For consistency purposes, the documents submitted to the JCT as part of the JC report and attachments, must be assembled and submitted in a specific order.

For additional information and description of the attachments See IRM 8.7.9.7.4.4.

See Exhibit 8.7.9-1. This checklist will aid in the assembly of the report package.

Once the report has been completed, but prior to mailing, send an electronic copy of the report along with the spreadsheets, a copy of the Form 4081, Transmittal Memorandum - Joint Committee Case, by encrypted email to the AJCPA for review and approval. If Form 5482 , Record of Disclosure is applicable ( See IRM 8.7.9.5.8, it can be emailed at this time as well. If the Form 5482 is not sent electronically, then follow the mailing instructions at See IRM 8.7.9.7.7.2.

The AJCPA will review the report.

Notify the AJCPA of the shipped date when the package is prepared for shipping. This and other information from the report are captured in a database. The AJCPA must create and send an export file to the JCT on or before they receive the JCT package.

See IRM 8.7.9.7.7 for addresses and shipping instructions.

Once the JC report has been approved for shipping, the report should be signed, dated and the JC package assembled in accordance with See IRM 8.7.9.7.4.

The Form 4081,Transmittal Memorandum - Joint Committee Case should include the contact name, telephone and fax numbers and return mailing address. form is The form can be generated in APGOLF.

The Form 4081 is addressed the same as the shipping label. The JC report address is similar, but different from the shipping address because the report address includes the appropriate title for the Joint Committee on Taxation ("The Chairman" for regular, expedite and supplemental reports and "Chief of Staff" for large deficiency case reports). See IRM 8.7.9.7.7.

Following submission of a report to the JCT, the AO or ATCL named in the report as the contact person should keep a copy of the JC report and any related papers such as the ACM and the examiner's report until notified that the JCT has released the case.

Generally, the JCT does not return any submitted information back to Appeals once they have completed their review of a case. Therefore, if you should provide the JCT with any case related item, document, file etc., such as an original agreement form or the return, which is vital to processing and closing the case, you should either:

This subsection covers Addresses for JC reports, Form 4081, Form 5482, and Shipping Label.

When the JC report is received by APS, along with the case file and approved Form 5402, Appeals Transmittal and Case Memo, process Form 5403, Appeals Closing Record, for assessment of any agreed deficiency which does not require JC review. Use "copy of return" procedures and process as an interim quick assessment. See IRM 8.20.6, Interim Actions - Remittances, Partials, Transfers, and Returns.

After processing any necessary partial assessments, assemble the JC file to be mailed per the instructions in the previous subsection. See IRM 8.7.9.7.4. See Exhibit 8.7.9-1.

If there is a Form 5284, Record of Disclosure, keep the copy with the administrative file. See IRM 11.3.19 and IRM 11.3.37. Also See IRM 8.7.9.5.8.

Keep a copy of the JC report and the Form 4081 in the office file.

Send the Letter 1594(CG) prepared by the AO or ATCL assigned the case to notify the taxpayer that a report has been forwarded to the JCT. The letter should be send by first class mail to the taxpayer or representative.

Retain the case file in APS pending completion of JC review.

Computations will be prepared by the TCS to determine jurisdictional limits under IRC 6405(a), IRC 6405(b), and IRC 6405(c) as follows:

The JC report must specify the basis for refunds or credits. So to the extent refunds or credits result from carrybacks and carryovers, the TCS will list net operating loss deductions, alternative tax net operating loss deductions, capital loss carrybacks and credit carrybacks in an exhibit.

The TCS will prepare an exhibit reflecting the taxable income and tax liabilities reported on the returns and taxable income as finally determined prior to allowance of the net operating loss deduction.

TCS will prepare a spreadsheet for regular tax.

The TCS will also prepare a spreadsheet for AMT/Environmental tax whether or not AMT applies.

An Excel spreadsheet for regular tax is included on the Appeals TCS web site at http://appeals.web.irs.gov/taxcomput/Default.htm.

The LMSB Joint Committee web site has Excel spreadsheets for corporate and individual regular tax, AMT/Environmental tax, and life insurance cases located at http://lmsb.irs.gov/hq/pqa/Joint_Committee/index.asp .

The LMSB Joint Committee web site at http://lmsb.irs.gov/hq/pqa/Joint_Committee/index.asp also has a tutorial on how to prepare the regular tax JC spreadsheet.

If Appeals closes a JC case without waiting for a loss/unused credit year to be examined, and a carryback from that loss/unused credit year is provisionally allowed, the settlement computation should contain the following modification:

For any refund or credit where expedited refund procedures are applicable, include the following paragraph in the settlement computation:

There are times when it may be necessary for the JCT staff attorney to contact the Appeals employee listed as contact on the JCT report for additional information or clarification regarding items in the report. When this type contact is made by telephone or email, it is considered an informal inquiry. These inquiries should be treated with the highest priority. Appeals should cooperate with the staff attorney to the fullest extent to resolve questions. Responses may be made by telephone or by email. Email responses should be encrypted. The taxpayer's name should only appear in the body of the message. Do not use the taxpayer's name in the "Subject" line.

Normally, this type of response does not involve a significant delay and will not require contact with the taxpayer. A premature contact with the taxpayer could convey the impression that the JCT is having serious problems with reviewing and clearing the JC report. However, see IRM 8.7.9.9.2.1(6) below, if a lengthy delay may be involved.

Occasionally, the JCT will issue a Staff Review Memorandum (SRM). This is a formal inquiry from the Chief of Staff, JCT to the Chief, Appeals and may or may not require a formal response from the Chief, Appeals back to the Chief of Staff, JCT.

There are various reasons for issuance of SRMs which may include:

The SRM will indicate whether any action is required. If the JCT expects a reply, the memo will include the following or similar statement: "We will keep our file open and await your reply before final disposition of this case. " See IRM 8.7.9.9.2.1.

If the JCT has completed their review and do not expect a reply, the memo will include this statement: "No reply is requested, and we are closing our files on this case." This is a form of a release/clearance letter and Appeals may close or process its case when received. ( See IRM 8.7.9.10., APS Processing After JC Clearance).

If Appeals requests, on its own initiative, withdrawal of a report from JC consideration, the request should be sent to the AJCPA. An example of a request for withdrawal from JC consideration is a case coming under Department of Justice jurisdiction because suit for refund has been filed in the United States District Court.

If the views of the JCT expressed in a formal or informal request are adopted by Appeals and result in adjustments (or proposed adjustments) which reduce the proposed refund or credit to $2,000,000 or less, the case will still be under JC jurisdiction. In this case, submit a supplemental JC report explaining that the refund is now below the jurisdictional amount and wait for JC clearance of such report. It cannot be withdrawn. If a notice of deficiency is prepared, follow procedures previously discuss. See IRM 8.7.9.5.9.4. and See IRM 8.7.9.9.2.

After the JCT has completed its review of the case, the AO or ATCL listed as the contact person on the Form 4081 will receive a copy of the JC clearance letter either by FAX or electronically by E-mail . The FAX or electronic copy will be the only notification received.

The following action should be taken when reviewing the FAX copy of the clearance letter included in the administrative file received for closing:

Prepare Form 5403 to close to AIMS:

Assign to an APS employee on PEAs.

ACDS will be closed following general closing instructions and will include final processing of adjustments and update of appropriate systems

On each Form 5402 and copy, make an appropriate notation that "Joint Committee’s clearance letter dated -----," and distribute Form 5402.

Date and mail the notification letter ( Letter 1537(CG)) informing the taxpayer of completion of JC consideration.

Prepare the closed office file as outlined in IRM 8.20.7, Appeals Office File Management.

Process the case for closing after receipt of the FAX copy of the JC clearance letter. See IRM 8.7.9.10.1.

In addition, forward the file to Counsel for processing of the stipulation. Update ACDS:

After receiving the case file from Counsel indicating the date that the stipulation was filed with the Tax Court, continue closing the case. See IRM 8.7.9.10.1.

This subsection provides guidance for processing an examined carry back year that is not currently reportable to the Joint Committee but with the potential requirement for Joint Committee review after examination of the source year of the carry back.

The "Remarks" section of Form 5402 prepared by the Appeals Officer or ATCL should indicate the case may require JC review after examination and verification of the loss/unused credit carryback and that the file, returns, and workpapers are transferred to the examination group for association with the loss/unused credit year.

Indicate that the responsibility for the period of limitation is transferred to Compliance.

Request acknowledgement by the return of a date-stamped copy of Form 5402.

Instruct Compliance (on the Form 5402 or Form 3198, Special Handling Notice) to retain the file, returns, and workpapers for associate with the loss/unused credit year. Identify the loss/unused credit year on Form 3198 or otherwise flag it.

Instructions should be included for Compliance to request the loss/unused credit year if it is not already under examination. Enter "Follow Instructions Per form 3198" in Item A, Form 5403.

Close the case on ACDS following general closing instructions.

Assessments and overassessments in the carry back years should be made but IRC 6405 refunds or credits resulting from overassessments cannot be scheduled in view of the potential requirement for Joint Committee review of such proposed refunds or credits.

If the deficiency is greater that the amount of the " frozen" refund, a partial assessment will be processed prior to the "final" closing of the case (in cases reportable to the JCT, final closing is after the source year of the loss or credit has cleared Joint Committee) so that the only deficiency amount remaining at closing will be equal to the amount of the "frozen " refund. For example, assume that the case to be closed contains three taxable years, 1988, 1999, and 2000, with a refund and deficiencies as follows: