8.4.4 Examination Assistance Requests8.4.4.1 Docketed Case Examination Assistance Request Overview8.4.4.2 Examination Assistance Exception8.4.4.3 Examination Assistance Criteria8.4.4.3.1 New Information Received in Appeals8.4.4.3.2 60-Day Requirement8.4.4.4 Counsel Contact Required8.4.4.5 Examination Assistance Request Package8.4.4.5.1 Form 14361 Instructions 8.4.4.5.2 Form 14362 Instructions8.4.4.6 Appeals Team Manager Actions8.4.4.7 Examination Assistance Point of Contact Actions8.4.4.7.1 Examination Assistance Request Denied8.4.4.7.2 Examination Assistance Point of Contact8.4.4.8 Appeals Technical Employee Actions8.4.4.9 Approved Examination Assistance - Overview of Compliance Actions8.4.4.10 Examination Assistance TrackingExhibit 8.4.4-1 Examination Assistance Terms and Definitions Part 8. AppealsChapter 4. Appeals Docketed CasesSection 4. Examination Assistance Requests 8.4.4 Examination Assistance Requests Manual Transmittal January 17, 2017 Purpose (1) This transmits new IRM 8.4.4, Appeals Docketed Cases, Examination Assistance Requests. Background This IRM establishes nationwide procedures for Appeals employees to follow to request and secure examination assistance on docketed cases from originating Examination source functions when a petitioner, representative, or counsel of record submits new information that, in the judgment of the Appeals Technical Employee (ATE), merits analysis by Compliance. Material Changes (1) This IRM incorporates Interim Guidance Memorandum AP-08-0616-0003, Requesting Examination Assistance on Docketed Cases, dated June 24, 2016, and effective August 29, 2016. On August 29, 2016, Appeals issued a memorandum to all Appeals employees, PQCS-16-05, Memorandum Changing the Implementation Date for Requesting Examination Assistance on Docketed Cases, postponing the implementation date to October 3, 2016. (2) This IRM incorporates changes resulting from publication of IRM 4.2.1, General Examining Procedures, General Examination Information, revised November 23, 2016, to incorporate Interim Guidance Memorandum SBSE-04-1016-0030, Docketed Case Examination Assistance, dated October 3, 2016, and effective on November 3, 2016, as follows: Removed all references to investigation as a reason for requesting examination assistance, for consistency with IRM 4.2.1.5.4, Docketed Case Examination Assistance. Updated IRM 8.4.4.7.2, Examination Assistance Point of Contact (EA POC), to add a note to advise the ATE to only request examination assistance from the originator as provided in this IRM, and to refer the ATE to IRM 4.2.1.5.4.5, Examination Assistance Point of Contact , for general business rules for determining the EA POC by Primary Business Code (PBC). Updated IRM 8.4.4.9, Approved Examination Assistance - Overview of Compliance Actions, to refer to IRM 4.2.1.5.4, Docketed Case Examination Assistance, and its subsections, for information on Compliance actions. Effect on Other DocumentsThis new IRM incorporates Interim Guidance Memorandum AP-08-0616-0003, Requesting Examination Assistance on Docketed Cases, dated June 24, 2016, effective August 29, 2016, and implementation postponed to October 3, 2016. AudienceAppeals Effective Date(01-17-2017)Anita M. HillDirector, Case and Operations Support 8.4.4.1 (01-17-2017) Docketed Case Examination Assistance Request Overview Appeals may receive new information from a petitioner, representative, or counsel of record on a docketed case, that in the judgment of the assigned Appeals Technical Employee (ATE), merits analysis by Compliance. When new information is received in Appeals in a nondocketed case, Appeals can return the case and release jurisdiction to the originating function. However, that is not possible for docketed cases. By statute, the jurisdiction of a docketed case must remain within the Office of Chief Counsel (or Appeals, if referred for settlement). Note: Analysis means categorizing, sorting, or reviewing large volumes of records, or requiring additional steps or reasoning to reach a conclusion. Standard docketed case examination assistance (EA) request procedures ensure: Compliance has the opportunity to examine information provided by petitioning taxpayers to Appeals that was not previously provided to Compliance, consistent with the mission, roles and responsibilities associated with the affected Compliance personnel, and All petitioners receive consistent treatment when they provide new information not previously considered by Compliance. See Exhibit 8.4.4-1, Examination Assistance Terms and Definitions, for common terms and acronyms related to examination assistance requests. The Step/Action table below provides an overview of the docketed case examination assistance (EA) request process: Step Action Reference 1. Appeals receives new information not previously made available to Compliance and determines if the case meets EA prerequisites. IRM 8.4.4.3, Examination Assistance Prerequisites IRM 8.4.4.3.1, New Information Received in Appeals IRM 8.4.4.3.2, 60-Day Requirement 2. If the case meets the EA prerequisites, and the case is a regular docketed case, the ATE must contact the assigned Counsel attorney before requesting EA. IRM 8.4.4.4, Counsel Contact Required 3. ATE prepares EA package and emails it to the ATM for review, approval, and forwarding to designated EA Point of Contact (EA POC) for the originating Compliance function. IRM 8.4.4.5, Examination Assistance Request PackageForm 14361 Form 14362 Copy of the IRS Notice (for this purpose, an "IRS Notice" includes a Notice of Deficiency, a Notice of Determination of Worker Classification, or any similar document that outlines the Service’s position on the particular tax matters and provides U.S. Tax Court rights). 4. ATM reviews, and eitherApproves and forwards to designated EA POC, or Denies and returns EA package to ATE for appropriate action. IRM 8.4.4.6, Appeals Team Manager Actions 5. EA POC approves/denies EA request. IRM 8.4.4.7, Examination Assistance Point of Contact Actions 6. Approved EA request assigned to an examiner and ATE notifies petitioner of the approved EA request. IRM 8.4.4.8, Appeals Technical Employee Actions Letter 4642 7. ATE and examiner coordinate the method and timing of delivery of new information and related case file information to the examiner. IRM 8.4.4.8, Appeals Technical Employee Actions 8. Examiner:Reviews and examines new information Provides the examiner’s findings to the ATE using Form 14362, Docketed Examination Assistance Issues and Results Returns new information, case file information, and any EA workpapers to the ATE. IRM 8.4.4.9, Approved Examination Assistance - Overview of Compliance Actions 9. ATE notifies petitioner of the EA results IRM 8.4.4.8, Appeals Technical Employee Actions 10. Administrative actions related to the above steps (recordations of action, input of coding, reporting of time, etc.) IRM 8.4.4.10, Examination Assistance Tracking 8.4.4.2 (01-17-2017) Examination Assistance Exception If the docketed case is IRS Campus-sourced and meets the exception in IRM 8.6.1.6.5 (2), Taxpayer Provides New Information, review the new information and proceed with normal consideration. If the case does not meet the exception, proceed to IRM 8.4.4.3 to request examination assistance. 8.4.4.3 (01-17-2017) Examination Assistance Criteria The ATE will request examination assistance when these three criteria are met: New Information Received in Appeals - Appeals received new information not previously made available to Compliance from a petitioner/representative or counsel of record on a docketed case. IRM 8.4.4.3.1 provides additional guidance on identifying types of new information received in Appeals meeting this criteria. 60-Day Requirement - There must be at least 60 calendar days remaining before the Tax Court calendar date on the date the ATM sends the request to the EA POC, and New Information Merits EA - The new information must merit analysis by Compliance. Note: The ATE must physically secure the new information to review it to determine if it merits analysis by Compliance. IRM 8.6.1.6.5 (1), Taxpayer Provides New Information, defines "analysis." 8.4.4.3.1 (01-17-2017) New Information Received in Appeals New information is information received in Appeals from the petitioner/representative or counsel of record not previously made available to Compliance for consideration prior to issuance of the IRS Notice, relating to issues: Previously examined, Raised in the petition, or Raised by the Government in its pleadings. New information includes: New information, evidence, or documentation. A relevant new issue for which Counsel has provided written guidance on whether or not the issue requires a formal amendment to the Tax Court petition. Note: Refer to IRM 8.4.1.15.3, New Issues in Docketed Cases, for the actions the ATE is required to take prior to requesting assistance from Compliance. A new theory or alternative legal argument warranting review and comment by Compliance in the ATE's judgment, before the ATE can fully evaluate the hazards of litigation. 8.4.4.3.2 (01-17-2017) 60-Day Requirement Use the table below to determine if the case meets the 60-day requirement and then take the next appropriate action: If... Then... Less than 60 calendar days remain before the Tax Court calendar date Do not seek EA. Instead, either: Close the case to Counsel for trial preparation, or Attempt to settle the case solely on the basis of all the information in the case file and your assessment of the probative value of the new information in determining the hazards of litigation. Complete standard procedures in accordance with current IRM requirements to complete the case and close it to ATM. When closing a case for trial preparation, the ATE should still assist Counsel in determining the impact of the new information on litigating hazards. At least 60 calendar days remain before the Tax Court calendar date on the date the ATM sends the request to the EA POC Review the new information. In the ATE’s judgment, does it merit analysis by Compliance?If yes - See IRM 8.4.4.4, Counsel Contact Required, in advance of preparing an EA request. See IRM 8.4.4.5, Examination Assistance Request Package, for procedures and instructions on EA request preparation. If no - The ATE will evaluate the new information and determine its impact in attempting to settle the case. Do not proceed with any further EA request actions. 8.4.4.4 (01-17-2017) Counsel Contact Required If the case is a regular docketed case and meets the EA prerequisites, the ATE must contact the assigned Counsel attorney before requesting EA to: Apprise Counsel of the new information received. Allow Counsel to request that Appeals return the case to its jurisdiction for trial preparation, pursuant to Rev. Proc. 2016-22, section 3.08. If Counsel does not promptly request the return of the case, the ATE should: Ensure that Counsel has identified any file information that needs to be retained in support of its work on the case (i.e. Tax Court-related documents, etc.) and/or otherwise advised the ATE of any Tax Court actions. If Counsel requests to retain any information that would have an impact on EA, the ATE should provide a copy of the information to the examiner. Follow standard procedures for requesting EA Note: The ATE will document such contact and discussion in the Case Activity Record (CAR). Caution: Keep in mind at least 60 calendar days must remain before the Tax Court calendar date on the date the ATM sends the request to the EA POC. Note: Counsel contact is not required for S docketed cases. 8.4.4.5 (01-17-2017) Examination Assistance Request Package Following the discussion with Counsel, the ATE will: Determine the EA Point of Contact. See IRM 8.4.4.7.2, Examination Assistance Point of Contact. Prepare an encrypted email to the ATM requesting review and approval. Attach the EA request package files to the email. The EA Request Package includes the following electronic files: Document Instructions Form 14361, Docketed Examination Assistance Request - Jurisdiction Not Released. This form is used by Appeals employees to request examination assistance on docketed cases that remain in Appeals jurisdiction. The ATE must access and generate this form from the Appeals Generator of Letters and Forms (APGolf) sub-system of Appeals Centralized Database System (ACDS). Generating the form from APGolf captures data for feedback loop purposes and attaches a PDF as a case file attachment. Note: ACDS will name the file using this format: MM-DD-YYYY(Date)_NN.NN.NN(Time Stamp)_TPName(Last First)_WUNOXXXXXX_NNNN(ACDSUserID).pdf The form will autopopulate with the petitioner’s information. Complete all other fields Complete the form to provide an explanation of the new information and the basis of the EA request. See IRM 8.4.4.5.1, Form 14361 Instructions. Form 14362, Docketed Examination Assistance Issues and Results. This form is included in the EA request package from Appeals and used by Compliance to approve or deny the EA request and provide the EA issues and results to Appeals. Appeals will also use the form to track certain EA process data.Download the form from the Publishing website Partially complete Form 14362 as indicated in IRM 8.4.4.5.2, Form 14362 Instructions. Save the fillable PDF form using the following format: F-14362_NAME_Docket-No_WUNOXXXXXX.pdf NAME = 4-character name control Docket-No = Numeric docket number WUNOXXXXXX = 10-digit workunit number Note: Do not "print to Adobe" to save this form. This removes the fillable formatting features that Compliance will need to use to complete the form to return to Appeals. IRS Notice, a Notice of Deficiency, a Notice of Determination of Worker Classification, or any similar document that outlines the Service’s position on the particular tax matters and provides U.S. Tax Court rights. Provide a copy of the IRS Notice and relevant attachments to the IRS Notice, if available. Note: Use the electronic copy of the petition attached to ACDS as a case file attachment if it includes a copy of the notice of deficiency. You don’t need to delete the petition from the file. Use the email template below to prepare your request for ATM approval: EA Request Email Template - To ATM Email Part Description of Entry To: Your ATM Subject: EA Request - Docket No. NNNNN-YYC Note: C = Character(s) used by the Tax Court to designate different types of cases, e.g., S for a small or "S" case. See IRM 8.4.1.2.1, Designations Identifying Types of Docketed Cases. Attachments: F-14362_NAME_Docket-No_WUNOXXXXXX.pdf SND_NAME_Docket-No_WUNOXXXXXX.pdf (or petition file name, if used) Body: Please review and approve the attached EA request. I received and reviewed new information not previously made available to Compliance. In my judgment, it merits analysis by Compliance. Form 14361 is attached to ACDS for your electronic signature.Insert for regular docketed cases: I notified the assigned Counsel attorney of my intent to request EA.Insert if calendared: Tax Court calendar date: MM/DD/YYYYThe EA POC is: [insert the email address of the EA POC]Please copy me when you send the approved request to the EA POC. Your signature block 8.4.4.5.1 (01-17-2017) Form 14361 Instructions Form 14361, Docketed Examination Assistance Request - Jurisdiction Not Released, is in APGolf Category "Transmittals" . Changes to ACDS database fields (yellow fields on the APGolf input page) are not retained beyond the creation of the form. Data from these ACDS database fields is used when Appeals shares feedback loop data with the source functions. Changes to Form 14361 capture fields (white fields on the APGolf input page) are retained from the last Form 14361 generated for the case from ACDS. Change incorrect data in a Form 14361 field by changing the data from the APGolf input page and re-generating the form. Do not merely edit the PDF form. Form 14361 line-by-line instructions: Docketed Examination Assistance (EA) RequestJurisdiction Not Released Field Entry ACDS Field? Form 14361 Data Capture Field? Part A - Case Identification Taxpayer name (as shown on U.S. Tax Court petition) Autopopulates with the TPNAME on ACDS. Changes to the TPNAME are not retained beyond the creation of this form. Yes No Identification number Autopopulates with the SSN/EIN from ACDS. Yes No MFT code Autopopulates with the MFT on ACDS. Yes No Docket number Autopopulates with the DKTNO on ACDS. Yes No Taxable Year(s) or Tax Period(s) Autopopulates with up to 12 tax periods on ACDS. Yes No Contact phone number Leave blank. Compliance must contact the ATE before contacting the petitioner or representative/counsel of record. The ATE will identify the appropriate party for such interaction. Note: After first contacting the ATE, the examiner may, at their discretion, directly contact the petitioner or representative/counsel of record, e.g., to issue an Information Document Request (IDR), provide a summary of EA results, or otherwise interact with the appropriate party to contact for any other reason, as needed, to make a determination on the EA issue(s). No Yes Taxpayer Representative Leave blank. No Yes Representative‘s Name Leave blank. No Yes PBC Autopopulates with the Primary Business Code (PBC), also called PRIBUSCD on ACDS. Yes Display only on the input page. Do not edit on PDF. No Project code Autopopulates with the PROJCD on ACDS. Displays on the input page, and can’t be edited. Yes Display only on the input page. Do not edit on PDF. No Case type (should agree with MFT code above) Make a selection from the drop-down list:Income Tax Employment Tax Estate & Gift Other Note: If you select "Other" , you must also complete the "Other description" box, which only opens when you select "Other" . No Yes Part B - From Appeals Requested by Autopopulates with your name on ACDS. Yes No Phone number Autopopulates with your phone number on ACDS. Yes No Extension Autopopulates with your extension, if any, on ACDS. Yes No Mailing address Autopopulates with your address on ACDS. Yes No Date EA requested Autopopulates with the current date. You can change this date. No Yes Main EA issue Make the appropriate selection from the drop-down list:F1040 Sch. A Itemized Deductions F1040 Sch. C/F Income F1040 Sch. C/F Expenses F1040 Sch. D Capital Gains/Losses F1040 Sch. E Income F1040 Sch. E Expenses F1040 Other Income F1040 Personal/Dependency Exemptions F1040 S/E Tax F1040 Standard Deduction F1065/1120 Income F1065/1120 Expenses Other Taxes Tax Credit(s) Withholding or Prepayment Credits Employment Tax Issues Estate and Gift Issues Penalties Other Note: If you select "Other" , you must also complete the "Other description" box, which only opens when you select "Other" . No Yes Approved by Autopopulates with your manager’s name on ACDS. Yes No Date approved Leave blank. The approver will electronically sign the PDF, thus entering a date approved. No Yes Phone number Autopopulates with your manager’s phone number on ACDS. Yes No Extension Autopopulates with your manager’s extension, if any, on ACDS. Yes No Part C - To Examination No show/No response in Examination Check this box if there are clear indications in the administrative file that the case was a No show/No response in Examination No Yes EA request sent to Enter the EA POC’s email address. No Yes Phone number Enter the EA POC’s phone number. No Yes Extension Enter the EA POC’s extension, if any. No Yes Part D - Basis for Request New Evidence Check this box if you received new evidence not previously made available to Compliance. No Yes New Issue Check this box if the petitioner raised a new issue not previously made available to Compliance. No Yes Part E - Area Counsel Contact Information Area Counsel contact Enter the assigned Counsel attorney’s name. No Yes Phone number Enter the assigned Counsel attorney’s phone number. No Yes Extension Enter the assigned Counsel attorney’s extension, if any. No Yes Part F - Explanation Explanation To indicate the priority nature of your EA request, begin Part F with this statement:"Tax Court calendar date is MM/DD/YYYY. Please complete EA by MM/DD/YYYY." If the Tax Court has not yet set the calendar date, indicate "currently unscheduled" in place of "MM/DD/YYYY" above. Enter a date no less than 45 days from the date of the request and determine the date based upon the needs of the case, including the Tax Court calendar date. Enter a narrative explanation of the new information and the basis of the EA request. ACDS captures a maximum of 512 characters and provides a count-down of the number of characters remaining. No Yes Explanation Continuation Check this box if you need more room to continue your narrative explanation. Caution: ACDS does not save the information you enter in this section. Consider saving the information you enter in this section in a Word document outside of ACDS in case you need to make any changes or correct errors you discover when proofreading your form. No No Save as Case File Attachment Check this box to: Save and attach the form in PDF format Name the file using the approved naming convention Add your name in the Name column and "Form 14361" in the "Description" column. Captures data for feedback loop purposes N/A N/A Save Form Generates form and opens it in PDF. N/A N/A Reset Form Resets all fields. Yellow fields you changed will reset to the database value. White fields will reset to blank or the default value. N/A N/A 8.4.4.5.2 (01-17-2017) Form 14362 Instructions Form 14362, Docketed Examination Assistance Issues and Results, is available on the Publishing website. Form 14362 line-by-line instructions: Docketed Examination Assistance Issues and Results Field Entry Part A - Case Identification Taxpayer name (as shown on U.S. Tax Court petition) Enter the TPNAME as shown on ACDS. Identification number Enter the SSN/EIN as entered in the Primary TIN field on ACDS. MFT code Enter the MFT as shown on ACDS. Docket number Enter the DKTNO as shown on ACDS. Taxable Year(s) or Tax Period(s) Enter the tax periods as shown on ACDS. PBC Enter the PBC code. The Primary Business Code (PBC), a 3-digit code, is also called the PRIBUSCD. PBC is a required entry on ACDS. You can locate the PBC from the Search Case screen in the following locations:Case level: The 3-digit PBC is found in the PRIBUSCD field Return level on the Summary Return Information screen: Under the BodCd column heading in position one through three Return level on the Detail Return Information screen for the most recent tax period in the workunit: The 3-digit PBC is found in the PRIBUSCD field SBC Enter the SBC code, if any. The Secondary Business Code (SBC), a 3-digit code, is also called the SECBUSCD. SBC is not a required entry on ACDS for non-AIMS cases. You can locate the SBC, if any, from the Search Case screen in the following locations:Return level on the Summary Return Information screen: Under the BodCd column heading in position four through six Return level on the Detail Return Information screen for the most recent tax period in the workunit: The 3-digit SBC is found in the SECBUSCD field Group/Org Enter the Group/Org code, if any. The Group/Org (EGC), a 3-digit code, is also called the EMPGRCD. EGC is not a required entry on ACDS for non-AIMS cases. You can locate the EGC, if any, from the Search Case screen in the following locations:Return level on the Summary Return Information screen: Under the BodCd column heading in position seven through nine Return level on the Detail Return Information screen for the most recent tax period in the workunit: The 3-digit EGC is found in the EMPGRCD field Project Code Enter the Project code, if any.The Project Code, a 4-digit code, is also called the PROJCD. The Project Code is not a required entry on ACDS. You can locate the Project Code, if any, from the Search Case screen at the Case level. The 4-digit Project Code is found in the PROJCD field. Part B - Examination Assistance Approved/Denied EA point of contact name Enter the EA point of contact’s name. Email address Enter the EA point of contact’s email address. Phone Number Enter the EA point of contact’s phone number. Extension Enter the EA point of contact’s extension, if any. Exam Assistance Approved/Denied Leave blank. If “Denied” select or write-in reason Leave blank. Approved by Leave blank. Title Leave blank. Date Leave blank. Part C - Issues and Results Note: Use one issue section per issue per tax year/period. Issue No. Auto-populated. Issue Enter a brief description of the issue. Year/Period Enter one tax year/period. Per Return Enter the amount claimed per return. Corrected Leave blank. Adjustment Leave blank. Explanation Leave blank. Add New Issue The published form opens with sections for three issues. Click on the "Add New Issue" button to add a new issue section for additional issues and/or tax years/periods, or click on the "X" next to the "Adjustment" field to delete an issue section. The form is programmed to add pages as needed for the number of issue sections entered. Part D - Examiner’s Information Examiner Leave blank. Phone number Leave blank. Extension Leave blank. Date EA assigned to examiner Leave blank. Date examiner completed EA Leave blank. Total examiner time charged to EA case Leave blank. Part E - Manager’s Approval (as required) Note: The requirement for managerial approval is at Examination’s discretion and a signature is not required for Appeals to accept the EA findings. Signature Leave blank. Title Leave blank. Date Leave blank. Reminder: Save the fillable PDF form using the following format: F-14362_NAME Docket-No_WUNOXXXXXX.pdf 8.4.4.6 (01-17-2017) Appeals Team Manager Actions The ATM will receive the EA request package by encrypted email, review it, and approve or not approve it. If the ATM... Then the ATM will... Approves EA Request Open the Form 14361 from ACDS Case File Attachments Save and rename Form 14361 to a temporary location on your computer. Use this naming convention:F-14361_NAME_Docket-No_WUNOXXXXXX.pdf NAME = 4-character name control Docket-No = Numeric docket number WUNOXXXXXX = 10-digit workunit number Sign Form 14361 electronically. Upload the electronically signed Form 14361 to the ACDS workunit as a case file attachment. Delete unsigned Form 14361 case file attachment(s). Prepare an encrypted email to the EA POC, and attach the EA package documents: F-14361_NAME_Docket-No_WUNOXXXXXX.pdf F-14362_NAME_Docket-No_WUNOXXXXXX.pdf SND_NAME_Docket-No_WUNOXXXXXX.pdf (or petition file name, if used) Send the email/EA package (via encrypted email) to the appropriate EA POC within the originating function and copy the ATE. Does Not Approve EA Request Not sign Form 14361 Return any EA request package to the ATE (via encrypted email ) for appropriate action, such as Correction of the EA package Additional consideration and resolution Closing to Counsel for trial preparation Use the email template below to prepare the EA request email to the EA POC: EA Request Email Template - To EA POC Email Part Description of Entry To: EA POC Subject: EA Request - Docket No. NNNNN-YYC Note: C = Character(s) used by the Tax Court to designate different types of cases, e.g., S for a small or "S" case. See IRM 8.4.1.2.1, Designations Identifying Types of Docketed Cases. Attachments: F-14361_NAME_Docket-No_WUNOXXXXXX.pdfF-14362_NAME_Docket-No_WUNOXXXXXX.pdfSND_NAME_Docket-No_WUNOXXXXXX.pdf (or petition file name, if used) Body: Please review the attached EA request package, and complete Form 14362, Part B, as follows: Check "Approved" or "Denied" Select or write-in the reason, if denied Electronically sign the form Enter your title Enter the date you approved or denied the request Insert if calendared: Tax Court calendar date: MM/DD/YYYYYour signature block 8.4.4.7 (01-17-2017) Examination Assistance Point of Contact Actions The Examination Assistance Point of Contact (EA POC) will review the EA package, either approve or deny the request, and communicate that decision to the ATM. If approved - The EA POC assigns the EA request to an examiner and then advises the ATM of the assignment. If denied - The EA POC returns EA Form 14362 to the ATM indicating the reason the request was denied, using a reason on the drop-down list. If an EA POC denies an EA request, a process exists where the ATE and ATM (concerned that a significant risk to taxpayer compliance exists) can elevate the EA request to the Appeals Area Director for discussion with the EA POC’s manager. See IRM 8.4.4.7.1, Examination Assistance Request Denied. Note: The EA POC will communicate the decision to approve or deny an EA request to the ATM (and the ATM to the requesting ATE), generally within 30 calendar days. 8.4.4.7.1 (01-17-2017) Examination Assistance Request Denied The EA POC can deny the EA request. Form 14362 provides a drop-down list of reasons for denial and an "Other" write-in reason for denial. The EA POC either selects a reason from the drop-down list or writes in a reason and returns the signed Form 14362 denying EA to the ATM. The ATM forwards the Form 14362 to the ATE for the administrative file. The ATM and ATE discuss the denial decision and impact of the decision on taxpayer compliance. If, after discussing the EA denial, the ATM and ATE Decide... Then... The EA denial poses a significant risk to taxpayer compliance. Note: Deciding whether the EA denial poses a significant risk to taxpayer compliance is a judgment call. Consider whether substantially conceding or conceding Compliance's position in full could serve to undermine the taxpayer compliance of this petitioner/representative or counsel of record’s or the overall taxpayer compliance of the American public, if the decision was known. ATM forwards EA package and concerns about the denial to the Appeals Area Director (AD) for review (via encrypted email). If the Appeals AD does not concur, the Appeals AD notifies the ATM (via encrypted email) of decision with a "Cc" to the ATE. If the Appeals AD concurs, they will contact the EA POC’s manager (POCM) (via phone or email) to discuss the EA denial concerns. Exception: For Estate & Gift Tax cases, the Appeals AD will contact the Workplan Selection and Delivery (WSD) Manager to discuss the EA denial concerns. The Appeals AD discusses the concerns with the POCM or WSD. If, after discussion with the Appeals AD: The POCM or WSD agrees with Appeals’ concerns and reverses the decision to deny the EA request, the POCM or WSD notifies the EA POC and the ATM resubmits the EA package. The POCM or WSD does not agree with Appeals’ concerns and upholds the denial of the EA request, the Appeals AD notifies the ATM (via phone or email) of the decision not to reverse the EA denial. The EA denial does not pose a significant risk to taxpayer compliance Where EA is not pursued, denied or not provided, Appeals will seek to resolve the case solely on the basis of all the information in the case file, as well as the new information provided by the petitioner/representative or counsel of record to support their position (without Compliance having an opportunity to review, examine, or rebut). ATE assesses the probative value of the new information in determining the hazards of litigation and attempts to reach a settlement with the petitioner/representative or counsel of record on the case. IRM 8.6.2.5.4, "My Evaluation" Section of the Appeals Case Memo (ACM), and its subsections, provides additional discussion on assessing the probative value of new information. ATE completes standard procedures in accordance with current IRM requirements to complete case and close it to ATM. If the EA POC denies the EA request and EA denial is not reversed: Do not remove Feature Code EA Note: IRM 8.4.4.8 (1) , Appeals Technical Employee Actions, explains when the ATE adds Feature Code "EA" to the case. Enter "EA DENIED" in LOC7 . 8.4.4.7.2 (01-17-2017) Examination Assistance Point of Contact Use the EA_Routing_Instructions posted on the Case Routing page on the Appeals website to determine the correct EA POC. Generally, determining the EA POC is based on the Primary Business Code (PBC) for that case on ACDS. Note: Appeals will only request EA from the originating function as provided. If the originating function is unable to provide that assistance, Appeals will pursue settlement of the case based on all information in the case file, including assessing the probative value of the new information provided in determining the hazards of litigation (without Compliance having an opportunity to review, examine, or rebut). The ATE follows standard procedures in accordance with current IRM requirements to complete the case and close it to the ATM, which may include closing the case to Counsel for trial preparation and disposition. Refer to IRM 8.4.4.7.1, Examination Assistance Request Denied. Compliance’s general business rules for determining the EA POC by Primary Business Code (PBC) are in IRM 4.2.1.5.4.5 , Examination Assistance Point of Contact . 8.4.4.8 (01-17-2017) Appeals Technical Employee Actions Upon notification of the ATM's initial approval of the EA request, (i.e. prior to a response from the EA POC), input Feature Code "EA" on ACDS. If the EA request is denied and not subsequently provided, the ATE must enter "EA DENIED" in the LOC7 field on ACDS. If the EA request is approved and upon notification of the examiner assignment: Send Letter 4642 following existing correspondence procedures for docketed cases, i.e., send the letter to the petitioner (and a copy to the representative, if applicable, indicating on the petitioner’s letter that a copy was sent to the representative) or the counsel of record, if any. Appeals uses this letter to inform a petitioner/representative or counsel of record that Appeals is sending their docketed case to a Compliance function for examination assistance while retaining jurisdiction. The letter also apprises them of the ex parte restrictions set forth in section 1001(a)(4) of the Internal Revenue Service Restructuring and Reform Act of 1998. Input CARATS Action/Sub-Action code "SU-RC" (Suspense - Review and Comment Requested) on the Case Activity Record (CAR) using the date Appeals mailed EA Letter 4642 and select case status E/ERC. Promptly contact the examiner using available electronic means (e.g. phone, email, Issue Management System [IMS], etc.) to arrange for timely and efficient delivery of the new information and administrative file. The ATE and examiner will coordinate and agree upon a method of delivery of the new information and related case file information to the Examiner. Consider and use an agreed upon method of delivery, including, but not limited to: Providing a work space in the Appeals office for the examiner to perform EA Mailing/shipping using standard procedures, including Form 3210 tracking and acknowledgement where required Using available electronic means of transmitting information, such as encrypted email, Enterprise e-Fax (EEFax), IMS, etc. Physically delivering (if the ATE and examiner are located in the same post-of-duty) Note: The ATE will maintain physical possession of any original tax returns, original signed statute consents, and required Tax Court-related documents. If the examiner needs any of those documents to perform the requested EA, the ATE will provide copies. If the ATE and examiner are collocated and the examiner is providing EA in Appeals work space, the ATE may provide the entire original administrative file to the examiner and will secure the file information from the examiner at the end of the business day. Upon receipt of the completed EA, the ATE will: Input CARATS Action/Sub-action code "SU-RX" code (case out of suspense) on the CAR using the date Appeals received the EA results. SU-RX automatically updates the case status from E/ERC to the status immediately preceding the suspense action. Ensure that new taxpayer documentation retained and workpapers created by the examiner have been forwarded to Appeals for inclusion in the case file Review the examiner’s findings. Share the examiner’s findings with the petitioner/representative or counsel of record for review and comment. When Appeals shares the examiner’s findings and gives the petitioner/representative or counsel of record an opportunity to respond, if necessary, all parties involved can discuss the issues to resolve any miscommunications, misunderstandings, etc. Any and all such discussions will be conducted in accordance with the ex parte requirements of Notice 2012-18 and IRM 8.1.10, Appeals Function - Ex Parte Communications. Upload the final Form 14362 received from Compliance to ACDS as a case file attachment (for EA tracking purposes, post-review, etc.). Note: The ATE will take the results of the examiner’s findings and the petitioner/representative/counsel of record’s response into consideration in settling the case. However, the ATE is not bound by the examiner’s findings and may still exercise discretion and judgment in seeking to settle the case. 8.4.4.9 (01-17-2017) Approved Examination Assistance - Overview of Compliance Actions Appeals will not direct the examiner’s actions in providing examination assistance. The examiner’s actions are governed by IRM 4.2.1.5.4, Docketed Case Examination Assistance, and its subsections. The examiner will not take actions noted in IRM 4.2.1.5.4.4.1 (2). Note: Examiners have the discretion to contact the petitioner, representative, or counsel of record, however, they must obtain the written concurrence of the assigned Counsel attorney. See IRM 4.2.1.5.4.4.1 (3). 8.4.4.10 (01-17-2017) Examination Assistance Tracking Appeals will use data obtained from ACDS to track EA requests: Tracking Method When Used Feature Code "EA" The ATE enters Feature Code "EA" upon notification of the ATM's initial approval of the EA request. LOC7 "EA DENIED" ATE enters if the EA POC denies the EA request and does not reverse the EA denial. CARATS Action/Sub-action Code "SU-RCI" (Case in Suspense - Review and Comment Requested) ATE enters CARATS Action/Sub-Action code "SU-RC" on the Case Activity Record (CAR) using the date Appeals mailed EA Letter 4642 and selects case status E/ERC. CARATS Action/Sub-action Code "SU-RX" (Case Out of Suspense - Review and Comment Received) ATE enters CARATS Action/Sub-action code "SU-RX" code on the CAR using the date Appeals received the EA results. "SU-RX" automatically updates the case status from E/ERC to the status immediately preceding the suspense action. CARATS Status Code "E/ERC" Inactive - Appeals Requested Review and Comment Form 14361 Appeals captures data from Form 14361 fields into tables when the form is generated from APGolf. Exhibit 8.4.4-1 Examination Assistance Terms and Definitions Term Definition Campus Liaison (CL) The Campus Liaison (CL) is the appropriate, designated employee who will review and approve/deny the initial request. If approved, the CL may provide the EA himself/herself or may assign the EA work to another examiner. Compliance Represents the Examination-related activities of the following business operating divisions and functions:Large Business & International (LB&I); Small Business/Self-Employed (SB/SE); Tax-Exempt and Government Entities (TE/GE); and Wage & Investment (W&I) Examination case A case involving income taxes, employment taxes, estate taxes, gift taxes, excise taxes, and/or related penalties. Examination Assistance Point of Contact (EA POC) The Compliance Manager, Coordinator, Campus Liaison, etc. designated to receive, review, and approve/deny the EA request. If approved, the EA POC may provide the EA or may assign the EA work to another Examiner. Examiner Collectively refers to Compliance employees conducting EA work. IRS Notice Includes a Notice of Deficiency, a Notice of Determination of Worker Classification, or any similar document that outlines the Service’s position on the particular tax matters and provides U.S. Tax Court rights).
