4.89.1  Compliance and Program Management (CPM) Responsibilities  (02-01-2008)
CPM Overview

  1. The Indian Tribal Governments (ITG) office, Compliance and Program Management (CPM) is responsible for:

    • Strategic planning - (IRS planning processes, ITG Strategic Plan and Program Plans)

    • Business Performance Review

    • Balanced Measures

    • Research, issues management and special analysis projects

    • Workload classification and delivery

    • Review of ITG work assignments

    • Business goals and strategies for Indian Tribal Governments' communication and compliance programs

    • Coordination, drafting and updating of technical material, compliance and examination guidelines and the Internal Revenue Manual

    • Knowledge Sharing processes

    • Improvements in ITG processes, systems and practices

    • Local office support and operations (classification, quality and peer reviews, case closing procedures)

    • Utilization of the TE/GE Reporting and Electronic Examination System (TREES) system

    • Technical assistance to ITG Specialists

    • Update of information for ITG Specialists on current and emerging issues related to the ITG mission

    • Coordination of employee training development and continuing professional education programs

    • Coordination of communications and business systems technology

    • Development and coordination of specific stakeholder relations

    • Coordination with the other IRS Operating Divisions on ITG tax issues

    • Identification of emerging issues and monitoring the accuracy and consistency of rulings

    • Identification and tracking of congressional issues and legislation as they affect Indian Tribal Governments

    • Guidance of Consultation Process with the Indian tribes  (02-01-2008)
Outreach Guidelines

  1. Compliance and Program Management (CPM) outreach activities will be pursued with an understanding of the unique historical and legal status of Indian tribes, the relationship of the tribes to each other, to the federal government and to the IRS. Demonstration of respect for Indian tribal self-government and sovereignty will be built-in to outreach activities. CPM activities promote the responsibility of each ITG staff member for managing internal and external stakeholder relations. See IRM 22.41.1, Indian Tribal Governments Outreach, for procedures.

  2. Outreach initiatives will be planned and evaluated based on technical quality, suitability for the audiences they are designed for and how well they meet customer needs. Customer and stakeholder feedback will be solicited for the refinement of outreach products. CPM will support outreach initiatives by the local offices in several ways:

    • Design and deliver targeted outreach information, such as newsletters, as needed

    • Monitor and measure the success of the outreach initiatives

    • Design and implement relationship initiatives

    • Develop signage, displays as needed, requisition booths, promotional products, and PowerPoint presentations, etc.

  3. Compliance and Program Management is responsible for the ITG Internet and Intranet web sites:

    • Content and format development

    • Development of procedures for submission of suggestions, feedback and updates

    • Maintenance to ensure that all links are working and information is current

    • Analysis and response to customer comments/feedback

    • Analysis and monitoring of performance indicators' data as measures of customer satisfaction

    • Maintenance of a library of Frequently Asked Questions ("Q's & A's" ) about Indian Tribal Government tax issues

  4. CPM outreach responsibilities also include internal and external forms and publications relevant to the ITG mission:

    • Development of content and format of both general-use and tax related forms and publications

    • Maintenance of a process for submission of ideas and suggestions for customized publications

    • Review of current cadre of IRS forms and publications to determine whether they meet the needs of ITG customers

    • Partner with Media and Publication's personnel to revise, enhance and update tax forms and publications as appropriate  (02-01-2008)
Review of Outreach Materials

  1. Outreach materials and presentations will be reviewed by CPM to ensure they reflect ITG emphasis on using balanced measures. CPM will also review the formats (e.g., ensure that all acronyms are initially spelled out) and review the material for technical accuracy.

  2. CPM approval is required for general distribution of outreach materials within the IRS or to external customers and stakeholders. After CPM approval, outreach presentations and materials will be put on the ITG Internet site/intranet site/shared work folder. CPM will alert the field groups of their availability.  (02-01-2008)
Planning Guidelines

  1. Compliance and Program Management furthers the ITG Mission by:

    • Participating in IRS planning processes - (ITG Strategic Plan and Program Plans Business Performance Review, etc.)

    • Conducting research to identify customer populations

    • Developing compliance profiles and baselines for future measures

    • Developing the strategic direction of the nationwide education and outreach program

    • Identifying and interpreting compliance issues

    • Developing balanced measures to evaluate ITG performance

    • Developing Workload Selection Criteria that will drive ongoing business needs

    • Developing Memoranda of Agreement with other IRS organizations to clarify the administration of issues regarding Indian tribal governments and to provide direction to IRS employees  (02-01-2008)
Balanced Measures

  1. Input from local managers, ITG staff, tribal governments and the advisory council(s) will be used to determine the process, standards and measurements that balance customer satisfaction, employee satisfaction and business results.

  2. In terms of customer satisfaction, CPM will conduct periodic surveys of the tribal governments to assess their satisfaction with ITG products and services. ITG will use a third party (vendor), when feasible, to conduct the survey. This will maintain the confidentiality of the responses given by the tribal governments. CPM staff will work with the vendor to analyze and interpret the survey findings. The findings will be used to modify and/or direct resources (i.e., outreach, compliance, training, etc.) to where ITG needs to improve products and services.

  3. The survey results will also allow CPM to evaluate changes in customer satisfaction from year to year. The CPM Manager will be responsible for communicating the results of the survey to the managers and employees within the ITG office. The CPM Manager will own the survey data and be responsible for ensuring it is used in the development of the annual work plan.

  4. Compliance and Program Management is not directly responsible for measuring employee satisfaction. The IRS/NTEU Employee Satisfaction Survey will be used to measure employee satisfaction.

  5. CPM facilitates the process of Knowledge Sharing Groups (KSGs) and quality improvement programs that leverage employees' skills and creativity.

  6. CPM staff will evaluate assignment review findings of closed cases (and in-process reviews, if any). The evaluation should identify any trends that are apparent in the closed case findings (e.g., a compliance issue that continues to result in penalties assessed to tribes). CPM staff will then make recommendations to the CPM Manager for ways to modify and/or direct resources (i.e., outreach, compliance, training, etc.) that address the systemic cause(s) of the problem.

  7. Input from ITG Field Group Managers and staff will be used to determine the process, standards and measurements that balance customer satisfaction, employee satisfaction and business results.  (02-01-2008)
Work Review Guidelines

  1. CPM has developed review procedures for all types of ITG work assignments.

  2. Reviews are conducted to evaluate technical accuracy and quality components. Post work review and in-process review of work may be used.  (02-01-2008)
Assignment of Work Operational Guidance

  1. To ensure resources are used effectively and that activities by Indian Tribal Governments (ITG) personnel support annual Work Plan Objectives, all work assignments must be entered into the TE/GE Reporting and Electronic Examination System (TREES) and ITG Inventory Database by CPM.

  2. Assignments will be coordinated with the Compliance and Program Management Staff (CPM) and may be subject to approval by the Director, ITG.

  3. Work activities may originate from many sources. Such activities include:

    1. Direct contact with Indian tribal governments or tribal officials, whether the result of work assigned by the CPM staff, work initiated by local ITG staff, or requests received from tribal officials.

    2. Requests for assistance from internal sources such as other operating divisions, Corporate Education, or Counsel, or

    3. Requests for assistance from external sources such as other federal agencies or any state agencies.

  4. The ITG work assignment process coordinates how outreach efforts, compliance checks, tip agreements and examination cases are selected and forwarded to ITG Specialists in the field groups. The CPM Staff will coordinate the classification and selection for field groups examination workload. The Abuse Detection and Prevention Team (ADAPT) has its own classifier.  (02-01-2008)
Process for Work Assignment and Control

  1. CPM Classification assigns work with the exception of fraud and money-laundering cases which are assigned by the classifier in the Abuse Detection and Prevention Team (ADAPT), IRM The ITG Database and TREES will be used to plan actions to address assigned tasks and meet work objectives, and secure approval by the Director of ITG when required. The general process for ITG work assignment and control is reflected in IRM A flow chart representing the process is available on the web at www.irs.gov/tribes.

  2. The ITG Database and TREES are used for control and tracking of all work assignments within Indian Tribal Governments. These are management and information tools, and the data they contain must be protected from unauthorized access. ITG employees must safeguard the use of this information and ensure that access is done for business reasons only. In order to ensure data consistency, ITG employees must strictly adhere to all requirements for data input, use and reporting.

  3. There are two types of assignments that are included in the database and TREES:

    1. Outreach - includes all direct (face-to-face) and indirect (mass media) educational presentations made to tribes, tribal associations, or individuals responsible for the tax administration on behalf of Indian tribes.

    2. Compliance inventory - includes compliance checks, examinations and tip agreements.

  4. ITG CPM is responsible for adding new case assignments to the inventory. Managers use TREES to track all assignments.

  5. The ITG Director may make assignments to a group. Such direction may be generated as a result of information received by the ITG Director from sources such as:

    • Tribes

    • Tribal associations

    • Federal and State agencies

    • Congress

    • Program activities in support of the Strategic Business Plan for ITG

    • Outside parties and informants

  6. CPM establishes work on the ITG Database and TREES. The assigned Group and Specialist are responsible for updates while the work is in process so that they are current at all times. Continual updating is essential, as roll-ups of the data are used for reporting purposes, as well as critical components of the ITG planning process.

  7. CPM resumes responsibility for updating when the work is closed from the Group.

  8. The ITG Database resides on a share drive which is "read only" , except for certain CPM employees.

  9. Maintenance of the ITG Database instructions is the responsibility of the CPM staff.  (02-01-2008)
Work Review

  1. CPM Reviewers are responsible for the review of selected work assignments including outreach materials, tip agreement solicitations, examinations, and compliance reviews/checks conducted by ITG Specialists. In addition, CPM is responsible for post-examination processing of closed special feature cases.

  2. Reviewers' assignments also include preparing analysis for management.

  3. Work reviews are conducted to evaluate work quality and, when appropriate, complete examination processing requirements. Reviews may be done on both in-process and completed work.

  4. Examination case reviews include:

    1. Determining the scope of the review, evaluating case assignment documents to support the ITG Specialist's conclusions, deciding if technical conclusions are correct and ensuring proper completion of internal procedures,

    2. Interpreting and applying the quality standards and balanced measures,

    3. Processing examination of cases,

    4. Issuing and monitoring statutory notices of deficiency and Notices of Determination of Worker Classification,

    5. Documenting the review results, and

    6. Providing feedback to field ITG Specialists and management.  (02-01-2008)
Work Requiring Action by CPM

  1. All compliance checks and examinations are closed through CPM. All work is subject to either procedural, sample or mandatory review.

  2. All tip cases (new tip agreements, refreshment, amendment or renewal of a tip agreement, or instances where an entity declines to enter into a tip agreement) are closed through CPM and subject to review.

  3. All tip agreements (TRDA and GITCA) are pre-reviewed by CPM and turned back within 5 workdays or more depending on the review work load. (The Specialist/Manager will be notified if it will take longer than the normal time.)

  4. CPM may designate any category of work assignments for special review if it is determined that such action is warranted.  (02-01-2008)
General Examination Case Review Procedures

  1. Case review includes procedures such as:

    • Scope of review

    • Returning of cases to the field

    • Case reopening criteria

  2. The scope of mandatory and sample exam case review will be sufficient to ensure:

    1. Correct technical conclusions,

    2. Accurate tax and penalty computations, when appropriate,

    3. Proper completion of all procedural requirements, proper managerial involvement, and

    4. Protection of taxpayer rights.

  3. Examination cases (with the concurrence of the CPM Manager) may be returned to the field if:

    1. There are major technical deficiencies,

    2. There are significant computational errors, and/or

    3. They are seriously underdeveloped.

  4. Procedural exam case review will ensure:

    1. Report has no apparent errors,

    2. Procedural requirements have been met,

    3. Administrative paper work for case processing is in the file, and

    4. Required closing letter(s) is prepared.  (06-01-2006)
Cycle Time

  1. CPM will review all field examination cases promptly and in no instance later than 30 days after receipt in CPM.

  2. In-process examination cases will be returned to the field within 30 days.  (01-01-2003)
Examination Cases Requiring Priority Handling

  1. The following examination cases receive priority handling:

    1. Statute cases,

    2. Agreed unpaid deficiency cases of $10,000 or more, and

    3. Unagreed cases designated for closure to Appeals.  (06-01-2006)
Statute Controls and Procedures

  1. Reviewers are responsible for identification and protection of the statutes of limitation on all returns assigned to them or under their control. See IRM 25.6, Statute of Limitations.

  2. A continuous statute control system is maintained for all returns within 180 days of the statute expiration. The Manager, CPM, is responsible for the overall supervision of statute controls.

  3. If an examination case is returned to the group within 30 days of expiration of the assessment period, CPM will advise the Group Manager by telephone before sending the case to the group.  (02-01-2008)
Processing Cases with Special Features

  1. The following types of cases have special features requiring post examination processing procedures:

    • Bankruptcy cases

    • TEFRA cases

    • Fraud cases (civil and criminal)

    • Grand jury cases

    • Informant's communications and claims for reward cases

    • Cases returned from Appeals

  2. Bankruptcy cases -- A bankruptcy petition filed by a business, joint entity, or individual generally operates as an automatic stay on any act to assess, collect, or recover tax due from the taxpayer. ITG works closely with attorneys from the appropriate division of the Office of Chief Counsel and the SB/SE Insolvency Function.

  3. TEFRA cases -- In some situations, ITG may conduct examinations that need to follow TEFRA procedures. After completion of the TEFRA case by the examiner, the case is closed to CPM. Reviewers ensure that the Specialists performed specific TEFRA procedures and documented the case file appropriately.

  4. Fraud cases -- Areas/Territories provide local procedures for any special handling of civil fraud cases. See IRM 25.1, Fraud Handbook. Guidelines for CPM reviewers:

    1. All aspects of fraud, including recognition of fraud indicators, factual development, case file documentation, and proper completion of procedures should be considered when reviewing cases.

    2. Cases may be returned to the Specialist for further development or correction if there is evidence of fraud, malfeasance, collusion, concealment, or misrepresentation by the taxpayer or representative that has not been adequately addressed in the file.


      Statute protection is the responsibility of the ITG Specialist prior to the time the case is put into Suspense.

  5. Grand jury cases -- Criminal Investigation (Cl) has complete jurisdiction over grand jury cases. See IRM 25.1.5, Fraud Handbook, for a detailed discussion of grand jury procedures. Once a request has been approved, CI notifies the ITG ADAPT Manager, other ITG Manager or originating ITG Specialist that a taxpayer is under grand jury investigation.

    1. The ITG Specialist then must suspend all civil actions, terminate the examination and forward the file to grand jury suspense (CPM Review).

    2. CPM Review monitors the statute and on completion of the grand jury investigation, cases originating in an examination function will be released from grand jury suspense and returned for civil settlement.

  6. Informants' Communications and Claims for Rewards -- IRC 7623 provides for the payment of rewards for information that leads to the detection and punishment of persons guilty of violating Internal Revenue laws. Informants may file a claim for reward using Form 211, Application for Reward for Original Information. Cl evaluates information received from informants. Items that have audit potential are assigned for examination. For a complete discussion of the Informants' Claims for Reward Program and procedures see IRM 25.2, Information and Informants Rewards,

    1. There is no requirement that either the informants' claim or the examination resulting from the lead must be reviewed. However, informant claims could be associated with cases reviewed for other reasons.

    2. The informant's claim, evaluation report, and all reference material for the claim are kept separate from the examination case file and closed to the Informants' Claims Examiner (ICE).

  7. Cases Returned from Appeals -- See See IRM

  8. The categories of special feature cases requiring post-examination processing are numerous. Refer to IRM 4.8.5, Post Examination Case Processing Requirements, and IRM 4.8.8, Miscellaneous Responsibilities, for further details on these types of cases.  (02-01-2008)
Cases Returned to the Field for Correction

  1. Upon receipt of a case from CPM, the ITG Specialist will reactivate the case on their time sheet. The case will be discussed with the Group Manager to agree on a course of action.

  2. Necessary actions will be completed within 60 days. If the case is not returned to CPM within 60 days, the Group Manager will document the reasons for the delay.

  3. If it is necessary to re-contact the taxpayer, contact will be made within 15 days of receiving the case. The Group Manager may choose to be present when the taxpayer is informed of a change in the government's position.

  4. If agreement with the taxpayer cannot be reached, the case should be closed back to CPM using appropriate closing procedures.  (02-01-2008)
Cases Returned from Appeals

  1. IRS Appeals may return cases to ITG for further development. CPM has the authority to establish procedures to control cases returned from Appeals.

  2. Cases returned to ITG are routed to CPM and assigned to a reviewer for consideration.

  3. If the reviewer does not agree with Appeals' recommendation and the Manager of CPM concurs, a responding or clarifying memorandum will be prepared and returned to Appeals with the case file.

  4. If the reviewer agrees with the Appeals' recommendations and the Manager CPM concurs, the case is returned to the Specialist for completion of the required actions.

  5. Criteria for returning Appeals cases to the Specialist include:

    1. If the matter is factual,

    2. If the case requires further development or verification of new information,

    3. If it is more efficient and/or expedient for the Specialist to complete the work.


    Appeals cases should not be returned to the group if the matter is one of legal interpretation and is not a matter of factual development.

  6. If Appeals released jurisdiction of the case, AIMS is updated and the case is returned to the field. Upon completion of the additional fieldwork, the case closes by returning the case to CPM for processing.

  7. If Appeals did not release jurisdiction, AIMS is not updated, and the case is returned to the field. Upon completion of the required fieldwork, the case closes directly to CPM for transmittal to Appeals.  (02-01-2008)
In-Process Case Reviews

  1. CPM may conduct in-process case reviews at the request of management. CPM will develop procedures for conducting in-process reviews to accommodate local needs and available resources. Consideration will be given to the following:

    1. Development of a plan to structure the review,

    2. Adherence to the quality standards as the criteria for case evaluation,

    3. One-on-one discussions with the Specialist and/or Group Manager,

    4. Immediate, case-oriented feedback to the Specialist and Manager with specific examples and identification of actions needed to properly complete the case,

    5. Methodology for analyzing information gathered during the review, and

    6. The mechanism to measure the impact of the in-process review upon the case and/or future cases.

  2. Under no circumstances will the results of in-process case reviews be used for the evaluation of the Specialist.  (02-01-2008)
Technical and Procedural Inquiries

  1. CPM reviewers are experienced examiners who possess technical and procedural knowledge and accounting and auditing skills that should be shared with field personnel. Request for technical assistance should be viewed as an opportunity to transfer knowledge and skills, as well as to facilitate proper development of an open case.

  2. ITG Specialists and Managers may informally request assistance from CPM reviewers if they have researched an issue but have been unable to resolve it.

  3. CPM will establish formal procedures to request assistance if the nature of the problem requires prolonged CPM involvement.  (02-01-2008)
Quality Data Analysis

  1. Quality data is maintained in the QMS database.

  2. The primary purpose of quality analysis is to gather data for management's use regarding case quality. CPM analyzes the data to identify opportunities for improvements and possible training/CPE needs.

  3. Feedback on an individual case is provided when helpful for the development and improvement of future cases.  (02-01-2008)
Private Letter Rulings (PLR) and Technical Advice Memorandums (TAM)

  1. Drafts of Private Letter Ruling (PLR) requests from ITG entities that have been developed with ITG assistance may be submitted to the Manager of ITG Compliance and Program Management for comment. See IRM, Private Letter Rulings (PLR), for guidance.

  2. See IRM, Technical Advice Memorandums (TAM) for guidelines on development of a TAM for CPM review.

  3. After the initial development of an issue, the ITG Specialist will submit a synopsis of the issue to CPM. CPM will review the synopsis and discuss it with the ITG Specialist and his or her Group Manager.

  4. The Specialist will further develop the request and submit a final version to CPM for review against the standards established by Chief Counsel. See IRM 33.2.2, Requests for Technical Advice and Technical Expedited Advice. If necessary, the request will be returned to the Specialist for revision before submission to the Director, Indian Tribal Governments, for approval. If approved by the Director, the TAM will be forwarded to Chief Counsel, Tax Exempt and Government Entities for action.  (02-01-2008)
Technical Field Support/CPM Responsibilities

  1. The CPM staff identifies items of interest to ITG Specialists. These items include procedural problems, unique or unusual technical issues, and innovative audit or investigative techniques. Items of interest will be communicated to all Managers and Specialists, via E-mail or through the ITG internal web site on a regular basis.

  2. CPM will also identify other opportunities to provide technical support, such as discussions at group meetings and participation at CPE, to focus attention on current trends.

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