prepared and issued for certain CNC, adjustment, and credit transfer dispositions. Review criteria for defunct and in-business corporations have been added to address transferee assessments and adjustment actions. Information about Refund Statute Expiration Date (RSED) considerations has been added to the Adjustments section. The IA and TFRP Dispositions sections have been updated to match corresponding IRM information.

(40) Exhibit 1.4.50-3 is revised to correctly identify the report to use when reviewing inventory levels to determine if they are appropriate. Q & A items are revised to align with the deletion of Within Grade Adjustment information.

(41) Exhibit 1.4.50-7 is revised to incorporate guidance about documenting performance outside of EQ. The reference to overage was removed.

(42) Exhibit 1.4.50–8 is revised to add guidance concerning reviews of group manager's control and/or documentation of the periodic (at least once annually) review of remittance packages required in IRM 1.4.50.2.1.9(11) ,Quality and Controls. A requirement to develop Collection Consultation review plans with each GM has been added.

(43) Exhibit 1.4.50-10 is added to provide a template that managers can use to document reviews of remittance control procedures required by IRM 1.4.50.2.1.9(11). Use of the template is optional.

(44) Various editorial and grammatical changes and IRM reference updates were made throughout the section.

Effect on Other Documents

This material supersedes IRM 1.4.50 dated February 25, 2011 and incorporates Collection IG Memorandum SBSE-01–0611–049, Interim Guidance for Annual Performance Case Reviews.

Audience

Small Business/Self-Employed, Field Collection managers.

Effective Date

(12-16-2011)

Scott D. Reisher, Director, Collection Policy

1.4.50.1  (07-01-2007)
Chapter Overview

  1. This chapter discusses responsibilities of managers in the Collection Field function (CFf).

1.4.50.2  (12-16-2011)
Role of the Field Collection Manager

  1. As a field collection manager, you must provide oversight and direction in a number of areas, which will result in accomplishing the mission of the Internal Revenue Service. Your oversight responsibilities include, but are not limited to:

    1. Ensuring employee case actions are timely and in accordance with current law, policies, and procedures

    2. Ensuring employees maintain high standards of professionalism in all their contacts with the public, internal customers and coworkers

    3. Ensuring employees observe taxpayer rights

    4. Ensuring employees are aware of ongoing changes to the laws, policies, and procedures that relate to their responsibilities (preferably during group meetings)

    5. Addressing systems issues that impact either internal or external customer needs

    6. Ensuring cases are assigned timely and employee workload:
      • Reflects current priorities
      • Reflects employee experience and skill level
      • Addresses Servicewide objectives
      • Protects public interest
      • Allows for effective case processing

    7. Helping revenue officers make the appropriate next case decision

    8. Ensuring employees are accountable for the appropriateness of their actions

    9. Providing ongoing employee feedback that is candid and meaningful and will establish a basis for determining an accurate assessment of performance and developmental needs

    10. Issuing the Critical Job Elements (CJE) timely in accordance with the current National Agreement and evaluating employees performance against their CJEs

    11. Creating and maintaining a work environment that will promote team work, positive working relationships, and increased employee satisfaction

    12. Ensuring employees have necessary functioning equipment and supplies

    13. Overseeing the time reporting process and ensuring that the group's End of Month (EOM) time and inventory data are accurate and timely

  2. As a manager you are empowered to address performance deficiencies within your group. This may be accomplished through reviews and/or by requiring your concurrence with performing specific actions. For example: If you find that NFTL determinations are not being made in accordance with IRM 5.12.2 you can require revenue officers to secure your written approval for all non-filing or extension decisions.
    For additional direction regarding performance issues see IRM Exhibit 1.4.50 - 6, Suggested Action Steps for Unacceptable Performance.

  3. When a new group is established or a new manager is assigned to an existing group, a meeting with the employees must be held within the first 30 days. At this meeting the manager will communicate expectations to include the following topics:

    • Group procedures

    • Case work

    • Use of time - office/field/flexiplace

    • Timeliness of case activity

    • Reasonable time frames for case actions
      (See IRM 5.1.10.3.1 , Initial Contact Time Frames ,IRM 5.1.10.7 , Case Histories and IRM 5.1.10.8 , Timely Follow Up for timeliness and time frames)

    • Case review schedule

    • Collection Consultations - schedule and structure

    These expectations should also be reviewed at the beginning of each fiscal year.

    Note:

    This meeting is considered a 7114 meeting. Local National Treasury Employees Union (NTEU) chapter(s) must be notified of the meeting in accordance with Article 8, Union Rights, of the IRS/NTEU National Agreement.

  4. When a new employee is assigned to an existing group, the group manager must meet with the new employee to discuss managerial expectations (see (3) above) and ensure appropriate on-line Forms 5081 are completed and processed.

    Note:

    This meeting is considered a 7114 meeting. Local National Treasury Employees Union (NTEU) chapter(s) must be notified of the meeting in accordance with Article 8, Union Rights, of the IRS/NTEU National Agreement.

  5. Regular group meetings will be held as necessary to review items such as the following:

    • Directives from the Territory Manager, Area Director, and Headquarters

    • Procedural memoranda

    • IRM changes

    • Case resolution techniques

    • Changes in condition of employment

    • Automation issues

    • Mandated topics not available on other media

    • General group (employee) concerns

    Note:

    Regular group meetings are not ordinarily considered 7114 meetings. The Union entitlement arises where there is a discussion of a personnel policy, practice or other general condition of employment. For example, a discussion at a group meeting on the need to make timely TFRP determinations or how to handle a particular type of case would not ordinarily be considered 7114 issues. Managers should seek guidance and advice from their servicing Field LR Section if they are unsure whether an agenda item for a group meeting constitutes a 7114 issue. Article 8 Section 1 of the National Agreement also provides guidance on 7114 Meetings.

  6. You are responsible for reviewing time reported by your employees to ensure accuracy. Using ICS and Entity, verify time prior to End of Month (EOM) processing (i.e., no later than COB on the last Friday of the monthly reporting period). Updates/corrections to End of Day (EOD) data occur overnight. Thus, if all EOD activity is not completed and verified by the Friday prior to EOM, delays in processing EOM reports will result. Exhibit 10 in IRM 5.2.1, Collection Time Reporting, provides information about the last Friday of each reporting period and number of expected hours in each period. Consider the following:

    1. You can use ENTITY to verify accuracy of time charges. Review the following: ENTITY Time Report "Hours Verification Report" and, under "View" , the "Weekly Time Verification" . See IRM 5.2.1, , Collection Time Reporting, for more information

    2. Be alert for issues such as potentially excessive administrative or miscellaneous direct time, minimal field time, discrepancies related to credit/comp/holiday/training time, etc.

    3. Ensure that the group secretary performs weekly time verification and checks for daily EOD for all employees

    4. Monitor case sub codes and consider requesting that ROs validate sub codes monthly to avoid inaccurate time reporting

    5. Refer to IRM 5.2.1.8.1(3) ,CFf Procedures.

  7. You must also monitor Forms 5919, Teller's Error Advice, sent to your group. See IRM 5.1.2.4.6, Responding to Form 5919.

1.4.50.2.1  (01-01-2004)
CFf 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

    3. Maintain targeted inventory levels and make adjustments as appropriate

    4. Balance inventories within your group

    5. Ensure case activity is progressing toward resolution

1.4.50.2.1.1  (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, and 301-303 are low priority. 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 CCP for collection on a pyramiding in-business taxpayer may be assigned Risk level 399 but is a High risk case. 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.

1.4.50.2.1.2  (12-16-2011)
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 Case Assignment Guide, in IRM 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. Case grade accuracy should be evaluated upon receipt, upon assignment to RO and during case reviews. Revenue officers should be encouraged to bring misgraded cases to your attention.

  4. 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.

  5. You should change the grade of a case if receipt of additional information or case circumstances warrant. A list of criteria that should be considered in conducting case grade analysis is shown in IRM Exhibit 1.4.50-1. 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 the manager should write a narrative history as well. See ICS User Guide, Chapter 23, Changing Case Grade Levels, for more information.

  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.

1.4.50.2.1.3  (12-16-2011)
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 and BMF) should be assigned to revenue officers. 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.

  2. 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 National Agreement 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.

    Note:

    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.

  3. 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. You may consult with the Collection Policy Analyst for information about projected FTD Alert issuances.

  4. 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, cases or 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.

  5. When feasible, assign related TFRP assessments to the revenue officer responsible for the underlying trust fund case when:

    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, or

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

  6. 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.

1.4.50.2.1.3.1  (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) the group manager 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 whether to raise remaining revenue officer(s)’s inventory levels above maximum targets to accommodate the remaining inventory. If the cases are assigned, you must then suspend contact and follow up time frames in writing for the revenue officers affected (see IRM 1.4.50.2.1.4(9) below 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).

1.4.50.2.1.3.2  (12-16-2011)
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. 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.

  4. If a Federal agency delinquency case is assigned in error or directly assigned to a revenue officer, you should re-assign to the group designation hold file.

    Note:

    The Centralized Unit in Brookhaven identifies and works all FAD accounts (BMF) via a master listing, even while in the group designation hold files. You do not need to contact or forward the case to the FAD unit.

1.4.50.2.1.4  (12-16-2011)
Maintaining Targeted Inventories

  1. Group managers 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. 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


    Adjustments that reduce inventory levels below the bottom of the targeted ranges should be addressed in accordance with IRM 1.4.50.2.1.4 (4). 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.
    The above standard inventory ranges give the manager flexibility to consider a variety of circumstances when monitoring individual revenue officer inventories. 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.

  4. 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.

  5. 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 managers operational review.

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

  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. 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. 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)

  9. 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)

  10. 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 IRM 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)

1.4.50.2.1.5  (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. The case risk scoring criteria were designed to provide the field with 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 Asset Case) 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.

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

1.4.50.2.1.6  (12-16-2011)
Group Designation Hold File

  1. 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.

  2. Manage your hold file by,

    1. Conducting weekly reviews to determine which cases to assign and which to send to the Queue.

    2. Reviewing IRM 5.1.20.2.3.3, Cases that Cannot be Moved to the Queue.

  3. Do not shelve any case unless authorized by a specific policy directive or memorandum issued by Headquarters staff.

  4. "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.

  5. Because many "Taxpayer Needs Assistance" cases come from a Campus, Toll Free Operation, or ACS, they may arrive without a clear explanation.

    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

    3. If the contact request can not be verified, document the history, update the case sub code as appropriate and send any non-restricted case to the Queue.

1.4.50.2.1.6.1  (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.

1.4.50.2.1.7  (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.

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

1.4.50.2.1.8  (08-01-2006)
Workload Management Using ENTITY

  1. ENTITY is the primary Case Management System for group managers. Group managers should familiarize themselves with IRM 5.3.1. 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

1.4.50.2.1.9  (12-16-2011)
Quality and Controls

  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. 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. Employee performance is evaluated against attributes that are designed 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 the Manager 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 the manager in targeting corrective steps that positively impact performance.

    4. To conduct employee case reviews, managers use the Embedded Quality Review System (EQRS) to rate case actions against the attributes. Since the attributes are automatically linked to employee CJEs, managers will no longer have to determine which CJE is most applicable when rating case actions. EQRS also provides managers 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.

    5. 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 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: Timeliness, Professionalism, Procedural Accuracy, Regulatory Accuracy and Customer Accuracy.

    6. 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. 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. The goal of Consistency Reviews is to improve the understanding and application of the EQ rating guidelines. Group managers should refer to IRM 1.4.50.2.2(3) for review requirements and IRM 5.13.1 for information and guidance on the EQ system

  2. 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.

  3. 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 National Quality Review System (NQRS) reports available through EQ systems 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.

  4. 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.

  5. 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.

  6. 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

  7. 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.

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

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

    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?

  10. Consider completing a consultation or review on each case in the group identified in the collection consultation program as a federal contractor (FedCntrctr).

    Note:

    ICS will systemically identify cases with a Transaction Code (TC) 971 Action Code (AC) 647 on the Masterfile and place them into the consultation process as a Fed Cntrctr in the Business Priority category.

  11. 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 Flexiplace. 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. 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(3), Form 3210 must be completed and two copies included when sending more than one revenue officer sealed envelope to Submission Processing.

    • 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. 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. 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(1). 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 Flexiplace, 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 Flexiplace.



    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. A copy of the documented review may be forwarded to the TM for the TM review required by Exhibit 1.4.50-8, Territory Manager Operational Aid.

1.4.50.2.1.9.1  (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.

1.4.50.2.1.9.2  (12-16-2011)
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.

  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 by both the taxpayer and signed by a Service representative on or before the ASED expiration to be a valid extension of the ASED.

    4. Proceed with assessment

  4. Check to ensure the revenue officer made a determination on ATFR and documented the determination in ICS history, and has input the ASED Review Indicator to 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.

1.4.50.2.1.9.3  (12-16-2011)
Monitoring Trust Fund Recovery Penalty (TFRP) Investigations

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

    • Monitor the determination period

    • 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

1.4.50.2.2  (12-16-2011)
Reviews

  1. Providing ongoing employee feedback that is candid and meaningful is essential to employee satisfaction and is an integral part of the group manager’s responsibilities. Reviews of employee work should serve to:

    1. Assess the employee’s effectiveness in meeting the expectations established in their Critical Job Elements

    2. Determine the employee’s efficiency in carrying out the laws, procedures, and policies of the Service.

    3. Identify and address performance problems

    4. Evaluate the employee's ability to properly plan and schedule field, office, and flexiplace work activity

    5. Ensure the employee is taking timely and appropriate actions to bring the case to a prompt and proper resolution

    6. Assess employee effectiveness in developmental case assignments

    7. Determine the employee's effectiveness in meeting the IRS Retention Standard for the Fair and Equitable Treatment of Taxpayers

  2. All reviews relating to a revenue officer's case work must be in writing. Managers must use EQRS to review individual cases, but other types of performance observation lend themselves to other methods. For reviews that consider RO activity across multiple cases (e.g., time utilization, office/field observation) a summary narrative, such as a memorandum may be substituted. The EQRS Individual Feedback Report provides a record of your ratings and the narrative comments in which the revenue officer’s performance is summarized. Become familiar with IRM 5.13.2, Embedded Quality Attribute Definitions and Document 12359, Embedded Quality Job Aid (Collection) which provide specific guidance related to Embedded Quality attributes and how to use them.

  3. 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. Document the review 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. At the beginning of the fiscal year, group managers will develop a review schedule for the group that includes all mandatory reviews. See IRM 1.4.50.2.2(5), consultations and other optional reviews. Optional reviews may include additional office or field visitations, time and workload reviews, etc. The review schedule should provide for a fair and accurate assessment of the employee's overall performance throughout the rating period.

  5. Mandatory reviews represent the minimum review requirements that must be completed for each employee. It is intended that the minimum requirements will provide managers with the an opportunity to spend more time reviewing and developing revenue officers that need additional feedback and assistance.
    Mandatory reviews include:

    1. One or more annual field visitations or office observations with each revenue officer..

    2. One or more time utilization reviews with each revenue officer.

    3. Mid-Year appraisals/reviews. The mid-year appraisal should occur at the mid-point (six-months) of the employee's appraisal period.

    4. Annual case reviews. (See IRM 1.4.50.2.2.2)).

  6. When necessary based on case reviews, other forms of review, the consultation process, field or office observation, etc., you have the authority to require your employee to obtain your approval before taking subsequent case actions.

    Example: Employees who inappropriately extend deadlines or delay case actions can be required to obtain your approval of their extensions in the future so as not to delay timely case resolution. The ICS Calendar is an excellent tool that can assist the GM and RO when Workload Management issues are found.

  7. Group managers will continually review information gathering activities by their employees. See IRM 5.1.3.7.1, Information Gathering Guidelines for additional guidance

  8. For additional guidance on preparing reviews, narratives and appraisals see IRM Exhibit 1.4.50-7.

    Note:

    Operational review aids for Territory Managers and Area Directors are presented in Exhibits 1.4.50-8 and 1.4.50-9.

1.4.50.2.2.1  (12-16-2011)
Case Reviews

  1. Choose a sufficient number of cases for review to ensure a thorough evaluation of each employee’s performance. Scheduling of the analysis may be announced or unannounced at the option of local management.

  2. Ensure case selection contains a mix of cases representative of the Revenue Officers assigned inventory. At a minimum, fifty percent of cases selected for review will be consistent with current priorities in the business plan. In addition to pyramiders, consider in-business trust fund, CSED/ASED, large dollar, cases with FPLP indicators, and no activity cases. Emphasize cases in these categories on which there have been ten or more touches and cases that have been assigned for more than 120 calendar days. When reviewing BMF cases, the appropriateness of Letter 903 actions and timeliness of TFRP activity should be considered.

  3. Use the Embedded Quality Review System (EQRS) for individual case reviews. The review items on the EQRS Individual Feedback Report correspond with the performance standards of a revenue officer’s critical job elements. In general, deficiencies relating to a critical job element should be noted as an area of special concern if found in 25 percent or more of the cases reviewed. There may be instances where a single deficiency (e.g., expired statute) is critical. The attribute narrative should summarize the revenue officer’s performance for each individual case reviewed.

  4. You must also summarize the employee's overall performance on all cases reviewed, including the results of time utilization reviews, field/office visitations, etc., as part of your mid-year and/or annual performance assessment. Narrative feedback should address positive as well as negative aspects of an employee's performance (See IRM Exhibit 1.4.50–7).

  5. As part of the case review, prepare the EQRS Individual Feedback Report in duplicate and include all applicable case data. Both you and the revenue officer must sign it. Give the original Individual Feedback Report to the revenue officer for action on case recommendations. Retain the duplicate in the employee's performance file (EPF) for follow-up. Discuss all recommended actions entered on the Individual Feedback Report with the revenue officer to ensure that there is a complete understanding regarding your observations and direction. Written performance feedback (Individual Feedback Report, 6067, memorandum, etc.,) must be provided to the employee within 15 work days. The 15 day time frame starts from the time the supervisor becomes aware of, or should have been aware of, the event addressed in the recordation/feedback item.

  6. Use the ICS History pick list to note "Case Reviewed" and the date of the review in the case history. Although you may suggest or request specific actions in the case history, you should avoid making numerous case decisions for the revenue officer. Documentation of an evaluative nature should not be entered in the case history

  7. As part of any case review, the manager must determine if the assigned grade level is still accurate. See IRM 1.4.50.2.1.2, Case Grade.

1.4.50.2.2.2  (12-16-2011)
Requirements for Annual Performance Case Reviews

  1. For revenue officers GS-09 and below and all revenue officers rated less than fully successful, select a minimum of twelve (12) cases per year for review that meet the criteria in IRM 1.4.50.2.2.1. Review at least half of the cases prior to the mid-year progress review.

  2. For revenue officers GS-11 and above that are rated fully successful or higher, select a minimum of eight (8) cases per year for review that meet the criteria in IRM 1.4.50.2.2.1. Review at least half of the cases prior to the mid- year progress review.

  3. Use EQRS attributes, case summary narratives and performance summaries for all reviews conducted during the rating period to create performance feedback. Feedback must indicate to the employee how they are meeting or not meeting the EQRS attributes and aspects of the critical job elements.

  4. If you have directed specific case actions, a follow-up review should be scheduled 60-90 days after the initial review to ensure your instructions are being followed and the case is moving toward resolution. The follow-up review will generally be limited to the cases in which a follow-up review has been scheduled unless you need to see other cases to document a performance trend. Using EQRS, prepare a narrative conveying the results of the follow-up review.

  5. Provide the employee with the narrative within 15 work days of the follow-up and place a copy of the document in the Employee's Performance Folder.

  6. The mandatory field/office visitation and time utilization reviews mentioned in IRM 1.4.50.2.2.3, Field and Office Observations, and IRM 1.4.50.2.2.4, Time Utilization Review are in addition to the minimum case review requirement.

1.4.50.2.2.3  (12-16-2011)
Field and Office Observations

  1. Observing the revenue officer during face-to-face contacts, either in the field or office, provides an excellent opportunity for you to assess his/her:

    1. Ability to conduct interviews

    2. Ability to communicate and interact with taxpayers

    3. Knowledge of policies and procedures

    4. Ability to deliver fair and courteous treatment to all taxpayers


  2. Conduct one or more annual field visitations or office observations with each revenue officer. When possible, conduct the field/office observation during the initial contact with the taxpayer.

  3. During your observations evaluate the revenue officer for:

    1. Ability to secure material information necessary to determine appropriate case direction

    2. Delivery of fair and courteous treatment of taxpayers

    3. Ability to address the various rights of the taxpayer (Pub. 1, Pub. 594, IRC 6320 and 6330, Collection Appeals Program)

    4. Ability to recognize and respond to taxpayer concerns, issues and interests

    5. Pre-contact preparation

    6. Itinerary planning

    7. Effective use of time

    8. Ability to manage difficult, unexpected, complex or unusual circumstances

    9. Ability to appropriately recognize and address third party contact situations

    10. Observation of proper disclosure requirements

  4. Provide feedback based on all of your observations using a summary narrative, such as a memorandum.

1.4.50.2.2.4  (12-16-2011)
Time Utilization Review

  1. Conduct one or more Time Utilization Review annually with each revenue officer. Use the Time Utilization Review to measure the overall effectiveness of the RO's office, field, and/or flexiplace work. Make observations regarding work quality as appropriate, but the purpose of this review is to evaluate employee performance in effective use of time and accuracy of documentation.

  2. Conduct the Time Utilization Review within fifteen (15) workdays of the day selected.

  3. Time Utilization Reviews should be unannounced. Document the review and include a cover narrative to summarize your observations.

  4. Documents should be shared with the RO and maintained as part of the EPF to be used in preparation of the Mid-Year/Annual Appraisal.

1.4.50.2.2.5  (12-16-2011)
Work Submitted for Approval or Closure

  1. When work is submitted to you for approval, you have an opportunity to evaluate your employees' performance. This also enables you to prevent deficiencies. Check for accuracy and level of quality before approving reports of currently not collectible taxes, installment agreements, requests for adjustment, seizure documents, TFRP investigations and recommendations, fraud referrals, and any other document prior to submission to another function. The quality of the work that leaves your group is a reflection on you as a group manager.

  2. Closed cases also provide an opportunity to evaluate individual performance as well as the overall quality of your group's product.

  3. When reviewing cases submitted for approval or closure, look for performance that reflects an employee's adherence to IRM standards as well as other established policies and procedures. Should you choose to use a closed case review for performance recordation, use EQRS and provide a copy of the Individual Feedback Report to the employee and file a copy in their EPF.

  4. For specific items to check while reviewing work submitted for approval, refer to Exhibit 1.4.50-2.

1.4.50.2.2.6  (12-16-2011)
Consultation Process

  1. The Consultation Process is designed to facilitate managerial engagement and knowledge sharing in an informal setting. The process is focused on Business Priority cases not being actively reviewed for performance evaluation. There is no prescribed number of business priority cases for which consultations must be conducted. Each GM may select and consult on a subset of cases which have been deemed business priority. Consider consulting on all cases designated as Fed Cntrctr (Federal Contractor) to ensure those cases are developed per the guidelines in IRM 5.7.9,Federal Contractors. At the beginning of each year, GMs should confer with their TM to develop a consultation plan for the group. The plan should include a determination of the type and frequency of consultations planned for each RO. Monthly consultations are expected for most ROs; however, less frequent consultations may be appropriate for seasoned employees who need little oversight. Consultations should occur at least quarterly to give adequate attention to all ROs.

  2. Business Priority cases in the Collection Consultation process contain one or more of the following indicators:

    • CSED

    • ASED

    • FTD Alerts over 45 days

    • Lapses in activity of greater than 60 days

    • No initial contact within prescribed time frames

    • Pyramiding since RO assignment

    • Federal contractor cases

    • Certain employment tax cases with no record of NFTL filing

    • Any case designated by the GM as a Business Priority

  3. Unlike case reviews, which focus on the quality of the revenue officer's casework as evidenced by case documentation, the consultation process focuses on quality through discussion and interaction between the manager and the revenue officer. Active listening is critical to this process to ensure appropriate issues are raised, proper actions and resolutions are identified and necessary skills are transferred.

  4. The Consultation Process is designed to ensure that cases move as efficiently as possible. Consultations emphasize timely contacts and actions that facilitate appropriate case resolutions. See collection consultation resources at the following link: http://icsweb.web.irs.gov/Docs/HTML/user_guide.htm#cc

  5. The process requires discussions on cases in each revenue officer's inventory to determine:

    1. The Proposed Actions (from consultation pick list)

    2. The Planned Completion Date - the date the Proposed Actions are planned to be completed

    3. The Plan of Action that will resolve the case or move the case toward resolution

    4. The presence of complex issues and possible resolution of these issues

    5. The timeliness of contacts

    6. The proposed case resolution and closing date

  6. As noted above, the actual discussion of case issues is critical to the consultation process. Documentation requirements are minimal but should include the following:

    1. At least one Proposed Action from the consultation pick list.

    2. A Planned Completion Date - this is the intended date for the Proposed Action(s). The Planned Completion Date should be set prior to the reminder date for the next consultation to ensure that the actions have been completed and the results can be discussed on the next reminder date.

    3. A plan of action that includes specific actions that will be taken to move the case toward resolution, target dates, plus comments in the narrative section that identify how (FP, CNC, IA, etc.) and when the RO plans to close the case . The narrative section should not be limited to a summary of actions that have been taken but rather should describe a plan that includes actions needed to resolve the case.

    4. The date for the next consultation. The group manager and revenue officer should determine the amount of time that will be needed to complete the Proposed Actions and other case actions necessary to move the case forward and set the next reminder date accordingly.

    Within 24 hours of completion of the case consultation, you should ensure the CC reminder is updated. This will make an electronic copy of the comments available to the revenue officer to ensure they have a clear understanding of their future actions.

  7. Cases that are being actively reviewed for evaluative purposes in compliance with other sections of this handbook should not be included in the consultation process. Cases that are reviewed (evaluative) via EQRS and for which you have scheduled a follow up review, will be systemically removed from the CC process. When all scheduled follow up reviews have been completed, the case will be systemically returned to the CC process after 30 days. Cases which have been reviewed (evaluative) via EQRS and for which a follow up review has not been scheduled will be removed from the CC process for 60 days from the date of the EQRS review.

    Note:

    The manager must enter a "Shared With Employee " date in the EQRS case review for the case to be removed from the CC process.

  8. There are several other situations in which cases and/or revenue officers are not to be included in the consultation process:

    1. Cases assigned to a probationary revenue officer because the employee has an OJI and a prescribed review process during the first year

    2. Cases assigned to a revenue officer who has been determined to be less than fully successful. Under this circumstance, cases are to be subject to full case reviews and consideration given to contacting Labor Relations for additional guidance and actions.

      Note:

      Managers should review the ICS User Guide, Chapter 31, for information about excluding an employee in this context.

    3. Cases assigned to non-field revenue officers. For example, a revenue officer assigned to Insolvency.

    4. Cases assigned to revenue representatives and similar positions.

    5. ATAT CIPs until such time as there are TDA, TDI, Combo or FTD Alert issuances on the taxpayer.

  9. Case history and/or case files should be available for reference and discussion, if warranted, during the consultation process. This may prove to be very helpful when consulting with revenue officers who are newly assigned to a group, weak in determining effective case actions, etc. To be most effective, a face-to-face consultation is preferred, but there may be situations in which consultations are completed via telephone.

  10. Consultation documentation does not meet requirements for evaluative documentation. However, it is not inconceivable that a consultation discussion will give rise to questions concerning a revenue officer's performance. In those situations, it would be appropriate to discontinue the consultation discussion and move the case(s) with questions regarding the revenue officers performance to the formal review process.

    Note:

    The consultation process is an effective tool for prompting one on one case discussions with revenue officers, providing guidance and identifying training issues. Cases which you have included in an evaluative review (EQRS Individual Feedback Report) and have scheduled a follow-up review on EQRS are automatically removed from the Collection Consultation process. Cases in which you have completed an evaluative review (EQRS Individual Feedback Report) and have not scheduled a follow-up on EQRS will remain in the Collection Consultation process. It will not be uncommon for cases to move back and forth between EQRS and the Collection Consultation process.

1.4.50.2.2.7  (12-16-2011)
Physical Security Compliance Reviews

  1. Consider completing a Physical Security Compliance Review at least once a year. The requirements for such a review can be found in IRM 10.2.2, Physical Security Compliance Reviews.

1.4.50.2.3  (01-01-2004)
Revenue Officer Case Documentation

  1. Specific guidance for revenue officer case documentation is provided in various sections of Part 5 and summarized in Exhibit 1.4.50-4.

  2. Clear accurate, and complete documentation is extremely important. 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.

1.4.50.3  (01-01-2004)
Protecting Taxpayer Rights

  1. A primary responsibility of managers is to monitor employee practices and actions to ensure that taxpayer rights are always observed.

  2. Taxpayer rights include but are not limited to the following:

    1. Right to privacy

    2. Right to due process

    3. Fair and courteous treatment

    4. Proper notification of third party contacts

    5. Protection from unauthorized disclosure

  3. Section 1203 of the Internal Revenue Service Restructuring and Reform Act of 1998 (RRA ‘98) calls for the termination of any employee of the Internal Revenue Service if there is a final administrative or judicial determination that the employee willfully committed any act or omission described below:

    1. Failing to obtain required approval signatures when making a seizure

    2. Providing a sworn false statement in a "material matter" concerning a taxpayer

    3. Violating the constitutional rights of or discriminating against taxpayers or employees

    4. Falsifying or destroying documents to cover a mistake concerning a taxpayer

    5. Receiving a criminal conviction or civil judgment for assault or battery on a taxpayer or employee

    6. Violating the Internal Revenue Code, IRS regulations or policies to retaliate against or harass taxpayers or employees

    7. Misusing Internal Revenue Code section 6103 to conceal information from Congressional inquiry

    8. Failing to file a federal tax return on or before its due date, unless it is due to reasonable cause

    9. Understating federal tax liability, unless it is due to reasonable cause

    10. Threatening an audit for personal gain

1.4.50.4  (12-16-2011)
Use of Statistical Data

  1. IRM 1.5.2, Managing Statistics In a Balanced Measurement System, provides guidance to prevent the use of statistics to:

    1. Evaluate employees, or

    2. Impose or suggest production quotas or goals with respect to such employees

  2. You are prohibited from using records of tax enforcement results (ROTERs) to evaluate any employee who exercises judgment with regard to determining tax liability or ability to pay. ROTERs are data, statistics, compilations of information or other numerical or quantitative recordations of the tax enforcement results reached in one or more cases, but do not include tax enforcement results of individual cases when used to determine whether an employee exercised appropriate judgment in pursuing enforcement of the tax laws based upon a review of the employee’s work on that individual case. This prohibition includes:

    • Self-assessments

    • Awards narratives

    • Case/workload reviews

    • Performance plans

    • Narrative feedback to evaluations

  3. You are also prohibited from using ROTERs to impose or suggest production goals or quotas for employees or groups of employees. Examples of prohibited ROTERs include

    • Number of delinquent returns secured

    • Number of delinquent returns secured with full payment

    • Full payment rate

    • Number of seizures made

    • Number of levies issued

    • Number of OICs recommended for acceptance

    • Number of accounts reported currently not collectible

  4. For more specific information see IRM 1.5.1, The IRS Balanced Measurement System: A New Approach to Measuring Organizational Performance, IRM 1.5.2, Managing Statistics in a Balanced Measurement System, The IRS Balanced Performance Measurement System. and IRM 1.5.2, Uses of Section 1204 Statistics.

1.4.50.5  (01-01-2004)
General Managerial Responsibilities

  1. Managers are responsible for ensuring that proper security measures are taken to protect taxpayer privacy and to ensure that any customer comments/complaints are properly recorded and addressed.

1.4.50.5.1  (08-01-2006)
IDRS Security

  1. IDRS security briefings are included in the mandatory Annual On-Line Briefings. IDRS security should also be reinforced through discussions at group/unit meetings.

  2. Employees should be reminded to complete Form 11377 (Taxpayer Data Access) if an account is inadvertently accessed or otherwise applicable.

1.4.50.5.2  (01-01-2004)
Fair Debt Collection Practices

  1. Internal Revenue Code § 6304, Fair Tax Collection Practices, imposes certain restrictions with respect to tax collection. During a case review or upon receiving a complaint from a taxpayer, you may identify a potential violation of those restrictions. Potential employee violations of the Fair Debt Collection Practices Act (FDCPA) (see IRM 5.1.10.2, Fair Tax Collection Practices) must be reported to the local Labor Relations Specialist by the close of the next business day following notification of the alleged violation.

  2. To ensure collected data is complete and accurate, use the following FDCPA issue codes when reporting the potential violation. Labor Relations uses these codes for tracking on the Automated Labor and Employee Relations Tracking System (ALERTS).

      Issue code Issue
    • 141 Fair Tax Collection Unusual Contact with Taxpayer
    • 142 Direct Contact with Taxpayer without Representative or Taxpayer Consent
    • 143 Contact At Taxpayer Employment without Consent
    • 144 Harassment/Abuse Use/Threat of Use
    • 145 Use of Obscene or Profane Language to Abuse
    • 146 Continuous Telephone Calls with Intent to Harass
    • 147 Telephone Calls to Taxpayer without Meaningful Disclosure of Identity

1.4.50.5.3  (01-01-2004)
Other Managerial Responsibilities

  1. Managerial responsibilities include:

    1. Developing employees

    2. Evaluating employee performance and providing counseling

    3. Addressing employee conduct issues

    4. Fostering good working relationships

    5. Defining goals and course of action

    6. Assigning and directing work

    7. Instructing employees in the application of procedures and guidelines

    8. Displaying integrity in all actions

1.4.50.5.4  (01-01-2004)
Administrative

  1. Group Managers are responsible for performing certain administrative functions for their employees including but not limited to:

    1. Maintaining time and attendance records

    2. Certifying overtime records

    3. Approving scheduled and unscheduled leave

    4. Controlling and approving travel

    5. Maintaining safe working conditions

    6. Holding group meetings

    7. Keeping employees current on all applicable policies and procedures

  2. For additional information, see IRM 1.4.1.3, Administrative Responsibilities.

1.4.50.5.5  (01-01-2004)
Working with NTEU

  1. Group Managers who supervise bargaining unit (BU) employees must:

    1. Notify the requisite chapter regarding 7114 meetings when you plan to discuss changes in personnel policies, practices and working conditions with your employees

    2. Make sure employees have the opportunity to be represented at formal discussions regarding employee grievances (see IRM 6.771.1 and IRS/NTEU National Agreement), other personnel matters, and conduct issues.

  2. For additional information, see IRM 1.4.1.5, Agreements with NTEU or contact the local Labor Relations Specialist.

1.4.50.5.6  (05-12-2009)
Employee Development and Training

  1. Group Manager roles and responsibilities in the area of employee development and training include but are not limited to:

    1. Orienting new employees

    2. Training new employees (formal and on-the-job)

    3. Training and developing other employees including professional/technical and clerical staff

    4. Assisting and advising employees preparing a Career Learning Plan (CLP)

    5. Delegating acting managerial assignments

    6. Continuing education for employees to maintain and update knowledge and proficiency in technical areas

    7. Providing opportunities such as details to facilitate career development

    8. Ensuring employees have a working knowledge of tools to perform their duties, (e.g., ICS, ATFR, ALS, etc.)

  2. For additional information, see IRM 1.4.1.7, Employee Development .

  3. Group Managers can also find information at the Human Capital Office web site http://hco.web.irs.gov which includes information on,

    • Servicewide Training and Briefing Programs

    • Policy and Procedural Guidance

    • Other related training resource sites, IRS Learning Center etc.

  4. For your BU employees, also see the IRS/NTEU National Agreement, Articles 7, 12, 16, and 30 or contact the local Human Resources Specialist.

1.4.50.5.7  (12-16-2011)
Performance Evaluations

  1. Preparing performance evaluations is one of your most important responsibilities. In carrying out this duty, you will observe how the employees are performing their duties and responsibilities to ensure that they are working efficiently and effectively to accomplish assigned tasks.

  2. Because you are responsible for implementing the policies and directives relative to performance evaluations, you should thoroughly familiarize yourself with all facets of performance appraisal/evaluation information such as:

    1. Performance expectations

    2. Mid-year and periodic performance reviews

    3. Annual ratings

    4. Acceptable level of competence

    5. Unacceptable performance

    6. Competitive promotion appraisals

    7. Employee performance folders (EPF)

    8. Performance and recognition awards

  3. A formal performance evaluation serves:

    1. As a record of performance to support, recommend and initiate actions such as within-grade increases, promotions, award recommendations, reassignments, details and adverse actions such as demotion or separation

    2. To provide an employee with a basis for additional training and development

    3. As a tool to improve the performance of individual employees

  4. For employees new to the government, the first year of employment is a probationary period during which the employee must demonstrate successful performance and the capability to be promoted to the next grade level (if applicable). If the employee fails to perform their duties and responsibilities, they should be separated.

  5. Documentation of Performance

    1. Providing feedback to the employee (positive and negative) is essential to maintaining and/or improving their performance

    2. Keep an employee's overall performance in mind when you discuss work and other activities. Let them know when some aspect of performance may influence their performance rating, a promotional opportunity or other personnel action.

    3. Recordation serves as a snapshot of employee performance. Adequate documentation will remind you of changes in performance over the rating period.

  6. Performance evaluations provide a uniform means for a written evaluation and rating of each employee's proficiency. IRM 1.5, Managing Statistics in a Balanced Measurement System, describes how balanced measures are used to support individual as well as organizational performance. IRM 1.5.2, Uses of Section 1204 Statistics provides specific guidance for SB/SE use of measures. This IRM, having the effect of law, provides the necessary information regarding the prohibition on the use of records of tax enforcement results (ROTERs) to evaluate employees or to impose or suggest production quotas or goals.

  7. The three balanced measures are : Employee Satisfaction, Customer Satisfaction and Business Results. These three balanced measures are part of every individual and organizational performance evaluation system within IRS.

  8. Formal employee evaluations represent the sum of what you have observed in each employee's work, using feedback, reviews, visitations and other techniques discussed in this manual.

  9. Each employee will receive an annual performance evaluation. The annual performance evaluation will be issued on a monthly basis for those employees who were due annual ratings of record at the end of the prior calendar month. See National Agreement, Article 12, Exhibit 12-1.

  10. Employees may submit a self-assessment limited to two (2) pages in length no later than the last workday of his or her annual appraisal rating period.

  11. Use only the work requirements of the particular position or specific work standards established by the Service to make Acceptable Level of Competence Determinations.

  12. An employee shall be advanced in pay to the next higher step of their grade upon meeting the following requirements:

    1. Required waiting period completed

    2. No equivalent increase in pay received during the required waiting period

    3. Fully successful performance in each of the critical job elements of their position

  13. For information on steps to follow when an employee is not meeting an acceptable level of competence, see Exhibit 1.4.50-5.

  14. For information on the suggested steps to make unacceptable performance determinations, see Exhibit 1.4.50-6.

  15. For additional information on any of the above, see the following:

    1. IRM 1.4.1, Resource Guide for Managers, Management Roles and Responsibilities.

    2. Human Capital Office web site http://hco.web.irs.gov. At this web site you will find the CJE Resource Center, Manager Guide for Employee Performance, Performance Awards information, forms etc.

    3. IRS/NTEU National Agreement, Articles 7, 12, 17, 18 and 40

    4. IRM 6.451, Employee Performance and Utilization - Awards and Recognition

    5. IRM 6.432, Reduction in Grade and Removal Based on Unacceptable Performance

    6. Other portions of IRM, Part 6, Human Resources Management

    7. The local Labor Relations specialist

1.4.50.5.8  (01-01-2004)
Recognitions 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 is found on the Strategic Human Resources web site as indicated above as well as:

    1. IRM 6.451.1, Awards and Recognition, Policies, Authorities, Categories and Approvals

    2. IRS/NTEU National Agreement, Article 18

    3. The local Human Resources Specialist

1.4.50.5.9  (05-12-2009)
Employee Performance File (EPF)

  1. An EPF is required for each of your employees.

  2. You are responsible for assuring the effective use of the EPF by:

    1. Establishing and maintaining an EPF for every employee

    2. Ensuring that filing and purging of performance related documents and records are in compliance with requirements (see (5) below)

    3. Keeping all performance records and documents secured

    4. Forwarding EPF records of employees transferring to other Treasury Bureaus or to a different post of duty or manager within the Service.

  3. Recordation is defined as a manager's written record evaluating an employee in a positive or negative manner. For BU employees, recordation must be furnished to an employee within fifteen (15) workdays of the time the manager becomes aware, or should have been aware of the event that it addresses. If it is not furnished within fifteen (15) workdays, it cannot become part of the EPF. Documentation on ICS regarding the monthly Consultation Process does not qualify as a performance recordation and is not to be included in revenue officers’ EPF folders or used for evaluative purposes.

  4. The EPF is maintained in addition to and separate from the Employee Drop File. The Employee Drop File is for other documentation not related to performance.

  5. For additional information regarding the specific items to be placed in the EPF and the retention period, you can refer to:

    1. Human Capital Office web site at: http://hco.web.irs.gov

    2. IRS/NTEU National Agreement, Article 12

    3. The local Labor Relations Specialist

1.4.50.5.10  (01-01-2004)
Discipline and Disciplinary Actions

  1. Discipline is defined as adherence by all employees to known conditions and standards of conduct established to provide the orderly and efficient administration of the Internal Revenue Service.

  2. Employees who fail to comply with standards of conduct, work procedures and office practices will be subject to disciplinary action designed to correct the violation and motivate the employee to become a productive member of the Internal Revenue Service.

  3. You are responsible for establishing and maintaining effective discipline within your work group. You must explain the work requirements and other standards your employees are expected to meet.

  4. You have a continuing responsibility to assure that proper discipline exists, and to keep employees informed of acceptable work performance and conduct requirements.

  5. When disciplinary action is required, it must be fair, equitable, impartial and as timely as possible.

  6. For further information, contact your local Labor Relations Specialist.

  7. You may also refer to IRM 6.751, Discipline and Disciplinary Actions and IRM 6.752, Disciplinary Suspensions and Adverse Actions. A guide to assist you in determining appropriate penalties to correct improper conduct can be found in Exhibit 6.751.1-1.

  8. Information is also available from the IRS/NTEU National Agreement, Articles 38 and 39.

1.4.50.5.11  (05-12-2009)
Interaction With Employees on Flexiplace

  1. Flexiplace is a program that permits your employees to work at home or at other approved locations other than the assigned post of duty.

  2. There are two (2) forms of flexiplace:

    1. Occupational

    2. Situational/Hourly

  3. Your official relationship with, authority over, and accountability for an employee participating in the Service's Flexiplace Program is no different than that for employees who are not participating in the program.

  4. Your responsibilities include:

    1. Meeting with your employees at least once a year for the purpose of discussing, reviewing and updating the Flexiplace Agreement

    2. Directing flexiplace employees to report to the office due to special circumstances

    3. Meeting with employees to give assignments and review their work as necessary at the official duty station, approved work site that includes their home, or mutually agreed upon site

    4. Inspecting the employee's work site with twenty four (24) hours notice to ensure that Information Systems and sensitive information procedures are in place

  5. For an employee to remain on the flexiplace program, they must:

    1. Remain "Fully Successful" or above

    2. Not be subject to a conduct investigation in which management has sufficient evidence of serious wrongdoing that would impact the integrity and efficiency of the Service

    3. Continue to stay in compliance with Article 50, Section 2 of the National Agreement

  6. If any of the above circumstances do not apply, the employee may be suspended from flexiplace pending resolution of the performance and/or conduct investigation situations.

  7. For further information, contact the local Labor Relations Specialist. You can also refer to IRS/NTEU National Agreement, Article 50.

1.4.50.5.11.1  (05-12-2009)
Managing in a Flexiplace Environment

  1. Managing an employee participating in Flexiplace is essentially no different than managing an employee in the office. Ensure that your actions are in compliance with any applicable Local Flexiplace Agreement (if one exists) as well as the National Agreement. The employee on Flexiplace is still held accountable for the Rules of Conduct, Critical Job Elements, Time and Attendance, Ethics and all other regulations applicable to their position.

  2. When reviewing a revenue officer’s work, you must take into account their participation in Flexiplace. If you determine the employee's work appears to be degrading from "Fully Successful" or is below a "Fully Successful" rating, you should review Article 50 Section 2 of the National Agreement to determine whether the employee's continuation on Flexiplace is appropriate. This occurs when any Critical Job Element (CJE) rating equals "2" or below. Ensure that your reasons for removal are well documented. This documentation may include and is not limited to EQRS Individual and/or Cumulative Feedback Reports, Form 6850 or memoranda. You must ensure that the employee is aware of the situation and you should then monitor their work product closely and develop a plan for improving that employee’s work, just as you would for an employee not on Flexiplace. There is no prohibition per the National Agreement on any type of performance review following a period in which an employee has worked at their Flexiplace site. Reviews may include "Time Utilization" , "Time and Activity" , or other performance based review. Ensure this also conforms with any applicable local Area agreement as well. The types and amount of time expended on Flexiplace should be comparable to time in the office. For example, there should not be increased amounts of administrative or miscellaneous time, or increased time charged to cases with minimal actions taken.

  3. You should ensure that revenue officers are responsive to all customers. They must check voice mail and e-mail (when accessible) to ensure external as well as internal customers (including managers) receive responses timely. It is appropriate for an employee to check their VMS and e-mail prior to going to lunch and some time prior to ending their day. Employees supplied with pagers and cell phones should be expected to be more responsive. The group manager has the right to direct a Flexiplace employee to report to the office when necessary. For example, when having meetings, which include group meetings, case reviews, the Consultation Process, training, etc. This should be planned so that the employee has ample time to report to the office during their regular commute time. When an employee plans or decides to make field calls during a Flexiplace day the manager should be informed. This is referenced under Section 5A-2 of the National Agreement.

  4. Article 50 of the National Agreement addresses Flexiplace issues. Sections pertinent to the management of employees in a Flexiplace environment are listed below:

    1. A supervisor’s official relationship with, authority over, and accountability for an employee participating in the Service’s Flexiplace Program (on an occupational or situational/hourly basis) is no different than his or her relationship with, authority over, and accountability for employees who are not participating in said program. In this regard, the supervisor retains the authority to review, determine, and approve participation in this program. (Section 1A)

    2. Revenue officers may participate in a "situational/hourly" Flexiplace Program. This allows the revenue officer on a case-by-case or daily basis to work at a Flexiplace location, subject to approval by their supervisor. (Section 2F-1)

    3. Revenue Officers may work up to 80 hours per month on Flexiplace if they have elected to participate in the Situational/Hourly Flexiplace. (Section 1B)

    4. Participants may be permitted to work at home or other Flexiplace work sites full days or a portion of a day. Unless as otherwise provided by this article, there is no limitation on how the work schedule may be configured as long as the scheduling is not disruptive to the work that remains in the office or cause an unreasonable burden on those who choose not to work a Flexiplace arrangement. (Section 1C)

    5. Management has the right to meet with employees to give assignments and to review work as necessary at either the official duty station, approved Flexiplace location, or a mutually agreed upon site. (Section 4C) This does not mean that 24 hour notification or union presence is required, but 24-hour notification is suggested.

    6. Employees must provide the supervisor and/or clerk in advance with all the specific information regarding their work schedule, type of work to be performed and location of the alternate work place. This includes the obligation to inform the supervisor when they are unable to perform work due to illness or other circumstances during the Flexiplace TOD and requesting appropriate leave. (Section 5A-1)

    7. Employees must call the office to report time, to retrieve messages, and to notify the supervisor and/or clerk of changes in work locations. (Section 5A-2)

    8. In order to ensure accountability a participating employee and his/her supervisor must communicate at least one time during each pay period to verify the employee’s time and attendance. (Section 6F) In addition to this, the manager should ensure that the revenue officer will EOD, uploading all time and activity at least once per week.

1.4.50.5.12  (12-16-2011)
Direct Contact With Taxpayers With/Or Requesting Representation

  1. Ensure that your group is in conformance with IRC 7521, Procedures Involving Taxpayer Interviews. Specifically, your employees are required to:

    1. Stop the interview with a taxpayer (unless required by court order) whenever a taxpayer requests to consult with a representative (e.g. accountant, attorney or enrolled agent, who is permitted to represent taxpayers before the IRS).

    2. Obtain your approval to contact the taxpayer instead of the representative, if the representative is responsible for unreasonably delaying the completion of a collection action.See IRM 5.1.23.2.3, Bypassing a Taxpayer's Representative.

  2. Examples of steps you can take to ensure compliance by your employees are:

    • Group meetings

    • Case reviews

    • Workload reviews

    • Field visitations

    • Office visitations

    • Taxpayer/representative inquires (if necessary)

  3. A taxpayer or representative may request to use audio or video equipment to record an in-person interview. See IRM 5.1.12.4, Taxpayer Requests to Record an In-Person Interview, for information on responding to such requests. The right to make an audio recording does not extend to telephone interviews.

1.4.50.5.13  (08-01-2006)
Territory Manager Operational Aid

  1. See Exhibit 1.4.50–8, Territory Manager Operational Aid

1.4.50.5.14  (08-01-2006)
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 TDA and TDIs" . IDRS sums the Resources and Workload Management System (RWMS) scores for all TDAs on the taxpayer plus the 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 (OI) and Offers in Compromise (OIC) 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 decedents 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 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., no LLC).
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?
      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 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, correct closing code, and request for input of TC 130.
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
    (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 inIRM 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 5.16.1.2.10(2),International, is a passport check indicated?
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(6), has research been conducted same as in case of unable to locate?
    (c) Has lien been filed?
    (d) Has all pertinent information been documented in history?
    (e) Have third party contacts been recorded?
    (f) If UBA exceeds amount in IRM 5.16.1.2.10(2), International, is a passport check indicated?
  (2) Check Form 53 for accuracy, completeness, correct closing code, and request for input of TC 130.
D. Defunct Corporations, Exempt Organizations, Limited Partnerships, and Limited Liability Companies
  (1) Has Trust Fund Recovery Penalty been considered?
  (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 vehicles 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?
  (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 in-business corporation, in addition to items 1 through 3 above,
    (a) Is corporation in compliance?
    (b) Have Trust Fund Compliance Program procedures including issuance of Letter 903 been considered? See IRM 5.7.2, Monthly Filing and Special Deposits.
    (c) Does Form 53 have a mandatory follow-up scheduled in 18 to 24 months?
    (d) Have third party contacts been recorded?
    (e) Have taxpayer rights been documented
• for corporation?
• for potentially responsible individuals?
    (f) Has the TFRP investigation been completed?
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 also 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) Refund Statute Expiration Date (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?
  (6) Does the agreement provide for full payment prior to the CSED? If not, has it been identified as a Partial Pay Installment Agreement (PPIA)?
  (7) Have TC 971 AC 43 and AC 63 been input when appropriate?
  (8) Have prior IA proposals been sent to the Independent Reviewer prior to rejection?
  (9) Has a lien been filed if appropriate?
  (10) Has the correct ICS closing method been selected? Example, 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, Monthly Filing and Special Deposits.
  (2) If corporation, has Trust Fund Recovery Penalty been considered?
    (a) Should assessment be made to have an additional means of collection available?
    (b) 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 e-mailed 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 e-mailed 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) Are copies of all returns present?
    (e) Are copies of bank records present?

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) 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
ACTIONS REQUIRED PRIOR TO SEIZURE IRM REFERENCE
No prohibited seizure proposed 5.10.1.2
Liability verified 5.10.1.3.1
Alternatives considered/Risk Analysis 5.10.1.3.2
Net proceeds determination 5.10.1.3.3
Records check <30 days before approval 5.10.1.3.3.(12)
Individual Taxpayer - Exempt Assets Considered 5.10.1.3.3.3(2)
Individual Taxpayer - Business Assets/Other assets were considered 5.10.1.3.3.3(3)
NFTL filed on all modules shown on 668-B; Letter 3174 sent if appropriate 5.10.1.7.1
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 5.10.1.7
Pub 1, 1660, 594 delivered 5.10.1.7
PALS contacted to discuss FMV, expenses of sale 5.10.1.3.3(3) and 5.10.1.3.3.1(2)
Attempt made to personally advise taxpayer of proposed seizure/911/TAS/GM 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
  (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.
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
5.1.9.3.8 CDP Fast Track Mediation
5.1.9.3.3 Processing Requests for Collection Due Process and Equivalent Hearing
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
5.1.10.3.2 Effective Initial Contact
5.1.10.7 Case Histories
5.1.11.2.3 Full Compliance Check
5.1.11.6.1 Enforcement for a Return
5.1.11.7 Del Ret Closures
5.1.17.3.1(2) d Advanced 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
5.7.1.4(2) Receipts of FTD Alerts
5.7.2.1(4) Letter 903
5.7.2.1.1(4) Revenue Officer Follow-up- after Letter 903 Issuance
5.7.2.4 Processing of Bal Due Cases
5.7.4.2.1(1) Form 4180
5.7.4.2.4(3) Evidence That May Support Recommendations
5.7.4.5(6) Form 4183 Penalty Assessment Recommendations
5.7.8.4 Working Repeater and Pyramiding Trust Fund Taxpayers
5.10.1.3.1(2) Verifying the Liability
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
5.10.2.17 Securing Managerial Approval of Seizure Action
5.10.3.6.4(3) Seizures Involving Computer Equipment
5.10.3.20 Property that is Tampered With, Rescued, or Stolen
5.10.3.21 Transfer of Custody to PALS
5.11.1.2.2.7(2)a Timeliness of Notice
5.11.1.3.7(1) Repeated Levies on the Same Source
5.14.1.3 Identifying Pending and Approved Installment Agreements on IDRS
5.14.2.1.3 Collection Statute Expiration Date (CSED): Law, Policy and Procedures: Group Managers Approve Form 900 Waivers
5.14.3. Setting Deadlines and Receiving Payments
5.14.3 Installment Agreement Requests Made to Delay Collection Action
5.14.4 Withdrawal of Installment Agreement Requests
5.14.1.6 Multi-Functional Installment Agreement Authority
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 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
5.11.5.6.2(4) Systemic Monitoring of Continuous Levy Payments
5.11.5.6.3 Manual Monitoring of Continuous Levy Payments
5.16.1.1 Currently Not Collectible Policy and Procedures
5.16.1.2.2.1(4) Imminent Statute Expiration
5.16.1.3.1(2) Transferee Cases
5.16.1.2.8(1) Insolvent Financial Institution
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 or deficiencies 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 or deficiencies the employee's performance improves • No additional action needed.
You continue to closely observe, monitor review and correct the performance deficiency or deficiencies 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 flexiplace, suspension of flexiplace until performance improves.
• With the continued assistance of Labor Relations, follow procedures outlined in Article 40 of the IRS/NTEU National Agreement 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 flexiplace 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 IRS/NTEU National Agreement 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 flexiplace. 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 1.4.50.2.2.

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 National Agreement. 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 1.4.50.2.1.9, Quality and Controls, and 1.4.50.2.2, 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 4P, of the National Agreement, 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 
Territory Manager Operational Aid (TMOA)

Operational Reviews:

Purpose - to foster effective casework by group members through the engagement of group managers to achieve Area and Territory goals, and to improve Employee Satisfaction, Customer Satisfaction and enhance Business Results.

Frequency and location - Operational Reviews are to be performed on an annual/fiscal year basis with follow-up reviews to be performed when appropriate. These reviews should be performed at the group location as long as budgetary constraints allow.

Scope – all general Collection groups, ATAT groups, and groups with a combination of general and ATAT revenue officers. (Offer-in-Compromise operational reviews are addressed in the OIC Handbook for Managers.)

Documentation - all Operational and Follow-up Reviews are to be documented in a memorandum. These documents should be shared within sixty (60) days of the completion of the actual review.

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, indicating areas of achievement and those that require improvement. (See Trend Analysis I, under Additional Reviews and Actions). A comparison to the prior year and 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.

Actions Included Within the Operational Review:

Case File Reviews –

Purpose -

  1. to ensure the accuracy of the Group Manager's evaluation of EQRS attributes during case reviews.

  2. to ensure the consistency of Group Manager's evaluative reviews.

  3. to ensure proactive, timely, and appropriate case actions are occurring and the appropriate managerial direction is being provided.

Technique -

  1. Review 2-3 active cases for each revenue officer within a group (this also applies to ATAT groups/ATAT cases). Select cases previously reviewed by the Group Manager via the EQRS system and that reflect a representative sample of the group inventory.

  2. Review EQRS review documents completed by the group manager to ensure appropriate direction is given during reviews.

  3. Ensure managers’ reviews include a mixture of review types, including time utilization, time/workload, no-touch, overage, potential overage, and large dollar. Use EQRS reports to determine the number and types of reviews completed for each employee. These types of reviews should also include employees on Flexiplace.

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

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

Lien determination accuracy - to ensure that managers are making accurate decisions on approval of non-filing and extension decisions by revenue officers

Technique review cases in which the GM was required to secure TM approval (determinations to not file the lien on a case with 10 or more employment tax quarters, defer lien filing on a case with 10 or more employment tax quarters, or defer lien filing on any case more than 120 days from TP contact). Consider reviewing a sample of cases in which the GM approved other non-filing or extension decisions.

Group Manager Controls - to ensure priority programs and cases are being monitored and reviewed.

Technique-

  1. Review the group manager's controls of priority cases such as, IBTF, large dollar, ATFR, pyramiding, statutes, federal contractors, lapse in activity, as well as those cases required in the GM Handbook, IRM 1.4.50.2.2.2, Requirements for Annual Performance Case Reviews ,and those identified as priority within the Area's work plan.

  2. Review the group manager's control and/or documentation of the periodic (at least once annually) review of remittance packages required in IRM 1.4.50.2.1.9(11), Quality and Controls. Verify and document the GM conducted at least one annual control review in accordance with IRM 1.4.50.2.1.9(11) and the GM complied with the documentation review requirements of IRM 1.4.50.2.1.9(11). Verify with the group manager that 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.

    Note:

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

    Note:

    The GM control review should include reviewing procedures for remittance packages prepared by revenue officers within the group but located in satellite/remote PODS.

Employee Personnel Folders (EPF) – to ensure EPFs are appropriately maintained within OPM guidelines and documents sustain an appropriate employee evaluation. This is to be completed for all employees in the group being reviewed.

Note:

As an alternative, Territory Managers may choose to complete reviews of EPFs as part of their employee evaluation approval process. Address negative performance trends through an in-depth review.

Technique-

  1. Ensure that time sensitive documents are removed when appropriate.

  2. Compare EQRS case review documentation, and other evaluative documents to ensure documents appropriately support the employees’ annual performance evaluation. These findings should equate to TM’s own observations of the employee’s performance as reflected in cases reviewed by the TM. If discrepancies are noted or concerns identified regarding the manager’s accuracy in performance evaluation, review additional cases if necessary.

  3. Ensure that the manager has been including specialized reviews such as overage, pyramiding IBTF, large dollar, etc. and is demonstrating proactive case involvement.

  4. Review office and field visit reviews conducted by the group manager during the rating period.

  5. Ensure performance and employee satisfaction issues are being addressed in a timely and appropriate manner.

  6. Ensure that the group manager has a schedule and control in place to ensure that Forms 6850 and mid-year performance documentation are completed and shared timely. Verify that Forms 6850 have been completed timely, and ROs are provided mid-year performance feedback.

Communications – to ensure managers are effectively communicating the goals of the Service, Area, Territory and Group. Verify that the manager is effectively communicating procedural and policy changes, casework techniques, and other issues that affect the overall quality of casework.

Technique – review minutes of group meetings that occurred during the rating period. Ensure that managers are discussing effective case resolution possibilities such as suits, fraud referrals, transferee assessments, etc. You should also include your observations from group meeting(s) you have attended. TM may wish to conduct focus group interviews with ROs.

Employee Satisfaction – to ensure that employees’ concerns are being addressed to facilitate effective and appropriate casework.

Technique -

  1. Verify that managers are adhering to all requirements in this handbook.

  2. Ensure managers are addressing employee survey issues proactively, by reviewing group action plans and results.

  3. Determine whether managers are supporting employee recognition and taking appropriate actions when performance issues arise.

  4. Ensure managers are employing appropriate EEO and Diversity practices.

  5. Verify that managers are adhering to employee development and training guidelines (See IRM 1.4.1.7).

  6. Ensure timely completion of mid-year progress reviews and annual performance appraisals.

  7. Determine whether employees are receiving an appropriate mixture of cases (IMF and BMF cases within grade/risk level), and are within targeted inventory levels. This may be completed by reviewing appropriate ENTITY reports.

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 - during case reviews consider the following:

  1. Timely initial and follow-up contacts by revenue officers.

  2. Appropriate and effective case actions.

  3. Responsiveness to taxpayer requests.

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 group manager the overall performance of the group and how it was affected by the Consultation Process.

  2. Review the monthly Collection Consultation Report provided by the Area Policy Analyst. Discuss a sample of the group manager’s comments on cases to ensure the requirements in IRM 1.4.50.2.2.6 are being met.

  3. At the beginning of each year, confer with each GM to develop a consultation plan for their group. The plan should include a determination of the type and frequency of consultations planned for each RO. Monthly consultations are expected for most ROs; however, less frequent consultations may be appropriate for seasoned employees who need little oversight. Consultations should occur at least quarterly to give adequate attention to all ROs.

ATAT Program – to ensure that managers with ATAT cases are effectively engaging employees to resolve these egregious cases.

Technique -

  1. Ensure that cases reflect actions tailored to the type of scheme employed.

  2. Verify that the manager is reviewing ATAT time charges to determine if ROs should be designated Special Compliance Program.

  3. Ensure there is evidence of collaboration with Examination and early Counsel involvement on complex cases.

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

Mandatory actions:

Trend Analysis I - to identify possible case trends on a monthly and cumulative basis, and take appropriate actions to achieve Area and Territory goals.

Technique –

  1. Obtain monthly reports from ENTITY and develop a tracking system for monthly and cumulative data regarding quantity of O/A, IBTF, no touch (60 – 75 days), pyramiding, and large dollar and/or other indicators set as Area goals. Obtain reports from ATFR to monitor timeliness of TFRP actions.

  2. On a monthly basis, obtain reports from ENTITY to monitor trends of cases with outstanding employment tax liabilities greater than $10,000 that do not have a lien filing or the normal lien determination period has been extended. Review trends quarterly and more frequently if specific concerns exist.

  3. Engage Area collection policy analyst to identify trends in accordance with Area goals.

    Refer to the ENTITY web page for instructions on how to use ENTITY and guidance on evaluating group performance using ENTITY data. See:http://mysbse.web.irs.gov/Collection/collsystems/entity/default.aspx

Frequency – reports and trends should be reviewed on a quarterly basis, and more frequently if specific concerns exist.

Trend Analysis II – to identify group time efficiency trends and appropriate corrective actions if necessary.

Technique –

  1. Review ENTITY reports to examine groups’ use of field, administrative, and 809 time, etc.

  2. Consult with Area Collection Policy Analyst to identify Territory and Group comparative trends regarding the items indicated in (a) above.

    Refer to the ENTITY web page http://mysbse.web.irs.gov/Collection/collsystems/entity/default.aspxfor instructions on how to use ENTITY and guidance on evaluating group performance using ENTITY data.

Frequency – reports and trends should be reviewed on a quarterly basis, and more frequently if specific concerns exist.

Documentation – a written narrative should be supplied when appropriate. Documentation should capture any issues, concerns, recommendations, follow up actions required, etc.

EQRS Consistency Reviews - to promote consistent application of EQ attributes.

Technique -

  1. Provide the consistency review case to group managers.

  2. Each manager will independently rate the revenue officer performance for each of the applicable EQ attributes and enter the ratings in the EQ training base.

  3. Compile the ratings using the EQ reports function and meet with group managers to discuss areas of inconsistency in the attribute ratings.

  4. Refer also to IRM 5.13.1

Frequency - Field and Offer-in-Compromise territory managers should conduct Embedded Quality Consistency Reviews annually. Collection AIQ will provide the subject case. Area Directors may require additional consistency reviews based on local circumstances.

Documentation -a written narrative should be prepared to include the date review was completed and observations and actions taken to achieve consistent application of EQ attributes.

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

Technique –

  1. Participate in or observe a Consultation with a revenue officer and group manager. This participation may be accomplished in person or via telephone, depending on location, logistics, and budgetary limitations.

  2. Review the monthly Collection Consultation Report provided by the Area Policy Analyst. Review a sample of the group manager’s comments on cases to ensure compliance with IRM 1.4.50.2.2.6.

Frequency – annually where the GM is not conducting effective consultations and biennially for all other GMs. In addition, participate in or observe consultations with new or long-term acting managers during their first six months in place.

Documentation – provide a written narrative of observations, recommendations, etc., focusing on strategies to make the consultation process more effective.

Annual Appraisal/Performance Document Approval – to ensure consistency between the Form 6850 and the employee’s annual performance.

Technique – compare Form 6850 numerical values with the most recent EQRS Feedback documents prepared in accordance with IRM 1.4.50.2.2.2, Requirements for Annual Performance Case Reviews. Additional evaluative documents should be reviewed as necessary.

Frequency – at the time Form 6850 is submitted for second level approval, before it is shared with employee.

Suggested Optional Actions:

Case File and Field Reviews – to determine the effectiveness of group manager engagement in ensuring taxpayer rights and timely/appropriate actions by revenue officers.

Technique –

  1. Review a sample of case reviews performed by the group manager for a sample of revenue officers within each group. A review of the respective ICS case history may prove helpful as well.

  2. Accompany a revenue officer on a field visit.

Frequency – the frequency should be based on the circumstances particular to the group.

Documentation – a written narrative should be provided to the group manager, if appropriate.

Manager Hold File, Group Hold Files and Inventory Delivery – to ensure group managers are receiving and delivering inventory in a timely manner.

Technique– review the group designation hold file and group hold file (see IRM 1.4.50.2.1.6.1) via the ENTITY system or consult with the Area’s Collection Policy Analyst to ensure that the files are being effectively maintained and cases are being distributed in a timely manner. Verify that cases assigned to the group hold file are appropriate and being monitored and that all procedural/systemic issues related to the cases are elevated/resolved timely.

Frequency –

  1. This should be completed at least on a semi-annual basis.

  2. Discussions with the Area Collection Policy Analyst should occur at least quarterly.

Documentation– if appropriate, provide group manager with a summary of the review and any suggested actions.

Communication – to ensure expectations of performance are understood, and employee concerns are heard and addressed.

Technique –

  1. Territory/Town Hall meetings to discuss goals and concerns with revenue officers, administrative support personnel, and group managers. This should also include involvement of other peripherally involved divisions such as Counsel, Support functions, etc.

  2. Territory meetings with all group managers to discuss Area and Territory goals. This should also be a forum for managerial development.

  3. Attend group meetings to discuss the specific concerns of each group.

  4. Ensure group managers are holding group meetings as needed.

Frequency –

  1. Territory/Town Hall meetings when budgetary guidelines and logistics allow.

  2. Territory meetings between the territory manager and the group managers as needed. These meetings may be conducted in person or via conference call.

  3. The territory manager should attend at least one group meeting per group within the territory each fiscal year.

Documentation – Territory Manager’s meeting minutes should be prepared and distributed to group managers and the area director.

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 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(1) 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  

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