4.75.17  Mandatory Review

Manual Transmittal

September 25, 2014

Purpose

(1) This transmits revised IRM 4.75.17, Exempt Organization Examination Procedures, Mandatory Review.

Material Changes

(1) With the creation of IRM 4.75.18, Exempt Organization Examination Procedures, Special Review, many of the sections of the previous revision moved over to IRM 4.75.18. These sections included:

  • 4.75.17.2.2, Special Review

  • 4.75.17.4.2, Special Review: Tax Exempt Quality Measurement System (TEQMS)

  • 4.75.17.10, Special Reviewer Case Responsibilities

  • 4.75.17.10.1, Special Reviewer Case Return Criteria

  • 4.75.17.11, Open Case Reviews

  • 4.75.17.11.1, Open Case Review Procedures

  • 4.75.17.12, Closed Case Reviews

  • 4.75.17.12.1, Closed Case Review Procedures

  • 4.75.17.13, Special Reviewer Case Return Criteria

  • 4.75.17-2, TEQMS Closed Case Review Memorandum

(2) The obsolete segments consist of:

  • 4.75.17.4, Cases Subject to Review. IRM 4.75.16.6, Cases Subject to Mandatory Review contains this material.

  • 4.75.17.5, Statute Control. IRM 4.75.16.4.2, Statute Considerations, covers this material in depth.

(3) Following the guidance in IRM 1.11.2.2, IRM Standards, other material no longer belonged in the IRM. This included the following:

  • 4.75.17.2, Background

  • 4.75.17.3, Staffing

  • 4.75.17.8, Mandatory Reviewer Case Responsibility

(4) As a result, this manual consists of a complete rewrite, with obsolete segments removed and additional duties added. This manual also now complies with the Plain Writing Act of 2010, Public Law 111-274. For more information on the Plain Writing Act, see www.plainlanguage.gov.

Effect on Other Documents

This supersedes IRM 4.75.17, Exempt Organizations Examination Procedures, EO Examinations Review Responsibilities and Procedures, dated July 7, 2010.

Audience

Tax Exempt and Government Entities
Exempt Organizations
Examinations

Effective Date

(09-25-2014)

Tamera L. Ripperda
Director, Exempt Organizations
Tax Exempt and Government Entities

4.75.17.1  (09-25-2014)
Introduction

  1. Within the Exempt Organizations (EO) Examinations division, Mandatory Review is one unit among many of those housed in the Exam Programs and Review (EPR) area. The services Mandatory Review performs are analogous to those performed by Small Business/Self Employed (SB/SE) Technical Services. (For information on SB/SE Technical Services procedures, see IRM 4.8, Technical Services.)

  2. Mandatory Review handles the following types of cases:

    • Church tax audits

    • Church tax inquiries

    • Formal protests to Appeals

    • Foundation status modifications

    • Revocations

    • Unagreed issues

    • Whistle blowers

    • Worker classifications

  3. Mandatory Review performs the final review of the case before closure to Appeals (in the case of protests) or to the closing unit (Examination Special Support (ESS)). When necessary, Mandatory Review prepares and issues 90-day letters (final adverse determination letters, statutory notices of deficiency, and notices of determination of worker classification). Mandatory Review also handles requests for:

    • Closing agreements

    • Continuing professional education presentations

    • Forms 1254, Examination Suspense Report, suspense

    • Published instructions (IRM and interim guidance memoranda)

    • Redactions of final audit reports, 90-day letters, and corresponding cover letters

    • Technical assistance

    • Technical advice memoranda

  4. Mandatory Review also provides a number of coordinators for various issues. These include:

    • Church Coordinator (IRM 4.76.7, Church Tax Inquiries and Examinations - IRC § 7611)

    • Closing Agreement Coordinator (IRM 4.75.25, Exempt Organizations Examinations Closing Agreements)

    • EO Examinations IRM Coordinator (IRM 1.11.1.6.6.2, IRM Coordinator)

    • Letters Rewrite Coordinator (IRM 25.13.1.2.1, Requests for New and Revised Taxpayer Correspondence Products)

    • Technical Advice Coordinator (IRM 4.75.36, Procedures For Processing Technical Advice Cases)

    • Whistleblower Coordinator (IRM 4.75.4.7, Category B Whistleblower Form 211 Claim Procedures

  5. Mandatory Review also provides subject matter experts for various topics discussed in IRM 4.75, Exempt Organization Examination Procedures and IRM 4.76, Exempt Organizations Examination Guidelines. These experts answer questions sent to the *TEGE EO Review Staff mailbox, normally within 3 days of receipt of the question.

  6. With respect to the term "agent" , the directions in this IRM refer to the individuals assigned to EO Examination cases, regardless of whether the employee is in the General Series (GS) 0512, 0526, 0592, or 0987 occupational series.

4.75.17.2  (09-25-2014)
Cases Submitted to Mandatory Review

  1. Groups closing cases subject to Mandatory Review follow the directions in IRM 4.75.16.9, Shipping From the Group, and IRM 10.2.13.4.4.1, Shipping Personally Identifiable Information (PII). In determining whether to close a case to Mandatory Review, agents and group managers reference IRM 4.75.16.6, Cases Subject to Mandatory Review.

  2. Mandatory Review Statute Coordinator: Upon receipt of the case from a group:

    1. Acknowledge receipt of Form 3210, Document Transmittal.

    2. Return one copy of the Form 3210 back to the group.

    3. Accept the case into Mandatory Review on the Reporting Compliance Case Management System (RCCMS).

    4. Verify the assessment statute of expirations date (ASED).

    5. Hand the case file to the Manager, Mandatory Review for assignment to a reviewer.

    Caution:

    If the case file lacks Form 3210 or the group failed to close the module(s) to Mandatory Review on RCCMS, prepare Form 3210, double package the file, and ship the case back to the group.

  3. Manager, Mandatory Review: Upon receipt of the case file:

    1. Inspect the case file.

    2. Determine the issue(s) present in the case.

    3. If the case belongs in Mandatory Review, assign the case to a reviewer.

    4. Return the case to a tax examining assistant, indicating to whom and where to send the case.

    Note:

    The Manager, Mandatory Review assigns cases based on reviewer workload. The manager normally does not consider geographical location, unless the closed case comes from a reviewer's post of duty. Reviewers also do not review cases they worked on before joining Mandatory Review.

  4. Statute Coordinator: If the case does not belong in Mandatory Review:

    1. Prepare a transmittal (Form 3210.)

    2. Complete Form 9814, Request for Mail/Shipping Service (if sending the case outside of Dallas.)

    3. Double package the file (if sending the case outside of Dallas.)

    4. Transfer the case on RCCMS.

    5. Send the case to the appropriate unit.

  5. Statute Coordinator, Mandatory Review: In preparing the case for shipment to the reviewer, perform the following actions:

    1. Prepare a case closing check sheet, noting the name and employer identification number (EIN) of the taxpayer. See IRM 4.75.20-1, Mandatory Review Cover Sheet.

    2. On the check sheet, indicate the date of case assignment.

    3. On the check sheet, list each tax module assigned to the reviewer by master file type (MFT), tax period, and ASED.

    4. Research the Integrated Data Retrieval System (IDRS), generating AMDISA, BMFOLI, BMFOLT, and INOLES prints.

    5. Include the IDRS prints in the file or secure e-mail them to the assigned reviewer.

    6. Place the check sheet on the outside of the case file folder.

    7. Transfer the modules in RCCMS to the assigned reviewer's inventory.

    8. Prepare Forms 3210 and 9814.

    9. Double package the file per the instructions at IRM 10.2.13.4.4.1.

    10. Put the package into the outgoing mail.

  6. Reviewer, Mandatory Review: Upon receipt of the physical case file, perform the following actions:

    1. Sign the Form 3210.

    2. Prepare a fax cover sheet, attention the tax examining assistant, using the Mandatory Review group e-fax number.

    3. Fax the cover sheet and Form 3210 to the group e-fax number.

    4. In MS Outlook, transfer the incoming e-mail to your inbox.

    5. Forward the e-mail as a secured e-mail to the tax examining assistant.

    6. Archive the e-mail message remaining in your inbox.

    7. Review the case file to verify the statute of limitations.

    8. Document in a new Form 5464 the completion of steps 1 through 7 above.

4.75.17.2.1  (09-25-2014)
Reviewing a Case

  1. The Reviewer, Mandatory Review, performs the actions throughout this subsection.

  2. When reviewing the case, keep in mind that the focus is on technical and procedural accuracy. Special Review performs quality reviews of closed cases, thus performing a quality review on a Mandatory Review case presents a duplication of effort.

  3. Key areas of focus include:

    • Verifying the statute(s) of limitations.

    • Securing statute extensions for protested cases.

    • Collecting of sufficient facts.

    • Identifying directly applicable law.

    • Explaining the law as applied both clearly and plainly.

    • Computing the correct amount of tax, penalties, and interest (if applicable).

    • Preparing the correct forms.

    • Assembling the administrative record (if applicable).

    • Performing the package audit.

    • Obtaining missing schedules and attachments (if applicable).

  4. During the review, check that the case contains properly:

    • Executed Forms 872, Consent to Extend the Time to Assess Tax or 872-A, Special Consent to Extend the Time to Assess Tax, if needed.

    • Completed Forms 895, Notice of Statute Expiration, if applicable.

    • Assembled tax returns for all years on the Audit Inventory Management System (AIMS)/RCCMS.

    • Signed and executed Forms 2848, Power of Attorney and/or Forms 8821, Tax Information Authorization.

    • Documented Forms 5772, EP/EO Workpaper Summary, Forms 5773, EP/EO Workpaper Summary Continuation Sheet, and Forms 5464, Case Chronology Record.

    • Developed workpapers documenting the audit and supporting the agent's determinations.

    Note:

    For cases involving Form 990 series returns or Form 4720, Return of Certain Excise Taxes on Charities and Other Persons Under Chapters 41 and 42 of the IRC, a scanned copy downloaded from the Statistics of Income EO Image Net (SEIN) suffices. For other types of issues, the original return needs to be present in the file.

  5. Not all cases reviewed result in shipments of cases to Appeals or the issuance of 90-day letters. See IRM 4.75.16.6 for the list of types of cases subject to mandatory review. Consult the following procedures for guidance on Mandatory Review actions:

    • IRM 4.75.4.7, Category B Whistleblower Form 211 Claim Procedures

    • IRM 4.76.7, Church Tax Inquiries and Examinations - IRC § 7611

    • IRM 4.75.37, Claims, Requests for Abatement and Audit Reconsiderations

    • IRM 4.75.25, Exempt Organizations Examinations Closing Agreements

    • IRM 4.75.16.5.6.1, Inadequate Records Notice

    • IRM 4.75.24, Organizations Covered by a Group Ruling

    • IRM 4.75.21.15, Procedures for Resolution of Credit Counseling Cases

    • IRM 4.75.16.5.10, Terminations

4.75.17.2.2  (09-25-2014)
Preparing a Memorandum

  1. The Reviewer, Mandatory Review, performs the actions throughout this subsection.

  2. You may contact groups informally via e-mail, Office Communications Server (OCS), phone calls, or in person. When providing formal guidance or feedback, prepare Form 5456, Reviewer's Memorandum - EP/EO.

  3. In preparing the form, determine the type of feedback to provide:

    1. Advisory: Errors present don't require agent action(s).

    2. Inquiry: Errors present require agent action(s), based on your initial review of a case.

    3. Correction: Errors present still require agent action(s), based on your subsequent review of a case you previously returned to the group.

  4. Advisory memoranda may also be commendatory. You may prepare a commendatory advisory memorandum if you believe the agent has performed exceptionally well on a case. Group managers may place such memoranda in the agent's employee personnel folder.

  5. Before determining which memorandum to prepare, determine whether the error involves an agreed issue. In general, do not instruct the agent to reopen an agreed issue, or create a new issue, unless your grounds for such action is substantial and/or the potential effect upon the tax liability is material.

    Example:

    You review an unagreed case involving employment taxes for a chief executive officer's (CEO's) compensation. The agent proposed full rates, explaining that the organization failed to treat the CEO as an employee and issue a Form W-2, Wage and Tax Statement. You research the CEO's records in the IDRS and discover the CEO filed a Form 1040 Schedule C, Profit or Loss From Business (Sole Proprietorship), and received a Form 1099-MISC, Miscellaneous Income, from the organization. This case involves worker reclassification, with the use of the reduced IRC 3509(a) rates. This case would merit a return to the group.

    Example:

    The agent's Form 5772 does not match the entries on the Form 5773 and the time entered on the Form 5599, TE/GE Examined Closing Record, doesn't match either the amounts reported on the Form 5772 or Form 5464. Other errors on the Form 5599 include the wrong disposal code and principal issue codes. This case does not merit a return to the group. Make the corrections and close the case.

  6. Complete the Form 5456 as follows:

    1. Check advisory, correction, or inquiry.

    2. Box 1: insert the group number after the group manager salutation.

    3. Box 2: identify the last agent to work the case.

    4. Box 3: enter the date of completion of the memo.

    5. Box 4: indicate whether the case has a short statute.

    6. Box 5: list the name, EIN, and tax modules.

    7. Box 6: enter the year, using hyphens if multiple periods.

    8. Box 7: check examination.

    9. Box 8: check mandatory review.

    10. Box 9: check the applicable box.

    11. Box 10: enter a date and initials if indicating an error in the agent's computations.

    12. Box 11: list the pages of the agent's report that have computational errors.

    13. Box 12: write the text of the memo, indicating a continuation on Form 886-A, Explanation of Items, if necessary.

    14. Box 13: electronically sign (e-sign) the memo (3 times) after completing the remaining boxes.

    15. Box 14: leave blank.

    16. Box 15: check the type of error(s).

    17. Box 16: check the specific error, if applicable.

  7. When writing an inquiry or correction memo:

    1. Use plain language.

    2. Provide a brief history of why Mandatory Review has the case.

    3. Outline the errors identified in the case file.

    4. Outline a course of action for the agent to complete.

    5. Provide corrected computations, if applicable.

    6. Give directions on how to prepare Form 5457, Response to Reviewer's Memorandum - EP/EO.

    7. Provide your mailing address.

    Note:

    Continue onto a Form 886-A as needed. When done writing the memo, print the Form 886-A to portable document format (PDF). Save the file. Open the Form 5456 PDF file and insert the Form 886-A pages three times (once after each page of the Form 5456.)

  8. For advisory memos, identify the error(s). Explain where to find directions for avoiding such errors in the future. (Cases without errors may merit a commendatory advisory memo.)

  9. For inquiry and correction memos, continue to IRM 4.75.17.2.3, Returning a Case. For advisory memos, skip to IRM 4.75.17.2.4, Closing a Case.

4.75.17.2.3  (09-25-2014)
Returning a Case

  1. The Reviewer, Mandatory Review, performs the actions throughout this subsection.

  2. Upon completion of the memo and insertion of any Forms 886-A, e-sign the memo three times. Each page of the Form 5456 contains a separate signature field in Box 13.

  3. Secure e-mail the memo to the Manager, Mandatory Review. In the e-mail identify the group manager and area manager.

  4. Await receipt of the approved and digitally signed memo. Once received:

    1. Print the memo.

      Caution:

      You may need to separately print various pages of the memo if your printer prints double sided by default.

    2. Place the memo on the front of the file.

    3. Upload a copy of the memo to RCCMS.

    4. Prepare Form 3210, using the most recent organizational chart to find the group manager's address.

    5. Complete Form 9814, checking the appropriate UPS/Fed Ex option.

    6. Double package the file per the instructions at IRM 10.2.13.4.4.1.

    7. Request a transfer of the files in RCCMS.

    8. Place the case in the mail.

    9. E-mail a copy of the Form 3210 to the Mandatory Review Statute Coordinator. In the e-mail, provide the group number and request a transfer of the case.

    Note:

    Some managers prefer for you to ship the case directly to the agent. When preparing the transmittal, consult the manager as needed to determine where to ship the case.

4.75.17.2.3.1  (09-25-2014)
Agent's Response

  1. The agent who receives the returned case completes the actions below.

  2. Upon receipt of the returned case:

    1. Reopen the case on Web ETS.

    2. Flip the Form 5456 over to see if there is a Form 886-A printed on the back.

    3. Review the memo.

    4. Note all of the directions provided in the memo.

    5. Contact the reviewer if you have any questions about the directions.

  3. Confer with your manager about the requested actions. If you and your manager disagree with the course of action, proceed to IRM 4.75.17.2.3.2, Dispute Resolution. Otherwise, perform the actions requested.

    Caution:

    If you fail to perform all of the actions requested, you may receive the case back again, with a correction memo attached.

  4. If unable to complete all of the actions requested, ask the reviewer for an alternative course of action.

  5. Request and secure a statute extension, if needed.

  6. Prior to closing your case to your manager:

    1. Fully document your actions taken in your Form 5464 and on Form 5457.

    2. Verify that the hours on your Form 5464 agree with the time input on Web ETS.

    3. Update and print your Forms 5599, 5772, 5773 and related workpapers.

    4. Electronically sign and print the Form 5457.

    5. Upload the Form 5457 and the other updated documents to RCCMS.

    6. Reassemble your case file. See IRM 4.75.16.7, Case File Assembly.

  7. Close the case file to your manager.

    Note:

    If located in a different post of duty than your manager, prepare a transmittal package (Forms 3210 and 9814) to ship the case via UPS/Fed Ex to your manager. Double package the case file using approved materials. See IRM 10.2.13.4.4.1.

4.75.17.2.3.2  (09-25-2014)
Dispute Resolution

  1. The group manager whose agent worked the case has two options for resolving disputes with the reviewer's recommended course of action:

    1. Contact the reviewer to discuss the case. Document the outcome of the discussion in the Form 5457. Have the agent complete any agreed upon actions. Sign the Form 5457 and return the case to the reviewer.

    2. Complete the Form 5457 documenting the disputed items and why the group won't take the course of action. Sign the Form 5457 and return the case to the reviewer.

  2. Reviewer: Upon receipt of the case file:

    1. Review the Form 5457 and the case file.

    2. Determine whether to agree with the group manager.

    3. Sign the Form 5457, checking the applicable entries in boxes 8 and 9.

  3. Reviewer: If in disagreement with the group, contact the Manager, Mandatory Review. Provide a copy of the Form 5457. Discuss the case.

  4. Manager, Mandatory Review: Schedule a call with the group manager, his/her area manager, and the Manager, Exam Programs and Review (EPR). Document the discussion and any resolution agreed upon by the area manager and the Manager, EPR. If the parties can't agree upon a course of action, elevate the issue to the Director, Exempt Organizations (EO) Examinations. The Director, EO Examinations renders the final decision on the matter.

  5. Manager, Mandatory Review: Convey the directions to the reviewer, who either prepares a correction memorandum to return the case, or proceeds to make any necessary corrections before closing the case.

  6. Reviewer: If issuing a correction memorandum, see IRM 4.75.17.2.2, Preparing a Memorandum. If correcting any errors and closing the case, see IRM 4.75.17.2.4, Closing a Case.

4.75.17.2.4  (09-25-2014)
Closing a Case

  1. Reviewer: Prepare the case for closure:

    1. Complete and sign the closing check sheet.

    2. Sign and date the Forms 5599 and 5772.

    3. Upload the 90-day letter package and any workpapers you've created to RCCMS.

    4. If available as an option, scan and upload the Area Counsel memorandum to RCCMS.

    5. Print your Form 5464 and place it behind the case closing check sheet.

  2. Reviewer: Prepare the case for shipment to Dallas:

    1. Prepare Forms 3210 and 9814. See IRM 4.75.16.9 for where to mail the file and the method of mailing.

    2. Double package the file per the instructions at IRM 10.2.13.4.4.1.

    3. Place the package in the mail, as per local procedures.

    4. Complete the closing record on RCCMS and close the case.

4.75.17.2.5  (09-25-2014)
90-Day Letter Preparation and Issuance

  1. The Reviewer, Mandatory Review, performs the actions throughout this subsection.

  2. Upon concurrence with the agent's proposed course of action, and after determining that no errors remain in the file that preclude closure, prepare a 90-day letter in the following situations:

    • Foundation status modification of an IRC 501(c)(3) organization

    • Revocation of an IRC 501(c)(3) organization

    • Unagreed proposed tax assessment (non-employment tax)

    • Worker classification determination

  3. For guidance on preparing the 90-day letter, consult the following manuals:

    • For foundation status modifications: IRM 4.75.20, Final Case Processing

    • For IRC 501(c)(3) revocations: IRM 4.75.20

    • For unagreed proposed tax assessments (income tax): IRM 4.8.9, Statutory Notices of Deficiency

    • For unagreed proposed tax assessments (gaming excise taxes): IRM 4.75.20

    • For unagreed proposed tax assessments (private foundation excise taxes): IRM 4.75.20 and IRM 4.76.4, Private Foundations

    • For worker classification determinations: IRM 4.8.10, Notice of Determination of Worker Classification

  4. Do not prepare 90-day letters for the following types of cases. In these situations, the 30-day formal revenue agent report serves as the final letter:

    • Employment tax assessments (non-worker classification)

    • Status 36 situations (IRM 4.75.16.5.9, Status 36 Cases)

    • Revocations for other than IRC 501(c)(3) organizations

  5. When you've finished creating the 90-day letter package:

    1. Print one copy of the proposed 90-day letter package, along with any power of attorney cover letters.

    2. Place the letter in the front of the case file.

    3. Reassemble the file, if necessary, in the proper order. (IRM 4.75.16.7, Case File Assembly)

    4. Reassemble and re-index the administrative record, if necessary. (IRM 4.75.32.4.2, Preparation of the Administrative Record)

  6. For unagreed cases, prepare a brief memo to Area Counsel requesting pre-issuance review of the 90-day letter. (IRM 4.75.20-28, Memorandum to Area Counsel.) Consult Chief Counsel's website for the appropriate Area Counsel office: http://ccintranet.prod.irscounsel.treas.gov/OrgStrat/Offices/TEGE/General%20Documents%20and%20Links/Area%20Counsel%20Geographic%20Jurisdiction%20Map.pdf.

  7. After consulting the map, prepare a Form 3210 and Form 9814 to ship the case to the identified Area Counsel office. For a list of Area Counsel office addresses, see http://ccintranet.prod.irscounsel.treas.gov/OrgStrat/Offices/TEGE/Pages/AreaCounselOffices.aspx.

  8. Double package the file per the instructions at IRM 10.2.13.4.4.1. Send the file to Area Counsel per the time frames listed at IRM 4.75.16.9.

  9. Once Area Counsel returns the file, acknowledge receipt on the Form 3210 and return the form to Area Counsel. Retain a copy of the Form 3210 as per local procedures.

  10. Review the memorandum from Area Counsel. Make any corrections to the 90-day letter package as directed by Area Counsel. If you have questions, consult the attorney who wrote the memorandum.

  11. For final adverse determination letters, send the 90-day letter via secure e-mail to the Manager, Mandatory Review, who secures the signature of the Manager, EPR and returns three signed 90-day letters by mail. If needed, make copies of the letters for distribution to powers of attorney.

  12. Print and date stamp the completed final 90-day letter package. Use the method provided in IRM 4.8.9-2, Computation of Last Day to File a Petition With United States Tax Court and Computation of Default Date, to determine the last day for filing a petition.

  13. For statutory notices of deficiency and notices of worker classification determination, signature stamp the letter with the Director, EO Examinations signature.

  14. Make additional copies of the 90-day letter as indicated in the enclosure statements at the end of the letter. Make a copy of the 90-day letter package for the case file, and one for the administrative record if necessary. If available as an option, scan the 90-day letter and upload it to RCCMS.

  15. Prepare the 90-day letter package for mailing, either certified for domestic addresses, or registered for foreign addresses:

    1. Follow local procedures for obtaining postage and mailing the package.

    2. Obtain a stamped certified or registered mail receipt. (For countries that don't permit registered mail, get a certificate of mailing.)

    3. Complete Postal Service (PS) Form 3877, Firm Mailing Book for Accountable Mail.

    4. Make a photocopy of the receipt and staple the photocopy to the back of the retained 90-day letter package. (Make two photocopies if an administrative record is involved.)

    5. Staple the original receipt to the PS Form 3877 and place the form in the front of the case file.

  16. See IRM 4.75.17.2.4, Closing a Case.

4.75.17.2.6  (09-25-2014)
Redaction Procedures

  1. Reviewer: Subsequent to issuing the final adverse determination letter to the taxpayer, prepare an electronic redaction package consisting of copies of the following documents:

    1. 30-day letter issued by the group.

    2. Explanation of items (Form 886-A or its equivalent).

    3. Final adverse determination letter sent to the taxpayer with its issuance date.

    4. Form 4194, Revocation of IRC § 170(c) Status, (if contributions are deductible under IRC 170).

    Note:

    Other attachments to the 30-day letter, such as Forms 4621-A, Report of Examination-Exempt Organizations, and 6018, Consent to Proposed Adverse Action, do not need redaction.

  2. In the case of 501(c) "Other" revocations, the final letter is usually the 30-day letter, so the package would normally only contain items IRM 4.75.17.2.6 (1) a) and IRM 4.75.17.2.6 (1) b). If you issue a final letter as well, include it in the redaction package.

  3. Send the redaction package via secure messaging to the Manager, Mandatory Review. Do not use personally identifiable information in the subject line of the e-mail.

  4. See IRM 4.75.20.5.1, Publication of the Determination for further procedures.

4.75.17.3  (09-25-2014)
Responding to Questions

  1. Mandatory Review encourages all EO Examination employees to submit their technical and procedural questions to the *TEGE EO Review Staff mailbox. Prior to submitting the question, review the available materials on the topic, such as:

    • Internal Revenue Code sections

    • Treasury Regulations

    • Applicable court cases

    • Other legal guidance

    • Continuing professional education materials

    • Internal Revenue Manuals

    • Interim guidance memoranda

    Reminder:

    See IRM 4.10.7.2, Researching Tax Law for a comprehensive listing of available legal resources.

  2. Please list the resources you researched when submitting your question.

  3. The mailbox coordinator either answers or forwards the question to a subject matter expert, with a response expected to the question within three days. Subject matter experts are not limited to members of Mandatory Review.

  4. When an agent or manager directly contacts a reviewer, whether by OCS, in person, or by phone, the reviewer documents the question (such as copying the conversation from OCS to e-mail) and forwards the question with the reviewer's response to the mailbox.

  5. Mandatory Review maintains a table of previously asked questions and responses. If necessary, the reviewer may access this table to see if a previously provided answer is available and is applicable to the current question.

4.75.17.4  (09-25-2014)
Form 1254 Suspense Procedures

  1. For guidance on suspending cases using Form 1254 see IRM 4.2.1.4, 1254 Suspense and IRM 4.8.2.10, Suspense Cases. Examination Technical Services is the SB/SE counterpart to EO Examinations Mandatory Review.

  2. When preparing Form 1254, replace the salutation from "SB/SE, Technical Services Group Manager" to "Manager, Mandatory Review" .

  3. When following IRM 4.8.2.10.1.1, Placing the Case in Suspense, put the case into status 38 in lieu of status 30.

Exhibit 4.75.17-1 
Table of Collateral Duties of Review Staff

Duties Special Review Mandatory Review
Audit hour presentations X  
Churches   X
Claims   X
Closing agreements   X
CPE and group presentations X X
Develop operating procedures X X
Dual track cases   X
Fraud   X
Internal Revenue Manual updates X X
Newsletters X  
Notices of worker classification determination X X
Statute of limitations X X
Statutory notices of deficiency X X
Technical advice memoranda   X
*TEGE EO Review Staff mailbox questions   X
Whistle blowers   X

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