4.36.1 Joint Committee Process Overview

Manual Transmittal

September 21, 2015


(1) This transmits revised IRM 4.36.1, Joint Committee Procedures, Joint Committee Process Overview.

Material Changes

(1) An acronym table was added to IRM Subsequent subsections were renumbered.

(2) The new Joint Committee threshold requirements were added to IRM

(3) Various editorial changes were made throughout.

Effect on Other Documents

This section supersedes IRM 4.36.1, Joint Committee Process Overview, dated May 4, 2010.



Effective Date


Tina Meaux
Director, Pre-Filing and Technical Guidance (PFTG)
Large Business and International Division

Acronyms Used Throughout IRM 4.36

  1. The table below lists the commonly-used acronyms in Joint Committee cases.

    ACM Appeal Case Memorandum
    AIMS Audit Information Management System
    AMT Alternative Minimum Tax
    APA Advance Pricing Agreement
    ARC Aging Reason Code
    C.B. Cumulative Bulletin
    CAP Compliance Assurance Process
    CCP Centralized Case Processing
    CIC Coordinated Industry Case
    CRT Case Return Transmittal
    DFO Director of Field Operations
    EIN Employer Identification Number
    ERCS Examination Returns Control System
    FSC Foreign Sales Corporation
    GBC General Business Credit
    GHW Global High Wealth
    IBC International Business Compliance (LB&I)
    IDRS Integrated Data Retrieval System
    IIC International Individual Compliance (LB&I)
    IRC Internal Revenue Code
    IRM Internal Revenue Manual
    IRS Internal Revenue Service
    JC Joint Committee
    JCR Joint Committee Review (LB&I)
    JCS Joint Committee Specialist (LB&I JCR Program)
    JCT United States Congressional Joint Committee on Taxation
    LB&I Large Business and International Division (IRS)
    LUQ Large, Unusual or Questionable Items
    NOL Net Operating Loss
    NSR Notice of Suspended Referral
    PCS Partnership Control System
    PFTG Pre-Filing and Technical Guidance
    POA Power of Attorney
    PC Project Code
    RAR Revenue Agent Report
    Rev. Rul. Revenue Ruling
    SAIN Standard Audit Index Number
    SB/SE Small Business and Self-Employed Division (IRS)
    SRM Staff Review Memorandum
    SSN Social Security Number
    TAS Taxpayer Advocate Service (independent organization with the IRS)
    TCS Tax Computation Specialist
    TEGE Tax Exempt and Government Entities Division
    TIN Taxpayer Identification Number
    TSC Technical Service Code

Role of the Joint Committee on Taxation (JCT)

  1. The JCT is a nonpartisan committee of the United States Congress, originally established under the Revenue Act of 1926. JCT formally consists of ten Members of Congress: five from the Senate Committee on Finance; and five Members from the House Committee on Ways and Means. The JCT monitors the operation of the Internal Revenue Service (IRS) and its administration of the tax laws. The JCT’s duties are set forth in IRC 8022 which include consideration of possible changes in the tax laws leading to their clarification, simplification or revision to prevent undue hardships or the granting of unintended benefits.

  2. In addition, concerns over the potential for corruption and favoritism prompted the enactment of IRC 6405. IRC 6405 provides the JCT with oversight (as opposed to approval) authority of refunds of income, estate and gift taxes, and certain excise taxes in excess of a statutorily prescribed amount. It is to these refund cases that these procedures apply.

Role of Joint Committee Review (JCR)

  1. The JCR program is part of the IRS and not a part of JCT. The Large Business and International (LB&I) Division of IRS provides the support function for the servicewide JCR program. JCR oversees the preparation of Joint Committee reports for all agreed examined/surveyed cases for IRC 6405 refunds of income, estate and gift taxes, and certain excise taxes in excess of the statutory threshold.

  2. JCR includes specialists located in various posts of duty around the country. Staffing of the program will vary depending on case workload.

Overview of the Joint Committee Review (JCR) Process

  1. A refund or credit subject to Joint Committee review can arise from an examination, an unpaid claim, or tentative allowances in excess of the jurisdictional amount. The examiner is responsible for determining whether a case falls under Joint Committee jurisdiction. The fact that a return or examination must be reported to JCT does not alter the nature of the examination that may be conducted, nor does it limit the examiner’s ability to survey the return if this is the action deemed appropriate.

  2. House of Representative’s bill (H.R. 5771) was signed by the President and became law effective December 19, 2014 to increase the JC threshold for C Corporations. The jurisdictional amount for C Corporations is in excess of $5 million and for all other taxpayers the jurisdictional amount is in excess of $2 million.

  3. JCR oversees the preparation of Joint Committee reports for all agreed, partially agreed, and no-change cases and surveyed cases, regardless of the business operating division. A Joint Committee Specialist (JCS) reviews the case files for procedural, computational and technical accuracy and prepares the report that is submitted to the JCT refund staff for review.

  4. The JCT staff attorneys (also known as Refund Counsel) will review the Joint Committee report and other documentation as deemed necessary. Should the staff attorney have questions, they are usually resolved informally through phone calls or e-mails to the JCR. In some instances, a written inquiry may be issued. When JCR is notified that the staff attorney has no further questions or concerns, the case can be processed. In the event the JCT disagrees with or questions the position taken in the report, the case is, generally, as a matter of agency policy, not processed pending the resolution of the dispute. JCT will issue either a clearance letter or Staff Review Memorandum (SRM) upon completion of their review.

Internal Revenue Manual (IRM) 4.36 Overview

  1. IRM 4.36 is organized to follow the processing of a Joint Committee case from inception to completion. IRM 4.36.2 discusses determining if a case falls under JCT jurisdiction. It also outlines the procedure for determining whether a multi-year examination case with deficiencies and overassessments falls under JCT jurisdiction.

  2. IRM 4.36.3 describes the examiner's responsibilities, including documentation requirements and statute control. It also addresses examination procedures for issue support and dispute resolution.

  3. IRM 4.36.4 provides guidance for the JC specialist's review and report preparation responsibilities, including procedures relating to issue support and dispute resolution.

  4. IRM 4.36.5 describes the various JC reports that may be submitted to the JCT.

JCR Program Web Site

  1. The JCR program’s website at http://lmsb.irs.gov/hq/pqa/4/home.asp contains a wealth of information about all the various aspects of a Joint Committee case, including frequently asked questions, job aids, contact information, and JC forms. It is a place to visit for valuable tools and resources.