4.36.4 Joint Committee Review Team Procedures 4.36.4.1 Program Scope and Objectives 4.36.4.1.1 Background 4.36.4.1.2 Authority 4.36.4.1.3 Responsibilities or Roles and Responsibilities 4.36.4.1.4 Terms/Definitions/Acronyms 4.36.4.1.5 Related Resources 4.36.4.2 Notice of Suspended Referrals (NSR) and Case Return Transmittals (CRT) 4.36.4.2.1 Substantial Error 4.36.4.2.2 Fraud or Malfeasance 4.36.4.2.3 Serious Administrative Omissions 4.36.4.2.4 Unprocessable Cases 4.36.4.2.5 Corrections Favorable to the Taxpayer 4.36.4.3 Processing of Joint Committee Report 4.36.4.4 Inquiries from Joint Committee on Taxation 4.36.4.4.1 Types of Inquiries 4.36.4.4.2 Response Time Frames 4.36.4.4.3 Formal Inquiries from the JCT - Staff Review Memorandum (SRM) 4.36.4.4.3.1 SRM Procedures and Tracking - Response Required 4.36.4.4.3.2 SRM Procedures and Tracking - No Response Required 4.36.4.5 Disclosure of Correspondence with the Joint Committee on Taxation 4.36.4.6 Withdrawal of Report from Joint Committee Jurisdiction 4.36.4.6.1 Taxpayer Notification Letters 4.36.4.7 Closing Agreements 4.36.4.8 Fast Track Settlements 4.36.4.9 Suspense Cases 4.36.4.10 Bankruptcy Cases 4.36.4.11 TEFRA and Non-TEFRA Investor Procedures 4.36.4.12 Disclosure of Individual Information - Form 5482, Record of Disclosure Exhibit 4.36.4-1 Letter 1573 (P) Exhibit 4.36.4-2 Letter 1574 (P) Part 4. Examining Process Chapter 36. Joint Committee Procedures Section 4. Joint Committee Review Team Procedures 4.36.4 Joint Committee Review Team Procedures Manual Transmittal June 21, 2021 Purpose (1) This transmits revised IRM 4.36.4, Joint Committee Procedures, Joint Committee Review Team Procedures. Material Changes (1) Content in this section was rearranged to conform to the internal control format mandated Servicewide by IRM 1.11.2.2.5, Address Management and Internal Controls. IRM 4.36.4.1, Program Scope and Objectives, contains internal control information. (2) Added new IRM subsections 4.36.4.4.3, 4.36.4.4.3.1, and 4.36.4.4.3.2 regarding Staff Review Memorandums. (3) Changes were made to the following subsections: IRM Subsection Title Description of change 4.36.4.3 Processing of Joint Committee Report Updated mailing instuctions 4.36.4.4.2 Response Time Frames Updated instructions 4.36.4.5 Disclosure of Correspondence with the Joint Committee on Taxation Updated instructions (4) Hyperlinks were updated. (5) Removed IRM Exhibit 4.36.4-3, Dispute Resolution Chart. (6) Editorial corrections have been made throughout this IRM section. Effect on Other Documents This section supersedes IRM 4.36.4, Joint Committee Specialist Procedures, dated September 23, 2015. Audience LB&I, SB/SE, TE/GE Effective Date (06-21-2021) Theodore D. Setzer Acting Assistant Deputy Commissioner Compliance Integration Large Business and International Division 4.36.4.1 (06-21-2021) Program Scope and Objectives Purpose: This IRM section describes the duties of the Joint Committee Review team and the procedures they follow. Audience: Examination personnel in LB&I, SB/SE and TE/GE divisions who work on Joint Committee cases. Policy Owner: LB&I Policy under the Strategy, Policy and Governance office in the Assistant Deputy Commissioner Compliance Integration organization. Program Owner: Joint Committee Review team within the Northeastern Compliance Practice Area Primary Stakeholders: Stakeholders include examiners, taxpayers and the Joint Committee on Taxation. 4.36.4.1.1 (06-21-2021) Background See IRM 4.36.1.1.1, Background. 4.36.4.1.2 (06-21-2021) Authority IRC 6405 requires review of certain cases by the Joint Committee on Taxation. See IRM 4.36.1.1.2, Authority, for more information. 4.36.4.1.3 (06-21-2021) Responsibilities or Roles and Responsibilities See IRM 4.36.1.1.3, Roles and Responsibilities. 4.36.4.1.4 (06-21-2021) Terms/Definitions/Acronyms See IRM Exhibit 4.36.1-1, Acronyms Used Throughout 4.36, for a list of commonly used acronyms. . 4.36.4.1.5 (06-21-2021) Related Resources Joint Committee topics may be found on the IRS Knowledge Management website at: Joint Committee Virtual Library. This site contains a wealth of information about all the various aspects of a Joint Committee case, including frequently asked questions, job aids, contact information, and JC forms. It is a place to visit for valuable tools and resources. 4.36.4.2 (09-23-2015) Notice of Suspended Referrals (NSR) and Case Return Transmittals (CRT) If the JC review cannot be completed due to technical, computational, or procedural errors, a Notice of Suspended Referral (NSR) form or a Case Return Transmittal (CRT) form will be sent to the examiner and team manager to outline errors for correction so the review of the JC case can be completed and processed. The case return criteria stated below identify five classified errors deemed significant enough to warrant return of the case to the examination team for correction. Substantial error Fraud or malfeasance Serious administrative omission Unprocessable cases Corrections favorable to the taxpayer Cases returned to the examination team by the Joint Committee Review team under these criteria must contain a clear and substantial error or involve an unexamined large, unusual, or questionable item. Where appropriate, the Joint Committee Review team should contact the examination team prior to returning the JC case for resolution of the identified problem with the JC case. Every effort should be made by the examination team to resolve JC inquiries informally received by the Joint Committee Review team before the issuance of a CRT or NSR is warranted. Should the examination team require more than 15 days to resolve the JC inquiry, a written memorandum should be prepared outlining the specific information requested and returned to the examination team via completion of the appropriate box or boxes on the CRT or NSR. If the Further Consideration box is checked on either the CRT or NSR form, the case is a priority assignment and is to be worked and resolved within 30 days by the examination team. If the JC case is returned to the examination team via a NSR, the examination team must update ERCS to remove the Aging Reason Code (ARC) 27. If the issues identified in the CRT or NSR for the reason of returning the JC electronic case (NSR) or JC physical case (CRT) back to the examination team are not resolved, the examination team must provide a status report every 30 days to the Joint Committee Review team until resolved. Upon resolution, the examination team must provide a written response to the issues and concerns noted by the Joint Committee Review team when the JC case was returned to the examination team. If the examination team does not agree with the position taken by the Joint Committee Review team or the Joint Committee on Taxation (JCT) (with respect to a JC report submitted to the JCT), the administrative file will be returned via a CRT. Generally, the examination team should resolve outstanding issues in consultation with the Area Counsel. Disagreements not resolved at this level will be elevated to the appropriate management official. . The following subsections describe conditions that will result in the return of a case. Also see IRM 4.8.2.8.1. 4.36.4.2.1 (09-23-2015) Substantial Error A substantial error may be a misapplication or misinterpretation of law or fact, or represent a clear omission of a material issue or item. A determination of a substantial error is based not only on the overall dollar amount, but also its materiality relative to other return items. A timing error may be deemed material. Evidence of a substantial error will generally be ascertained on the basis of the revenue agent report (RAR) and relevant workpapers. When the JC Specialist determines that there is a clear indication of a substantial error, the JC Specialist will contact the examiner to resolve the item(s) in question. See IRM 4.8.2.9.1.1, Substantial Error, for examples of substantial error. 4.36.4.2.2 (05-04-2010) Fraud or Malfeasance A case will be returned if there is evidence of fraud, malfeasance, collusion, concealment, or misrepresentation by the taxpayer or representative. See IRM 4.8.2.9.1.2, Fraud or Malfeasance. 4.36.4.2.3 (05-04-2010) Serious Administrative Omissions The existence of other circumstances indicating that failure to return the case would be a serious administrative omission. For example: Failure to do so could result in serious criticism of the Service’s administration of the tax laws, A position, if left uncorrected, would establish a precedent that would seriously impede subsequent efforts to uphold the Commissioner’s position, or Would result in inconsistent treatment of similarly situated taxpayers. Also see IRM 4.8.2.9.1.3 Serious Administrative Omissions, for more information and examples. 4.36.4.2.4 (09-23-2015) Unprocessable Cases The case cannot be processed by Centralized Case Processing (CCP) and the errors cannot be corrected without significant effort (i.e. case requires new agreements, AIMS establishment, etc.) See IRM 4.8.2.9.1.4, Unprocessable Cases. 4.36.4.2.5 (05-04-2010) Corrections Favorable to the Taxpayer Corrections in favor of the taxpayer must be made. See IRM 4.8.2.9.1.5, Correction of Errors That Will Benefit the Taxpayer. 4.36.4.3 (06-21-2021) Processing of Joint Committee Report Upon completion of the review of the JC case, the Joint Committee Specialist will: Prepare the JC report to the Joint Committee on Taxation (see IRM 4.36.5) in the final form. Complete and attach Form 4081, Transmittal Memorandum-Joint Committee Case. Submit the JC report to the authorized JCR official for approval. Promptly forward the JC report, via secure email using a password protected zip file, to the JCT. See IRM 4.36.5.8 for instructions on submitting reports to JCT. 4.36.4.4 (09-23-2015) Inquiries from Joint Committee on Taxation Inquiries from the JCT are considered Congressional inquiries and are high priority. The inquiries are generally questions involving a JC case that require clarification, additional information, and/or conference call after the Joint Committee Review team submits the JC report package to the JCT for oversight authority and release of the JC refunds. 4.36.4.4.1 (09-23-2015) Types of Inquiries The JCT makes two types of inquiries: Informal – Telephone or e-mail Formal – Written memorandum via Staff Review Memorandum (SRM) Inquiries from the JCT’s Refund Counsel should be treated with the highest priority. There are times when it may be necessary for the Joint Committee Review team to contact the examination team for additional information or clarification regarding a Joint Committee case. Inquiries will be treated with the highest priority and the Joint Committee Review team will ensure timely resolution of outstanding concerns. There may be times when it is more expedient for the examination team to communicate directly with the JCT. The Joint Committee Review team will arrange for this contact and remain involved to ensure the JCT receives a timely and satisfactory response. When a case is referred back to the examination team for reconsideration and the unresolved issue(s) are unagreed, minimum refund procedures may apply. If the case is subsequently protested and resolved by IRS’s Appeals division, the Appeals Officer will prepare the necessary response to the JCT. The need for additional information or clarification may arise while the case is being reviewed by Joint Committee Review or as a result of a formal or informal inquiry Joint Committee Review may have received from the JCT. They should be treated as a priority. Caution: All IRS personnel should remember that any inquiry from personnel of the Joint Committee on Taxation constitutes a Congressional inquiry. 4.36.4.4.2 (06-21-2021) Response Time Frames Every effort should be made to respond to the JCT inquiry in a timely manner. A memorandum providing a status report should be submitted to the JCT every 30 days from receipt of the inquiry. The memorandum should contain the case name, tax years, earliest statute of limitations, status explanation/reason for delay, and expected completion date. . 4.36.4.4.3 (06-21-2021) Formal Inquiries from the JCT - Staff Review Memorandum (SRM) Occasionally, the JCT will issue a Staff Review Memorandum (SRM). This is a formal inquiry from the Chief of Staff, JCT to the IRS Commissioner and may or may not require a formal response from Joint Committee Review back to the Chief of Staff, JCT. The process set forth herein will ensure timely and proper coordination with all impacted stakeholders in addressing JCT SRMs. There are various reasons for issuance of SRMs which may include: Follow-up to informal inquiry Request for reconsideration of settlement Inconsistent settlement of Issue The SRM will indicate whether any action is required. The JC Specialist must consider and respond to all issues raised by the JCT even if the case is currently in Counsel’s jurisdiction. If the JCT expects a reply, the memo will include the following or similar statement: "We will keep our file open and await your reply before final disposition of this case." See IRM 4.36.4.4.3.1, SRM Procedures and Tracking – Response Required. If the JCT has completed their review and does not expect a reply, the memo will include this statement: "No reply is requested, and we are closing our files on this case." This is a form of a release/clearance letter and the JC Specialist may close or process the case when received. See IRM 4.36.4.4.3.2, SRM Procedures and Tracking – No Response Required. Note: If at any time during the JCT process, an issue arises that results in an unagreed issue in the refund case, the examiner should consider minimum refund procedures, if applicable. For the unagreed issue, the JCR will close the referral and the case reverts to Exam who will request Appeals resolution of the issue. See IRM 4.36.3.7.1. 4.36.4.4.3.1 (06-21-2021) SRM Procedures and Tracking - Response Required Joint Committee on Taxation (JCT) emails the Staff Review Memorandum (SRM) to the Joint Committee Review (JCR) Program. The JCR program manager forwards the SRM to the JCR executive, the JCR manager and JC specialist. The JC specialist will record receipt and reason for the SRM and identify the area executive and senior director where the case is located. Within 5 business days of JCR identifying the group manager and examiner, the JCR program manager will share the SRM with area executive, senior director, LB&I deputy commissioner, applicable BOD deputy commissioner, group manager and examiner. The JC specialist will record the date shared with Exam. Within one month of receipt of the SRM from the JCR program manager, the individual/team responsible for examination of the issue (including the manager, examiner and the management team of any specialists involved) and JC specialist, should hold an initial planning meeting to map out an approach forward. It is expected that everyone will come to the meeting having read the SRM, Form 5701, Notice of Proposed Adjustment, and/or underlying Form 886-A, if applicable. The examiner will identify the necessary participants, contact specialist managers and JC specialist, schedule the meeting, and lead the discussion. The examiner should draft the agreed upon SRM response to the JCT with assistance from the JC specialist. The examiner will submit draft SRM response to their manager for review and approval of the technical position before submitting to the JC specialist for final review. The JC specialist and JCR manager will review the draft response and forward it to the JCR program manager. The JCR program manager will review the draft SRM response and once the review of the draft SRM is completed, the JC specialist will notify the examiner and manager to finalize the memo who will forward it through their management chain to their senior director/area executive for approval. Once approved, the applicable senior director/area executive will sign and return the SRM response memo to the group manager. The group manager will return the signed response to the JCR program manager. The JCR program manager will forward to the JC specialist, copying the JCR manager. The JC specialist will record the date response is received from Exam. Once approval is received, the JC Specialist submits the response and supporting materials to the JCT for review. The JC Specialist will record the date response submitted to JCT. Subsequent inquiries from JCT on the same refund case should be handled in the same manner following steps 1-7. 4.36.4.4.3.2 (06-21-2021) SRM Procedures and Tracking - No Response Required The JCT may issue an SRM that expresses concern regarding examination resolution of an issue, but which approves the release of the refund requested in the JC report. Generally, no response to the JCT is required. The JCT will issue SRMs to the JCR program manager, who will notify the area executive, senior director, LB&I deputy commissioner, applicable BOD deputy commissioner, group manager and examiner. Once the SRM release letter has been received, the case may be processed or closed. The JC specialist will record receipt and closure of the SRM and close the JCR referral. 4.36.4.5 (06-21-2021) Disclosure of Correspondence with the Joint Committee on Taxation Generally, any IRS records generated during an examination or other processing giving rise to the credit or refund should be considered agency records subject to the Freedom of Information Act (FOIA). Informal or formal correspondence, including email, from the JCT are not considered agency records subject to FOIA and should not be released to the taxpayer without the written permission of the JCT. If the JCT communication contains a legend that says the document should be treated as a Congressional record and is beyond the scope of FOIA, it should be treated as such. However, the absence of the legend is not legally determinative. If a JCT document does not contain a legend, IRS practice is generally to treat the JCT document and any response thereto as a Congressional record. See IRM 11.3.13.3.5, Joint Committee on Taxation, for further guidance. When the JCT expresses a differing position with respect to an issue, the Service may: Adopt that position and present it to the taxpayer as its own; or Communicate its reason for disagreement to the JCT. Any documents created by the Service in connection with a response to any JCT correspondence should also not be released to the taxpayer without written permission of the JCT. JCT correspondence and related records should not be released in response to non-FOIA requests (i.e., requests under IRC 6103(e) or the Privacy Act) without the written permission of the JCT. Such requests should be coordinated with Chief Counsel (Procedure & Administration) prior to any response. See IRM 4.36.4.12 for additional requirements. 4.36.4.6 (09-23-2015) Withdrawal of Report from Joint Committee Jurisdiction If adjustments reducing the net refund or credit below the jurisdictional amount are made or proposed by the examination team, after a report has been submitted to the JCT but before JCT has issued a clearance letter on the case, the Joint Committee Review team will contact the JCT advising them of withdrawal of the case from their consideration. Contact with the JCT should be made at the earliest opportunity once an agreement (Form 870 or equivalent), is secured. The JCT will be provided the taxpayer’s information, briefly discuss the adjustments, set forth the taxable income or loss and tax liability as finally determined, and request that the case be released from JCT jurisdiction. 4.36.4.6.1 (09-23-2015) Taxpayer Notification Letters At the time that Joint Committee Review submits the JC report to the JCT, the Joint Committee Specialist will prepare and mail Letter 1573 (P) to the taxpayer and its authorized representative, if applicable. See Exhibit 4.36.4-1. The examination team will be notified of the case status by email. When the Joint Committee Review team receives the clearance letter or Staff Review Memorandum (SRM) from the JCT, the Joint Committee Specialist will issue Letter 1574 (P) to the taxpayer and its authorized representative, if applicable. See Exhibit 4.36.4-2. The examination team will be apprised of this by email. The Joint Committee case file (including the administrative file copy of the Joint Committee report) will be processed and closed in accordance with established procedures outlined for the Joint Committee electronic case review (See IRM 4.36.3.3.1) or Joint Committee Physical case review (See IRM 4.36.3.3.2). 4.36.4.7 (09-23-2015) Closing Agreements Closing agreements, including those based on Competent Authority determinations (IRM 4.36.3.6.2.1), may not be signed by the approving Service official prior to their clearance by the JCT. Notwithstanding, they must be duly executed by taxpayers or their authorized representatives. A copy of the closing agreement will be submitted with the Joint Committee report. Following release by the JCT, closing agreements will be returned to the preparer for proper signatures. In those situations where there is a request for a review of the closing agreement early in the examination (pre-submission review), such as Fast Track Settlement or Early Referral to Appeals, the Joint Committee Specialist will forward a copy of the draft closing agreement (signed by the taxpayer but not by the Service), issue write-ups, a letter from the taxpayer authorizing disclosure to the JCT, and a cover memo prepared by the examination team to the JCT. The Joint Committee Specialist’s contact information will also be provided. See IRM 4.36.3.6.2 and Exhibit 4.36.3-3. After it is reviewed, the JCT will notify the Joint Committee Specialist, who will notify the examination team that the closing agreement can now be signed by the appropriate Service official. 4.36.4.8 (05-04-2010) Fast Track Settlements When a case settled under the Fast Track Settlement Program is submitted for review with an unsigned closing agreement, the Appeals Closing Memorandum (ACM) must be included as part of the file. 4.36.4.9 (09-23-2015) Suspense Cases In the event a Joint Committee case must be placed in suspense, the JC case will be returned to the examination team for appropriate action and closure to CCP upon receipt of clearance by the JCT. 4.36.4.10 (05-04-2010) Bankruptcy Cases Bankruptcy or receivership cases that meet the jurisdictional amounts of IRC 6405 must be reported to the Joint Committee on Taxation. Overpayments or deficiencies should be processed in accordance with the procedures outlined in IRM 4.27, Bankruptcy Handbook. 4.36.4.11 (09-23-2015) TEFRA and Non-TEFRA Investor Procedures JCT will accept reports on cases that have Partnership Control System (PCS) links. If the final determination on the investor's non-TEFRA issues results in a refund to the investor in excess of $2 million ($5 million for C corporations), the JC Specialist will prepare a JC report to the JCT for the non-TEFRA issues even though the review of the TEFRA key case has not been completed. A supplemental report will only be required if a flow-thru adjustment is resolved, the unified TEFRA partnership proceedings are completed and the refund to the investor is greater than $2 million ($5 million for C corporations). The JC Specialist does not need to prepare a supplemental report for the TEFRA proceedings unless the adjustment to the investor from the key case results in an additional refund to the investor in excess of $2 million ($5 million for C corporations). When a JC report is sent to the JCT and there are open PCS links, include language similar to:The taxpayer(s) are involved in unified partnership proceedings. If the resolution of the partnership/ proceedings results in an additional refund to the taxpayer(s) in excess of $2 million ($5 million for C corporations), an additional/supplemental report will be submitted. This report is being submitted prior to completion of the unified proceedings. When the clearance letter is received, the case can be processed by the examination team. In instances where the Joint Committee Review team has the JC case file, the Joint Committee Review team will send the case back to the examination team for the examination team to process. The Joint Committee Review team will inform the examination team of the requirement to resubmit the case for a supplemental report once a PCS link is resolved. The examination team is responsible for: Processing the case since JCR cannot close it to CCP with open links Resubmitting the case to JCR for a supplemental JC report if the flow-thru adjustment (once resolved) results in a refund to the investor of more than $2 million ($5 million for C corporations) Note: Compliance employees with jurisdiction over the investor will be responsible for resubmitting the case to JCR each time a link is resolved and the refund is more than $2 million ($5 million for C Corporations). A supplemental report will not be required when the flow-thru adjustment is resolved, the unified TEFRA partnership proceedings are completed and the refund to the investor is $2 million ($5 million for C corporations) or less. Coordinating, if necessary, with Technical Services, TEFRA Coordinators, TEFRA Issue Practice Group (IPG) on all technical and procedural issues and concerns. TEFRA references for examiners include: IRM 4.31.2.6.2 - TEFRA Issues are Resolved Prior to Non-TEFRA Issues IRM 4.31.2.6.3 - Closing a Non-TEFRA Investor With an Open TEFRA Linkage Accelerated Closing Procedures when the partner wants to agree to all adjustments, TEFRA and Non-TEFRA, before audits have been completed on the key case If the taxpayer is entitled to a minimum refund in excess of $2 million ($5 million for C corporations), a JC report will be prepared prior to completion of the flow-thru examination. The minimum refund procedures for cases with unagreed issues are applicable. See IRM 4.36.3.7.1, Cases with Unagreed Issues - Minimum Refund.. 4.36.4.12 (05-04-2010) Disclosure of Individual Information - Form 5482, Record of Disclosure Tax information about individuals or aliens admitted to permanent U.S. residence provided to the JCT pursuant to IRC 6405 requires Privacy Act accounting on Form 5482, Record of Disclosure. The Joint Committee Specialist will complete Form 5482, Record of Disclosure if the individual is a U.S. citizen or alien admitted to permanent U.S. residence. The form is a two-part form. The original will be filed with the examination administrative file for the individual and the copy will be retained by the Joint Committee Specialist team for five years. Additional Forms 5482 need to be completed if information concerning years and/or individuals not previously accounted for is disclosed to the JCT. See IRM 10.5.6.7, Privacy Act Accounting for Disclosures, for additional information about the form. Form 5482 should be completed at the time the Joint Committee report is forwarded to the JCT. When completing the form, Item 3, Record System Number, should be 42.001 and Item 8, Privacy Act Provisions, should be (b)(9). Exhibit 4.36.4-1 Letter 1573 (P) Name of Taxpayer Taxpayer Identification Number: Attn: Corporate Officer Form(s): Street Address -- Suite/RM # Contact Person: City, State, Zip Code Telephone Number: Employee Identification Number: Date: Tax PeriodsSource Years:Refund Years: Dear CORPORATE OFFICER: Introduction (Choose appropriate paragraph) (Exam no-change with tentative allowances) Based on the recent examination of your income tax returns for the indicated tax periods, the Internal Revenue Service has proposed to the Joint Committee on Taxation that these returns be accepted as adjusted by the tentative allowance refund(s) shown on the Form 1045/1139 which you previously filed. (Survey with tentative allowances) The Internal Revenue Service has proposed to the Joint Committee on Taxation, in a special report mandated by section 6405(b) of the Internal Revenue Code of 1986, that your income tax returns for the indicated tax periods be accepted as adjusted by tentative refund or credit allowances, based on Form 1139/1045 which you had previously filed. (Survey with claims) The Internal Revenue Service has proposed to the Joint Committee on Taxation, in a special report required by section 6405(a) of the Internal Revenue Code of 1986, that your income tax returns for the indicated tax periods be accepted as amended by refund claims per Form 1120X/1040X which you had previously filed. (Exam, report previously furnished) The Internal Revenue Service submitted a special report to the Joint Committee on Taxation, as required by section 6405(a) of the 1986 Internal Revenue Code, outlining the findings of a recent examination of the company's income tax return for the indicated years, shown in a report of examination, dated MM/DD/YYYY, previously furnished to you. Agreement to the tax changes was indicated by the MM/DD/YYYY signing of a waiver Form 870. Payment (Choose appropriate paragraph) (Overpayments over $2 million or $5 million for C corporations) The tax overassessment(s)/overpayment(s) shown in the report cannot be processed for refund or credit until after the case is released by the Joint Committee on Taxation. (Qualified Waiver) The "qualified" waiver Form 870, showing offsetting deficiencies and overassessments, will become effective on the date the Joint Committee on Taxation releases its jurisdiction of the case. The remaining deficiencies, plus interest, shown on an "unqualified" waiver Form 870, will be assessed; if you have not made payment, we will bill you. (Advance Payment) The advance payment, which you made on MM/DD/YYYY, will be applied against these amounts. (Expedite Refund) When the Joint Committee on Taxation receives this report, the 30-day period, during which we are statutorily prohibited from issuing the refunds, will commence. If the Joint Committee on Taxation does not raise any concerns regarding the Service’s position, we will process the refunds as soon as possible after the expiration of this 30-day period. (Straight Deficiency) If you have not paid the deficiency shown in the report, we will bill you soon for the deficiency, plus interest. (Straight Overpayment) Since the overassessment shown on the report is less than the jurisdictional amount of $2 million ($5 million for C corporations), the report will be processed prior to release by the Joint Committee on Taxation. Other (Choose appropriate paragraph) (Restricted Interest) Even though there is/are no tax change(s) for some of these examined years, the indicated adjustments to income, deductions and/or credits result in assessable "restricted interest" on the potential tax deficiency prior to application of the net operating loss or credit carryback. (872-A) This letter does not terminate the Internal Revenue Service consideration referred to in consent Form 872-A filed for the tax period ended MM/DD/YYYY. Closing We will notify you when the Joint Committee on Taxation completes consideration of your case. If you have any questions, please contact the person whose name and telephone number are shown above. Sincerely, Joint Committee Specialist Enclosure cc: Authorized representativeName of Representative Letter 1573 (P) (Rev. 7-2015) Exhibit 4.36.4-2 Letter 1574 (P) Name of Taxpayer Taxpayer Identification Number: Attn: Corporate Officer Form(s): Street Address -- Suite / RM # Contact Person: City, State, Zip Code Telephone Number: Employee Identification Number: Date: Tax PeriodsSource Years:Refund Years: Dear Corporate Officer: We have been advised that the Joint Committee on Taxation has completed its consideration of our special report (made to satisfy the requirements of section 6405 of the Internal Revenue Code of 1986) on these income tax returns and has taken no exception to the conclusions reached by the Internal Revenue Service. Processing (Choose appropriate paragraph) The tax changes shown on the examination report, previously furnished to you, are being processed for refund or credit. The overassessment(s) shown on the approved Form 1040X/1120X claims are being processed for refund or credit. The tax changes have previously been processed. Use the following if necessary This letter does not terminate the Internal Revenue Service consideration referred to in consent Form 872-A filed for the tax periods ended MM/DD/YYYY. Sincerely, Joint Committee Specialist cc: Authorized representativeName of Representative Letter 1574 (P) (Rev. 10-2003) The following wording is used if the refund is made before the Joint Committee on Taxation has released its jurisdiction: The Joint Committee on Taxation has taken no exception to our processing of the overpayments shown on the examination report previously furnished to you OR being accepted per your amended return claims on Form 1040X/1120X previously filed by you. Accordingly, the overpayments will soon be processed for refund or credit. This letter is not a notification that the Joint Committee has completed its consideration of the conclusions reached by the Service regarding these income tax returns. At a later time, we will let you know when the Joint Committee completes such consideration. More Internal Revenue Manual