This IRM contains procedures, guidance, and information for a CWA FLM. The content includes general administrative responsibilities and expectations, workload management, measurements for reporting, and customer satisfaction.

IRM 4.64.1.1.1, Background includes information about the CWA program and its mission.

IRC 1441 , Withholding of Tax on Nonresident Aliens

IRC 1446, Withholding of Tax on Foreign Partners' Share of Effectively Connected Income

26 CFR 1.1441-4(b)(3), Withholding Agreements

Rev. Proc. 89-47, 1989-2 C.B. 598

Rev. Rul. 1974-330, 1974-2 C.B. 278

IRM 1.2.63.2.10, Delegation Order LB&I 1-23-10, Authority to Grant and Withhold Exemption from Withholding on Nonresident Aliens and Issue Final Exemption Payment Letter

The LB&I Deputy Commissioner is the senior executive responsible for the WEIIC practice area.

The Director of WEIIC is the executive responsible for FPP field operations.

The Director of Field Operations (DFO), FPP is the executive responsible for the FPP Program Office.

The FPP Program Office manager is the senior manager responsible for the CWA Program and:

The CWA FLM is responsible for a team of employees and takes the following actions to provide direction and leadership:

The CWA program monitors case inventories using various data sources and tools including:

The CWA program measures compliance with assigned goals using various data sources and tools including:

The CWA program has developed controls to oversee the program including:

The CWA program is evaluated through independent quality reviews of DWL and CWA application cases.

The table lists commonly used acronyms and their definitions:

Pub 515, Withholding of Tax on Nonresident Aliens and Foreign Entities

IRM 4.64.1, Central Withholding Agreement (CWA) Program

IRM 21.8.2.12.13, Central Withholding Agreements

IRS.gov references and web pages including:

CWA News and Information List subscription

Central Withholding Agreement Program on IRS Source

Key Talking Points and Fact Sheet for speaking engagements

CWA Organizational mailbox

CWA phone number: 949-638-7235

Desk guides and related job aids (access is limited to approved users):

A CWA FLM is responsible for guiding the activities of the team and evaluating employees. A CWA FLM can use different types of reviews to monitor adherence to program policies and procedures including, but not limited to the following:

Information that is obtained from the above reviews and visits must conform to the requirements of Document 11678, National Agreement. See IRM 6.430.1 , Performance Management Requirements, for further guidance on evaluating employees.

A CWA FLM will conduct case or workload reviews on each employee. See IRM 1.4.1, Resource Guide for Managers, Management Roles and Responsibilities.

A CWA FLM will choose an appropriate number of case or workload reviews throughout the year to ensure a thorough evaluation of each employee’s performance.

A CWA FLM may use the results of case and workload reviews to evaluate employees by following the requirements of IRM 6.430.1, Performance Management Requirements.

The IRS Balanced Measurement System, provides guidance to prevent the use of statistics to:

A CWA FLM is prohibited from using records of tax enforcement results (ROTERs) to evaluate any employee who exercises judgment regarding the determination of tax liability or the ability to pay.

The CWA FLM assigns each Streamline, Standard, or Formal Standard CWA application case to a program employee. When making assignments, the CWA FLM should:

The CWA FLM will provide information on previous cases for the CWA applicants in the current tax year, and on any prior year cases as appropriate. The CWA FLM will secure the activity record and withholding analysis spreadsheet for each previous case and may include additional information that can assist the employee with the analysis of income or expenses on the current assignment.

The CWA FLM is responsible for reviewing case inventories on the CWA CIM application and the ECF server and will ensure the lists and documents:

The CWA FLM will actively monitor the progress of each employee's case work and ensure updates are completed timely and accurately.

The CWA FLM will review a Standard CWA for accuracy prior to approval and a Formal Standard CWA prior to forwarding it for PM review and approval. See IRM 4.64.1.12.2, Types of Central Withholding Agreements (CWAs), for information on the gross income amounts and other criteria for a Standard or Formal Standard CWA application case. The CWA FLM reviews:

If there are questions or corrections, the CWA FLM will document the activity record and communicate with the employee assigned. After the case information or documents have been revised, the CWA FLM will inform the employee assigned of the final determination, or request review by the PM when required or appropriate.

A CWA will be approved and signed based on the delegation order in IRM 1.2.63.2.10 , Delegation Order LB&I 1-23-10.

The CWA FLM will review an addendum that modifies an executed Standard or Formal Standard CWA by adding a new event or reducing the required withholding tax due to non-performance at an itinerary event.

The CWA FLM will review an addendum that modifies an executed CWA for any reason not related to adding a new event or reducing the required withholding tax due to non-performance at an itinerary event.

The CWA FLM will complete any required review by a date that ensures the addendum can be timely executed. See IRM 4.64.1.12.9 , Amending an Approved CWA.

The CWA FLM must approve all CWA application and DWL cases with a policy closure type, except when the nonresident alien (NRA) will not perform in any of the itinerary events, or the NRA is considered a U.S. person based on a passport, a green card, or a Form W-9 with documentation for the claimed U.S. resident status.

The CWA FLM must approve all rescission letters issued on a DWL case before the documents are sent to the withholding agent. The CWA FLM will approve a rescission letter after confirming that the NRA is not subject to withholding. See IRM 4.64.1.5.4, Rescinding Directed Withholding Letters.

The CWA FLM will review and approve the assigned employee’s determinations reflected on a final accounting letter before it is issued to the Designated Withholding Agent (DWA) or an authorized representative under the following circumstances:

The CWA FLM will document the activity record when a final accounting review is completed.

The CWA FLM must review all site visits submitted by an employee assigned to the case no later than 10 days prior to the event date.

The CWA FLM will use case or workload reviews to confirm that pending and completed CWA CIM application closures meet the following deadlines:

The CWA FLM will copy the ECF for each closed case from the assigned employee's folder and paste it into the subfolder for the applicable year and month in the team's Closed Case folder. The CWA FLM will compare that month's Case Status Report to the files in Closed Case folder and confirm that all closures for the month have been successfully copied.

The CWA FLM will collaborate with the program’s analyst to move the closed case folders and files to the Retention server using the current process and delete the copied cases from all other folder locations.

The CWA FLM will assist with deleting the copied cases from all audit server locations including the assigned employee and the “Closed Cases” folders.

The FLM will ensure employee contact with taxpayers and other stakeholders is conducted in a manner that promotes a positive image for the IRS and the CWA program. See IRM 4.10.1.3, Communication.

All CWA program employees must use official letters and forms unless the CWA FLM approves the use of original correspondence. The CWA FLM must review the communications prior to its distribution and will document each approval in the activity record. The Paperwork Reduction Act requires all government agencies to obtain Office of Management and Budget (OMB) approval for activities involving more than nine taxpayers on the same topic.

The CWA FLM will periodically review Circular 230, Regulations Governing the Practice of Attorneys, Certified Public Accountants, Enrolled Agents, Enrolled Actuaries, and Appraisers, for any changes to the requirements for individuals practicing before the IRS.

The CWA FLM will periodically review information about employee protection under the Potentially Dangerous Taxpayer and Caution Upon Contact programs. See IRM 25.4.1, Employee Protection, Potentially Dangerous Taxpayer and IRM 25.4.2, Employee Protection, Caution Upon Contact Taxpayer.

The CWA FLM can review additional information about supervising employee contact with taxpayers on the Office of Employee Protection site.

An NRA artist or athlete who submits a CWA application usually designates a representative to communicate with the IRS.

The CWA FLM will confirm during a case review that a valid Form 2848, Power of Attorney and Declaration of Representative or Form 8821, Tax Information Authorization, has been received for each applicant who authorized a representative to submit the application or communicate with the IRS.

The CWA FLM must effectively communicate with artists and athletes, representatives, and withholding agents. The CWA FLM must maintain control over CWA deadlines and decisions about income, expenses, and withholding.

The CWA FLM should not allow any individual to delay the CWA application process. The CWA FLM should consider denying the CWA application when the employee assigned does not receive requested information by the communicated due date.

The CWA FLM will confirm during a case review that the employee assigned set reasonable deadlines and stated the consequences of not meeting each due date for sending requested documents and information.

Each employee assigned to a case may be granted access to IDRS to conduct research on all covered taxpayers.

The CWA FLM is required to review IDRS usage reports to ensure employee access levels are appropriate and report any violations that occur.

The CWA FLM has a security responsibility which includes the following:

A CWA FLM will review and approve the time reported in the Single Entry Time Reporting (SETR) system. See IRM 1.4.40.3.8, Time Accounting Responsibilities.