- 8.21.1.1 All Employee Responsibility
- 8.21.1.2 Case Jurisdiction
- 8.21.1.3 Statutes Expiring Within 180 Days
- 8.21.1.4 Appeals Statute Reports
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This manual provides guidance to Appeals employees by defining their responsibility for verifying, updating, and monitoring statute dates. It also provides an overview of responsibilities in barred statute situations.
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The procedures presented represent the minimum standard that each employee is expected to follow when handling cases in Appeals.
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All employees should be alert to possible statute situations or problems and take action, whenever possible, to prevent barred assessments.
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Employees should always be aware of the statute dates on cases in their physical possession. They must continue to monitor the statute dates as long as the case is in their possession.
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Case jurisdiction does not merely mean having physical possession of a case. The employee charged with jurisdiction is accountable for verifying and monitoring the statute date on a case while it is in that employee’s jurisdiction.
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Jurisdiction changes as a case travels through Appeals. When a case is first received in Appeals, Appeals Processing Services (APS) has jurisdiction when they acknowledge receipt of the case, using Form 3210. APS will use Form 3210 for all case movement out of APS. APS continues to have jurisdiction until the case is acknowledged using Form 3210 by the Appeals Team Manager (ATM) for assignment to a technical employee.
Note:
For a definition of technical employee, see IRM 8.21.3.1.
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Once a case is assigned to a technical employee, jurisdiction shifts to that employee. Jurisdiction can transfer from one technical employee to another numerous times. The technical employee reflected on Appeals Centralized Database System (ACDS) will be responsible for verifying and monitoring the statute while the case is assigned to him/her.
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When the case is returned to APS for closing, jurisdiction shifts back to APS when the case is entered on Processing Employees Automated System (PEAs) and will remain with APS until an assessment is made. When an Appeals Team Manager (ATM) approves a case for closing on Case Activity Record and Automated Timekeeping System (CARATS), it is automatically entered on PEAs and jurisdiction shifts to APS when the case assignment is made on PEAs..
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Jurisdiction can remain with one employee while another employee has physical possession of the case file. Although the employee with physical possession is not responsible for verifying the statute date, that employee controls the movement of the case and therefore, must monitor the statute date while the case is in his/her possession.
Example 1: When issuing a statutory notice of deficiency, jurisdiction remains with the technical employee until the notice is issued. However since APS has physical possession of the case before the notice is issued, they must monitor the statute date to ensure the notice is issued timely.
Example 2: When sending a case to the Tax Computation Specialist (TCS) for a tax computation, jurisdiction remains with the technical employee. However since TCS has physical possession of the case, they must monitor the statute date to ensure the work is completed in a timely manner.
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Any employee having jurisdiction of a case shares accountability for verifying and monitoring the statute with his or her manager. Any employee having physical possession of a case file shares accountability for monitoring the statute with his or her manager.
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All tax returns with assessment periods expiring within 180 days or less are considered short statute cases. To ensure these returns are highly visible;
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Place file in a red folder (Form 10364-A) or in lieu of Form 10364-A, a plain red folder with a Form 10364.
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Attach a pink expedite tag to the folder.
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When necessary, employees need to take additional actions to protect the assessment period on these cases. It may be necessary to hand-carry the file from one location to another. If the file is being sent to a location outside of the local office, use express mail or fax.
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All Appeals employees and managers should be actively involved in the process of protecting assessment periods. Refer to IRM 8.20.9 for additional information regarding the ACDS statute and other inventory reports used by APS.
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This report lists all cases/returns, including reference returns, in chronological order by statute expiration date. APS employees will generate the report monthly by the Appeals Office Code (AOC) for which they have primary responsibility. Statute reports run by APS employees will include all cases with assessment periods expiring in 90 days or less. Technical employees will generate the report for cases in their inventory.
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The purpose of this report is to monitor and control all non-docketed and docketed cases with assessment periods that will expire within a prescribed number of days.
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The Unassigned Report will be generated and used by APS. It lists all cases in Appeals jurisdiction that have not been assigned to an Appeals Officer, excluding cases sent to Counsel for Answer or cases transferred to Counsel jurisdiction. The report should be run monthly.
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The purpose of this report is to verify the validity of any unassigned cases. Upon confirmation of receipt (acknowledged Form 3210), the list will be delivered to the responsible ATM for further research concerning the assignment of the case.
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This list is comprised of closed cases which reflect an " ACKCLS" in the Action field on ACDS with no "from" date. Since APS continues to control the statute date on any case that appears on the list until the other office "acknowledges" receipt of that case, it is important that they generate and monitor the information on this list.
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The purpose of this report is to follow-up on any cases listed that are over 10 days old. These cases are waiting for an acknowledged Form 3210 "from" date to be input on ACDS.
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AMATCH is an automated program that compares ACDS and Audit Information Management System (AIMS) inventories in Appeals statuses. APS will generate this report to identify mismatches on AIMS vs. ACDS, including mismatched statutes. Returns with mismatched statute information generally involve one of the following situations:
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No Bond filed cases should have a statute date and a statute code of ASESD (Assessment Made) on ACDS but AIMS controls will have a statute date of "QQ" until the case closes. See IRM 8.20.6.8.4.1.
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Reference Returns will usually have a statute code of RFRTN on ACDS but a statute date containing "GG" or "FF" on AIMS.
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Cases with a statute code of "CLAIM" on ACDS will generally have a statute date of "AA" on AIMS.
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Carryback years may have a statute date on ACDS – the date of the carryback year, but a statute code of "BB" on AIMS.
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Docketed cases with an entered decision should have a statute date on ACDS. The statute date on AIMS should match ACDS.
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APS will generate this report so they are aware of any tried cases in Appeals inventory with a decision entered waiting the 90-day appeal period. Cases will appear on the report until they are returned to Appeals for closing.
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The purpose of this report is to ensure the timely transmittal of the case file from Counsel to Processing so that the case can be closed to APS for timely assessment in order to protect the assessment statute.
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All cases should be researched to make sure the case is still open on ACDS and to verify the statute of limitations. The 150-day date is the earliest statute date and should be entered on ACDS when the Counsel Automated Tracking System (CATS) transmittal is received from the National Office. If there is no statute date on ACDS, then update the system to reflect the 150 day date.
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This is an optional report, if used then procedures would apply.
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This list is comprised of all docketed cases transferred to Counsel Jurisdiction and not yet returned to Appeals for closing. A case with a notation of DCJUR means that Appeals has relinquished settlement control to an Area Counsel office but has retained AIMS control. Generally the case is returned to APS after settlement so it can be closed.
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The primary reason that APS generates and works this report is to protect assessment periods. Sometimes cases are settled and decisions or orders are entered, but a CATS transmittal is never received to notify Appeals of the decision/order. Since the assessment period may expire 150 days from the date the decision or order is entered, it is very important to work this listing at least quarterly to protect against an expired assessment period.
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APS will generate this list so they can identify any case with a decision entered based on a stipulated agreement between the taxpayer and the government represented by Appeals or Area Counsel.
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The purpose of this monthly report is to alert APS that the Decision has been entered, Appeals may have only 150 days to make the assessment. If necessary, APS will locate the administrative file to ensure the assessment is made and the case is closed prior to the 150-day period.
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This report will list any case that reflects "interim " in the action field and no "from" date. APS will need to generate this report to follow-up on any interim adjustment that has not been completed.
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APS will identify statute dates that will expire within 30 days from the date of the report and notify the Processing Team Manager (PTM) immediately of any case found.
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This list will generate those cases where a Court Order has been entered to dismiss a case for Lack of Jurisdiction, Lack of Prosecution, or Tried/Dismissed. Once the ORDENT (Order of Dismissal Entered by Tax Court) date is entered the Assessment Statute Expiration Date (ASED) begins to run.
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These cases are suspended for the 90-day appeal period and processed for closing on the 100th day. Some Counsel offices forward the case to Appeals to suspense, and others keep the case and send to Appeals when the 100-day suspense period is up.
Note:
At the time the 100-day suspense period expires, there are 50 or fewer days remaining on the 150-day statute date. Prompt action must be taken to complete the assessment and close the case before expiration of the statute.
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This report lists all cases/returns in chronological order by statute expiration date including reference returns. APS can generate this report for the entire office, by Appeals Office Code (AOC), employee, or team.
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The report will be generated and distributed weekly to the Tax Examiners so they can monitor and process short statute cases in their inventory.
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This report is comprised of closed cases that have been rejected from either the campuses or from PEAs adjustments. Sometimes, adjustments have not been completed and therefore, the assessment period is running.
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It is strongly recommended that all assessments be made prior to establishing the Reject record. The record should be notated:
" Identify any statute date that is near expiration or any questionable statute dates. All cases should have a statute date or statute code. If any short statutes are found, circle the statute date and notify the PTM and the employee who has the case immediately."