4.50.2 Other Workload Selection and Research – Non-Campaign Compliance Programs

Manual Transmittal

September 23, 2021

Purpose

(1) This transmits revised IRM 4.50.2, LB&I Compliance Integration, Other Workload Selection and Research – Non-Campaign Compliance Programs. This IRM describes the functions, procedures, tools, and systems for LB&I workload selection methods that are non-campaign-sourced.

Material Changes

(1) IRM 4.50.2: Changed the name of IRM 4.50.2 from Other Workload Selection – Non-Campaign Workstreams to Other Workload Selection and Research – Non-Campaign Compliance Programs.

(2) IRM 4.50.2.1.5: Clarified RICB approval authority.

(3) IRM 4.50.2.2: Rearranged compliance programs for consistency purposes and renumbered sections accordingly.

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(5) IRM 4.50.2.2.5: Renamed and completely revised subsection for the Discretionary Compliance Program.

(6) IRM 4.50.2.2.5.2: Moved Claims section from the Mandatory Compliance Program to IRM 4.50.2.4.1, Discretionary Compliance Program - Other Source Workload.

(7) IRM 4.50.2.3: Removed reference to the classification cadre as it no longer applies.

(8) IRM 4.50.2.4.2.1: Added new subsection for listed transactions.

(9) IRM 4.50.2.4.2.2: Added new subsection for transactions of interest.

(10) IRM 4.50.2.4.8: Added new subsection for emerging issues.

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(13) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

(14) Editorial changes made throughout.

Effect on Other Documents

This IRM supersedes IRM 4.50.2, LB&I Compliance Integration - Other Workload Selection – Non-Campaign Workstreams dated February 10, 2021.

Audience

LB&I employees

Effective Date

(09-23-2021)

Theodore D. Setzer
Acting Assistant Deputy Commissioner Compliance Integration
Large Business and International Division

Program Scope and Objectives

  1. Purpose: This IRM provides an overview of the business operations responsible for performing workload selection for LB&I. This section distinguishes non-campaign generated sources of returns, including international returns, both business and individual, with an international element from campaign-driven workload selection.

  2. Audience: All LB&I employees.

  3. Policy and Program Owner: LB&I Assistant Deputy Commissioner Compliance Integration.

  4. Primary Stakeholders: Including, but not limited to, all geographic and subject matter practice areas in LB&I.

  5. Program Goals: The overall program goal is to direct LB&I resources toward the highest compliance risks and to select the best work.

Background

  1. LB&I work processes are evolving to meet the needs of a rapidly changing taxpayer environment. This section describes the current state of workload identification and selection from non-campaign-generated sources.

Authority

  1. This IRM provides the authority to conduct research. The research extends to all LB&I returns, including related forms and schedules.

Responsibilities

  1. Compliance Planning and Analytics (CP&A), is the responsible function in LB&I for all campaign (see IRM 4.50.1) and non-campaign workload selection methods in LB&I. CP&A is responsible for establishing return coverage across LB&I practice areas. This business unit is in the Assistant Deputy Commissioner Compliance Integration (ADCCI) organization.

  2. CP&A also manages research requests (as described in IRM 4.50.2.1.5) from the practice areas in LB&I.

  3. The non-campaign workload selection programs are described in IRM 4.50.2.2.

Program Management and Review

  1. Program Reports: Research studies include:

    • Conducting environmental scans on filing information

    • Examining compliance of specific taxpayer segments

    • Developing mathematical models and expert systems to support audit selection

  2. Business Performance Reports contain metrics used to gauge the effectiveness of current workload selection methods and processes.

  3. Program Effectiveness: The business objective for conducting research studies is to make informed decisions, drive compliance efforts and improve voluntary compliance by identifying and delivering the highest risk returns to audit or by sending soft notices to ensure the methodology applied is aligned to the IRS mission. The business objective for producing performance reports is to provide LB&I management with statistics and trends to evaluate the various workload selection activities.

Program Controls

  1. Separation of duties: See IRM 4.50.1.2.2

  2. Policy Statement 1-236: See IRM 1.2.1.2.36, Fairness and Integrity in Enforcement Selection.

  3. Risk Identification Control Board (RICB): The mission of RICB is to ensure the enforcement selection process is an equitable and fair process to all taxpayers under Policy Statement 1-236. RICB Part I and II approval is required before filters, models, and/or other workload selection criteria are used for workload selection. RICB approval is required for Part I to develop and test the selection model. RICB and the respective Practice Area Director’s approval are required on Part II to implement the model into a compliance program. See IRM 4.50.1, LB&I Compliance Integration, Campaign Development Process, for more information on RICB.

  4. RICB will only approve workload selection criteria based on tax laws and treasury regulations and not on organization names or their policy positions. The goal of RICB is to ensure that the criteria used for workload selection promotes public confidence that tax laws are being applied impartially.

  5. Research requests from the practice areas must be approved by the CP&A Director. CP&A is responsible for establishing workload selection across LB&I practice areas and in supporting research studies based on voluntary compliance objectives. Research studies include conducting environmental scans on filing information, examining compliance of a specific segment of the population and developing mathematical models and expert systems to support audit selection. The business objective for conducting research studies is to drive compliance efforts and to improve voluntary compliance by identifying and delivering noncompliant returns to audit to ensure the methodology applied is aligned to the IRS mission. This IRM also provides the authority to conduct research. The research extends to all databases that include LB&I returns, related forms and schedules. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

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    2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

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    2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    3. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡

Terms/Definitions/Acronyms

  1. The table below provides common terms and definitions. See Exhibit 4.50.2-3, Acronyms, for a table of acronyms and their definitions.

    Defined Terms

    Term Definition
    Campaigns Campaigns are a compliance program in which the LB&I organization decides which compliance issues to pursue in order to achieve its compliance objectives.
    E-Classifier E-Classifier is an electronic classification tool currently used to classify LB&I returns.
    Risk Identification Control Board (RICB) The Risk Identification Control Board (RICB) is the governance body over filters used in workload selection.
    Treatment streams Treatment streams are approaches to achieving taxpayer compliance including administrative guidance, outreach, issue-based examinations, new legislation and published guidance.
     

Related Resources

  1. See IRM 4.50.1, LB&I Compliance Integration, Campaign Development Process, for information about campaign-sourced workload selection. Resources for campaign work are the Campaign Quick Start Guide, the Campaign Process chart, and the LB&I Campaign Guide.

  2. The ADCCI website provides more information about their programs and services.

Workload Selection Program Areas

  1. LB&I administers the following compliance programs:

    • Compliance Assurance Process (CAP) - See IRM 4.51.8, Compliance Assurance Process (CAP) Examinations

    • Large Corporate Compliance (LCC)

    • Global High Wealth (GHW)/High Income Individual (HII))/Pass-Through Entities (PTE)

    • Campaigns - See IRM 4.50.1, Campaign Development Process

    • Foreign Payments Practice

    • Mandatory

    • Discretionary

Large Corporate Compliance (LCC)

  1. The Large Corporate Compliance Program (LCC) is the successor program to the Coordinated Industry Case (CIC) program. LCC employs a risk based selection process to address selected compliance risks in the large corporate taxpayer population using a finite amount of resources, through the application of one or more treatment streams to achieve the intended compliance outcomes.

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  3. The data analytics method must be approved by the Risk Identification Control Board (RICB). See IRM 4.50.2.1.5, Program Controls.

  4. See IRM 4.50.3, Large Corporate Compliance Program, for more information about LCC.

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Global High Wealth (GHW)/High Income Individual (HII)/Pass-Through Entities (PTE)

  1. CP&A has primary responsibility for overall coordination of the compliance plan and workload identification.

  2. CP&A uses mathematical models for workload selection. Similar to the Campaign and LCC Programs, GHW models must be approved by the RICB. See IRM 4.50.2.1.5, Program Controls.

  3. The Pass-Through Entities Practice Area has the primary responsibility over the GHW/HII/PTE Compliance Program, which includes the processes and oversight required to identify, prioritize and allocate resources towards pass-through returns.

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  5. The LB&I pass-through population includes partnerships and subchapter S corporations with assets greater than or equal to $10 million.

  6. The GHW/HII/PTE program was formed to take a holistic approach in addressing the high-income, high-wealth population, including consideration of items associated with pass-through returns. This program leverages data, applied analytics, algorithms and institutional experience to assess the compliance risk that these enterprises pose with their increasingly sophisticated tax strategies.

  7. The GHW/HII/PTE program covers the entire business enterprise of entities controlled by high wealth individuals. These enterprises may include interests in partnerships, trusts, subchapter S corporations, private foundations and others.

  8. In addition, under the GHW/HII/PTE program, LB&I will develop, test, enhance, and monitor mathematical and machine learning models to identify partnership and S corporation returns with examination potential.

  9. GHW consists of two functions: Workload Services (WLS) and field examination groups. The GHW returns identified by the models are made available to the WLS for classification and risk assessment.

  10. Partnership or S corporation returns identified under these models will be classified and risk-assessed in Content Management and Collaboration (CMC). See IRM 4.50.2.3.1. In certain circumstances, Individual returns will also be classified and risk assessed in CMC.

  11. An "enterprise" is defined as a group of entities that are managed for the economic and tax benefit of a controlling interest. Enterprise Risk Assessment uses the evaluation of multi-entity and multi-year related return groupings to determine what constitutes a single economic "enterprise."

  12. Models to be developed include:

    • Single return selection systems

    • Enterprise selection systems

    • Single year and/or multi-year models

  13. Models will be developed using internal and external data sources. The validation of models and data fields will be analyzed and gathered from examination feedback and operational databases to monitor the model’s effectiveness in identifying the next best case.

  14. See IRM 4.52.1, Global High Wealth Program Processes and Procedures, for more information.

GHW Risk Assessment and Case Building
  1. WLS conducts a detailed risk assessment process consisting of researching taxpayer forms and related data, identifying particular issues, observing trends and consulting with issue specialists. Risk assessment includes preparation and review of a yK-1 analysis for each taxpayer to gain an understanding of the taxpayer enterprise (Form 1040 and all related entities). During the risk assessment, large, unusual, or questionable items (LUQs) are noted by WLS for consideration by field agents for all entities in the enterprise that are determined to pose a risk of noncompliance. Related entities considered to be high risk are identified for inclusion in the case building package.

  2. Upon conducting a complete risk assessment, WLS risk assessors determine whether the case will be included in inventory ready for assignment. WLS personnel build enterprise case files for delivery to the field with all related returns to be examined and other tax-relevant materials.

  3. Once an enterprise case is assigned, a virtual case team folder is established on a secure shared drive for additional case-building, exam workpapers, and examination-related materials. GHW enterprise cases may consist of one or more of the following forms:

    Form Title
    Form 1040 U.S. Individual Income Tax Return
    Form 1065 U.S. Return of Partnership Income
    Form 1120 Corporation Income Tax Return
    Form 1120S U.S. Income Tax Return for an S Corporation
    Form 1041 Fiduciary Income Tax Return (for Estates and Trusts)
    Form 990 Return of Organization Exempt from Income Tax
    Form 990PF Return of Private Foundation
    Form 990T Exempt Organization Business Income Tax Return
    Form 706 Estate Tax Return
    Form 709 Gift Tax Return

  4. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

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    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
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Supplemental GHW Inventory Sources
  1. In addition to the high-risk individuals identified by CP&A, additional work sources are used to supplement inventory and balance coverage of the GHW population.

  2. Supplemental sources include:

    1. Referrals: WLS receives referrals from the field and other business units by way of a referral form located at: https://irssource.web.irs.gov/LBI/Spec/GHW/GHW_Referral_Form.pdf. Once it is determined that a referral may be appropriate for GHW, the enterprise is subjected to the risk assessment process described above on the GHW shared drive. Referrals that are not accepted by WLS are forwarded to the appropriate Planning and Special Programs (PSP) personnel or back to the exam group that made the referral, as appropriate.

    2. Issue-driven: WLS may identify issues of significant impact to the GHW population that warrant screening for all taxpayers within this population. These issues can be identified from the WLS team, GHW field examinations, and/or networking interactions with specialists in technical areas such as international compliance. As issues are identified, further research and analysis are undertaken to determine whether the scope of the issue is significant in the GHW population, at which time a campaign will be submitted for consideration.

Foreign Payments Practice (FPP)

  1. The Foreign Payments Practice (FPP) includes the processes and oversight required to identify, prioritize and allocate resources towards foreign withholding tax matters and foreign financial institution compliance under Chapters 3 and 4 of the Internal Revenue Code. See IRM 4.63.1.5, Foreign Payment Practice (FPP) Field Operations Overview.

  2. The FPP provides oversight of non-resident alien withholding tax matters with an emphasis on Service-wide coordination of technical issues, compliance, processing and other information relating to non-resident aliens. The FPP is also responsible for monitoring and enforcing compliance of foreign financial institutions participating in the Foreign Account Tax Compliance Act Program (FATCA).

  3. The FPP focuses resources through coordinated development of information and educational material, improved forms and publications, processing capabilities, examination strategies and other treatment streams to achieve intended compliance outcomes.

  4. FPP identifies compliance risks within the non-resident alien withholding population.

Mandatory

  1. The Mandatory Compliance Program includes the processes and oversight required to identify, prioritize and allocate resources towards defined forms of mandatory work that demand application of resources and can arise unexpectedly such as the enactment of new legislation, reactions to natural disasters, directives from the Department of Treasury or Internal Revenue Service, or assistance to other business operating divisions (BODs).

  2. Mandatory work includes, but is not limited to, Joint Committee.

Joint Committee Case Work
  1. The primary reference for Joint Committee cases is IRM 4.36. Any Form 1139,(Corporation Application for Tentative Refund), Form 1120-X, (Amended U.S. Corporation Income Tax Return), or other claim for refund, in excess of $5,000,000 for the same taxpayer must be selected for examination and routed to the field. These claims meet Joint Committee criteria.

    Note:

    As of December 19, 2014, the Joint Committee refund threshold was increased to $5,000,000 for C corporations. The threshold remains at $2,000,000 for all returns other than C corporations.

  2. Returns meeting Joint Committee criteria are updated with project code 0077 and the appropriate source code.

Discretionary

  1. LB&I uses workload selection criteria (models, filters, Discriminant Analysis System (DAS), etc.) to identify and allocate resources towards the discretionary program. Similar to all the other programs, workload selection criteria used to identify discretionary work must be approved by the RICB.

  2. The Discretionary Program also includes Other Source Workload (see IRM 4.50.2.4).

  3. LB&I Planning and Special Programs (PSP) in LB&I’s practice areas have primary responsibility for ordering LB&I returns using the LB&I Workload Identification System (LWIS).

Training Returns - Project Code 0204
  1. Project Code 0204, Training Return, should be applied to all returns assigned and started during formal training.

  2. All related, subsequent year, and/or prior year returns secured in connection with the training return will also have Project Code 0204 assigned, provided they are started during formal training.

  3. Formal training is defined as scheduled, organized online or classroom training and on-the-job training phase.

  4. Training may include returns identified through other compliance programs such as campaigns.

  5. Project code 0204 should be removed from any key case return assigned during training but NOT started during training.

Classification

  1. Classification is mandatory for any compliance programs approved by the Compliance Strategy Council with an issue-based audit treatment stream. Exceptions to this requirement include returns that don’t require classification, or upon ad hoc approval by the Compliance Strategy Council ("CSC") or the Compliance Integration Strategy Council ("CISC"), where classification requires specific expertise.

Classification Tools

  1. The main functions, tools, and systems for classification are (not all-inclusive):

    • Content Management and Collaboration (CMC)

    • E-Classifier

  2. CMC is utilized for classifying and risking returns. CMC provides enhanced inventory management to CMC managers, leads and team members. CMC allows for cases to be assigned to a group, assigned to a specific team member and submitted for approval to the manager by the team member with system generated e-mail alerting the appropriate person when an action is needed. CMC allows for cases to be automatically updated on AIMS when the manager approves a case to be sent to the LWIS system for assignment to the field. Feedback is provided in the risk assessment form in CMC.

  3. The E-Classifier is a secured virtual and physical environment used for classifying case work from large volumes of international data that must be analyzed to identify compliance issues, to support the case processing mission. The E-Classifier tool enables classifiers access to a wide range of returns and works seamlessly within the classification process. The E-Classifier tool provides electronic feedback measurements from classifiers that identify non-compliant activity.

Other Source Workload

  1. Other source workload for LB&I includes but is not limited to the following. Some of these sources of work may be priority but not mandatory.

    • Claims

    • Tax Shelters and Disclosures

    • Bankruptcy

    • Information Referrals and Reports

    • Program Action Cases

    • Change in Accounting Method-Voluntary Change-Advance Consent

    • Pass-Through Entity workload that crosses operating divisions

    • Emerging Issues

Claims

  1. Claims for refund - LB&I taxpayers generally file claims for refund on Form 1120-X, Amended U.S. Corporation Income Tax Return, or Form 1139, Corporation Application for Tentative Refund. Also see IRM 25.6.1.10, Claims, Abatements and Refunds. Claims related to returns already controlled by the field are not classified, but rather forwarded to the field for association with controlled return(s). All other claims, (i.e., without open AIMS) that meet Category A criteria (IRM Exhibit 21.5.3-2) are classified prior to processing. The classifier may review and request other relevant returns.

    • Claims in excess of $5 million for corporations are to be reviewed by Joint Committee Review per IRM 4.36.1.1.2, Authority, and are subject to mandatory review per IRM 4.36.3.1. These claims are automatically selected for examination.

    • All claims selected for examination are sent to SB/SE Classification Control Unit (CCU). CCU updates the claim to Exam Organization Code 1086; status 08 and the appropriate activity and/or source code (Refer to IRM 4.4, AIMS Procedures and Processing Instructions, Exhibit 4.4.1-1). CCU will prepare and send selected claims to the field using the LB&I contact listing.

    • All claims accepted as filed are sent to W&I Accounts Management for processing.

  2. Whistleblower Claims - LB&I receives whistleblower claims from the IRS Whistleblower Office and works these claims in accordance with established IRS policy. See IRM 25.2.1 , General Operating Division Guidance for Working Whistleblower Claims, for specific procedures on how to address whistleblower claims. CP&A reviews and determines if whistleblower claims merit an examination. If the whistleblower claim merits an examination, CP&A will assign the claim to the field.

Tax Shelters and Disclosures

  1. The Office of Tax Shelter Analysis (OTSA) receives and evaluates all Form 8886, Reportable Transaction Disclosure Statements and Form 8918, Material Advisor Disclosure Statements.

  2. OTSA analysts review each disclosure for completeness and determine which disclosures have large, unusual, questionable (LUQ) items, or Listed Transactions requiring further action or review.

  3. Disclosures requiring further action are distributed to the established point of contact (POC) within the appropriate business operating division (BOD).

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    1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  5. If the Form 8918 disclosure requires further information or potential promoter examination:

    1. OTSA will follow the procedures outlined in IRM 4.32.2.4.3.1.1 to refer an LB&I Material Advisor to the LB&I Technical Tax Shelter Promoter Committee (TTSPC).

    2. For an SB/SE or other BOD Material Advisor, OTSA will refer the disclosure to the SB/SE Lead Development Center or TE/GE Abusive Transactions function as appropriate.

  6. OTSA will also use information received from the Form 8886, Form 8918, and other tax forms to determine taxpayer compliance with disclosure laws and identification of tax returns with potential tax shelter issues.

Listed Transactions
  1. As emerging issues in the tax shelter area are developed, they may result in the issuance of a Notice or other published guidance officially identifying the transaction as a listed transaction.

  2. Transactions that have been determined by the Service to be tax avoidance transactions are “listed transactions”. As a result, taxpayers may need to disclose their participation in these listed transactions as prescribed in 26 CFR 1.6011-4, and material advisors may need to disclose these transactions under 26 CFR 301.6111-3 of the Procedure and Administration Regulations. Taxpayers who fail to disclose may be subject to penalties under IRC 6662A and IRC 6707A. Material advisors who fail to disclose may be subject to penalties under IRC 6707. In addition, material advisors must maintain lists of advisees and other information with respect to these listed transactions pursuant to 26 CFR 301.6112-1. Material advisors who fail to furnish a list as required under this regulation may be subject to penalties under IRC 6708.

  3. Notice 2009-59, 2009-31 IRB 170, contains the list of transactions that have been determined by the Internal Revenue Service to be “listed transactions”. See https://www.irs.gov/businesses/corporations/listed-transactions for a chronological listing of listed transactions and recognized abusive transactions. In addition to the list of listed transactions described in Notice 2009-59, and the link referenced in the previous sentence, the link includes additional information related to some of the listed transactions including, but not limited to, settlement initiatives and Appeals Settlement Guidelines.

  4. If the listed transaction surfaces during an examination, it must be raised as an issue following the listing notice. Examiners should contact the subject matter expert and provide the name of the taxpayer, taxable period(s) involved, type of listed transaction, the name of the promoter, if known, the name and telephone number of the team/group Manager and, if applicable, the name and telephone number of the team coordinator. The initial contact may be via e-mail (using secure messaging), fax or telephone.

  5. Examiners should consult with subject matter experts and local area Counsel on the development of the issue. Examiners must secure the concurrence of the appropriate subject matter expert if their examination deviates from any mandated specific examination techniques proposed for issue development or their proposal for adjustment deviates from any stated legal positions. Examiners must also consult with and secure the concurrence of the appropriate subject matter expert and Counsel before proposing any resolution other than full concession of the issue by the taxpayer. No proposals can be made without the concurrence of the Issue Champion.

  6. After initial publication of guidance identifying a listed transaction is released, the responsible division and Chief Counsel staff will meet to discuss the need to further develop the issue. The discussion will include whether there is a need for Counsel to provide a thorough legal analysis of the issue or other guidance. If additional guidance is needed, the group will decide what format should be used to issue the additional legal analysis. For example, the additional legal analysis might take the form of a Chief Counsel Notice, a part of an audit handbook/ techniques guide, or a revenue ruling. An Associate Chief Counsel will be assigned primary responsibility for preparing the additional legal analysis. That Associate office will work with the Issue Team on the analysis and coordinate with other Associates as necessary. The issue team should regularly coordinate with Chief Counsel staff during the development of the legal analysis.

Transactions of Interest
  1. The reportable transaction category “transaction of interest” (TOI) is defined as a transaction that the IRS and the Treasury Department believe is a transaction that has the potential for tax avoidance or evasion, but lack sufficient information to determine whether the transaction should be identified specifically as a tax avoidance transaction. The TOI category of reportable transactions will apply to transactions entered into on or after November 2, 2006.

  2. Notice 2009-55, 2009-31 IRB 170, provides a list of transactions that have been identified by the Internal Revenue Service as “transactions of interest” for purposes of Treas. Reg. 1.6011-4(b)(6) and IRCs 6111, 6112, 6662A, 6707, 6707A and 6708.

  3. See https://www.irs.gov/businesses/corporations/transactions-of-interest for a list of these transactions and related notices.

Bankruptcy

  1. SB/SE Insolvency Unit will notify/forward any bankruptcy notifications or requests that are related to LB&I taxpayers to the LB&I Bankruptcy coordinator. These can include, but are not limited to, proof of claims and prompt determinations. Refer to IRM 4.27, Bankruptcy, for detailed information on examination bankruptcy procedures.

  2. The LB&I Bankruptcy coordinator requests and controls all returns needed for determinations and presents them to the LB&I classifier for classification.

  3. All selected returns will be coordinated through the practice area PSPs for assignment to the field.

  4. All taxpayers are sent a notification of selection or acceptance of the return by the LB&I Bankruptcy coordinator for all LB&I prompt determination requests.

Information Referrals and Reports

  1. LB&I information referrals and reports originate from several different sources including Form 5346, Examination Information Report, Form 3949-A, Information Referral, federal and state agencies referrals, foreign government referrals and public citizen referrals.

  2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

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  5. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  6. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  7. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  8. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Program Action Cases

  1. Program Action Cases (PACs) are preparer investigations where clients of preparers of interest are examined to determine whether preparer penalties and/or injunctive actions against the preparers are warranted. If a preparer’s misconduct appears to be pervasive and not isolated to a single taxpayer, consideration should be given to opening a PAC.

  2. Information on the PAC approval process and return identification and selection is found in IRM 4.1.10, Return Preparer Program Coordinator.

  3. Return preparer penalties are described in IRM 20.1.6 , Penalty Handbook, Preparer, Promoter, Material Advisor Penalties.

  4. Any inquiry regarding a return preparer penalty or PAC should be referred to the LB&I Return Preparer Coordinator (RPC), who is located in the Penalty Practice Network.

Change in Accounting Method - Voluntary Change - Advance Consent

  1. Form 3115, Application for Change in Accounting Method (CAM), is filed with National Office and a copy attached to the taxpayer’s tax return in the year of change. National Office reviews the Form 3115 and issues determination letters to taxpayers authorizing or denying a change in accounting method.

  2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  3. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    3. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Cross Divisional Pass-Through Entity Workload

  1. The LB&I and SB/SE operating divisions established a Memorandum of Understanding that sets the procedures and responsibilities for pass-through entities and their related investors when the returns cross operating divisions.

SB/SE Identified LB&I Return
  1. SB/SE may identify an issue on an LB&I pass-through entity that is not established on AIMS. At this point, SB/SE may request a collateral examination. See IRM 4.2.1.7, Collateral Examinations.

  2. Prior to requesting collateral examination, there must be a minimum of 18 months remaining on the statute of limitations for the LB&I TEFRA returns, or 12 months for LB&I non-TEFRA returns.

  3. SB/SE determines the proper routing of Form 6229, Collateral Examination, to LB&I. In general, the SB/SE group manager will contact the LB&I territory manager responsible for the applicable post of duty of the taxpayer.

  4. The SB/SE group manager will forward Form 6229 to the SB/SE territory manager, along with an information copy to the SB/SE Area Planning and Special Programs.

  5. The SB/SE territory manager will forward the Form 6229 to the LB&I territory manager. The receiving LB&I territory manager will forward a copy of the request to the responsible PSP analyst.

  6. The LB&I territory manager and LB&I team manager have 20 days to respond with a decision of whether the examination will be performed by LB&I.

  7. If the collateral referral is accepted, the SB/SE-controlled return will be transferred to an LB&I team. LB&I will consider SB/SE classified issues.

  8. If LB&I rejects the collateral examination request, then SB/SE will decide at the SB/SE territory manager level if the return will be worked based on skill level, resources available and scope of the work related to the SB/SE return.

LB&I Identified Return
  1. LB&I may identify an issue on a related SB/SE return when examining a pass-through entity.

    1. If the return is TEFRA, then normal procedures apply for establishing investor returns on AIMS and PCS.

    2. If the return is non-TEFRA and there are no returns open on AIMS, LB&I will follow normal AIMS opening procedures to request control of the return.

    3. If the return is non-TEFRA and open on AIMS, LB&I should contact the SB/SE group manager requesting the transfer of the return to LB&I. LB&I must include justification for the transfer and agree to take full responsibility for examination of SB/SE classified issues. If SB/SE declines the transfer request, the SB/SE revenue agent is responsible for coordinating with the LB&I revenue agent.

Emerging Issues

  1. Emerging issues can come in many forms. An emerging issue may have one or more of the following characteristics:

    1. It arises from a new or novel set of facts or through questions of the proper application of tax law.

    2. It has not been addressed by published legal guidance or administrative pronouncements of the Service.

    3. It is susceptible to inconsistent treatment by both the Service and LB&I taxpayers.

    4. It may or may not involve a potential abusive tax avoidance transaction.

    5. It is not necessarily limited to a specific industry and can impact across Service Divisions.

  2. Tax issues can be identified by examiners, managers, specialists, subject matter experts, and other IRS personnel. Sources for identifying issues include, but are not limited to, current examinations, news articles, the Tax Shelter Hotline, taxpayer inquiries and industry contacts. Issues identified should be brought to the attention of the applicable Issue Practice Network as early as possible.

  3. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡

  4. ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  1. ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  3. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  4. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  5. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  6. ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  7. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡  
≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Acronyms

Acronym Definition
ACA Affordable Care Act
ADCCI Assistant Deputy Commissioner Compliance Integration
AIMS Audit Information Management System
APA Advance Pricing Agreement
BBA Bipartisan Budget Act of 2015
BOD Business Operating Division
CAM Collaboration Assessment Matrix
CAP Compliance Assurance Program
CBF Case Built File
CCU Campus Compliance Unit
CIC Coordinated Industry Case
CMC Content Management and Collaboration
CP&A Compliance Planning and Analytics
FATCA Foreign Account Tax Compliance Act
FPP Foreign Payments Practice
GHW Global High Wealth
JCC Joint Committee Case
LCC Large Corporate Compliance Program (aka CIC Successor Program)
LUQ Large, Unusual and Questionable
LWIS LB&I Workload Identification System - delivery system for delivering case built files for examination
NAICS North American Industry Classification System
OTSA Office of Tax Shelter Analysis
PAC Program Action Case
PCS Partnership Control System
POC Point of Contact
PSP Planning and Special Programs
RICB Risk Identification Control Board
RPC Return Preparer Coordinator
SB/SE Small Business/Self-Employed
SME Subject Matter Expert
TCJA Tax Cuts and Jobs Act
TEFRA Tax Equity and Fiscal Responsibility Act
WLS Workload Services