Part 8. Appeals
Chapter 21. Appeals Statute Responsibility
Section 1. General Statute Responsibility
October 30, 2013
(1) This transmits revised IRM 8.21.1, Appeals Statute Responsibility, General Statute Responsibility.
(1) Revised IRM to reflect minor editorial and grammatical corrections.
Susan L. Latham
Director, Policy, Quality and Case Support
This manual provides guidance to Appeals employees by defining their responsibility for verifying, updating, and monitoring statute dates. It also provides an overview of responsibilities in barred statute situations.
The procedures presented represent the minimum standard that each employee is expected to follow when handling cases in Appeals.
All employees should be alert to possible statute situations or problems and take action, whenever possible, to prevent barred assessments.
When monitoring his/her monthly statute report and timesheet, the employee should be alert to situations such as cases that may have been closed and are still on the employee's timesheet.
Employees should always be aware of the statute dates on cases in their physical possession. They must continue to monitor the statute dates as long as the case is in their possession.
Case jurisdiction does not merely mean having physical possession of a case. The employee charged with jurisdiction is accountable for verifying and monitoring the statute date on a case while it is in that employee’s jurisdiction.
Jurisdiction changes as a case travels through Appeals. When a case is first received in Appeals, jurisdiction of the case is with Account and Processing Support (APS) when they acknowledge receipt of the case, using Form 3210. APS will use Form 3210 to release jurisdiction for all case movement out of APS. Jurisdiction of the case remains with APS until the Appeals Team Manager (ATM) acknowledges receipt by signing Form 3210 and promptly returning it to APS. Jurisdiction is with the Appeals Team Manager from the time the Form 3210 is received by APS until the assignment of the case to an Appeals Technical Employee (ATE). The ATM should timely assign the case to a technical employee.
Once a case is assigned to a technical employee, the action code CR (Case Received) will be input on the Case Activity Record (CAR) and jurisdiction shifts to that employee. Jurisdiction can transfer from one technical employee to another numerous times. The technical employee reflected on Appeals Centralized Database System (ACDS) will be responsible for verifying and monitoring the statute while the case is assigned to him/her.
Jurisdiction remains with the technical employee until the case is submitted to the Appeals Team Manager. The technical employee will input the ACDS action code AC when the case is submitted to their ATM for review and approval.
When an Appeals Team Manager (ATM) approves a case for closing via the ATM Closing Menu on ACDS, the ATM will input the ACAPDATE and the case is automatically entered on the Processing Employees Automated System (PEAS). Jurisdiction shifts to APS when the case assignment is made on PEAS. When the case is returned to APS for closing, jurisdiction shifts back to APS and will remain with APS until an assessment is made.
Jurisdiction can remain with one employee while another employee has physical possession of the case file. Although the employee with physical possession is not responsible for verifying the statute date, that employee controls the movement of the case and therefore, must monitor the statute date while the case is in his/her possession.
1) When issuing a statutory notice of deficiency, jurisdiction remains with the technical employee until the notice is issued. However since APS has physical possession of the case before the notice is issued, they must monitor the statute date to ensure the notice is issued timely.
2) When sending a case to the Tax Computation Specialist (TCS) for a tax computation, jurisdiction remains with the technical employee. However since the TCS has physical possession of the case, they must monitor the statute date to ensure the work is completed in a timely manner.
Any employee having jurisdiction of a case shares accountability for verifying and monitoring the statute with his or her manager. Any employee having physical possession of a case file shares accountability for monitoring the statute with his or her manager.
All tax returns with assessment periods expiring within 180 days or less are considered short statute cases. To ensure these returns are highly visible;
Place file in a red folder (Form 10364-A, Statute Expiration Case Notice) or in lieu of Form 10364-A, use a plain red folder with an attached completed fillable Form 10364, Statute Expiration Case Notice.
Attach a pink expedite tag to the folder.
When necessary, employees need to take additional actions to protect the assessment period on these cases. It may be necessary to hand-carry the file from one location to another. If the file is being sent to a location outside of the local office, use express mail or fax.