4.30.1  Pre-Filing Agreement Program

4.30.1.1  (01-09-2002)
Background

  1. Traditional post-filing approaches often create a burden for both the taxpayer and the Internal Revenue Service (IRS). In an effort to improve business practices, the IRS is moving toward addressing taxpayer concerns as early as possible and resolving differences before tax returns are filed. The Large and Mid-Size Business Division (LMSB) piloted the Pre-Filing Agreement (PFA) Program in 2000. The pilot demonstrated that PFAs were cost efficient, they allowed taxpayers to file more compliant tax returns within prescribed time frames, taxpayer burden decreased and both the IRS and taxpayers conserved resources. As the result of the pilot, the PFA Program has become permanent with the issuance of Revenue Procedure 2001-22, 2001-9 l.R.B. 745.

  2. Revenue Procedure 2001-22 provides the guidelines and jurisdiction of LMSB that permits a taxpayer to request the examination of specific issues relating to a tax year before the return is timely filed.

    1. All taxpayers under the jurisdiction of LMSB are eligible to apply for a PFA. Both Coordinated Industry and Industry cases are eligible.

    2. Procedures in this manual may affect any or all revenue agents in LMSB since any LMSB taxpayer may apply for a PFA. The term "IRS Examination Team" or "Team" as used in this manual is intended to include all revenue agents, specialists, and team coordinators that may work on the issue. The "Team" may include only one agent or may include several agents depending on the size and nature of the taxpayer and the issue.

    3. Eligible tax issues generally include those that are factual in nature and governed by well-established law. Not all examination issues will qualify for PFA resolution. PFAs are not the vehicle for issues involving questions of law that are more appropriately resolved through the private letter ruling process.

    4. Revenue Procedure 2001-22 provides a list of possible domestic issues (Sec. 3.04), an exclusive list of International issues (Sec. 3.05), and a list of examples of excluded issues (Sec. 3.06). The Industry Director or the Director of Field Operations will make the final decision whether to accept or decline a taxpayer’s request for a PFA (Delegation Order 262 (as revised)). A taxpayer is not entitled to a conference to appeal a decision not to go forward with the PFA process.

    5. A taxpayer not selected for the PFA program, or where no PFA Agreement is reached, remains eligible for other early issue resolution procedures including the Accelerated Issue Resolution (AIR) Program or Early Referral to Appeals.

  3. The PFA Program is taxpayer initiated and LMSB Industry driven. Oversight is provided by the Director, Pre-Filing and Technical Guidance.

    1. The Director, Pre-Filing and Technical Guidance will provide executive oversight of the LMSB PFA Program. The Director is responsible for program implementation and providing guidance concerning the PFA Program process.

    2. The Industry Director is responsible for the final determination of acceptance or non-acceptance of a PFA application and the development of Pre-Filing Closing Agreements.

    3. A flowchart depicting the PFA administrative process is included as Exhibit 4.30.1-1. Accompanying the flowchart is Exhibit 4.30.1-2, which describes the various activities and process responsibilities.

4.30.1.2  (01-09-2002)
Pre-Filing Agreement Application Process

  1. Revenue Procedure 2001-22 contains detailed information to be used by the taxpayer in completing a Pre-Filing Agreement application.

  2. Taxpayer Application key points:

    1. There is no prescribed format for a PFA request. However, a request for a PFA must contain the basic identification and other information as outlined in Rev. Proc. 2001-22.

    2. The request for a PFA must also contain a separate written statement for each issue that describes the issue and provides the information as outlined in the revenue procedure.

    3. The request must also include a standard perjury statement.

    4. The request must also include a statement of agreement regarding the subsequent examination or inspection of records. The taxpayer must state that they agree that the PFA inspection of records will not preclude or impede a later examination of a return or inspection of records related to the tax year in question.

    5. The taxpayer or Power of Attorney (POA) must sign the request.

  3. Submission of a PFA should be made to the LMSB Team Manager if a current examination is being conducted or a Team is on site. Otherwise, requests can be mailed or faxed by the taxpayer to the PFA Program Manager (see specific instructions in Rev. Proc. 2001-22).

4.30.1.3  (01-09-2002)
Screening of PFA Applications

  1. PFA Applications are screened for suitability in a two-tier process. Tier One screening is an initial recommendation of suitability of the issue and appropriateness for the PFA Program.

  2. The criteria for selecting taxpayers to participate in the PFA program includes but is not limited to the following:

    1. The suitability of the issue presented; i.e., to resolve issues involving factual questions under well established law,

    2. The direct or indirect impact of the PFA upon other years, issues, taxpayers or related cases,

    3. The availability of Service resources,

    4. The ability and willingness of the taxpayer to dedicate sufficient resources to the process,

    5. The likelihood that the PFA may result in contrary positions with respect to an item or transaction ( "whipsaw" ),

    6. The time remaining until the due date of the return, and

    7. Overall probability of completing the process by the date for filing the taxpayer’s return.

  3. For team on site cases, the Team Manager completes an initial analysis of the PFA application and provides a recommendation for acceptance in accordance with the Team Manager’s PFA template.

  4. The PFA Program Manager completes Tier One screening, gathering information on issue suitability and the technical aspects of the issue from Technical Advisors, Counsel and others. This information is transmitted to the Industry Director.

  5. Tier Two screening is completed by the appropriate LMSB Industry to facilitate the final decision for acceptance or non-acceptance of the PFA application. A written notification letter from the Industry Director to the taxpayer will specify the reason(s) for acceptance or non-acceptance, and the amount of the user fee if accepted and the remittance address.

  6. A user fee is imposed on taxpayers who are selected to participate in the PFA program.

    1. Taxpayers are subject to fees only if they are selected to participate in the PFA program. The amount of the graduated fee is based on the amount of assets reported by the taxpayer as determined by its most recently filed return (see Rev. Proc. 2001-22, Sec. 10). The user fee is charged on a per issue basis. If the taxpayer requests a PFA that contains more than one distinct issue, they will be subject to multiple user fees.

    2. The taxpayer must submit payment within 30 business days of written notification that they have been selected to participate in the PFA program. Payment must be made by a check or money order payable to the Internal Revenue Service. User fees are generally not refundable in the event of a withdrawal of the PFA by either the taxpayer or the Service.

4.30.1.4  (01-09-2002)
Pre-Filing Agreement Development

  1. When a Pre-Filing Agreement application is accepted into the program, a Pre-Filing Agreement Team (PFA Team) is formed including, the IRS Examination Team, representatives of the taxpayer, Field Counsel, and other appropriate personnel to develop the issue(s) and reach a Closing Agreement.

  2. An orientation meeting is held with the entire PFA team as soon as possible after the acceptance of the Pre-Filing Agreement application.

    1. A representative, generally the Industry analyst, of the Industry that accepted the PFA will conduct the orientation meeting. The orientation session will cover the procedural aspects of the PFA process for both the taxpayer and the IRS participants.

    2. Additional topics may include the degree of commitment and cooperation needed during the process, pre-planning efforts, developing a time line, fact finding and timely information sharing, monitoring reports required, issue resolution, preparation of the PFA Closing Agreement, evaluation of the process and the role and responsibility of each of the participants.

  3. Training — The Letter of Understanding (LOU) between IRS and the National Treasury Employee’s Union (NTEU), dated 3/12/01, see Exhibit 4.30.1-3, referencing the Pre-Filing Agreement Initiative, states that management will make a reasonable effort to provide impacted employees (those who will be working on a PFA) with the LMSB Audit Techniques classroom training prior to working on the PFA. If training has not occurred, the employee’s manager or another GS-13 or 14 employee will be available to assist that employee.

  4. Time Reporting — Examination time expended on this PFA activity will be charged to code 525000 for purposes of the Form 4502. Additionally, a Monthly Report specifying the time charged by position and containing status comments will be provided simultaneously by the Team Manager to the PFA Program Manager and the Industry Analyst.

  5. Issue Development — The PFA team will work together to obtain the necessary information, fully develop the issue(s), and provide the basis for a Pre-Filing Closing Agreement.

    1. The PFA team will develop a time line and work plan identifying the information and steps needed to develop the issue,

    2. The PFA team will utilize auditing standards and procedures to develop the issue(s), and

    3. The Industry director will assure that the appropriate technical expertise and needed resources are made available to the PFA team.

  6. Withdrawal — At any time prior to the execution of the PFA, either the taxpayer or the Service may withdraw from consideration all or part of the request for a PFA.

    1. The withdrawal must be in writing and signed by the party initiating the withdrawal action, i.e., the taxpayer or his authorized representative or the Industry Director. The Team Coordinator will comment in the work papers regarding the withdrawal of the PFA and the issue and circumstances involved. A copy of the withdrawal notification must be submitted to the PFA Program Manager.

    2. In the event the Industry Director and the taxpayer cannot reach agreement and/or a closing agreement cannot be executed, the Industry Director will notify the taxpayer in writing of the Service’s decision to withdraw from the PFA process. The notification should include the reason for such action.

4.30.1.5  (01-09-2002)
Closing Agreement and Filing of Tax Return

  1. The closing agreement is the culmination of the PFA team’s efforts and is a binding agreement as to the treatment of a particular issue.

  2. Where appropriate, Technical Advisors, LMSB Counsel and other interested parties will provide guidance in fashioning a PFA Closing Agreement with the taxpayer,

  3. If a PFA Closing Agreement is executed prior to the filing of the return, the taxpayer must file such return according to the terms and conditions set forth in the PFA agreement. A copy of the closing agreement must be attached to the return.

  4. If a PFA agreement is not reached prior to the filing of the return, the Service and the taxpayer may continue to attempt to resolve the issue and enter into a PFA Closing Agreement. If the return is filed, the taxpayer is expected to file an amended return consistent with the terms and conditions of the PFA agreement. A copy of the PFA Closing Agreement must be attached to the amended return.

  5. PFA Closing Agreements, Form 906, will be executed in duplicate and distributed as follows:

    1. One original Closing Agreement will be provided to the taxpayer.

    2. The second original will be maintained by the Industry Planning and Special Programs analyst until such time as a suspense unit is established at the Ogden Service Center.

    3. A copy of the executed Closing Agreement will be provided to the PFA Program Manager.

  6. For team on site cases (i.e., Coordinated Industry Cases) the Team Manager will insure that a copy of the Closing Agreement with associated work papers are maintained in the PFA year planning file. The return, at a minimum, will be reviewed to insure compliance with the terms of the Closing Agreement.

  7. For those cases where no on-going examination presence is contemplated (i.e., non-CIC), an Information Report will be generated to insure the return is reviewed for compliance with the PFA Closing Agreement. The Information Report will contain the examination work papers and a copy of the PFA Closing Agreement.

4.30.1.6  (01-09-2002)
Administrative Procedures

  1. Detailed descriptions of the roles and responsibilities of the LMSB management officials are provided for purposes of carrying out the Pre-Filing Agreement Program.

    • PFA Program Manager,

    • Technical Advisor,

    • LMSB Counsel,

    • Industry Director (or designee),

    • Territory Manager, and

    • Examination Team Manager.

  2. The PFA Program Manager’s role is to:

    1. Assist IRS and taxpayer participants and other interested parties as needed,

    2. Receive the PFA Transmittal Memo, a copy of the PFA application, and the copy of the PFA Recommendation Template from the Team Manager for cases where a team is on site (originals to Industry Director),

    3. Receive and acknowledge within 14 days of receipt of the original PFA applications directly from taxpayers when no team is on site,

    4. Facilitate the selection of applicants through the Tier One screening process,

    5. Provide Tier One screening recommendation(s) to the Industry Director to aid in the decision to accept or not accept a PFA application,

    6. Administer oversight of operations and activities through entry and maintenance of the PFA Information Management System,

    7. Coordinate and consult with Counsel as necessary,

    8. Monitor and troubleshoot when appropriate,

    9. Receive input and reports from the Industry Director regarding the PFA Process,

    10. Update the Director, Pre-Filing and Technical Guidance on a regular basis,

    11. Assist the Industry Director concerning exit interviews or questionnaires of both the taxpayer and audit team members,

    12. Monitor, measure and report Program Results, and

    13. Collect and process user fees.

  3. The Technical Advisor’s role in the PFA process is to:

    1. Screen applications within 10 days of receipt and respond with any comments, concerns and recommendations,

    2. Participate in the PFA process when expertise would be appropriate,

    3. Participate in the orientation as appropriate, and

    4. Respond to questions and issues as requested.

  4. The LMSB Counsel’s role is to:

    1. Review PFA application eligibility,

    2. Consult with the PFA Program Manager on policy issues,

    3. Participate in the Tier One screening process and coordinate with other Chief Counsel functions as appropriate,

    4. Participate in the orientation, if appropriate,

    5. Respond to questions and issues as appropriate, and

    6. Assist in the drafting, review and execution of the PFA Closing Agreement.

  5. The Industry Director’s (or designee’s) role is to:

    1. Reinforce the PFA Program as an IRS priority,

    2. Receive the original PFA Transmittal Memo with Recommendation Template and the original PFA application from the Team Manager for review and evaluation (team on site case).

    3. Receive copy of PFA application and Tier One screening results (no team on site) from the PFA Program Manager,

    4. Confer with the taxpayer as requested or needed,

    5. Contact the Territory Manager to insure resources are available. For accepted cases where there is no team on site, assign Team Manager,

    6. After the screening process, make the final acceptance decision and advise the taxpayer in writing as to acceptance or non-acceptance into the program and provide the reason for such action and the amount of user fee if accepted,

    7. Coordinate with other LMSB Industries and Field Specialists as appropriate,

    8. Secure additional resources, including Field Specialists and outside consultants, as necessary,

    9. Designate an Industry Analyst to conduct orientations, to monitor and facilitate the overall process and evaluate Program results, and

    10. Execute (sign and date) the PFA Closing Agreement if it is consistent with LMSB goals.

  6. The Territory Manager’s role in the process is to:

    1. Assist IRS, taxpayer participants and other interested parties as needed,

    2. Facilitate the securing of resources, including team members with appropriate technical expertise, and other needed support for the team,

    3. Participate, optionally, in the orientation,

    4. Coordinate the submission of monthly status reports, and

    5. Suggest process improvements through exit interviews and/or questionnaires.

  7. The Examination Team Manager and Teams’ role in the PFA process is to:

    1. Proactively discuss the program and potential issue(s) with the taxpayer,

    2. Assist with the preparation of the PFA application as requested,

    3. Review the taxpayer’s PFA application,

    4. Discuss any administrative or procedural concerns with the PFA Program Manager prior to transmitting the PFA request for consideration,

    5. Send a copy of the PFA application and the recommendation transmittal/template to the PFA Program Manager and send the original application to the Industry Director,

    6. Determine the necessary resources needed, including Technical Advisors, Field Specialists and outside consultants,

    7. Participate in the orientation,

    8. Establish, with the taxpayer, the audit plan and time line for completing the process,

    9. Consult with internal experts such as Technical Advisors and Counsel,

    10. Review documentation, evaluate facts and develop issues for resolution,

    11. Insure that approved auditing techniques and auditing standards are adhered to,

    12. Update the Industry Analyst via monthly time and status reports as prescribed by the PFA Program Manager,

    13. Participate, with the assistance of Counsel, in drafting and discussing the Closing Agreement with the taxpayer, and

    14. Suggest process improvements through exit interviews and/or questionnaires.

  8. The taxpayer’s role in the PFA process is to:

    1. Prepare and submit a PFA application,

    2. Participate in the orientation,

    3. Establish, with the team, the audit plan and time line for completing the process,

    4. Cooperate with the team on issue development and provide necessary information/resources on a timely basis,

    5. Participate in the resolution process,

    6. Work with the team to draft the closing agreement,

    7. Provide, on a voluntary basis, monthly status reports to the PFA Program Manager, and

    8. Suggest process improvements through exit interviews and/or questionnaires.

4.30.1.7  (01-09-2002)
Suggested Time Line

  1. Below is the suggested span of time, in business days, of the responsible party to accomplish the task indicated:

    Task Time (days) Responsible Party

    Acknowledge receipt/discuss Issue suitability (CIC) 14 Team Manager
    Acknowledge receipt/discuss Issue suitability (IC) 14 PFA Program Manager
    Tier One Screening 20 (total) PFA Program Manager
      Technical Advisor Input 10 Technical Advisor Mgr.
      Counsel Input 10 LMSB Counsel
    Tier Two Screening 20 (total) Industry Director
    Develop Issue/Complete PFA 120 Team
    Closing Agreement   Taxpayer
          Counsel
          Industry Director

  2. The total time to complete the process from receipt of the PFA request to the executed PFA Closing Agreement is approximately 35 weeks.

4.30.1.8  (01-09-2002)
Additional Information

  1. Questions arising from the conduct of the PFA process may be directed to the PFA Program Manager at pfa.info@irs.gov, see Rev. Proc. 2001-22, Sec. 14, Drafting Information.

  2. There are a number of existing unofficial forms, templates, other useful documents, etc., that are currently being used in the conduct of the PFA process. Please use these documents until further notice. These documents are on the IR Web at the LMSB homepage, Pre-Filing and Technical Guidance section, under the Pre-Filing Agreements Program.

Exhibit 4.30.1-1  (01-09-2002)
PFA Adm. Process

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Exhibit 4.30.1-2  (01-09-2002)
Pre-Filing Agreement Program — Activities & Responsibilities

Application and Screening Process

Description of Activity Responsible Person
Team on site Taxpayer
Develop PFA Application  
Evaluate the PFA Program for appropriate issues  
Open dialogue/confer with team manager  
Determine applicability of PFA process to issues  
Consider input from Team Manager  
Prepare PFA application and submit to Team Manager  
     
Transmit PFA with recommendation to Industry Director and PFA Program Manager Team Manager
Provide taxpayer assistance in identifying appropriate PFA issues  
Review taxpayer PFA application, recommending revision if appropriate  
Receive PFA application, acknowledge receipt and discuss suitability of issue within 14 days  
Complete Transmittal to include recommendation template and forward to PFA Program Manager  
Provide original PFA application to Industry Director and copy to PFA Program Manager  
No Team on Site  
Develop PFA Application Taxpayer
Evaluate the PFA Program for appropriate issues  
Contact PFA Program Manager as needed  
Determine applicability of PFA process to issues  
Prepare PFA application and submit to PFA Program Manager  
Complete Tier I screening PFA Program Manager
Receive PFA application from team manager or taxpayer and input into PFA MIS  
If no team on site, acknowledge receipt of PFA and explain PFA process (within 14 business days) to taxpayer With assistance as appropriate from Technical Advisors, Counsel and others
Conduct Tier I screening  
Determine eligibility  
Transmit Tier I results to Industry Director (20 business days)  
Receive Tier II screening results (page 6 checksheet) and copy of notification letter to taxpayer from Industry Director  
Receive and input results of Tier II screening into PFA IMS  
Receive PFA applications Industry Director
Receive original PFA application from team manager when team on site  
Receive copy of PFA application from PFA Program Manager with no team on site  
Receive recommendation of completed Tier I screening for all PFAs from PFA Program Manager  
   
Conduct Tier II Screening Industry Director
Consider Tier I screening results  
Determine industry applicability  
Determine resource availability  
Insure team has appropriate technical resources  
Make decision to accept/decline application  
Communicate decision to taxpayer in writing with rationale for action taken (within 20 business days of receipt of Tier I screening)  
Notify taxpayer of user fee requirements if accepted  
Appoint team manager for accepted PFAs with no team on site  
Notify PFA Program Manager of acceptance/rejection within 10 days of decision  
Provide PFA Program Manager with completed page 6 of screening checksheet and copy of notification letter to taxpayer  

Developing PFA Issue

Activity Description Responsible Person
Participate in the development of PFA Taxpayer
Attend orientation  
Remit user fee to PFA Program Manager  
Develop audit plan and timeline  
Provide information as requested  
Provide input into Team's proposed recommendation  
Participate in the drafting of the PFA Closing Agreement  
Participate in the development of PFA Team Manager
Assure all team members have received training in auditing standards & techniques  
Attend orientation  
Develop audit plan and timeline  
Collects and analyzes necessary information  
Develops and presents recommendations to taxpayer  
Participate in the drafting of the PFA Closing Agreement  
When appropriate recommend withdrawal  
Complete Monthly Report and simultaneously transmit to PFA Program Manager and Industry Analyst  
   
Participate in the development of the PFA issue Team Members
Attend orientation  
Collect and analyze information  
Develop issue and recommendations  
Participate in the drafting of the PFA Closing Agreement  
Participate in Tier I screening Specialist (Technical Advisors, others)
Receive, analyze and make recommendations concerning suitability of issue for PFA Program (within 10 days of receipt from PFA Program Manager)  
Participate in Tier II screening as requested  
Participate in issues development as appropriate  
Participate in the drafting of the Closing Agreement as appropriate  
Participate in orientation as requested  
     
Participate in Tier I screening (10 days) Counsel
Participate in orientation as appropriate  
With the team and the taxpayer, participate in the drafting and finalizing of the Closing Agreement  
Participate in Tier I screening as requested Industry Analyst
Coordinate Tier II screening process  
Conduct orientation  
Provide Industry support to PFA process as needed  
Liaison with PFA Program Manager as appropriate  
Monitor progress and conduct of the PFA process within the Industry  
Provide to the PFA Program Manager page 6 of the screening checksheet and a copy of the notification letter to the taxpayer (within 10 days of decision)  
Receive copy of Monthly Report from team manager  
   

Executing Closing Agreement and Evaluation Process

Activity Description Responsible Person
Confer and attempt to reach agreement as to the content and terms of the Closing Agreement Team Manager
    Team
When all are in agreement, taxpayer to execute Closing Agreement Taxpayer
Participate in the evaluation process  
Obtain Counsel approval as necessary Counsel
Assist Industry Director in review and approval of Closing Agreement  
Participate in post completion evaluation process  
Review terms of taxpayer executed Closing Agreement Industry Director
If in agreement, execute Closing Agreement on behalf of the Service Director, Field Operations
If not in agreement, attempt to reach agreement, otherwise advise taxpayer concerning alternatives (including withdrawal by either party)  
Facilitate Industry Director's evaluation of Closing Agreement Industry Analyst
Provide PFA Program Manager with copy of Closing Agreement or withdrawal letter as appropriate  
Conduct post completion evaluation process and send results to PFA Program Manager  

Exhibit 4.30.1-3  (01-09-2002)
PFA — LMSB Audit Techniques Training

    March 12, 2001
Ms. Katherine T. Lane
National Negotiator
National Treasury Employees Union
901 E Street, N.W. Suite 600
Washington, D.C. 20004-2037
     
RE: Pre-Filing Agreement Initiative
     
Dear Ms. Lane:
     
This is to confirm conversations that have occurred between representatives of the Commissioner, Large and Mid-Size Business Division (LMSB), the Office of Workforce Relations, and yourself concerning the Internal Revenue Service’s decision to implement the Pre-Filing Agreement initiative. Revenue Procedure 2001-22, dated January 19, 2001, permits a taxpayer subject to the jurisdiction of the Large and Mid-Size Business Division to request the examination of specific issues relating to a tax return before the return is filed. This revenue procedure also establishes a framework within which the taxpayer and the Service can work together in a cooperative environment to resolve the examined issues. If the taxpayer and the Service are able to resolve the examined issue prior to the filing of the return, the revenue procedure authorizes the parties to finalize their resolution by executing an LMSB Pre-Filing Agreement (LMSB PFA).
     
The purpose of the revenue procedure is to facilitate and encourage the use of pre-filing examinations to resolve issues involving factual questions and well settled principles of law. A pre-filing examination can often resolve such issues more efficiently and effectively than a post-filing examination because the taxpayer and the Service have more timely access to the records and personnel relevant to the issue. It also provides the taxpayer with a greater level of certainty regarding the examined issues at an earlier point in the examination process.
     
A pilot of the Pre-Filing Agreement process was conducted during which time (19) applications were received, (12) of which were accepted. Seven pre-filing agreements were signed, one taxpayer withdrew from the PFA process, and (4) are still in process. An analysis of the pilot indicated that both the taxpayer and the Service benefited. The Pre-Filing process resulted in less time being expended and cost less than it would have if the same issue were examined in a post-filing scenario.
     
As a result of the discussions between the parties named above, the Employer has decided to take the actions listed in the following paragraphs relative to the implementation of the Pre-Filing Agreement initiative.
   
1. The Employer will notify all impacted chapters and employees of the implementation of this initiative at formal meetings governed by applicable NORD V provisions. Impacted employees are all LMSB revenue agents, specialists and audit accounting aides. The meetings will be held during work hours and shall be conducted at all sites where impacted bargaining unit employees are located. A question and answer period will be included in the meetings. Questions left unanswered during the meeting will be responded to as soon as possible. Answers to questions raised by or of interest to the group will be communicated to the group in writing. At the conclusion of the meeting the Employer will provided the Union with up to thirty (30) minutes to meet with employees without managers present.
     
2. Impacted employees will be provided appropriate training and materials necessary for their successful performance of their duties related to this initiative. For those employees who will be provided with Audit Techniques classroom training in accordance with the provisions of the IRS/NTEU Large and Mid-Size Business Standardized Examination Procedures LOU dated September 12, 2000, the Employer will make a reasonable effort to provide the training before the employee is assigned to work a Pre-Filing Agreement. If the training has not occurred when an employee receives such an assignment, the employee’s manager or another GS-13 or 14 employee will be available to assist that employee. Employees will not be required to apply the new auditing standards to Pre-Filing Agreements until they have received the Auditing Techniques classroom training.
     
3. Consistent with NORD V, Article 25, the Employer recognizes that the workload that employees can manage is dependent on such factors as geographic area covered, the type of work assigned, the grade level of work, the volume of work, priority programs, and other assigned duties. If as a result of being assigned to participate in the development of a Pre-Filing Agreement an employee believes than an adjustment in their case inventory may be required, the employee will discuss this issue with their manager. Necessary adjustments may be made on a case by case basis.
     
4. The Employer will provide a copy of this LOU to all impacted employees.
     
If the above reflects your understanding of the actions the Employer will be taking relative to the implementation of the Pre-Filing Agreement initiative, please indicate that understanding below and return the original of this letter to Bridget Rasmussen. Please contact Bridget on (202) 622-8644 if you have any questions.
     
     
    Sincerely,
     
     
    /s/ Lucy G. Vargas
     
    Lucy G. Vargas
    Director, Office of Workforce Relations
     
Concurrence:  
Katherine T. Lane 3/12/01
____________ _____
Katherine T. Lane Date
NTEU National Negotiator  

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