7.20.5 Review Procedures for EO Determinations

Manual Transmittal

July 20, 2021

Purpose

(1) This transmits revised IRM 7.20.5, Exempt Organizations Determination Letter Program, Review Procedures for EO Determinations.

Material Changes

(1) Incorporated Interim Guidance Memorandum TEGE-07-0920-0023, Interim Guidance on EO R&A Case Closing Procedures.

(2) Incorporated Interim Guidance Memorandum TEGE-07-0421-0008, Interim Guidance on Processing Form 1023-EZ.

(3) Updated the commonly used abbreviations in IRM 7.20.5.1.5.

(4) Added review of Form 1023-EZ referral cases in IRM 7.20.5.2.

(5) Updated procedures in IRM 7.20.5.3 to include the QA walk-in service.

(6) Updated procedures in IRM 7.20.5.4 for electronic processing of cases in MEDS.

(7) Updated procedures in IRM 7.20.5.5 to include reference to 1023-EZ referral cases and modify procedures for electronic case processing in MEDS.

(8) Updated correspondence procedures in IRM 7.20.5.6 to reflect electronic processing of the cases.

(9) Updated IRM 7.20.5.7 to modify procedures for electronic case processing in MEDS.

(10) Added IRM 7.20.5.7.1 to provide processing instructions for group ruling cases.

(11) Modified procedures in IRM 7.20.5.8 to reflect electronic case processing in MEDS.

(12) Updated IRM 7.20.5.9 to reflect electronic case precessing in MEDS and describe Section 6110 case processing instructions.

(13) Edited the document for plain language, as required per the Plain Writing Act of 2010.

(14) Made editorial changes throughout.

Effect on Other Documents

This supersedes IRM 7.20.5 dated May 9, 2018, and incorporates the following interim guidance memos:
TEGE-07-0920-0023, Interim Guidance on EO R&A Case Closing Procedures
TEGE-07-0521-0008, Interim Guidance on Processing Form 1023-EZ.

Audience

Tax Exempt and Government Entities
Exempt Organizations
Rulings and Agreements

Effective Date

(07-20-2021)

Stephen A. Martin
Director, Exempt Organizations, Rulings and Agreements
Tax Exempt and Government Entities

Program, Scope, and Objective

  1. Purpose: This IRM describes the responsibilities and procedures for Exempt Organizations (EO) Determinations Quality Assurance (EODQA) employees reviewing Exempt Organizations Determinations (EOD) cases.

  2. Audience: The procedures in this manual apply to EODQA and EO Determinations employees.

  3. Policy Owner: Director, Exempt Organizations, Rulings and Agreements.

  4. Program Owner: Exempt Organizations and Government Entities.

Background

  1. EO includes two primary operational areas: Rulings and Agreements (R&A) and Examinations.

  2. EO Rulings and Agreements is responsible for determinations related to exempt organizations.

  3. EO Determinations Quality Assurance is responsible for reviewing determinations cases.

Authority

  1. Rev. Proc. 2021-5, updated annually, lists procedures for issuing determination letters on issues under the Director, EO Rulings and Agreements jurisdiction. It explains the procedures for issuing determination letters on exempt status in response to applications for recognition of exemption from federal income tax under Section 501 or 521 (other than those subject to Rev. Proc. 2021-4, updated annually), private foundation status, and other determinations related to exempt organizations. Rev. Proc. 2021-5 also provides guidance on the exhaustion of administrative remedies for purposes of declaratory judgment under IRC 7428 and guidance on applicable user fees for requesting determination letters.

Responsibilities

  1. Exempt Organizations Determinations Quality Assurance (EODQA):

    1. Advises Exempt Organizations Determinations (EOD) senior management of areas that need attention.

    2. Recommends ways to improve technical and procedural processing of determination cases.

  2. EODQA reviews determination cases to ensure:

    1. Technical accuracy

    2. Adherence to written procedures

    3. Uniform and impartial treatment of exempt organizations' interests while protecting the government's interest

    4. Identification of unfavorable case patterns, trends affecting processing quality, problem areas, unique issues, and new or novel techniques that EOD specialists develop

  3. EODQA provides EOD senior management analytic support to measure, report, and recommend improvements in EOD program quality, primarily through sample case review (see IRM 7.20.5.5, Processing Sample Review Cases).

  4. EODQA reviews and processes determination cases designated for mandatory review and:

    1. Returns cases requiring additional consideration to specialists and tax examiners with a Reviewer’s Memorandum.

    2. Mails favorable or adverse letters on cases they reviewed and approved.

    3. Forwards cases requiring Appeals’ consideration to the Independent Office of Appeals (Appeals).

  5. EODQA:

    • Helps EOD specialists, tax examiners, and managers by giving training on technical and procedural issues.

    • Provides informal advice on procedural and technical issues.

    • Reports significant trends, problem areas, quality measurement findings, and important Appeals decisions to EOD senior management.

Program Controls

  1. The EODQA manager reviews the work performed by EODQA reviewers.

Common Abbreviations

  1. Commonly used abbreviations include:

    Abbreviation Name
    EDS EP/EO Determination System
    EO Exempt Organizations
    EOD Exempt Organizations Determinations
    EODQA Exempt Organizations Determinations Quality Assurance
    MEDS Modified EO-EP Determination System
    QMP Quality Measurement Process
    R&A Rulings and Agreements

Types of EODQA Review

  1. EODQA performs these reviews:

    • Sample

    • Correspondence with technical issues

    • Mandatory

    • Manager's discretion

    • Saturation or special

  2. The Quality Measurement Process (QMP) is EODQA’s sample review program used to calculate EOD case processing quality scores using attributes to measure the work quality. EODQA reports quality scores for each process and describes any trends or recommends improvements quarterly for:

    • Form 1023-EZ - standard processing

    • Form 1023-EZ - pre-determination processing

    • Form 1023-EZ - referral processing

    • All other determination case processing (i.e., all requests other than Form 1023-EZ)

    Note:

    Results aren’t used to evaluate individual specialists or tax examiners.

  3. The Correspondence Unit may send unresolved correspondence with technical issues to EODQA.

  4. Mandatory review evaluates open cases that are complex, sensitive, or impactful. See IRM 7.20.5.2.1 for a list of mandatory review cases.

  5. An EOD group manager may refer an open case as a manager’s discretion review to get an independent view or guidance.

    • The group manager sends the open case to EODQA via MEDS explaining why it should be reviewed.

    • EODQA reviews the case and creates a no error Reviewer’s Memorandum to provide to the group manager.

  6. Saturation or special review may be handled either as open or closed case review.

    • Saturation review identifies cases by category (such as applications, miscellaneous determination letter requests, reinstatement cases).

    • Special review identifies cases by issue (such as applications from scientific research organizations).

Cases Subject to Mandatory Review

  1. Cases subject to mandatory review are:

    1. Proposed adverse determinations

    2. Determinations subject to IRC 6110 disclosure including IRC 4945(g) advance approvals, unusual grant determinations, etc.

    3. Foreign organizations (not including those formed in U.S. territories)

    4. Group ruling approvals (not including declinations)

    5. An organization that was previously revoked or denied recognition of exemption

      Exception:

      This doesn’t include organizations automatically revoked for failure to file returns.

    6. Religious and apostolic organizations under IRC 501(d)

    7. Applications that indicate actual or potential political campaign intervention activities (not including IRC 501(c)(4) approvals based on signed Letter 5228 representations)

    8. Management requests (senior manager’s approval required)

    Note:

    Related cases worked simultaneously (and by the same specialist) with one of these cases are also subject to mandatory review.

EODQA Reviewer’s Duties

  1. EODQA reviewer duties:

    1. Review determination cases identified for mandatory review, saturation review, special review, or manager's discretion review.

    2. Perform QMP sample reviews.

    3. Prepare a Reviewer’s Memorandum after review to bring significant items to the manager’s and specialist/tax examiner’s attention.

    4. Respond to requests to comment on technical and procedural accuracy of new or revised form letters, standardized work papers, and written procedures.

    5. Explain significant developments on technical and procedural matters to EOD specialists and tax examiners.

    6. Review correspondence with technical issues and determine the appropriate action.

    7. Answer technical questions at the QA Walk-in Service.

Reviewer’s Memorandum and Response to Reviewer’s Memorandum

  1. Use a Reviewer’s Memorandum to report findings to EOD group managers. Issue a/an:

    Memo Type When to Issue
    Inquiry memo When you detect a significant error and must return the case to the specialist/tax examiner to correct or reconsider.
    Advisory memo (with or without returning the case) If you find insignificant errors that don’t affect the case outcome, or would have affected the case outcome, but were corrected by the reviewer.

    Note:

    Issue an advisory memo to notify a specialist if you made substantive changes to a determination letter before mailing. (Attach a copy of the revised letter.)

    Note:

    Generally don’t prepare advisory memos on sample cases. You may issue inquiry memos in limited situations.

    No error memo (with or without returning the case) If the specialist didn’t cause the error, to return a manager’s discretion case, or to return a protest or appeals decision.
    Commendatory memo (without returning the case) To congratulate a specialist for doing an excellent job on a particular case.

  2. Prepare a Reviewer’s Memorandum as follows:

    1. Check the box for the type of memo (inquiry, advisory, etc.).

    2. Enter the required information.

    3. Explain the issue or problem, provide recommendations, and, if needed, list supporting precedent or procedures.

  3. Email the memo to the EODQA manager for review.

  4. EODQA manager: Return the memo to the reviewer for further consideration or to create the final version.

  5. EODQA reviewer: Create a PDF of the final version of the memo, digitally sign it, and email it back to the manager.

  6. EODQA manager: Digitally sign the memo and send it to the EODQA clerical assistant.

  7. EODQA clerical assistant: Import the memo into the MEDS Non-Disclosable folder. Forward the memo to the EOD group manager and send the case back in MEDS.

  8. EOD group manager: Review the memo.

    IF THEN
    You disagree with an inquiry memo Discuss the memo with the EODQA manager. If he/she doesn’t agree, elevate to the area manager.
    You agree with an inquiry memo Forward the case to the specialist/tax examiner to complete recommended actions. Maintain appropriate case controls.
    It is an advisory, no error, or commendatory memo Consider the information but, generally, you don’t need to respond to EODQA.

  9. Specialist/tax examiner: Make the agreed changes and complete Form 5457, Response to Reviewer’s Memorandum - TE/GE. Digitally sign the memo, and send to manager. Import the signed memo into the MEDS Non-Disclosable folder.

  10. EOD group manager: Approve the specialist/tax examiner’s actions by downloading Form 5457, digitally signing the form, and importing it back into the MEDS Non-Disclosable folder. Forward the Form 5457 to the EODQA clerical assistant and manager. Forward the case file to EODQA in MEDS.

  11. Reviewer: Review the specialist/tax examiner’s actions. If no further action needed:

    1. Download a copy of Form 5457, digitally sign it, and import it into the MEDS Non-Disclosable folder.

    2. Complete the CVENT survey on the response.

      Exception:

      Don’t complete the CVENT survey for a QMP case response.

      Note:

      For a response to a second inquiry memo, change the first three digits of the case number to "222" when entering the case number in CVENT.

    3. Submit the case to the EODQA manager for approval in MEDS.

  12. Reviewer: If you recommend further specialist/tax examiner action, discuss with the EODQA manager to determine whether to discuss with the EOD group manager or return the case with another Reviewer’s Memorandum.

  13. EODQA clerical assistant: After all actions are completed and approved, save copies of the Reviewer’s Memorandum and Form 5457 to the EODQA shared drive and forward copies to the EOD group manager and EOD area manager.

Processing Sample Review Cases

  1. EODQA identifies all closed cases weekly using the Business Objects system and sorts the cases into four categories:

    • Form 1023-EZ cases - standard processing

    • Form 1023-EZ cases - pre-determination processing

    • Form 1023-EZ cases - referral processing

    • All other determination cases (all requests other than Form 1023-EZ)

  2. To identify cases for QMP review, EODQA:

    1. Randomizes the order of cases on each list (using Excel random number generators and sorting functions).

    2. Selects cases from each list using a modified interval sampling based on the projected number of closures for the year.

    Example:

    If the sampling method determines that every 70th case should be reviewed to reach the desired sample size and EOD closes 140 cases during the period, EODQA selects two cases for that period. Because the list of cases is randomized, EODQA reviews the first two listed cases.

  3. EODQA reviews QMP cases after any final letters are mailed to the applicant and the cases are closed off the MEDS system.

  4. EODQA manager periodically assigns closed QMP cases to reviewers. Reviewers generally have until the end of the current QMP quarterly rating period to complete their reviews.

  5. Review the case for technical and procedural accuracy. Determine whether the specialist:

    1. Obtained/developed all pertinent facts on technical issues, both favorable and unfavorable.

    2. Based the determination on laws, regulations, published rulings, and court cases that support the findings.

  6. Ensure the case file contains properly completed:

    1. Determination letters with appropriate addenda and attachments

    2. Forms, checksheets, and guidesheets applicable to the case

    3. Special processing instructions

    4. Applicable processing system documents

    5. Form 5666, TE/GE Referral Information Report, if applicable

  7. Rate cases by answering a series of questions in a survey format using CVENT. Survey questions correlate to attributes.

  8. The process assigns each attribute to one of four categories:

    • Customer accuracy

    • Procedural accuracy

    • Regulatory accuracy

    • Timeliness

  9. The system totals each attribute category and averages them to determine the quality score for the process.

    • The process weighs each attribute equally within its category.

    • "N/A" answers aren’t counted in the calculation.

  10. Each quarter, the system calculates a quality score for each process).

  11. Generally, don’t return QMP cases for further development. However, you may return a case to the group (with EODQA manager agreement) if the:

    • Qualification for exemption or foundation classification isn’t clear.

    • Case has other circumstances indicating that not returning the case would be a serious administrative omission.

      Example:

      You’d return a determination that would result in serious criticism of the IRS’s administration of the tax laws, establish a precedent that would seriously hamper IRS attempts to take corrective actions, or result in inconsistent treatment of similarly situated organizations.

    • Error would result in serious negative consequences to the organization (for example, incorrect information provided in a favorable determination letter).

  12. Return QMP cases meeting any of the criteria above to the EOD group manager in MEDS with an inquiry Reviewer’s Memorandum (see IRM 7.20.5.4)

Processing Correspondence with Technical Issues

  1. Review the correspondence, conduct any necessary research, and determine the appropriate action.

    Note:

    You may call the taxpayer, forward the correspondence to *TE/GE-EO-Congressionals mailbox, or request a case establishment so the issue can be worked by a specialist.

    IF there is THEN
    IRS error Prepare Form 14263, Request for 2nd Case Establishment.

    Note:

    Establish case as a MEDS R case in Status 75 and assign to unassigned inventory in specialist’s group where service error occurred.

    Note:

    Use the date the R case is requested as the control date on the establishment sheet.

    Note:

    R case establishment is subject to managerial approval.


    Prepare and import the following into the MEDS Non-Disclosable folder:
    • Form 14263

    • Correction Action CCR with corrective actions and disposition category


    Send the case back to the manager in MEDS to review.
    No error/taxpayer contact not needed
    • Prepare Correction Action CCR with recommended actions or reason for no action and disposition category. Import into the MEDS Non-Disclsoable folder.

    • Send the case back to the manager in MEDS to review.

    No error/taxpayer contact needed Contact taxpayer to discuss minor issues.
    Prepare Correction Action CCR with recommended actions.
    • Input recommended actions or reason for no action.

    • Designate disposition category.

    • Import into MEDS Non-Disclosable folder.

    Development needed Prepare Form 14263, Request for 2nd Case Establishment.

    Note:

    Establish case as a MEDS R case in Status 75 and assign to unassigned inventory in specialist’s group where case originated.

    Note:

    Use the date the R case is requested as the control date.

    Note:

    R case establishment is subject to managerial approval.


    Prepare and import the following into the MEDS Non-Disclosable folder:
    • Form 14263.

    • Correction Action CCR with corrective actions and disposition category.

    Potential adverse issue Prepare Form 14263, Request for 2nd Case Establishment.

    Note:

    Establish case as a MEDS R case in Status 75 and assign to unassigned inventory in specialist’s group where case originated.

    Note:

    Use the date R case is requested as the control date.

    Note:

    R case establishment is subject to managerial approval.


    Prepare and import the following into the MEDSNon-Disclosable folder:.
    • Form 14263

    • Correction Action CCR with corrective actions and disposition category

  2. EODQA clerical assistant: Update the QA Correspondence spreadsheet and forward request back to EO R&A Processing & Support, Correspondence Unit..

Processing Technical Review Cases

  1. Technical review case types:

    • Mandatory

    • Manager’s discretion

    • Saturation

    • Special cases

  2. EODQA maintains open cases in unassigned inventory until assigned in the order received.

    Note:

    Cases are assigned to reviewers from unassigned inventory within 15 days.

    Exception:

    Expedited cases, manager’s discretion cases, or cases requiring immediate review per the EODQA manager are assigned to the next available reviewer.

  3. Review the case within five workdays of assignment.

  4. Review the case for technical and procedural accuracy. Determine whether the specialist:

    1. Obtained/developed all pertinent facts on technical issues, both favorable and unfavorable.

    2. Based the determination on laws, regulations, published rulings, and court cases that support the findings.

    3. Explained the IRS’s position clearly and concisely on an adverse determination.

  5. Ensure that the case file contains properly completed:

    1. Determination letters with appropriate addenda and attachments

    2. Special processing instructions

    3. Forms, checksheets, and guidesheets applicable to that case

    4. Applicable processing system documents

    5. Form 5666, TE/GE Referral Information, if applicable

  6. Move PDF letters from the MEDS Non-Disclosable folder to the Working folder by right clicking on the letter and selecting Move to Working in the drop down.

    Note:

    If there’s a valid Form 2848 or Form 8821, make sure there is a completed Letter 937-A and move it to the Working folder. The Document Type and Document Name should be Final Letter-POA.

  7. To make corrections to PDF closing letters:

    1. Right click on the letter in the MEDS Working folder and select Edit. Click Open at the bottom of the screen.

    2. Correct any information in the fillable fields. To change selectable paragraphs click on Show Selectable Paragraph Pages and click on the box next to any paragraph you want to add or delete from the letter. Click Hide Selectable Paragraph Pages when finished.

    3. If there is a Hide Blank Fields box at the bottom, check it.

    4. Once the letter is complete, click File and Save As to save the letter to your computer.

    5. Right click on the PDF letter file in the MEDS Working folder and choose Check In.

    6. Click the radio button for 1.0 Same Version.

    7. Click Browse and choose the file you just saved to your computer.

    8. Click Open in the dialog box then click Ok.

    9. The letter is complete. Open the letter to make sure your changes are there.

    Note:

    See IRM 7.20.5.9 for making corrections to composed Non-Disclosable letters.

  8. You may return a case to a specialist using a Reviewer’s Memorandum (see IRM 7.20.5.4).

  9. Enter your case review results in CVENT.

Group Ruling Cases

  1. Specialists: Prepare and import a list of subordinates into the MEDS Working folder.

  2. Reviewer: Assign GEN number after group ruling case review.

  3. Reviewer: Complete and import Form 2363-A into the MEDS Working folder.

  4. EODQA clerical assistant: Forward Form 2363-A and any attachments (for example, the list of subordinates) by email to the EO Entity Supervisor, Ogden Campus, and then import the documents into the Non-Disclosable folder.

Processing Adverse Rulings

  1. So that unagreed cases are resolved at the lowest possible level, confirm that the specialist made a reasonable effort to ensure that the organization understands the reason for the adverse ruling. For determinations resulting from an organization’s failure to fully respond to an information request, confirm the specialist made all reasonable attempts to secure the information. Consider the following questions:

    1. Did the specialist call the organization to discuss the basis for the tentative adverse determination, any alternatives such as withdrawing the request, the organization’s appeal rights, and the consequences of the adverse action?

    2. To what extent was the EOD group manager involved in the determination?

  2. Determine if the specialist:

    1. Gave the organization an opportunity to amend organizational documents, proposed activities, or both, to qualify for exempt status (if appropriate based on the facts).

    2. Attempted to secure missing information.

    3. Addressed foundation status as a secondary issue in an IRC 501(c)(3) proposed adverse determination if the specialist disagrees with the requested status.

    4. Prepared the appropriate determination letter.

    5. Included any required enclosures or other documents with the letter.

    6. Completed the correct system closing actions (for example, in MEDS).

  3. Correct or change the adverse letter, if necessary, or prepare an inquiry memo to return the case to the specialist following the procedures in IRM 7.20.5.4 and IRM 7.20.5.9

    Reminder:

    Prepare an advisory or no error memo to notify the specialist of substantial letter changes if you’re not returning the case to the specialist (see IRM 7.20.5.4).

  4. Make sure all case documents have been moved to the MEDS Non-Disclosable folder.

  5. Submit the case to the EODQA manager for approval of proposed adverse letter.

  6. EODQA clerical assistant: After approval by the EODQA Manager:

    1. Mail the letter. Generally mail proposed and final adverse letters using certified mail.

    2. Email the reviewer the mailing date.

    3. Hold a case with a 30-day protest period for an additional 14 days pending an organization's response.

  7. Reviewer: Email a copy of the proposed adverse letter (noting the mailing date) to the specialist and the specialist’s manager and copy the EODQA clerical assistant.

  8. Reviewer: After the 30-day hold period, contact the specialist to confirm he/she didn’t receive a written protest. If the organization didn’t submit a written protest and the file documents that the organization received the proposed adverse letter (certified delivery confirmation), prepare any necessary final letters or forms and close the case (see IRM 7.20.5.9).

    Exception:

    For files and letters subject to IRC 6104, prepare the appropriate final letter, if any (such as Letter 1079-F) and close the case per IRM 7.20.2, Determination Letter Processing of Exempt Organizations.

Response to Adverse Letter

  1. An organization may mail or fax a protest directly to the EODQA reviewer. If a specialist receives a protest to a proposed adverse letter, he/she immediately notifies the reviewer and forwards it to EODQA.

  2. Reviewer: Carefully consider the protest’s effect on the determination.

    IF THEN
    The protest raises new or revised facts or arguments the specialist hasn’t already considered Prepare a no error memo to send the case to the specialist for further consideration. The memo may recommend approval, preparation of a rebuttal letter, or a new proposed adverse letter.

    Note:

    In general, if the protest doesn’t change the determination, the specialist or reviewer prepares a rebuttal letter. In rare circumstances where the protest provides significant new facts or law but doesn’t change the determination, the specialist prepares a revised proposed adverse letter incorporating the new information and providing a new 30-day protest period.

    Note:

    If the reviewer prepares the rebuttal letter then the reviewer’s name goes on the rebuttal letter. Send a copy to the specialist and his/her manager and indicate the date stamped on the letter.

    Note:

    A rebuttal letter is not a 6110 letter and doesn’t need a legend.

    The protest doesn’t present new facts or arguments Prepare the case file for Appeals
    • Print out entire MEDS case file (including non-disclosable documents), index, tab, and bind case with a two-prong fastener

    • Prepare a file memo with accounting period ending date, recommended foundation status (501(c)(3) only), filing requirements, and contribution deductibility

  3. Submit the case to the EODQA manager to review. The manager will then either return to the specialist or approve for sending to Appeals.

  4. If approved for Appeals:

    1. EODQA clerical assistant: Update the case to Status 54 in MEDS and send the case to Appeals using Form 3210. Notify the reviewer when the case is sent.

    2. Reviewer: Notify the specialist and EOD group manager that the case was transferred to Appeals.

Appealed Adverse Cases

  1. If Appeals:

    1. Upholds the adverse letter, Appeals prepares and issues a final adverse letter.

    2. Doesn’t uphold an adverse ruling, Appeals prepares and issues a closing letter revoking the proposed adverse letter and addressing the effective date of exemption and foundation status (if applicable) and returns the case file to EODQA.

    Note:

    The closing letter issued by Appeals’ serves as the determination letter of record to the organization. EOD doesn’t issue a subsequent determination letter to the organization.

  2. Reviewer:

    1. Review the case summary prepared by Appeals.

      Note:

      Discuss any novel legal analyses, disagreement with case disposition, or procedures used to settle the case with the EODQA manager who will determine how to share the information.

    2. Confirm that the determination made in the case is clear and consistent with the documents and letters issued by Appeals.

    3. Consider other appropriate follow-up actions before closing the case (such as preparing an exam referral).

    4. Confirm Master File and/or the applicable processing systems have been updated.

    5. Prepare a no error memo for the originating EOD specialist, attaching a copy of the Appeals statement.

    6. Prepare a Quality Assurance Determination Case Processing Instruction Sheet and place on top of case file.

    7. Assemble the case file and submit to the EO R&A Processing & Support Unit.

  3. EODQA manager: May report significant appealed determination case decisions to EOD senior management.

Processing IRC 6110 Letters

  1. Certain written determination letters are subject to public disclosure under IRC 6110 after certain identifying information is redacted. Proposed and final adverse letters on requests for exemption are disclosable under IRC 6110 (after a final adverse determination is issued). See IRM 7.20.3, Processing Foundation and Miscellaneous Determination Requests, for a chart of other letters subject to IRC 6110.

  2. The reviewer ensures technical and procedural accuracy of IRC 6110 letter including use of the correct letter.

  3. An IRC 6110 letter must include a:

    • Uniform Issue List (UIL) index on the first page of the letter

    • Legend of identifiers used in the letter as substitutes for information not subject to public disclosure under IRC 6110

      Note:

      Use the specialist’s name and contact information on the letter.

  4. To make changes to the letter submitted by the specialist:

    1. Download a copy of the letter to your computer and make any changes.

    2. Save the letter and name it with the format of EIN-Letter Number.

    3. Email a copy of the letter to the EODQA manager for review.

      Note:

      If there is also a memo prepared, send it to the manager along with the letter for approval.

    4. After EODQA manager approval, import the letter into the MEDS Working folder. Select Final Letter-Non-Disclosable for the Document Type and Document Name.

    5. Prepare and import a redacted version of the letter into the MEDS Working folder after managerial approval, as described in IRM 7.20.5.9(5).

    6. If changes to the specialist’s original letter were made by the reviewer, move that copy of the letter into the Purge folder.

    7. Close the case to the EODQA manager in the appropriate status (for example, 34PA for Proposed Adverse).

    8. EODQA clerical assistant: Save the letter as a PDF, add a digital signature and date field and mail the letter(s).

    Note:

    If there’s a valid Form 2848 or Form 8821 make sure there is a completed Letter 937-A with the Director’s signature and move it to the Working folder. The Document Type and Document Name should be Final Letter-POA.

  5. Reviewer: Prepare a redacted copy of an IRC 6110 letter:

    Note:

    See IRM 7.28.4, Public Inspection of Written Determinations Under IRC 6110, for more information on IRC 6110 requirements and processing procedures.

    1. Replace identifying information in the legend with general terms.

    2. Remove the organization’s name, mailing address, and employer identification number.

    3. Remove information identifying IRS personnel.

  6. For adverse IRC 6110 cases:

    • Send the letter to the organization and any valid POA(s) via certified mail.

    • Hold the case for 30 days for the protest period.

    • After the protest period has expired, the clerical assistant will notify the reviewer of the expiration and return the case in MEDS.

    • The reviewer verifies that a signed certified mail card was returned. If it was not returned, track the letter using the certified mail number to ensure it has been delivered. If it hasn’t, have the specialist contact the organization to verify receipt.

    • If a protest is received, the reviewer will consider the protest per IRM 7.20.5.8.1.

    • If no protest is received, the reviewer will prepare a final denial letter and redacted copy and send to the EODQA manager for approval.

    • After EODQA managerial approval of the final denial letter, the reviewer will import the letters into the MEDS Working folder.

  7. For all IRC 6110 cases:

    1. Prepare a Checklist for IRC 6110 Written Determinations.

    2. Make sure all case documents have been moved to the MEDS Non-Disclosable folder.

    3. Forward the case to the EODQA manager for approval.

    4. EODQA manager: Send the case to the EODQA clerical assistant for letter mailing and case closing.

    5. EODQA clerical assistant: Prepare Notice 437, Notice of Intention to Disclose (Rulings). Print a copy for mailing and import a copy into the MEDS Non-Discosable folder. Mail letters and Notice 437 and close the case.

    6. Reviewer: Advise the Office of Chief Counsel via email that the letter was issued, attaching copies of all redacted and unredacted letters (excluding POA copies), Notice 437, and the Checklist for IRC 6110 Written Determinations. Copy the EODQA mailbox. Type the date each letter was issued on the electronic copies of each of the letters.

User Fee Reconsideration Requests

  1. The EODQA manager has the final authority to resolve requests for reconsideration of user fees (see Rev. Proc. 2021-5, updated annually).

  2. Generally, the EOD specialist:

    1. Prepares and submits a user fee reconsideration request to the EODQA manager on behalf of an organization.

    2. Summarizes the facts and law for the user fee reconsideration request on Form 14269, User Fee Waiver Request.

    3. Submits the form to the group manager for review.

      Note:

      See IRM 7.20.2 for specialist procedures.

  3. The EOD group manager sends the waiver request to EODQA with the case information.

  4. The EODQA manager (or designated reviewer):

    1. Analyzes the issue.

    2. Sets out his/her position in a response to the specialist’s recommendation.

    3. Signs the response and returns the case to the EOD group manager for further processing.

  5. The specialist tells the organization about the decision, and, if adverse, explains the reason (even though an organization can’t appeal a user fee decision).