8.21.4  Appeals Management Statute Responsibility

Manual Transmittal

December 20, 2013

Purpose

(1) This transmits revised Internal Revenue Manual 8.21.4, Appeals Management Statute Responsibility.

Material Changes

(1) Updated IRM 8.21.4.8, Executive Directors, to simplify the section title and clarify roles in addressing statute related trends.

(2) Corrected IRM 8.21.4.9, Chief, Appeals, to reflect the current practice of reviewing barred statute reports on a quarterly basis rather than annually.

Effect on Other Documents

IRM 8.21.4, Appeals Management Statute Responsibility, dated August 22, 2012, is superseded.

Audience

Appeals

Effective Date

(12-20-2013)

Susan L. Latham
Director, Policy, Quality and Case Support

8.21.4.1  (04-25-2012)
Responsibility for all Appeals Managers

  1. Management oversees the statute protection process for all cases within Appeals jurisdiction as well as all docketed cases.

  2. Individual managers are responsible for ensuring all employees within their jurisdiction:

    • understand the laws pertaining to statutes commensurate with the employee's assigned responsibility;

    • adhere to the statute guidelines; and

    • make timely assessments of tax and penalties where applicable.

8.21.4.2  (10-01-2012)
Appeals Team Manager (ATM)

  1. The ATM protects the statute of limitations on all cases in his/her possession for assignment or review and approval. This responsibility continues until the case is delivered to the Appeals Technical Employee, or is forwarded to and received by Account and Processing Support (APS).

  2. When a new case is received for assignment, do a cursory review to ensure the correct statute date is shown on the Case Summary Card (CSC). If the statute date shown on ACDS is incorrect, follow the procedures outlined in IRM 8.10.3, Appeals Inventory Validation Process (AIVP). The AIVP Statute Validation System (SVS) is used to update, change or modify the critical data fields of statute date, statute code and tax period on the SVS system.

  3. Once a month, the ATM generates a "Master Statute List" of cases for his/her team where the statute expires within 180 days. Cross match individual statute reports with the master list.

  4. Exercise due diligence when reviewing the monthly statute lists submitted by the Appeals Technical Employees and when necessary, follow up to ensure the time frames provided are met.

  5. If the case is assigned to an Appeals Technical Employee who is away from the office, the ATM is responsible for statute control until the employee returns. In addition, the ATM is responsible for monitoring the statute on any short statute case in which he/she has been pre-notified in writing that some action is required while the Appeals Technical Employee is away from the office.

    1. An Appeals Team Manager may review all changes to statute critical data fields, tax period, statute date and statute code, using the Statute Validation System (SVS), accessible from the ATM Home Page in ACDS. The "Statute Reviews" is located in the Notification Section of the ACDS Home Page and displays the ATE Statute Changes Listing for each employee on the team. Selecting the hyperlink under the taxpayer name displays the Validation Tracking Log (VTL), which provides information for all changes to ACDS critical data fields submitted for system update, by date, type and submitter. The Appeals Team Manager may indicate completion of the review of statute changes by checking the "reviewed" box on the Statute Updates Listing. Selecting the Review button removes a change from the listing. All un-reviewed changes will remain on the listing until reviewed.

    2. Appeals Team Managers may also update, change or modify any statute date, statute code or tax period using the Statute Validation System (SVS) menu in ACDS. The SVS menu is accessible from the Case Summary Card or the CARATS screen by selecting "Validations" from the menu at the bottom of the screen. Once submitted, the validation will update the return in real time and place an entry in the Validation Tracking Log as to the original and changed data.

  6. If the employee’s absence from the office is due to an emergency and continues for more than five (5) business days, generate a statute list for that employee to ensure there are no statute problems.

  7. Generally, at least 120 days must remain on the statute when the ATM submits the case to APS for processing. If less than 120 days remains, notify the Processing Team Manager (PTM) via secure email. Ensure an acknowledged Form 3210 is received from APS to show receipt of the case. Responsibility for such statutes is jointly held by APS and the ATM.

  8. Discuss statute procedures periodically and emphasize the procedures during workload reviews and other performance evaluations.

8.21.4.2.1  (04-25-2012)
Assisting APS Identify Statutes

  1. If requested, the ATM assists APS employees in identifying statute dates on new cases received in Appeals. Detailed procedures are outlined in IRM 8.21.2.4 (1).

  2. In isolated instances, a new case for assignment may have a STATCODE "UNKNOWN" on ACDS. Give these cases priority treatment. Within two business days of receipt, update ACDS with the correct statute date and statute code using the AIVP Statute Validation System in ACDS.

  3. Jurisdiction shifts from APS when the case is given to an on-site ATM. If the ATM is not on-site, jurisdiction shifts from APS when acknowledgement is received.

8.21.4.2.2  (04-25-2012)
Rescinding Statutory Notices of Deficiency

  1. Once Form 8626, Agreement to Rescind Notice of Deficiency, is executed, immediately attach it to the related tax return and send a copy to APS indicating that the notice was rescinded and ACDS needs to be updated. Return the case to the Appeals Technical Employee for further work. See IRM 8.2.2.14.1 for criteria for rescinding a Statutory Notice of Deficiency (SND).

8.21.4.2.3  (08-07-2007)
Reporting Barred Statutes

  1. Ensure that barred statutes are timely reported to the appropriate Area Director.

  2. Refer to IRM 8.21.7 for barred statute reporting procedures.

8.21.4.3  (04-25-2012)
Processing Team Managers (PTM)

  1. Upon receipt of a case in APS, the PTM has statute responsibility for that case until it is received by an ATM for assignment. See IRM 8.21.1.2. This includes the receipt of cases from Compliance functions, IRS campuses and other Appeals offices.

  2. The PTM may update, change or modify a statute on a new receipt, if necessary, using the PTM Statute Menu on the Validation Menu, accessible from the ACDS Home Page.

  3. Exercise due diligence in reviewing the monthly statute reports for APS.

  4. Joint responsibility for statutes is held by the PTM and the ATM on cases received in APS with less than 120 days remaining on the statute. See IRM 8.21.4.2 (7).

  5. Ensure statute procedures are discussed with the employees periodically during group meetings and emphasized during workload reviews and performance evaluations.

  6. Ensure that barred statutes are timely reported to the appropriate Area Manager.

8.21.4.4  (08-07-2007)
Appeals Tax Computation Team Manager (ATCTM)

  1. The ATCTM is responsible for ensuring work requests sent to them for cases identified as short statutes are quickly assigned and are given priority treatment by the Tax Computation Specialist working the case.

  2. Periodically discuss the importance of prioritizing short statute cases with employees.

  3. Monitor the employee’s performance when handling short statute cases through case reviews, workload reviews or other performance evaluations.

8.21.4.5  (10-01-2012)
Area Directors and Area Managers

  1. For purposes of these guidelines, any reference to Area Director includes all of the following job titles:

    1. Area Director (Field Operations East or West)

    2. Area Director, (Campus Operations)

    3. Director, ATCL (Appeals Team Case Leader)

    4. Director, TS (Technical Support)

    5. Director, Domestic Operations

    6. Director, International Operations

  2. Area Manager refers to an APS Area Manager.

  3. Overall, the Area Director/Area Manager is responsible for statute control within the Area, and for ensuring that all employees in the area understand and properly perform their statute duties in a timely manner.

  4. Take the following actions to ensure sufficient statute control in the area:

    1. During operational reviews, review statute procedures followed by each team to ensure the manager is adhering to these guidelines.

    2. Make sure due diligence is exercised at all levels when working the monthly statute reports.

    3. Make certain barred statutes are reported timely to the appropriate person.

  5. Area Directors/Area Managers have the same responsibilities as the ATM on cases assigned to their direct employees and on cases submitted for approval as required by delegations or other procedures within the area.

8.21.4.6  (10-01-2012)
Director, Account and Processing Support

  1. Overall, the Director, Account and Processing Support (APS) is responsible for the statutes in APS, for emphasizing statute control responsibility during operational reviews, timely approving barred statute reports and annually reviewing these reports to identify trends.

  2. If trends are identified, takes appropriate action to provide resources (personnel, training, IRM or statute guidelines changes) to address the trends and reduce the number and type of barred statute cases in the future.

8.21.4.7  (08-07-2007)
Tax Policy and Procedure (Exam) Program Analyst

  1. A program analyst on the staff of the Director, Tax Policy and Procedure (Exam) is primarily responsible for the statute program and for performing the following tasks:

    1. Ensuring the finalForm 3999 is timely prepared.

    2. Monitoring the barred statute reports for identification of trends.

    3. Preparing executive summaries for presentation to the Chief, Appeals.

    4. Providing copies of barred statute reports to the program analyst responsible for the APS Program, who will determine impact on processing issues.

    5. Updating IRM 8.21, Appeals Statute Responsibility.

8.21.4.8  (12-20-2013)
Executive Directors

  1. For purposes of these guidelines, any reference to Executive Director includes all of the following job titles:

    1. Director Field Operations East

    2. Director Field Operations West

    3. Director, Campus Operations

    4. Director, Specialty Operations

    5. Director, Policy, Quality and Case Support

    6. Director, Strategy and Finance

  2. Executive Directors ensure designated employees on their staff are aware of the statute guidelines and are available to assist field personnel, when appropriate, in following proper statute procedures.

  3. If trends are identified, the Executive Director identifies a Director(s) on their staff to take appropriate action to reduce the number and type of barred statute cases in the future.

8.21.4.9  (12-20-2013)
Chief, Appeals

  1. The Chief, Appeals is responsible for emphasizing statute control responsibility throughout Appeals.

  2. The Chief, Appeals reviews the barred statute reports on a quarterly basis to identify trends and takes appropriate action to provide resources (personnel, training, IRM or statute guidelines changes) to address the trends and reduce the number and type of barred statute cases in the future.


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