4.25.3 Planning, Classification, and Selection

Manual Transmittal

July 23, 2018

Purpose

(1) This transmits revised IRM 4.25.3, Estate and Gift Tax, Planning, Classification and Selection.

Material Changes

(1) This transmittal reissues existing procedures. Editorial changes have been made throughout this IRM. Web page links, business unit title changes, legal references, and IRM references were reviewed and updated as necessary.

IRM Section Material Change:
4.25.3.1 Pre-Classification Planning Moved to IRM 4.25.3.3 and modified to clarify procedures for classification
4.25.3.1 Program Scope and Objectives New section added to conform with Internal Controls
4.25.3.1.1 Pre-Classification Responsibilities Moved to IRM 4.25.3.3.1 and modified to change time frame to classify returns and the location for classification
4.25.3.1.1 Authority New section added to conform with Internal Controls
4.25.3.1.2 Pre-Classification Information Moved to IRM 4.25.3.3.2 and modified to indicate procedures specific to visiting Estate Tax Attorney classifiers
4.25.3.1.2 Roles and Responsibilities New section added to conform with Internal Controls
4.25.3.1.3 Campus Pre-Classification Responsibilities Section removed to be incorporated in IRM 4.25.2, Campus Procedures for Estate Tax
4.25.3.1.3 Role of Estate and Gift Workload Selection and Delivery New section added to conform with Internal Controls
4.25.3.1.4 Program Controls New section added to conform with Internal Controls
4.25.3.1.5 Terms/Definitions and Acronyms New section added to conform with Internal Controls
4.25.3.1.6 Related Resources New section added to conform with Internal Controls
4.25.3.2 Classification Moved to IRM 4.25.3.4, Classification of Filed Estate and Gift Tax Returns
4.25.3.2 Fairness in Case Selection New section added to include Policy Statement P-1-236
4.25.3.2.1 Classification in General Moved to IRM 4.25.3.4.1, Classification of Filed Estate and Gift Tax Returns in General, and modified to update classifier responsibilities to include prioritization of selected return, update responsibilities of the WSD Paralegal at classification and include the manager review requirements of classified returns
4.25.3.2.1 Taxpayer Rights New section added to emphasize taxpayer rights
4.25.3.2.1.1 Confidentiality of Taxpayer Information – Taxpayer Privacy New section added to emphasize confidentiality of taxpayer privacy
4.25.3.2.2 Valuation of Listed and Over-the-Counter Securities Moved to IRM 4.25.3.4.3 and modified to add guidelines to be provided by EG WSD for when the valuation of listed securities is obtained by the Campus
4.25.3.2.3 Classification of IRC section 6166 and 2032A Elections Moved to IRM 4.25.3.4.4 and modified to require Gatekeeper review and expand classifier role of review
4.25.3.2.3.1 IRC section 6166 Elections Accepted as Filed Moved to IRM 4.25.3.4.4.1 and modified to add the Campus lien package requirement
4.25.3.2.3.2 IRC section 6166 Election Selected for Examination Moved to IRM 4.25.3.4.4.2 modified to add Gatekeeper procedures
4.25.3.2.3.3 IRC section 2032A Elections Moved to IRM 4.25.3.4.4.3, IRC section 2032A Elections Accepted as Filed, and modified to provide additional guidance on accepted as filed procedures
4.25.3.3 Post-Classification Moved to IRM 4.25.3.5, Post Classification of Filed Estate and Gift Tax Returns, and modified to distinguish to which classification the procedures apply
4.25.3.3.1 Cases Not Selected for Field Consideration Moved to IRM 4.25.3.5.1, Returns Accepted as Filed during Classification of Filed Estate and Gift Tax Returns, and modified to remove Campus procedures to be incorporated in 4.25.2, Campus Procedures for Estate Tax
4.25.3.3.2 Cases Selected for Field Consideration Moved to IRM 4.25.3.5.2, Returns Selected for Field Consideration during Classification of Filed Estate and Gift Tax Returns, modified to remove Campus procedures to be incorporated in IRM 4.25.2, Campus Procedures for Estate Tax, and to provide Gatekeeper procedures
4.25.3.4 Requisition of Estate and Gift Tax Returns Moved to IRM 4.25.3.10
4.25.3.4 Classification of Filed Estate and Gift Tax Returns Moved from IRM 4.25.3.2 and modified to distinguish to which classification the procedures apply
4.25.3.4.1 Return Requisitions Moved to IRM 4.25.3.10.1 and modified to include Gatekeeper surveying procedures
4.25.3.4.2 Filling Orders Moved to IRM 4.25.3.10.2, Filling Orders and Surveying Cases, and modified to include Gatekeeper surveying procedures
4.25.3.4.2 Selection and Non-Selection Decisions New section added to provide for documentation of select and non-select decisions
4.25.3.4.3 Shipment of Cases Moved to IRM 4.25.3.10.3 and modified to provide information regarding updating the AIMS/ERCS information for shipped cases
4.25.3.4.4.4 IRC section 2032A Election Selected for Examination New section added to provide Gatekeeper procedures for selected IRC 2032A returns
4.25.3.5.2.1 Returns Selected for Field Consideration of Deceased Spousal Unused Exclusion (DSUE) New section added to provide procedures for DSUE returns
4.25.3.6 Classification of Prompt Assessment Requests New section added prompt assessment procedures
4.25.3.6.1 Prompt Assessment Requests in General New section added prompt assessment procedures
4.25.3.6.2 Prompt Assessment Request Classification New section added prompt assessment procedures
4.25.3.7 Selected Claims for Refund from the Campus New section added to provide Gatekeeper procedures
4.25.3.7.1 National Gatekeeper Review of Selected Claims for Refund from the Campus New section added to provide Gatekeeper procedures
4.25.3.8 Classification of Non-Filer and Under-reporter Project Cases New section added to provide WSD Coordinator procedures for project cases
4.25.3.8.1 Fed/State Non-Filer and Under-reporter Estates New section added to provide WSD Coordinator procedures for Fed/State and Under-reporter Estates
4.25.3.8.2 Joint Operations Center (JOC) New section added to provide WSD Coordinator procedures for JOC cases
4.25.3.8.3 706 GS(D) New section added to provide WSD Coordinator procedures for 706 GS(D)
4.25.3.9 Consultations and Referrals from Other Business Units New section added to provide WSD Coordinator procedures for consultations and referrals
4.25.3.9.1 Consultations from Other Business Units New section added to provide WSD Coordinator procedures for consultations
4.25.3.9.2 Classification of Referrals from Other Business Units New section added to provide WSD Coordinator procedures for referrals
4.25.3.9.2.1 General Examination Referrals New section added to provide WSD Coordinator procedures for examination referrals
4.25.3.9.2.2 Global High Wealth Referrals New section added to provide WSD Coordinator procedures for Global High Wealth referrals
4.25.3.9.2.3 Tax Delinquency Investigation Collection Credit Balance Referrals New section added to provide WSD Coordinator procedures for Tax Delinquency Investigation Collection Credit Balance Referrals
4.25.3.9.2.4 Offshore Referrals New section added to provide WSD Coordinator procedures for Offshore referrals
4.25.3.9.2.5 Whistleblower and Informant Referrals New section added to provide WSD Coordinator procedures for Whistleblower and Informant referrals
4.25.3.9.2.5.1 Whistleblower Type A Referrals New section added to provide WSD Coordinator procedures for Whistleblower Type A referrals
4.25.3.9.2.5.2 Whistleblower Type B Referrals New section added to provide WSD Coordinator procedures for Whistleblower Type B referrals
4.25.3.9.2.5.3 Informant Form 3949-A Referrals New section added to provided WSD Coordinator procedures for informant referrals
4.25.3.9.2.6 Doubt as to Liability New section added to provide WSD Coordinator procedures for Doubt as to Liability referrals
4.25.3.9.2.7 Operations Assistance Request Referrals from Taxpayer Advocate Service New section added to provide WSD Coordinator procedures for Operations Assistance Requests from Taxpayer Advocate Services
4.25.3.9.2.8 Return Preparer Referrals New section added to provide WSD Coordinator procedures for Return Preparer Referrals

Effect on Other Documents

IRM 4.25.3 dated August 05, 2015 is superseded and incorporates Interim Procedural Update dated August 31, 2017.

Audience

This section contains instructions and guidelines for Small Business/Self-Employed Estate and Gift Tax Specialty Programs' employees.

Effective Date

(07-23-2018)

Maha H. Williams
Director, Exam Case Selection
Small Business/Self-Employed Division

Program Scope and Objectives

  1. Purpose—IRM 4.25.3, Estate and Gift Tax, Planning, Classification, and Selection, establishes clear and consistent procedures for documentation of case selection, non-selection and survey decisions. IRM also establishes the related review and approval requirements for those decisions when providing cases for compliance activity. It:

    1. Establishes standards and procedures for classifying filed estate and gift tax returns, prompt assessment requests, referrals, and Servicewide initiatives.

    2. Establishes the standards and procedures for managerial quality reviews of classified cases to ensure that cases with the best examination potential are being sent for examination review.

    3. Establishes the standards and procedures for the National Gatekeeper’s review of selected returns and the prioritization of returns to send for examination review.

    4. Establishes the standards and procedures for surveying selected cases.

    5. Provides direction for the completion of field orders for selected returns.

  2. Audience—These procedures apply to the IRS employees in Estate and Gift Workload Selection and Delivery, Estate and Gift Examination employees and Campus employees who are responsible for identifying, classifying and processing estate and gift returns, referrals, project cases, and Servicewide initiatives, including:

    1. Attorney-Advisor coordinators

    2. Estate Tax Attorney classifiers

    3. Estate Tax Lead Attorney classifiers

    4. Paralegal Specialist classifiers

    5. Transfer Tax Technician classifiers

    6. Administrative Personnel

    7. Managers

  3. Policy Owner—The Director, Exam Case Selection - Specialty owns the Estate and Gift Workload Selection and Delivery Program.

  4. Primary Stakeholders—Employees in Estate and Gift Workload Selection and Delivery, Estate and Gift Exam, and Estate and Gift Policy.

  5. Program Goals—The goals of Estate and Gift Workload Selection and Delivery are consistent with the mission of Exam Case Selection to provide policy guidance on selection of cases and delivery of inventory for Examination, create the Examination work plan, and set direct assignment criteria for routing of examination work.

Authority

  1. Statutory Authority:

    1. Internal Revenue Code (Title 26 of the US Code) Chapter 11 provides the statutory authority for the taxation of estates.

    2. Internal Revenue Code Chapter 12 provides the statutory authority for the taxation of gifts.

    3. Internal Revenue Code Chapter 13 provides the statutory authority for the taxation of generation-skipping transfers.

  2. Policy Statement 4-21, Selection of Returns for Examination, states that the primary objective in selecting returns for examination is to promote the highest degree of voluntary compliance on the part of the taxpayers. This requires the exercise of professional judgment in selecting sufficient returns of all classes of returns in order to assure all taxpayers of equitable consideration, in utilizing available experience and statistics, indicating the probability of substantial error, and in making the most efficient use of examination staffing and other resources.

  3. IRM 1.11.1.6.5, General Management Responsibilities, provides that all IRS managers must ensure that their employees have access to internal management documents defining policies and procedures necessary to perform their jobs. IRS managers who are responsible for establishing the program, policy, process and procedures necessary to implement and manage a program area for the Service are program owners. They are responsible for:

    1. Ensuring IRM content is reviewed annually for accuracy and completeness;

    2. Analyzing issues that may provoke a change to the IRM, such as new or revised legislation, court opinions, issuance of regulations, changes in procedure that result from other factors (organizational, operational, technology, etc.);

    3. Ensuring IRM authors and/or coordinators reporting to them are properly trained.

  4. IRM 1.11.2.2.1, Supplemental Sources of Guidance, provides that organizations may issue supplemental guidance and local procedures to employees when the primary guidance is in the IRM. Supplemental guidance contains information that details how to perform or review a task. Supplemental sources must comply with published guidance and not supersede the IRM.

Roles and Responsibilities

  1. The Director, Exam Case Selection – Specialty is responsible for oversight of Estate and Gift Case Selection.

  2. The Employment Tax and Estate & Gift Tax Exam Case Selection Program Manager is responsible for oversight of Estate and Gift Workload Selection and Delivery (WSD) operations.

  3. The WSD Supervisory Attorney is responsible for the oversight of the WSD group.

Role of Estate and Gift Workload Selection and Delivery

  1. To accomplish the mission of Exam Case Selection, Estate and Gift Workload Selection and Delivery (Estate and Gift WSD) will perform the following:

    1. Implement policies related to case selection and review progress towards delivering against the Estate and Gift Tax Examination work plan.

    2. Provide centralized oversight and program coordination of workload selection, classification, and delivery for Specialty Estate and Gift Tax, and of information reporting compliance.

    3. Develop standardized policy and program direction for ordering, classifying, and delivering workload to support plan goals.

    4. Monitor Specialty Estate and Gift Tax Examination inventory and timely deliver inventory on an as-needed basis, to support program goals, and strategic plan objectives.

    5. Support development of workload initiatives to identify areas of non-compliance.

    6. Provide input to develop the Specialty Estate and Gift Tax Examination workplan.

    7. Provide input to develop the SB/SE Division Strategic Plan.

    8. Provide input to develop the Specialty Estate and Gift Tax Examination workload studies.

Program Controls

  1. All information management systems that are utilized have safeguard measures in place that address all key components of Information Technology (IT) security requirements to restrict access to sensitive data.

  2. The Estate and Gift WSD Supervisory Attorney (or designee) or Estate and Gift WSD National Gatekeeper will review 10% of employee classification efforts and survey decisions to ensure selects and non-selects adhere to examination case selection policy. Such reviews will be conducted while the classifier is on-site and feedback will be provided to the classifier. The review will be documented in a memorandum or feedback form.

  3. The Estate and Gift WSD Supervisory Attorney (or designee) will conduct quarterly reviews of the Gatekeeper reviews discussed in IRM 4.25.3.5.2, Returns Selected for Field Consideration during Classification of Filed Estate and Gift Tax Returns, as well as any Gatekeeper reviews completed pursuant to subsection (2) of this section to ensure such reviews adhere to examination case selection policy. These reviews by the Estate and Gift WSD Supervisory Attorney (or designee) will be documented in a memorandum.

  4. As part of the Program Review process, the Estate and Gift WSD Program Manager (or designee) will conduct a review of the Estate and Gift WSD Supervisory Attorney and National Gatekeeper reviews in subsections (2) and (3) of this section, as well as the Gatekeeper review found in IRM 4.25.3.5.2, Returns Selected for Field Consideration during Classification of Filed Estate and Gift Tax Returns, to ensure these reviews adhere to the examination case selection policy.

Terms/Definitions and Acronyms

  1. Below are acronyms and definitions for terms frequently used throughout this IRM:

    Acronym Definition
    AIMS Audit Information Management System
    AOIC Automated Offer in Compromise
    BMF Business Master File
    DATL Doubt as to Liability
    DSUE Deceased Spousal Unused Exclusion
    EGC Employee Group Code
    ERCS Examination Returns Control System
    GHW Global High Wealth
    IAR Independent Administrative Review
    IDRS Integrated Data Retrieval System
    JOC Joint Operations Center
    MFTRA Master File Transcript Request
    OAR Operations Assistance Request
    OVDI Offshore Voluntary Disclosure Initiative
    POC Point of Contact
    PSP Planning and Special Programs
    RPO Return Preparer Office
    SFR Substitute For Return
    SME Subject Matter Expert
    SRS Specialist Referral System
    TAS Taxpayer Advocate Service
    TBOR Taxpayer Bill of Rights
    TDI Tax Delinquency Investigation
    TIPRA Tax Increase Prevention Reconciliation Act of 2005
    UNAX Unauthorized Access
    WSD Workload Selection and Delivery

Related Resources

  1. For general guidance, procedures, tax law, and regulations on a wide variety of estate and gift tax issues, refer to the Estate and Gift Tax Program website at http://mysbse.web.irs.gov/examination/specialty/eg/default.aspx,

  2. Refer to IRC 7803, which is also known as The Taxpayer Bill of Rights (TBOR)https://www.irs.gov/taxpayer-bill-of-rights, for information about how IRS employees are expected to carry out their duties with integrity and fairness. The IRS must administer the law with integrity and fairness to all taxpayers. Under TBOR, IRS employees must exercise professional judgment in conducting enforcement activities.

Fairness in Case Selection

  1. Policy Statement P-1-236 Fairness and Integrity in Enforcement Selection, emphasizes the IRS mission statement that includes "enforcing the tax law with integrity and fairness to all." A "fair and just tax system" is also a cornerstone in the TBOR. IRS employees are expected to carry out their duties with integrity and fairness. Fairness and integrity, therefore, apply to how the IRS administers tax laws to all taxpayers as well as how IRS employees interact with each taxpayer and tax professional.

  2. Employees must exercise their professional judgment, not personal opinions, in conducting their enforcement responsibilities. There are three parts to enforcing the tax law with integrity and fairness:

    1. To ensure fairness to the taxpaying public, employees must consider the responsibilities and obligations that all taxpayers share and pursue those individuals and businesses who don’t comply with their tax obligations. In this way, employees are being fair to those who are compliant and that, in turn, helps promote public confidence in our tax system for all taxpayers.

    2. To ensure an equitable process for all taxpayers, fairness and integrity are built into the foundation of our enforcement selection processes. These processes operate under a comprehensive set of checks and balances and safeguards to identify the highest potential non-compliance using scoring mechanisms, data driven algorithms, third party information, whistleblower information and information provided by the taxpayer. No one individual can control the enforcement selection decision-making processes, and involvement is limited to only those employees whose duties require involvement. This produces processes that are impartial and applied consistently to each taxpayer return.

    3. To ensure fairness to each taxpayer, IRS employees do their jobs with a focus on taxpayer rights, including due process and appeal rights. The Internal Revenue Code grants taxpayers certain rights when working with the IRS, and these rights are embodied in Pub 1, Your Rights as a Taxpayer. In addition, managers and employees adhere to administrative and legislative procedures. Managerial as well as quality reviews of selection decisions occur during each phase of the selection and assignment process. IRS employees are managed and evaluated on how well they provide fair and equitable treatment of taxpayers as required by the Restructuring and Reform Act of 1998. Also, taxpayers may administratively appeal most IRS decisions, including the assessment of additional tax or penalties, the denial of a refund claim, or issuance of a lien or levy. An employee in the Office of Appeals, an independent and impartial function within the IRS, will contact the taxpayer, hear the case and decide whether to sustain the enforcement action. Most taxpayers can also petition the U.S. Tax Court for a pre-assessment review of any proposed or additional tax or seek a refund in other federal courts.

  3. SB/SE supports administration of tax law by selecting returns to audit. The primary objective in selecting returns for examination is to promote the highest degree of voluntary compliance on the part of taxpayers while making the most efficient use of finite examination staffing and other resources. Employees must exercise their professional judgment, not personal opinions, when making return selection decisions. As explained in Policy Statement Pub 1-236, IRS employees are expected to carry out their duties with integrity and fairness:

    1. To ensure fairness to the taxpaying public, our Examination Workplan provides a balanced approach for return delivery and allocation of resources to address areas of the Tax Gap by considering factors such as income levels, geographic locations, and return types.

    2. To ensure an equitable process for all taxpayers, return selection decisions are made utilizing available experience and/or statistics indicating the probability of substantial error. No one individual can control the examination selection decision-making process. We limit involvement to only those employees whose duties require them to be included.

    3. To ensure fairness to each taxpayer whose return is selected, individual return selection decisions are based on the information contained on the taxpayer’s return and/or the underlying relevant tax law. Managerial as well as quality reviews of selection decisions occur during each phase of the selection and assignment process.

  4. SB/SE Program Level Objective is to ensure examinations are initiated based on indicators of non-compliance or on other criteria (such as selection for the National Research Program), identified in the Internal Revenue Manual. In addition, ensure a review of the decisions to survey a return (i.e., not initiate an examination) is based upon factors outlined in the Internal Revenue Manual and approved by an appropriate level of management.

  5. Identification of cases – To ensure an equitable process for all taxpayers, fairness and integrity are built into the return identification process. The primary source of cases with examination potential are filed estate (Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return) and gift (Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return) tax returns. All estate tax returns are manually classified to determine whether there are issues for examination. For gift tax returns, as well as other sources of potential cases, Estate and Gift WSD receives data. A combination of methods, including automated processes, historical data, data-driven algorithms, employee technical expertise, and third party information is used to identify cases for classification. The identification of cases for classification is documented and contains the following:

    1. Data source

    2. Selection methods

    3. Selection authority

    4. Classification results

    5. Program manager and group manager approval

Taxpayer Rights

  1. Estate and Gift WSD employees have the ongoing responsibility to ensure that all taxpayer rights are protected and observed, whether these rights are mandated by statute or provided as a matter of policy. For more information refer to IRM 4.10.1.2, Taxpayer Rights.

  2. Employees should review the Taxpayer Bill of Rights found at https://www.irs.gov/taxpayer-bill-of-rights.

Confidentiality of Taxpayer Information – Taxpayer Privacy
  1. The obligation to protect taxpayer privacy and to safeguard the information taxpayers entrust to us is a fundamental part of the mission of the IRS which requires that employees apply the tax law with integrity and fairness to all. Taxpayers have the right to expect that the information they provide will be safeguarded and used only in accordance with the law.

  2. For unauthorized access (UNAX) requirements, refer to IRM 4.10.1.2.1.12, Unauthorized Access (UNAX).

  3. For information relating to Identity Theft and Incident Management Program, see IRM 25.23.1.3.2, Identity Theft Victim Assistance (ITVA) - Program Responsibilities.

Pre-Classification Planning

  1. This section provides information on pre−classification procedures for returns classified during classification of filed estate and gift tax returns.

Pre-Classification Responsibilities

  1. Generally, returns should be classified within 90 days of receipt from the Campus Operations Team. Classification responsibilities will be shared between the Estate and Gift Campus Operations (Campus), Estate and Gift WSD, and Estate and Gift Examination as authorized by the Chief, Estate and Gift and Excise Tax.

  2. Classification of returns will be performed at the Campus Files locations using a team of Campus and Field Estate Tax Attorneys and managers, Transfer Tax Technicians, and Estate and Gift WSD Paralegals. The number of classifiers will vary based on the number of returns available and instructions provided by the Supervisory Attorney for Estate and Gift WSD and as authorized by the Chief, Estate and Gift and Excise Tax.

Pre-Classification Information

  1. The National Gatekeeper will ensure that all classifiers receive the information needed for a classification detail.

  2. For classification sessions involving visiting Estate Tax Attorney classifiers, Estate and Gift WSD will send an email prior to classification to each visiting Estate Tax Attorney classifier with the information needed for the classification detail. The classifier is responsible for reviewing this information and any other information provided by Estate and Gift WSD prior to the classification detail.

Classification of Filed Estate and Gift Tax Returns

  1. This section provides information on procedures during classification of filed estate and gift tax returns.

Classification of Filed Estate and Gift Tax Returns in General

  1. Classifiers are required to review all return schedules to identify any significant tax and compliance issues. Issues must be clearly and completely identified on the classification sheet with sufficient detail to understand the issue and potential for adjustment. This includes using the prioritization guidelines found in the Classification Guide to provide the prioritization grading or completion of the classification sheet prioritization matrix that is used by the Gatekeeper to prioritize selected cases. In completing the classification sheets, the classifiers are required to print or write in block letters.

  2. The National Gatekeeper will oversee classification sessions, assist classifiers, and answer technical and procedural questions. The National Gatekeeper is not a classifier.

  3. Estate and Gift WSD staff will be available during a classification session to assist the classifiers with the following:

    1. Provide classification sheets, the Classification Guide, and other documents needed to assist classifiers during classification;

    2. Conduct required IDRS research to determine whether there are related returns;

    3. Real estate research to determine if property has been sold and the amount of property taxes paid;

    4. Stock valuation research to determine whether the return should be submitted for verification of stock valuation;

    5. Verification of Schedule O Charities/Foundations;

    6. Search for returns (e.g., a spouse's return that needs to be associated) and

    7. Verification of estimated income tax liability.

  4. All returns classified at classification are subject to the documentation requirements provided for in IRM 4.25.3.4.2, Selection and Non-Selection Decisions, and the review requirements in IRM 4.25.3.1.4, Program Controls.

Selection and Non-Selection Decisions

  1. Estate and Gift WSD classifiers, and employees classifying under the direction of Estate and Gift WSD, are responsible for determining if cases should be selected for examination or non-selected.

  2. All classification decisions, selects and non-selects (accepted as filed) are documented. Cases selected for examination require a classification sheet or memorandum to document the reason for selection.

  3. Cases not selected for examination (accepted as filed) require a classification sheet, memorandum, or electronic spreadsheet to document the non-selection decision. The following standard reasons are generally used to document cases that are accepted as filed:

    1. Issue lacks materiality

    2. Other—reason specified

Valuation of Listed and Over-the-Counter Securities

  1. The Campus may verify the valuation of listed and over-the-counter securities as part of the estate and gift tax returns classification process. The Campus will use the automated valuation services vendor contracted by Headquarters.

  2. Classifiers will determine which stocks and bonds will be valued by the Campus based on guidelines provided by Estate and Gift WSD.

Classification of IRC section 6166 and 2032A Elections

  1. The Campus will review all Forms 706, United States Estate (and Generation-Skipping Transfer) Tax Return, with an election under IRC 6166 or IRC 2032A, as described in IRM 4.25.2.1.7, E & G Campus Procedures Establishing the IRC Section 6166 Installment Election Account and Determining Initial Qualification for Installment Election.

  2. At classification, the classifier will consider whether the initial eligibility requirements to make the IRC 6166 election and IRC 2032A election have been met.

  3. The returns that are accepted as filed will be sent to the Estate and Gift Tax group at the Campus for lien processing, as described in IRM 4.25.2.1.7, E & G Campus Procedures Establishing the IRC Section 6166 Installment Election Account and Determining Initial Qualification for Installment Election. The returns that are selected for examination will be reviewed by the National Gatekeeper as described in IRM 4.25.3.5.2, Returns Selected for Field Consideration during Classification of Filed Estate and Gift Tax Returns.

IRC section 6166 Elections Accepted as Filed
  1. If all IRC 6166 requirements have been met and there are no other issues pending, the return may be Accepted as Filed during classification. The return should be stamped to indicate that it is Accepted as Filed. These returns will be sent to the Campus for processing of the lien package and closure of the return.

IRC section 6166 Election Selected for Examination
  1. The Campus will send Letter 2568C, Follow-up for Installment Billing & Section 6161 Balance Due Billing: Form 706, to provide notice that the election was tentatively granted pending review by an Estate and Gift field group.

  2. Selected IRC 6166 returns will be reviewed by the National Gatekeeper as described in IRM 4.25.3.5.2, Returns Selected for Field Consideration during Classification of Filed Estate and Gift Tax Returns.

  3. The National Gatekeeper may only survey a return selected for examination with an IRC 6166 election if a determination is made that the estate has met the initial eligibility requirements to make the IRC 6166 election. Surveyed returns should be sent to Campus for processing of the lien package and closure of the AIMS/ERCS record with disposal code 35 (Surveyed Excess Inventory). Refer to IRM 4.25.3.10.2, Filling Orders and Surveying Cases, for procedures on the surveying of returns by the National Gatekeeper.

IRC section 2032A Elections Accepted as Filed
  1. During classification, classifiers will determine if the IRC 2032A requirements have been met. If all IRC 2032A requirements have been met and there are no other issues pending, the return may be accepted as filed at classification. The form should be stamped to indicate that it is "Accepted as Filed" .

  2. IRC 2032A returns that are "Accepted as Filed" will be sent to the Campus.

IRC section 2032A Election Selected for Examination
  1. Selected IRC 2032A returns will be reviewed by the National Gatekeeper as described in IRM 4.25.3.5.2, Returns Selected for Field Consideration during Classification of Filed Estate and Gift Tax Returns.

  2. The National Gatekeeper may only survey a return selected for examination with an IRC 2032A election if a determination is made that the estate has met the initial eligibility requirements to make the IRC 2032A election. Surveyed returns should be sent to Campus for processing of the lien package and closure of the AIMS/ERCS record with disposal code 35 (Surveyed Excess Inventory). Refer to IRM 4.25.3.10.2, Filling Orders and Surveying Cases, for procedures on the surveying of returns by the National Gatekeeper.

Post Classification of Filed Estate and Gift Tax Returns

  1. This section provides information on procedures after returns have been classified during classification of filed estate and gift tax returns.

Returns Accepted as Filed during Classification of Filed Estate and Gift Tax Returns

  1. For estate tax returns, after it has been determined the returns will be accepted as filed, and subject to review as described in IRM 4.25.3.1.4, Program Controls, the returns will be provided to Campus for closure of the AIMS/ERCS record with disposal code 20 (Accepted as Filed).

  2. For gift tax returns, after it has been determined the returns will be accepted as filed, and subject to review as described in IRM 4.25.3.1.4, Program Controls, the returns will be provided to Campus for refiling.

Returns Selected for Field Consideration during Classification of Filed Estate and Gift Tax Returns

  1. For estate tax returns selected for field consideration at classification, the Campus will update the AIMS/ERCS information to the National Inventory Wall group code. For gift tax returns selected for field consideration at classification, the Campus will establish the gift tax case on AIMS/ERCS and will update the AIMS/ERCS information to the National Inventory Wall group code.

  2. The National Gatekeeper is responsible for reviewing returns that are selected for field consideration during classification and determining, based on the available inventory, the next best case.

    1. For returns that have a completed prioritization matrix, the Gatekeeper will prioritize the returns consistent with prioritization guidelines provided by the Supervisory Attorney for Estate and Gift WSD, which is based on the prioritization matrix as completed by the classifier.

    2. For returns with a prioritization grade provided by the classifier, the Gatekeeper will review the prioritization to ensure it is consistent with the prioritization guidelines in the Classification Guide.

    3. Should the Gatekeeper make changes to the prioritization or prioritization matrix as completed by the classifier, the explanation for the change must be included on the classification sheet.

  3. The National Gatekeeper will further determine whether the selected issues should be assigned to an Estate Tax Attorney, Paralegal or Legal Assistant consistent with the guidelines provided by the Supervisory Attorney for Estate and Gift WSD and notate the determination on the classification sheet.

  4. WSD staff will record the final prioritization determinations for recordkeeping purposes on an electronic spreadsheet. This information will be used to make changes to the prioritization guidelines. WSD will further update the status code of the selected returns to 08.

  5. For selected returns that the National Gatekeeper reviews and determines that, based upon the available inventory, the returns will not be sent to the field, the National Gatekeeper will survey these returns consistent with the procedures in IRM 4.25.3.10.2, Filling Orders and Surveying Cases.

Returns Selected for Field Consideration of Deceased Spousal Unused Exclusion (DSUE)
  1. For estate and gift tax returns selected at classification in which the only issue is the verification of the ported DSUE amount, these returns will be reviewed by an Estate and Gift WSD Paralegal who will conduct research to determine whether the DSUE amount as reported is consistent with relevant prior filings and that the prior filings adhere to the requirements for making a DSUE election. For estate tax returns, this research will be conducted after the Campus has updated AIMS/ERCS information to the National Inventory Wall group code. Refer to IRM 4.25.3.5.2, Returns Selected for Field Consideration during Classification of Filed Estate and Gift Tax Returns.

  2. If the research by the Estate and Gift WSD Paralegal determines an inconsistency or improper election, the Estate and Gift WSD Paralegal will notate these findings in a memorandum to the return file and order the first-to-die spouse’s estate tax return file. These documents will be reviewed by the Estate and Gift WSD DSUE Coordinator to determine whether the return should go to the field for examination of the ported DSUE amount.

  3. If the research by the Estate and Gift WSD Paralegal does not find any inconsistency or improper election, the Estate and Gift WSD Paralegal will notate these findings in a memorandum to the return file and provide the return to the National Gatekeeper to review to determine whether the return should be sent to the field for other examination issues consistent with IRM 4.25.3.5.2, Returns Selected for Field Consideration during Classification of Filed Estate and Gift Tax Returns.

  4. Estate tax returns not selected for field examination after this review will be non-selected after documenting the non-select consistent with the procedures found in IRM 4.25.3.4.2, Selection and Non-Selection Decisions.

  5. Gift Tax returns not selected for field examination after this review will be refiled by the Campus after documenting the non-select consistent with IRM 4.25.3.4.2, Selection and Non-Selection Decisions.

  6. Refer to IRM 4.25.3.5.2, Returns Selected for Field Consideration during Classification of Filed Estate and Gift Tax Returns, for National Gatekeeper procedures for selected estate and gift tax returns.

  7. Returns selected for DSUE verification are subject to the review requirements found in IRM 4.25.3.1.4, Program Controls.

Classification of Prompt Assessment Requests

  1. This section provides information on procedures for classifying Prompt Assessment Requests from Campus.

Prompt Assessment Requests in General

  1. Requests for Prompt Assessment of gift tax liability under IRC 6501(d) are sent from Campus to the National Gatekeeper. Refer to IRM 25.6.1.9.6.1, Request for Prompt Assessment, for procedures on prompt assessment requests.

  2. Within one day of receipt of the prompt assessment request, the National Gatekeeper will review the prompt assessment request for completeness and input the request on the prompt assessment spreadsheet.

  3. WSD staff will scan the prompt assessment request and all attachments, and upload to the secured shared network for the Prompt Assessment Coordinator to review.

  4. Within three days of uploading the prompt assessment request, the Prompt Assessment Coordinator will review and make a determination on the request.

Prompt Assessment Request Classification

  1. The prompt assessment request file from the Campus must include the following:

    1. Form 4810, Request for Prompt Assessment under Internal Revenue Code Section 6501(d), or a written request for prompt assessment, completed by the estate’s fiduciary;

    2. Gift tax returns for which prompt assessment is being requested; and

    3. Letters testamentary.

  2. The Prompt Assessment Coordinator will confirm the statute on the gift tax returns subject to the prompt assessment request. The Prompt Assessment Coordinator will confirm the correct statute date on AIMS/ERCS.

  3. The Prompt Assessment Coordinator will verify that the requirements for making a prompt assessment request are met. Refer to IRM 25.6.1.9.6.1, Request for Prompt Assessment.

  4. If the requirements for making a prompt assessment request are not met, the Prompt Assessment Coordinator will draft a memorandum with this conclusion, send it to the National Gatekeeper via secured email and advise the National Gatekeeper to mail the request back to Campus to deny the prompt assessment request.

  5. If the requirements for a prompt assessment request are met, the Prompt Assessment Coordinator will conduct the following review procedures:

    1. Review the return and determine whether the return should be selected for examination consistent with IRM 4.25.3.4, Classification of Filed Estate and Gift Tax Returns.

    2. Complete the prompt assessment spreadsheet.

    3. Draft a memorandum to the case file that includes the statute date on the return, a summary of the return, and a determination as to whether the return should be selected for field examination consistent with IRM 4.25.3.4.2, Selection and Non-Selection Decisions.

    4. Send a copy of the memorandum to the National Gatekeeper via secured email to associate with the case file.

  6. If the Prompt Assessment Coordinator selects the return for examination, the National Gatekeeper will within five days:

    1. Follow the procedures for selected gift tax returns found in IRM 4.25.3.5.2, Returns Selected for Field Consideration during Classification of Filed Estate and Gift Tax Returns;

    2. Determine what field group to send the return, bearing in mind that location is a priority consideration in distributing cases;

    3. Contact the field group manager receiving the return, and inform the manager of all issues and the prompt assessment statute date;

    4. Provide the return to the Campus for the shipment of the return in accordance with IRM 4.25.3.10.3, Shipment of Cases.

  7. If the Prompt Assessment Coordinator determines that the prompt assessment request should not be selected for examination, the National Gatekeeper will provide the case file and the completed memorandum to the Campus Supervisory Paralegal for refiling.

  8. Prompt Assessment requests are subject to the review requirements found in IRM 4.25.3.1.4, Program Controls.

Selected Claims for Refund from the Campus

  1. This section provides information on procedures for reviewing and establishing selected claims from Campus.

National Gatekeeper Review of Selected Claims for Refund from the Campus

  1. Upon receiving a selected claim for refund from the Campus, the National Gatekeeper will verify that the claim is properly made and timely filed. Refer to IRM 4.25.9.4, Claims for Refund, for procedures on filing claim for refund requests.

  2. If the claim for refund is properly made, the National Gatekeeper will review the selected claim transmittal form to confirm that the proper claim amount is reported and make corrections as necessary to the transmittal form.

  3. Selected claims for refund will be established by the Campus on AIMS/ERCS and consideration should be made as to whether to apply an "AA" statute date to the AIMS/ERCS record.

  4. In filling field orders, the National Gatekeeper will give priority to selected claims for refund that are fully established on AIMS/ERCS. Refer to IRM 4.25.3.10.2, Filling Orders and Surveying Cases, for field order filling procedures.

  5. Selected claims for refund are subject to the review requirements found in IRM 4.25.3.1.4, Program Controls.

  6. If the claim for refund is not properly made or is untimely, or is a protective claim that is not yet ripe for examination, it will be returned to Campus with documentation as to why the claim is being returned.

Classification of Non-Filer and Under-Reporter Project Cases

  1. This section provides information on procedures for the classification of non-filer and under-reporter project cases.

  2. Non-filer and under-reporter returns are classified and selected by Estate and Gift WSD Project Coordinators. Returns under this heading include:

    1. Fed/State Non-Filer Estates

    2. Joint Operations Center (JOC)

    3. 706 GS(D)

  3. Non-filer and under-reporter project cases are subject to the review requirements found in IRM 4.25.3.1.4, Program Controls.

Fed/State Non-Filer and Under-reporter Estates

  1. The IRS Government Liaison will secure the state estate data and provide it to the Estate and Gift WSD Fed/State Coordinator.

  2. The Estate and Gift WSD Fed/State Coordinator will send the state return data to the Exam Case Selection Senior Tax Data Analyst to compare with available IRS data to determine if there are any non-filers or potential under-reporter cases. Any non-filer or potential under-reported leads are returned to the Estate and Gift WSD Fed/State Coordinator.

  3. Estate and Gift WSD Fed/State Coordinator will conduct IDRS research to determine whether the estate filed and will select cases where the lead indicates that the estate had a filing requirement and no return was filed. For each selected case, the Estate and Gift WSD Fed/State Coordinator will complete a classification sheet indicating the reason for selection.

  4. The Estate and Gift WSD Fed/State Coordinator will enter the returned leads decedent estate information on the Fed/State spreadsheet located on the Estate and Gift WSD SharePointhttps://organization.ds.irsnet.gov/sites/SbseSpecEGT/Psp/SitePages/Home.aspx, and document the reason for the select or non-select decision consistent with IRM 4.25.3.4.2, Selection and Non-Selection Decisions.

  5. For selected cases, the Estate and Gift WSD Fed/State Coordinator will send via secured email to an Estate and Gift WSD Paralegal the information necessary to establish the AIMS/ERCS record. The Estate and Gift WSD Paralegal will establish the non-filer case on AIMS/ERCS, including the applicable tracking code, and case build the file. Refer to SFR procedures IRM 4.4.9.6, Substitute for Return, for establishing non-filer cases. Once the case is established on AIMS/ERCS, it will be placed on the National Inventory Wall. The Estate and Gift WSD Fed/State Coordinator will request a copy of the state filing from the state by completing Form 8796, Request for Return/Information.

  6. The National Gatekeeper will review selected case files consistent with IRM 4.25.3.5.2, Returns Selected for Field Consideration during Classification of Filed Estate and Gift Tax Returns, and fill field group orders with these cases consistent with procedures for filling orders. Refer to IRM 4.25.3.10.2, Filling Orders and Surveying Cases.

  7. Estate tax returns not assigned for field examination after this review will be surveyed consistent with the procedures found in IRM 4.25.3.10.2, Filling Orders and Surveying Cases.

  8. Non-selected and surveyed case files will be retained by Estate and Gift WSD for the required retention period and then destroyed. Refer to IRM 1.15.3.2, Destroying Records in the Custody of the IRS, and Document 12990, Records and Information Management Records Control Schedules.

Joint Operations Center (JOC)

  1. SB/SE Research will identify certain decedent estates that have not filed an estate tax return meeting model criteria designed by JOC, and will forward to Estate and Gift WSD for review.

  2. The Estate and Gift WSD JOC Coordinator will enter the decedent estate information on the JOC spreadsheet located on the Estate and Gift WSD SharePointhttps://organization.ds.irsnet.gov/sites/SbseSpecEGT/Psp/SitePages/Home.aspx, and document the reason for select or non-select consistent with IRM 4.25.3.4.2, Selection and Non-Selection Decisions.

  3. Estate and Gift WSD JOC Coordinator will conduct IDRS research to determine whether the estate filed and will select cases where the model criteria indicates that the estate had a filing requirement and no return was filed.

  4. For selected cases, the Estate and Gift WSD JOC Coordinator will complete a classification sheet explaining the reason for selection and send via secured email to an Estate and Gift WSD Paralegal the information necessary to establish the AIMS/ERCS record. The Estate and Gift WSD Paralegal will establish the non-filer case on AIMS/ERCS, including the applicable tracking code, and case build the file. Refer to SFR procedures IRM 4.4.9.6, Substitute for Return, for establishing non-filer cases. Once the case is established on AIMS/ERCS, it will be placed on the National Inventory Wall.

  5. The National Gatekeeper will review the case file consistent with IRM 4.25.3.5.2, Returns Selected for Field Consideration during Classification of Filed Estate and Gift Tax Returns, and fill field group orders with these cases consistent with procedures for filling orders. Refer to IRM 4.25.3.10.2, Filling Orders and Surveying Cases.

  6. Estate tax returns not assigned for field examination after this review will be surveyed consistent with the procedures found in IRM 4.25.3.10.2, Filling Orders and Surveying Cases.

  7. Non-selected and surveyed case files will be retained by Estate and Gift WSD for the required retention period and then destroyed. Refer to IRM 1.15.3.2, Destroying Records in the Custody of the IRS, and Document 12990, Records and Information Management Records Control Schedules.

706GS(D)

  1. The Campus will forward to the Estate and Gift WSD Paralegals all the Forms 706-GS(D-1), Notification of Distribution From a Generation-Skipping Trust, where there is no corresponding Form 706-GS (D), Generation-Skipping Transfer Tax Return For Distributions filed, based on current Estate and Gift WSD screening criteria.

  2. The Estate and Gift WSD Paralegal will establish selected cases on AIMS/ERCS, including the applicable tracking code and case build. Refer to SFR procedures IRM 4.4.9.6, Substitute for Return, for establishing non-filer cases.

  3. The Estate and Gift WSD Paralegal will complete a classification sheet for each case, consistent with IRM 4.25.3.4.2, Selection and Non-Selection Decisions.

  4. When the 706-GS (D) case is fully established on AIMS/ERCS, the Estate and Gift WSD Paralegal will place cases on the National Inventory Wall. The National Gatekeeper will fill field group orders with these cases consistent with procedures for filling orders. Refer to IRM 4.25.3.10.2, Filling Orders and Surveying Cases.

  5. 706-GS (D) cases not assigned for field examination after this review will be surveyed consistent with the procedures found in IRM 4.25.3.10.2, Filling Orders and Surveying Cases.

Consultations and Referrals from Other Business Units

  1. This section provides information on procedures for consultations and referrals from other business units.

Consultations from Other Business Units

  1. Revenue Agents in other business units may request a four hour consultation from an Estate Tax Attorney regarding potential estate and gift issues in the course of their examination by using the Specialist Referral System (SRS).

    1. The Estate and Gift WSD Consultation Coordinator reviews the request on the SRS system to determine if appropriate for Estate and Gift field review.

    2. In reviewing the consultation request, the Estate and Gift WSD Consultation Coordinator may ask the Revenue Agent to provide additional information to help make a determination on the consultation or if a referral is needed.

    3. If the Estate and Gift WSD Consultation Coordinator accepts the consultation request, the request will be transferred on SRS to an Estate and Gift field group manager co-located near the taxpayer or the Revenue Agent for purposes of a consultation.

    4. If the Estate and Gift WSD Consultation Coordinator, or Estate and Gift Tax reviewer after consultation, determines that a case referral is warranted, the Revenue Agent will be instructed to provide the Estate and Gift Tax Referral form and any supporting documentation to the Estate and Gift WSD Exam Project Coordinator.

  2. Revenue Officers may request a four-hour consultation from an Estate Tax Attorney regarding assistance with a taxpayer application for estate tax lien discharge, by using SRS.

    1. The Estate and Gift WSD Consultation Coordinator will determine if an estate tax return has been filed for the taxpayer.

    2. If an estate tax return was not filed, or if filed but not assigned, the Estate and Gift WSD Consultation Coordinator will transfer the consultation request to the Estate Tax Group Manager co-located with the taxpayer.

    3. If an estate tax return for the taxpayer has been assigned, the Estate and Gift WSD Consultation Coordinator will transfer the consultation request to the field Estate Tax Group Manager where the case was assigned.

Classification of Referrals from Other Business Units

  1. Estate and Gift WSD receives the following referrals from other business units:

    1. General Exam Referrals

    2. Global High Wealth Referrals

    3. Collection Credit Balance Taxpayer Delinquency Investigation Referrals

    4. Offshore Referrals

    5. Whistleblower Referrals

    6. Offer in Compromise/Doubt as to Liability Referrals

    7. Operations Assistance Request Referrals

    8. Return Preparer Referrals

  2. Referrals from other business units are subject to the review requirements found in IRM 4.25.3.1.4, Program Controls.

General Examination Referrals
  1. General examination referrals are submitted to the Estate and Gift WSD Project Coordinator. The referral must include a completed Referral Form, found on the http://mysbse.web.irs.gov/examination/specialty/eg/default.aspxEstate and Gift Tax Program website, along with any supporting documentation such as the following:

    1. Bank statements,

    2. Appraisals,

    3. Deeds,

    4. Promissory notes,

    5. Trusts,

    6. Contracts of sale.

  2. When an examination referral is received, the Estate and Gift WSD Project Coordinator will input related information on the designated Estate and Gift WSD SharePoint spreadsheethttps://organization.ds.irsnet.gov/sites/SbseSpecEGT/Psp/SitePages/Home.aspx. The Estate and Gift WSD Project Coordinator will review the referral for audit potential. The spreadsheet will be updated to reflect if the referral has been selected for field review or rejected and in comments will include the reason for selection or non-selection consistent with IRM 4.25.3.4.2, Selection and Non-Selection Decisions.

  3. For selected referrals, the Estate and Gift WSD Project Coordinator will draft a memorandum including a summary of the facts and the issues presented to include in the file. The Estate and Gift WSD Project Coordinator will send via secured email to an Estate and Gift WSD Paralegal the information necessary to establish the AIMS/ERCS record. The Estate and Gift WSD Paralegal will establish the case on AIMS/ERCS, including the applicable tracking code, and case build the file. Refer to SFR procedures IRM 4.4.9.6, Substitute for Return, for establishing non-filer cases. Once the case is established on AIMS/ERCS, it will be placed on the National Inventory Wall.

  4. The National Gatekeeper will review the case file consistent with IRM 4.25.3.5.2, Returns Selected for Field Consideration during Classification of Filed Estate and Gift Tax Returns, and fill field group orders with these cases consistent with procedures for filling orders. Refer to IRM 4.25.3.10.2, Filling Orders and Surveying Cases.

  5. Estate and gift tax returns not assigned for field examination after this review will be surveyed consistent with the procedures found in IRM 4.25.3.10.2, Filling Orders and Surveying Cases.

  6. When a referral is rejected, the Estate and Gift WSD Project Coordinator will inform the Revenue Agent and provide the reason for rejection via secured email.

  7. Electronic records for general examination referrals are retained by the Estate and Gift WSD Project Coordinator for the required retention period and then destroyed. Refer to IRM 1.15.3.2, Destroying Records in the Custody of the IRS, and Document 12990, Records and Information Management Records Control Schedules.

Global High Wealth Referrals
  1. Global High Wealth (GHW) referrals are submitted to the Estate and Gift WSD GHW Coordinator for review. The referral must include a completed GHW Referral Form found on the http://mysbse.web.irs.gov/examination/specialty/eg/default.aspxEstate and Gift Tax Program website, along with any supporting documentation. Refer to IRM 4.25.3.9.2.1, General Examination Referrals, for examples of supporting documentation.

  2. When a GHW referral is received, the Estate and Gift WSD GHW Coordinator will input information on the designated Estate and Gift WSD SharePoint spreadsheet https://organization.ds.irsnet.gov/sites/SbseSpecEGT/Psp/SitePages/Home.aspx. The Estate and Gift WSD GHW Coordinator will review the referral for audit potential. The spreadsheet will be updated to reflect if the referral has been selected or rejected and comments will include the reason for the selection or non-selection consistent with IRM 4.25.3.4.2, Selection and Non-Selection Decisions.

  3. For selected GHW referrals, the Estate and Gift WSD GHW Coordinator will complete the GHW Risk Assessment Referral form with a written summary of the facts and issues presented to include in the file. The Estate and Gift WSD GHW Coordinator will send via secured email to an Estate and Gift WSD Paralegal the information necessary to establish the AIMS/ERCS record. The Estate and Gift WSD Paralegal will establish the case on AIMS/ERCS, including the applicable tracking code, and case build the file. Refer to SFR procedures IRM 4.4.9.6, Substitute for Return, for establishing non-filer cases. Once the case is established on AIMS/ERCS, it will be placed on the National Inventory Wall.

  4. The National Gatekeeper will review the case file consistent with IRM 4.25.3.5.2, Returns Selected for Field Consideration during Classification of Filed Estate and Gift Tax Returns, and fill field group orders with these cases consistent with procedures for filling orders. Refer to IRM 4.25.3.10.2, Filling Orders and Surveying Cases.

  5. Estate and gift tax returns not assigned for field examination after this review will be surveyed consistent with the procedures found in IRM 4.25.3.10.2, Filling Orders and Surveying Cases.

  6. When a GHW referral is rejected, the Estate and Gift WSD GHW Coordinator will inform the Revenue Agent and provide the reason for rejection via secured email.

  7. Electronic records for GHW referrals are retained by the Estate and Gift WSD GHW Coordinator for the required retention period and then destroyed. Refer to IRM 1.15.3.2, Destroying Records in the Custody of the IRS, and Document 12990, Records and Information Management Records Control Schedules.

Tax Delinquency Investigation Collection Credit Balance Referrals
  1. Tax Delinquency Investigation (TDI) Credit Collection Balance referrals originate when a pre-payment on a Form 706, United Sates Estate (and Generation-Skipping Transfer) Tax Return, posts but a Form 706 is not filed on or by the extension date.

  2. The Estate and Gift WSD TDI Coordinator contacts Collection annually to request a list of estate tax return TDI referrals.

  3. The Estate and Gift WSD TDI Coordinator will prepare a spreadsheet with the list of cases, identifying the Territory and Group, which will be maintained on the Estate and Gift WSD SharePoint spreadsheet https://organization.ds.irsnet.gov/sites/SbseSpecEGT/Psp/SitePages/Home.aspx. The spreadsheet will be updated to reflect if the referral has been selected or rejected and comments will include the reason for the selection or non-selection consistent with IRM 4.25.3.4.2, Selection and Non-Selection Decisions.

  4. The Estate and Gift WSD TDI Coordinator will conduct IDRS research to determine whether the estate filed and will select cases where the lead indicates that the estate had a filing requirement and no return was filed. For each selected case, the Estate and Gift WSD TDI Coordinator will complete a classification sheet indicating the reason for selection.

  5. This list will be sent by secured email to an Estate and Gift WSD Paralegal to establish the non-filer cases on AIMS/ERCS and case build the files. Refer to SFR procedures IRM 4.4.9.6, Substitute for Return, for establishing non-filer cases. Once the case is established on AIMS/ERCS, it will be placed on the National Inventory Wall.

  6. The National Gatekeeper will review the case file consistent with IRM 4.25.3.5.2, Returns Selected for Field Consideration during Classification of Filed Estate and Gift Tax Returns, and fill field group orders with these cases consistent with procedures for filling orders. Refer to IRM 4.25.3.10.2, Filling Orders and Surveying Cases.

  7. Estate tax returns not assigned for field examination after this review will be surveyed consistent with the procedures found in IRM 4.25.3.10.2, Filling Orders and Surveying Cases.

  8. Electronic records for TDI referrals are retained by the Estate and Gift WSD TDI Coordinator for the required retention period and then destroyed. Refer to IRM 1.15.3.2, Destroying Records in the Custody of the IRS and Document 12990, Records and Information Management Records Control Schedules.

Offshore Referrals
  1. Offshore referrals, including but not limited to Offshore Voluntary Disclosure Initiative (OVDI) and Treaty referrals, are submitted to the Estate and Gift WSD Offshore Coordinator from the Liaison for LB&I, SB/SE and Estate and Gift. The referral must include documentation supporting the referral. Refer to IRM 4.25.3.9.2.1, General Examination Referrals, for examples of supporting documentation. The procedures under this heading apply to all Offshore referrals.

  2. When an Offshore referral is received, the Estate and Gift WSD Offshore Coordinator will input information on the designated Estate and Gift WSD SharePoint spreadsheethttps://organization.ds.irsnet.gov/sites/SbseSpecEGT/Psp/SitePages/Home.aspx. The Estate and Gift WSD Offshore Coordinator will review the referral for audit potential. The spreadsheet will be updated to reflect if the referral has been selected or rejected and comments will include the reason for the selection or non-selection consistent with IRM 4.25.3.4.2, Selection and Non-Selection Decisions.

  3. For selected Offshore referrals, the Estate and Gift WSD Offshore Coordinator will draft a memorandum including a summary of the facts and the issues presented to include in the file. The Estate and Gift WSD Offshore Coordinator will upload to the WSD shared drive the documentation provided with the referral. The Estate and Gift WSD Offshore Coordinator will send via secured email to an Estate and Gift WSD Paralegal the information necessary to establish the AIMS/ERCS record. The Estate and Gift WSD Paralegal will establish the case on AIMS/ERCS, including the applicable tracking code, and case build the file. Refer to SFR procedures IRM 4.4.9.6, Substitute for Returns, for establishing non-filer cases. Once the case is established on AIMS/ERCS, it will be placed on the National Inventory Wall.

  4. For selected Offshore referrals, where there is a filed Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, with an expired assessment statute, a Form 906, Closing Agreement on Final Determination Covering Specific Matters, signed by the taxpayer is first needed to establish the return on ERCS/AIMS. In this case:

    1. The field will receive a copy of the filed Form 706, the administrative file, and any original supplemental return filed by the taxpayer.

    2. The WSD Paralegal will research IDRS to determine if any advance payment on the deficiency has been made by the taxpayer. If a payment is posted to the account, the Estate and Gift WSD Offshore Coordinator will send a request to the Campus for input of transaction code 570 on the account to the email box: *SB/SE Estate & Gift 6166, with "Offshore" in the subject line. This process ensures the payment on the account is not refunded and held until the examination is completed.

    3. The return will be established by the WSD Paralegal upon notification that the Form 906 agreement is secured by the field.

  5. The National Gatekeeper will review selected case files on the shared drive consistent with IRM 4.25.3.5.2, Returns Selected for Field Consideration during Classification of Filed Estate and Gift Tax Returns, and fill field group orders with these cases consistent with procedures for filling orders. Refer to IRM 4.25.3.10.2, Filling Orders and Surveying Cases.

  6. If the case will be assigned, the National Gatekeeper will send the case out to a group with an ETA Offshore volunteer, if available. The Gatekeeper will notify the ETA Offshore volunteer field group manager that the Offshore referral is being assigned to the field group via secured email and attach to the email the electronic case file from the WSD shared network.

  7. Estate and gift tax returns not assigned for field examination after this review will be surveyed consistent with the procedures found in IRM 4.25.3.10.2, Filling Orders and Surveying Cases.

  8. Electronic records for Offshore referrals are retained by the Estate and Gift WSD Offshore Coordinator for the required retention period and then destroyed. Refer to IRM 1.15.3.2, Destroying Records in the Custody of the IRS, and Document 12990, Records and Information Management Records Control Schedules.

Whistleblower and Informant Referrals
  1. This section provides information on procedures for.

    1. Whistleblower Type A referrals;

    2. Whistleblower Type B referrals;

    3. Form 3949-A, Information Referral.

  2. Whistleblower and Informant referrals are subject to the review requirements found in IRM 4.25.3.1.4, Program Controls.

Whistleblower Type A Referrals
  1. Whistleblower referrals where the amount in dispute is less than $2 million are designated as "Whistleblower Type A" referrals and the amount of the award is determined under IRC 7623(a). Refer to IRM 25.2.2.1.1.2, IRC §7623(a) Overview.

  2. Estate and Gift Whistleblower claims determined by the Whistleblower Office to be Whistleblower Type A referrals are mailed to the Estate and Gift WSD Whistleblower Coordinator. Refer to IRM 25.2.1.3.6, Selecting a Claim.

  3. When a Whistleblower Type A referral is received, the Estate and Gift WSD Whistleblower Coordinator will input related information on the designated Estate and Gift Whistleblower SharePoint spreadsheet, https://organization.ds.irsnet.gov/sites/SbseSpecEGT/Psp/Whistle/SitePages/Home.aspx. The Estate and Gift WSD Whistleblower Coordinator will review the referral for audit potential within 90 days of receipt. The spreadsheet will be updated to reflect if the referral has been selected for field review or rejected and in comments will include the reason for selection or non-selection consistent with IRM 4.25.3.4.2, Selection and Non-Selection Decisions.

  4. For all Whistleblower Type A referrals, the Estate and Gift WSD Whistleblower Coordinator will draft a memorandum including a summary of the facts and the issues presented to include in the file.

  5. For surveyed Whistleblower Type A referrals, the Estate and Gift WSD Whistleblower Coordinator will prepare and submit the completed Form 11369, Confidential Evaluation Report on Claim for Reward, and the memorandum, by secured email to the Whistleblower Analyst at the Whistleblower Office assigned to the referral. Refer to IRM 25.2.2.4, Post Field Review, for procedures on completing and submitting the Form 11369. The original Whistleblower Type A file will be mailed to the Estate and Gift WSD Paralegal to retain for the required retention period and then destroyed. Refer to IRM 1.15.3.2, Destroying Records in the Custody of the IRS, IRM 1.15.2.6, Where can I find the Records Control Schedules?, and Document 12990, Records and Information Management Records Control Schedules.

  6. For selected Whistleblower Type A referrals, the Estate and Gift WSD Whistleblower Type A Coordinator will send via secured email to an Estate and Gift WSD Paralegal the information necessary to establish the AIMS/ERCS record and mail the Whistleblower Type A file to the Estate and Gift WSD Paralegal for case building. The Estate and Gift WSD Paralegal will establish the case on AIMS/ERCS, including the 7882 tracking code, and case build the file. Refer to SFR procedures IRM 4.4.9.6, Substitute for Return, for establishing non-filer cases. Once the case is established on AIMS/ERCS, it will be placed on the National Inventory Wall.

  7. The National Gatekeeper will review the case file consistent with IRM 4.25.3.5.2, Returns Selected for Field Consideration during Classification of Filed Estate and Gift Tax Returns, and fill field group orders with these cases consistent with procedures for filling orders. Refer to IRM 4.25.3.10.2, Filling Orders and Surveying Cases.

    1. For Whistleblower Type A referrals sent to the field, The National Gatekeeper will notify Group Manager receiving the referral and the Estate and Gift WSD Whistleblower Coordinator via secured email that the referral is being assigned to the field group. The secured email will include the name and taxpayer identification number of the taxpayer and the Whistleblower claim number. The Estate and Gift WSD Whistleblower Coordinator will upload this correspondence to e-Trak.

    2. For Whistleblower Type A referrals surveyed by the National Gatekeeper, the National Gatekeeper will complete the Form 11369 and submit by secured email to the Estate and Gift WSD Whistleblower Coordinator to forward to the Whistleblower Analyst assigned to the referral. The National Gatekeeper will follow survey procedures in this section and IRM 4.25.3.10.2, Filling Orders and Surveying Cases.

  8. Field examiners should refer to IRM 4.25.11.9, Whistleblower Examinations, on procedures for examining and closing Whistleblower case files.

  9. At the conclusion of the examination, the field examiner will mail the Whistleblower Type A award file and completed Form 11369 to the Estate and Gift WSD Whistleblower Coordinator. Refer to IRM 4.25.11.9.3, Whistleblower Closing Procedures. It is the responsibility of the Estate and Gift WSD Whistleblower Coordinator to review this file for completeness and to mail the file to the Whistleblower Office.

Whistleblower Type B Referrals
  1. Whistleblower referrals where the amount in dispute is $2 million or more are designated as "Whistleblower Type B" referrals and the amount of the award is determined under IRC 7623(b). Refer to IRM 25.2.2.1.1.1, IRC §7623(b).

  2. Estate and Gift Whistleblower claims determined by the Whistleblower Office to be Whistleblower Type B referrals are mailed to the Estate and Gift WSD Whistleblower Coordinator. Refer to IRM 25.2.1.3.6, Selecting a Claim.

  3. When a Whistleblower Type B referral is received, the Estate and Gift WSD Whistleblower Coordinator will input related information on the designated Estate and Gift Whistleblower SharePoint spreadsheet, https://organization.ds.irsnet.gov/sites/SbseSpecEGT/Psp/Whistle/SitePages/Home.aspx. It is the responsibility of the Estate and Gift WSD Whistleblower Coordinator to update the spreadsheet as necessary throughout the review process of the Whistleblower Type B referral. The spreadsheet will be updated to reflect if the referral has been selected for field review or rejected and in comments will include the reason for selection or non-selection consistent with IRM 4.25.3.4.2, Selection and Non-Selection Decisions.

  4. Within 5 days of receipt of the Whistleblower Type B referral, the Estate and Gift WSD Whistleblower Coordinator will review referral.

  5. If the Estate and Gift WSD Coordinator determines that the referral should be surveyed, the Estate and Gift WSD Whistleblower Coordinator will prepare and submit the Form 11369, Confidential Evaluation Report on Claim for Reward, and a memorandum as described in IRM 4.25.3.9.2.5.1, Whistleblower Type A Referrals, by secured email to the Whistleblower Analyst at the Whistleblower Office assigned to the referral. The Estate and Gift WSD Coordinator will mail the original Whistleblower Type B referral file to the Whistleblower Analyst assigned to the referral.

  6. If the Estate and Gift WSD Coordinator determines that the referral requires further review, the Estate and Gift WSD Whistleblower Coordinator will mail the file to the Estate and Gift WSD Paralegal. Within 14 days of receipt, the Estate and Gift WSD Paralegal will establish the referral on ERCS using status code 09 and source code 45.

  7. The Estate and Gift WSD Paralegal will mail the field Subject Matter Expert (SME) designated by the Estate and Gift WSD Whistleblower Coordinator the Whistleblower Type B referral. The SME will review the case file, conduct a taint review along with Operating Division Counsel, and, if necessary, a debriefing. The SME will determine whether the referral should be surveyed or selected for field examination. Refer to IRM 25.2.1.4.1, Roles and Responsibilities, for SME responsibilities.

  8. The Estate and Gift WSD Whistleblower Coordinator has the following responsibilities in relation to the field SME review:

    1. Once the referral is established on ERCS by the Estate and Gift WSD Paralegal, send a secured email to the field Territory Manager, Group manager and SME assigned to the Whistleblower Type B referral to advise that there is a referral that Estate and Gift WSD would like to assign to the SME and request that the field group manager confirm assignment to the SME. This email will provide the deadline for completion of the SME review.

    2. Provide a follow-up email to the field Territory Manager, Group Manager and SME two weeks after assignment to ensure that the SME received the case file and to confirm the deadline for completion of the SME review.

    3. Confirm that the SME completes the review of the Whistleblower Type B referral 10 days prior to the 90-day deadline for the completion of the SME review.

    4. Indicate in the case comment section on e-Trak whether a debriefing occurred, and if not, the reason why a debriefing was not necessary.

  9. Upon completion of the SME review, the SME will:

    1. Prepare a memorandum consistent with IRM 4.25.3.9.2.5.1, Whistleblower Type A Referrals. This memorandum will be included in the Whistleblower Type B referral file and a copy will be sent via secured email to the Estate and Gift WSD Whistleblower Coordinator

    2. Mail the Whistleblower Type B referral to the Estate and Gift WSD Paralegals.

  10. For Whistleblower Type B referrals surveyed by the SME:

    1. The SME will prepare the Form 11369 and submit this form along with the memorandum by secured email to the Estate and Gift WSD Whistleblower Coordinator for record retention on the WSD shared drive. Refer to IRM 25.2.2.4, Post Field Review, for procedures on completing and submitting the Form 11369. Refer to IRM 1.15.3.2, Destroying Records in the Custody of the IRS, and Document 12990, Records and Information Management Records Control Schedules.

    2. The SME will mail the Whistleblower Type B referral file to the Estate and Gift WSD Coordinator.

    3. The Estate and Gift WSD Coordinator will mail the referenced return file to the Estate and Gift WSD Paralegal, or in the case of an SFR notify by email, to close the reference return on ERCS with disposal code 45.

  11. For Whistleblower Type B referrals selected by the SME:

    1. The SME will mail the Whistleblower Type B referral file to the Estate and Gift WSD Paralegal to update the referral on AIMS and case build the file.

    2. Once the Whistleblower Type B referral is updated on AIMS, the referral will be placed on the National Inventory Wall.

    3. The National Gatekeeper will review the case file consistent with IRM 4.25.3.5.2, Returns Selected for Field Consideration during Classification of Filed Estate and Gift Tax Returns, and fill field group orders with these cases consistent with procedures for filling orders, but will send the case out with the next available field order. Refer to IRM 4.25.3.10.2, Filling Orders and Surveying Cases.

    4. The National Gatekeeper will notify Group Manager receiving the Whistleblower Type B referral and the Estate and Gift WSD Whistleblower Coordinator via secured email that the referral is being assigned to the field group. The secured email will include the name and taxpayer identification number of the taxpayer and the Whistleblower claim number.

  12. For Whistleblower Type B referrals surveyed by the National Gatekeeper:

    1. The National Gatekeeper will complete the Form 11369 and submit by secured email to the Estate and Gift WSD Whistleblower Coordinator for record retention on the WSD shared drive for record retention. Refer to IRM 1.15.3.2, Destroying Records in the Custody of the IRS and Document 12990, Records and Information Management Records Control Schedules.

    2. The Whistleblower Type B referral file will be mailed by the National Gatekeeper to the WSD Whistleblower Coordinator.

    3. The Whistleblower Type B referral file will be mailed by the WSD Whistleblower Coordinator to the Whistleblower Analyst who referred the claim, and an electronic copy of the Form 11369 will be forwarded by secure email to the Estate and Gift WSD Whistleblower Coordinator.

    4. The National Gatekeeper will follow survey procedures in this section and IRM 4.25.3.10.2, Filling Orders and Surveying Cases.

  13. The Estate and Gift WSD Whistleblower Coordinator is responsible for informing the Whistleblower Analyst assigned to the referral when the referral has been sent to the field and the field group assigned to the referral. The Estate and Gift WSD Whistleblower Coordinator is also responsible for uploading to e-Trak all secured email exchanges with the Whistleblower Office regarding the Whistleblower referral.

  14. Field examiners should refer to IRM 4.25.11.9, Whistleblower Examinations, on procedures for examining and closing Whistleblower case files.

  15. At the conclusion of the examination, the field examiner will mail the Whistleblower Type B award file and completed Form 11369 to the Estate and Gift WSD Whistleblower Coordinator. Refer to IRM 4.25.11.9.3, Whistleblower Closing Procedures. It is the responsibility of the Estate and Gift WSD Whistleblower Coordinator to review this file for completeness and to mail the file to the Whistleblower Office.

Informant Form 3949-A Referrals
  1. An informant with information regarding a possible unreported or under-reported transfer tax issue, files a Form 3949-A, Information Referral, or a letter, which is reviewed by the Fresno Submission Processing Image Control Team and routed to Campus Exam, Estate and Gift team. Upon initial review, these claims are then routed for consideration by Estate and Gift WSD. Refer to IRM 3.10.72.19, 3949-A Information Referral Program, and IRM 25.2.1.3, Classifying Whistleblower Claims.

  2. When an information referral is received, the Estate and Gift WSD Information Referral Coordinator will input related information on the designated Estate and Gift WSD SharePoint spreadsheethttps://organization.ds.irsnet.gov/sites/SbseSpecEGT/Psp/SitePages/Home.aspx. The Coordinator will review the referral for audit potential. The spreadsheet will be updated to reflect if the referral has been selected for field review or rejected and in comments will include the reason for selection or non-selection consistent with IRM 4.25.3.4.2, Selection and Non-Selection Decisions.

  3. For non-selected information referrals, the paper file will be mailed to the Estate and Gift WSD Paralegals to retain for the required retention period and then destroyed. Refer to IRM 1.15.3.2, Destroying Records in the Custody of the IRS, IRM 1.15.2.6, Where can I find the Records Control Schedules?, and Document 12990, Records and Information Management Records Control Schedules.

  4. For selected information referrals, the Estate and Gift WSD Information Referral Coordinator will draft a memorandum, including a summary of the facts and the issues presented, to include in the file and send via secured email to an Estate and Gift WSD Paralegal the information necessary to establish the AIMS/ERCS record.

  5. The Estate and Gift WSD Paralegal will establish the case on AIMS/ERCS, including the tracking code, and case build the file. Refer to SFR procedures IRM 4.4.9.6, Substitute for Return, for establishing non-filer cases. Once the case is established on AIMS/ERCS, it will be placed on the National Inventory Wall.

  6. The National Gatekeeper will review the case file consistent with IRM 4.25.3.5.2, Returns Selected for Field Consideration during Classification of Filed Estate and Gift Tax Returns, and fill field group orders with these cases consistent with procedures for filling orders and will follow survey procedures. Refer to IRM 4.25.3.10.2, Filling Orders and Surveying Cases.

Doubt as to Liability
  1. All Doubt as to Liability (DATL) referrals involving Estate and Gift issues will be sent to the Estate and Gift WSD DATL Coordinator from the DATL unit at the Campus. Refer to IRM 4.18.2, Doubt as to Liability Offers, for DATL Offers.

  2. Within 10 days of receipt, the Estate and Gift WSD DATL Coordinator will review the offer to determine if appropriate for assignment to an Estate and Gift field group. The Estate and Gift WSD DATL Coordinator will input related information on the designated Estate and Gift WSD SharePoint spreadsheet https://organization.ds.irsnet.gov/sites/SbseSpecEGT/Psp/SitePages/Home.aspx. The spreadsheet will be updated to reflect if the referral has been selected for field review or rejected and in comments will include the reason for selection or non-selection consistent with IRM 4.25.3.4.2, Selection and Non-Selection Decisions.

  3. If the offer is not appropriate for field assignment, the WSD DATL Coordinator will return the offer to the centralized DATL processing unit, update the Automated Offer in Compromise (AOIC) database assignment number to 1901165901, and enter information in the AOIC database remarks section indicating why the offer was returned.

  4. If the offer is appropriate for field assignment, the Estate and Gift WSD DATL Coordinator will:

    1. Send via secured email the information necessary to establish the AIMS/ERCS record to an Estate and Gift WSD Paralegal. The Estate and Gift WSD Paralegal will establish the cases on AIMS/ERCS as a claim or audit reconsideration, including the applicable tracking code and case build the file. The designated statute of limitations will be two years from the IRS received date of the offer and will also carry an "R" as part of the statute date, (e.g., 04152018R), to reflect the TIPRA statute. See IRC 7122(f).

    2. Draft a memorandum for the case file explaining the facts and issues to be resolved and procedures for DATL cases consistent with IRM 4.25.3.4.2, Selection and Non-Selection Decisions.

    3. Notify the Estate and Gift field group manager, via secured email of the selected referral and forward the DATL case file to the National Gatekeeper to send to the field along with the examination case file.

    4. Update AOIC database remarks section to reflect the appropriate EGC and a contact point.

  5. The case file sent to the field must contain the following notice: On July 16, 2006, the Tax Increase Prevention Reconciliation Act of 2005 (TIPRA) was implemented. TIPRA mandates an acceptance of any offer where a decision is not made in 24 months. If a liability included in the offer is disputed in any court proceeding, that time period is not included when calculating the two-year time frame. Issuance of a determination letter stops the 24-month time frame. The 24 months does not include the time that a protested, rejected offer is under consideration in Appeals. See IRC 7122(f).

  6. The DATL offer can be rejected, accepted or withdrawn by the field. Refer to IRM 4.25.9.5.4, Estate and Gift Tax Examination of DATL Case, for Estate and Gift Tax examiner procedures and IRM 4.18.2, Doubt as to Liability Offers, for closing procedures.

  7. It is the responsibility of the Estate and Gift WSD DATL Coordinator to monitor the AOIC database monthly to ensure all cases are assigned to Estate and Gift Tax by the centralized DATL processing unit.

  8. If the Estate Tax Attorney rejects the offer:

    1. The case file will be closed to the Technical Services’ office responsible for the assigned group for the Independent Administrative Review (IAR) of the examiner’s decision.

    2. The Estate Tax Attorney will notify the Estate and Gift WSD DATL Coordinator by secured email that a proposed rejected offer was sent to Technical Services for review. For Technical Services IAR procedures. See IRM 4.8.8.8.2, Independent Administrative Review Procedures for Rejected Offers.

    3. Upon receiving email notification from the Estate Tax Attorney, and subsequent notifications from Technical Services, the Estate and Gift WSD DATL Coordinator will make the necessary status updates to AOIC:

    DATL AOIC Status Updates
    Remarks:
    1. Date Proposed Rejection is sent to Technical Services;

    2. Date Rejection is mailed to the taxpayer

    3. Date the case is returned to the examiner for further investigation

    4. Date the protest was received;

    5. Date the case is sent to Appeals or closed to the Campus.

    Assignment - will be either Appeals or Closure
    Proposed Disposition
    Final Disposition
    IAR Specialty Checklist - including the date the case was forwarded to Appeals, if applicable, or final disposition.
  9. If the taxpayer withdraws the offer:

    1. The Estate Tax Attorney will close the case file to Technical Services and advise the Estate and Gift WSD DATL Coordinator by secured email of the withdrawal effective date in order for the Coordinator to update AOIC remarks and assignment.

    2. Technical Services will issue the withdrawal acknowledgment letter to the taxpayer and notify the Estate and Gift WSD DATL Coordinator by secured email that these actions have been taken.

    3. The Estate and Gift WSD DATL Coordinator will update AOIC remarks with withdrawal (letter or other form) effective date and date withdrawal acknowledgment letter mailed to the taxpayer, and assignment to "EG Close" . For Technical Services withdrawal procedures, see IRM 4.8.8.8.3, Withdrawn Offers.

    4. The Estate and Gift WSD DATL Coordinator will update the AOIC IAR Checklist to reflect the withdrawal of offer

  10. If the Estate Tax Attorney accepts the offer:

    1. The Estate Tax Attorney will close the case to Technical Services and advise the Estate and Gift WSD DATL Coordinator by secured email of the proposed disposition for the Coordinator to update the AOIC database: Remarks, Proposed disposition, and assignment.

    2. Once the proposed acceptance has been approved and the acceptance letter mailed to the taxpayer, Technical Services will email the Estate and Gift WSD DATL Coordinator, by secured mail that these actions have been taken.

    3. The Estate and Gift WSD DATL Coordinator will update the final disposition on AOIC to "accepted by Exam" and close the offer off AOIC by updating the Assignment to "Estate and Gift Close."

    4. If the proposed acceptance is not approved and the case is returned to the examiner for further action, Technical Services will email the Estate and Gift WSD DATL Coordinator who will remove the proposed disposition and update the AOIC remarks accordingly, For Technical Services acceptance procedures, see IRM 4.8.8.8.4, Accepted Offers.

    5. The Estate and Gift WSD DATL Coordinator will update the AOIC IAR Checklist to reflect the acceptance of offer, if applicable.

Operations Assistance Request Referrals from Taxpayer Advocate Service
  1. The Estate and Gift WSD Taxpayer Advocate Service (TAS) Point of Contact (POC) will review all Operation Assistance Requests (OAR) from the Taxpayer Advocate Service to the Estate and Gift Tax Program. Refer to IRM 13.1.19, TAS Operations Assistance Request (OAR) Process, TAS Operations Assistance Request Process, for OAR process.

  2. The Estate and Gift WSD POC will determine the action required to resolve the issue and assign the case to the appropriate party within 24 hours of receipt.

  3. It may be necessary to request that the Estate and Gift WSD Paralegal create AIMS/ERCS control before assignment. Also, if the case was previously examined and closed, it may be necessary to designate the case as "audit reconsideration" , "claim for refund" or "abatement" , based on the facts of the request.

  4. The case will be marked "Expedite" to ensure priority consideration by the receiving group manager and examiner. The Estate and Gift WSD TAS POC will forward the case electronically or by mail, along with a memo to explain the issue, reason for assignment and a request for regular status updates, up to and including the final exam determination. If a case is mailed to the receiving manager, the Estate and Gift WSD TAS POC will notify the manager by email of the incoming request.

  5. When the requested action has been completed, the Estate and Gift WSD POC will complete Form 12412, Operations Assistance Request (OAR), and return it to the Taxpayer Advocate Service (TAS).

Return Preparer Referrals
  1. Return Preparer referrals are received from the Return Preparer Office (RPO) and are submitted to the Estate and Gift WSD Return Preparer Coordinator for review. The Return Preparer Office maintains a central depository for these referrals which may originate from other sources, including the Office of Professional Responsibility, the Lead Development Center, other Business Units and the public. Referrals from RPO may include Form 14157, Return Preparer Complaint, or a Form 14426, Return Preparer Office (RPO) Referral.

  2. When a referral is received, the Estate and Gift WSD Return Preparer Coordinator will input related information on the designated Estate and Gift WSD SharePoint spreadsheethttps://organization.ds.irsnet.gov/sites/SbseSpecEGT/Psp/SitePages/Home.aspx. The spreadsheet will be updated to reflect if the referral has been selected for field review or rejected and in comments will include the reason for selection or non-selection consistent with IRM 4.25.3.4.2, Selection and Non-Selection Decisions.

  3. The Estate and Gift WSD Return Preparer Coordinator will review the referral for audit potential which is limited to the application of penalties per IRC Sections IRC 6694 and IRC 6695 (preparer), IRC 6695A (appraiser), and IRC 6701 (aiding and abetting). The Coordinator should be familiar with IRM 20.1.6, Preparer, Promoter, Material Advisor Penalties, and IRM 4.11.51, Return Preparer Program, dealing with preparer penalties. The statute of limitations on assessment for IRC 6694(a), IRC 6695 and IRC 6695A expires three years from the date the related return or claim for refund was filed. See IRC 6696(d). See Form 872-D, Consent to Extend the Time on Assessment of Tax Return Preparer Penalty. There is no statute of limitation on assessment of penalties under IRC 6694(b) and IRC 6701 because the penalty does not depend on the filing of a return.

  4. The Estate and Gift WSD Return Preparer Coordinator will consult with the RPO to determine if there is any available information regarding the preparer on the Return Preparer Database maintained by RPO and SB/SE Research. This will provide important information regarding any prior complaints or examination or criminal investigation for this preparer. This inquiry may indicate a need to coordinate the referral with other pending exams to eliminate duplication of work. The Coordinator must also consider if there is currently a Program Action Case pending for this preparer/appraiser.

  5. For selected referrals, the Estate and Gift WSD Return Preparer Coordinator will draft a memorandum including a summary of the facts and the issues presented to include in the file, together with Form 5809, Preparer Penalty Case Control Card, and forward to the WSD Program Supervisor for approval. Form 5809 is signed by the manager and retained in the preparer penalty case file. See IRM 20.1.6, Preparer, Promoter, Material Advisor Penalties, and IRM 4.1.10.7.1, Creating Return Preparer Penalty Cases. Multiple penalties can be included on the card for one preparer.

  6. The Estate and Gift WSD Return Preparer Coordinator will send via secured email to an Estate and Gift WSD Paralegal the information necessary to establish the ERCS record. Penalty cases are established on ERCS only, not AIMS, and with MFT between P1 and P4, PC, PJ, PK, PL, PM and PN, depending on the type of penalty. A separate ERCS record is created for each penalty. For instruction on creating a case on ERCS, see IRM 4.1.10.7.1, Creating Return Preparer Penalty Cases.

  7. The Estate and Gift WSD Paralegal will establish the case on ERCS, include the applicable tracking code, and case-build the file. The EG WSD Return Preparer Coordinator will advise the WSD Paralegal what documents should be included in the case file in addition to the summary memo and Form 5809. Return preparer penalty case files may include copies of tax returns or portions of tax returns prepared by the preparer who is being considered for the penalty. The case files may also include other information taken from examination case files, including work-papers and transcripts for the taxpayers whose returns were prepared by the preparer, as well as information received directly from the preparer.

  8. Once the case is established on ERCS, it will be placed on the National Inventory Wall.

  9. The National Gatekeeper will review selected case files consistent with IRM 4.25.3.5.2, Returns Selected for Field Consideration during Classification of Filed Estate and Gift Tax Returns, and fill field group orders with these cases consistent with procedures for filling orders. Refer to IRM 4.25.3.10.2, Filling Orders and Surveying Cases.

  10. Estate tax returns not assigned for field examination after this review will be surveyed consistent with the procedures found in IRM 4.25.3.10.2, Filling Orders and Surveying Cases.

  11. Non-selected and surveyed case files will be retained by Estate and Gift WSD for the required retention period and then destroyed. Refer to IRM 1.15.3.2, Destroying Records in the Custody of the IRS and Document 12990, Records and Information Management Records Control Schedules.

Requisition of Estate and Gift Tax Returns

  1. This section provides information on procedures for supplying the field groups with returns for audit.

Return Requisitions

  1. Estate and Gift WSD will solicit orders for estate and gift tax returns from the Estate and Gift territories based on the pre-determined return order filling schedule.

  2. Group managers will determine the number and type of returns needed at the group level. Each territory will consolidate its groups' requisitions and submit to Estate and Gift WSD.

Filling Orders and Surveying Cases

  1. The National Gatekeeper will fill the field groups' orders from the requisition in a manner determined by the Estate and Gift WSD Supervisory Attorney.

  2. Location is a priority consideration in distributing cases. While the Estate and Gift Tax Program has national inventory and fills return orders based on national workload priorities, it is most economical and efficient for examiners to work cases in their respective localities. Examiners are more familiar with their own area, local issues, valuations, state law issues, taxpayers, and representatives which makes for a more effective and efficient examination. However, the National Gatekeeper will also take into consideration the quality of the issues selected, as well as the remaining time on the statute, in prioritizing cases sent to the field.

  3. After the National Gatekeeper completes the monthly order requisition, a review of the available inventory will be conducted. Those returns that the National Gatekeeper will not send to the field will be surveyed or refiled in the following manner:

    1. The National Gatekeeper will document the reason for disposal on the classification sheet or memorandum.

    2. Estate and gift tax returns established on AIMS/ERCS by Campus will be stamped "Surveyed Excess Inventory" on the front of the return, updated to Employee Group Code (EGC) 1081, and delivered to the Campus for closure of the AIMS/ERCS record with disposal code 35 (Surveyed Excess Inventory) and refiling.

    3. Gift tax returns that were not established on AIMS/ERCS will be delivered to the Campus for refiling.

    4. Estate and gift tax returns established on AIMS/ERCS as an SFR by Estate and Gift WSD will be closed by completing a Form 10904, Request for Record Deletion from AIMS/ERCS, to submit to the Campus AIMS/ERCS analyst for closure of the AIMS/ERCS record with disposal code 33 (Error Account With No Return). The case file will be stored by the Estate and Gift WSD Paralegals for record retention. Refer to IRM 1.15.3.2, Destroying Records in the Custody of the IRS, and Document 12990, Records and Information Management Records Control Schedules.

    5. Estate and gift tax returns established on AIMS/ERCS by Estate and Gift WSD with a filed return will have "Surveyed, disposal code 31" written in red ink on the front of the returns. The returns will be delivered to CCP for refiling, with the case building documentation included, for closure of the AIMS/ERCS records with disposal code 31 (Surveyed Before Assignment by PSP).

    6. All surveyed cases delivered to Campus or CCP for closure of the AIMS/ERCS record shall include a classification sheet documenting the reason for the survey by the National Gatekeeper.

Shipment of Cases

  1. The Campus will send cases to the appropriate field office, accompanied by a Form 3210, Document Transmittal, indicating the number of returns included with each shipment. An AIMS status label will be attached to Form 5348, AIMS/ERCS Update, for each return.

  2. For estate tax cases, the Campus will update ERCS/AIMS information to the receiving group, including tracking codes and project codes where applicable.

  3. For gift tax cases, the Campus will:

    1. Establish the gift tax case on AIMS/ERCS record for those cases selected during classification that have not been previously established.

    2. Update the AIMS/ERCS information to the receiving group, including tracking codes and project codes where applicable, and not previously included by Estate and Gift WSD.

    3. Search for, establish on AIMS/ERCS, and associate any related spousal returns, if applicable and available, for each return selected for field consideration.