1.4.51. Insolvency

(1) Purpose. This Internal Revenue Manual (IRM) section discusses responsibilities of managers in Field Insolvency (FI) and Centralized Insolvency Operation (CIO). While many topics are touched upon in this chapter, comprehensive guidance about all of them cannot be included here. Remain alert for references to other resources, such as related IRMs and websites and access that guidance to ensure a thorough understanding of topics. Specifically, IRM 1.4.51:

1. Describes general administrative responsibilities required of insolvency group managers.

2. Describes employee performance and development procedures.

3. Prescribes internal control requirements.

4. Provides guidance to group managers on the assignment and approval of work.

5. Provides guidance for operational reviews by Territory / Operation Managers and Director.

(2) Audience. This IRM section is designed for use by Small Business/Self-Employed (SB/SE), Specialty Collection - Insolvency (SCI) management.

(3) Policy Owner. Director, Collection Policy, SB/SE.

(4) Program Owner. Collection Policy, SB/SE, Insolvency is the program owner of this IRM.

(5) Primary Stakeholders. The primary stakeholder is SB/SE Collection, Specialty Collection - Insolvency (SCI).

(6) Program Goals. This guidance is provided to communicate the managerial responsibilities to Insolvency group managers including performance management, assignment of work, approval of work, promoting quality casework, and internal group controls.

(1) Fundamental responsibilities for all managers are discussed in IRM 1.4.1 , Management Roles and Responsibilities. An Insolvency manager must provide oversight and direction in a number of areas, which will result in accomplishing the mission of the Internal Revenue Service. Oversight responsibilities include, but are not limited to:

1. Ensuring case actions are timely and in accordance with current law, policies, and procedures.

2. Ensuring employees maintain high standards of professionalism in all correspondence and telephone contacts with the public, internal customers, external customers, and coworkers.

3. Ensuring taxpayer rights are observed and taxpayers and/or their representatives are advised of those rights and how to exercise them.

4. Ensuring employees are aware of the role of the Taxpayer Advocate Service and the Low Income Tax Clinics (refer to Pub 4134, Low Income Taxpayer Clinic List), and the service these functions provide is properly communicated with taxpayers and/or their representative.

5. Ensuring employees are aware of ongoing changes to the laws, policies, and procedures that relate to their responsibilities (preferably during group meetings).

6. Addressing system issues that impact either internal or external customer needs.

7. Ensuring cases are assigned timely and employee workload:- Reflects current priorities.- Reflects employee experience and skill level.- Addresses Servicewide objectives.- Protects public interests.- Allows for effective case processing.

8. Helping employees make the appropriate next case decision.

9. Ensuring employees are accountable for the appropriateness of their actions.

10. Providing ongoing employee feedback that is candid and meaningful and will establish a basis for determining an accurate assessment of performance and developmental needs.

11. Issuing the Critical Job Elements (CJE) timely and evaluating employee performance against their CJEs.

12. Creating and maintaining a work environment that will promote team work, positive working relationships, and increased employee satisfaction.

13. Ensuring employees have necessary functioning equipment and supplies.

(2) Responsibilities also include:

1. Developing employees.

2. Evaluating employee performance and providing counseling.

3. Addressing employee conduct issues.

4. Fostering good working relationships.

5. Defining goals and course of action.

6. Assigning and directing work.

7. Instructing employees in the application of procedures and guidelines.

8. Displaying integrity in all actions.

(3) Managers are empowered to address performance deficiencies within their group. This may be accomplished through reviews and/or by requiring concurrence with performing specific actions.

(4) Managers oversee group remittance processing activities, including monitoring Form 5919 , Teller's Error Advice, sent to their group. See IRM 5.1.2.5.6, Responding to Form 5919.

(5) Managers are responsible for ensuring employees have access to the IDRS command codes necessary to perform their assigned tasks and required research. When an employee is expected to be away from their terminal for more than two weeks or longer the employee should lock their profile to avoid being locked out by Data Security. The CC LOKME is used to lock IDRS. Refer to IRM 10.8.34.6.2.2.4.2, Employee Self-Profile Locking (LOKME), for additional information.

(6) Managers coordinate IDRS security with their assigned Unit Security Representative (USR), otherwise known by their organizational title: Data Security Analyst (DSA). See IRM 5.1.25.2, IDRS Security Personnel, for additional information.

(1) IRM 1.4.1.3, Administrative Responsibility, contains information about general managerial responsibilities. Place special emphasis on responsibilities shown in the following sections.

(1) See IRM 1.4.1.6, Employee Development, for a full discussion of managerial responsibilities.

(2) Group Manager roles and responsibilities in the area of employee development and training include but are not limited to:

1. Overseeing orientation of new employees

2. Overseeing training for new employees (formal and on-the-job)

3. Training and developing other employees including professional/technical and clerical staff

4. Assisting and advising employees preparing a Career Learning Plan (CLP), if desired by the employee

   Note: Career Learning Plan website: http://hco.dstest.web.irs.gov/apps/clp2/index.asp

5. Delegating acting managerial assignments

6. Continuing education for employees to maintain and update knowledge and proficiency in technical areas

7. Providing opportunities such as details to facilitate career development

8. Ensuring employees have a working knowledge of tools to perform their duties, (e.g., AIS, ATFR, Automated Lien System (ALS), etc.)

(3) More information can be found at the Human Capital Office website: http://hco.web.irs.gov/

• Servicewide Training and Briefing Programs

• Policy and Procedural Guidance

• Other related training resource sites, the IRS Learning Center, etc.

(4) For BU employees, also see Document 11678, National Agreement - IRS/NTEU, (Articles 7, Personnel Records, 12, Performance Appraisal System, 16, Details and Non-Competitive Temporary Promotions, and 30, Training) or contact a Human Resources Specialist.

(5) Resources:

• IRM 1.4.1.6, Employee Development

• Integrated Talent Management (ITM): https://irssource.web.irs.gov/Pages/ITM.aspx

• HCO website: http://hco.web.irs.gov/

(1) The three balanced measures are: Employee Satisfaction, Customer Satisfaction, and Business Results. These three balanced measures are part of every individual and organizational performance evaluation system within the IRS.

(2) IRM 6.430.2, Performance Management Program for Evaluating Bargaining Unit and Non Bargaining Unit Employees Assigned to Critical Job Elements (CJEs), contains detailed guidance about evaluating performance. Refer to that IRM as well as the information following when evaluating performance.

(1) Telework is a program that permits employees to work at home or at other approved locations other than the assigned post of duty.

(2) There are three (3) forms of Telework:

1. Frequent

2. Recurring

3. Ad Hoc

(3) See Document 11678, National Agreement - IRS/NTEU, Article 50, Section 1.B, Types of Telework, for more information about the types of Telework.

(1) Awards are opportunities for group managers to recognize and reinforce positive performance and behavior.

(2) Managers are responsible for maintaining a working knowledge of the awards process.

(3) Complete information regarding awards can be found on the Human Capital website at: http://hco.web.irs.gov/perfmgmt/awards/perfaward/index.html

(4) Resources:

• IRM 6.451.1, Policies, Authorities, Categories, and Approvals

• IRM 1.4.1.8.3, Recognition and Awards

• Document 11678, National Agreement - IRS/NTEU, Article 18, Awards

• The Human Resources Specialist

(1) Managers are responsible for effectively managing the group's workload in order to encourage positive work flow and case movement. To accomplish this he or she must:

1. Ensure priority cases are worked.

2. Assign cases based on grade and priority level.

3. Balance inventories within the group.

4. Ensure case activity is progressing toward resolution.

5. Initiate methods to improve production, work processes, and/or to increase the quality of the work directed.

(2) Managers must monitor key Insolvency processes to minimize the risk of damage claims by ensuring bankruptcy freeze codes are input and released on IDRS timely.

(3) Managers should review the number of cases on the Court Closure Follow-Up report needed to monitor inventories identified as "at risk" for backlogs or lack of timely processing. Closure actions on discharged and dismissed cases must be initiated within 30 days of notice. As a part of closing actions, managers must ensure liens are released timely when release is appropriate. IRM 5.9.17.18, Release of Federal Tax Liens, provides procedures for lien releases which may include requests for manual lien release.

(4) Adherence to the following areas can promote efficiency in the flow of Insolvency work:

• Educating caseworkers to the range of information available in the AIS database and explanation of the screens and fields AIS Business Objects reports access to format reports

• Eliminating unnecessary or low value tasks to streamline processing as long as the elimination does not violate IRM requirements

• Delegating management duties to a Field Insolvency employee whose ratings exceed fully successful (Field Insolvency)

• Delegating of management duties to team leads (Centralized Insolvency Operation)

• Identifying potential or actual bottlenecks in workflow

• Developing contingency plans to prioritize work during predictable seasonal increases in receipts and manual refund processing

• Accessibility of all cases to the group

• Respecting assignment of duties by operation established in IRM 5.9 and IRM 1.4.51

• Elevating system change requests through the management chain up to Collection Policy

(1) Insolvency ensures fairness and integrity in case assignment through using an equitable process for all taxpayers by using an automated system, the Electronic Noticing System (ENS) to load bankruptcy cases directly from the court. See IRM 5.9.12.7, Electronic Noticing System. In addition, the Case Assignment Guide, described below in IRM 1.4.51.9.1, Case Assignment Guide, explains the automated grading and assignment of new cases received by Insolvency. These automated systems ensure no one individual can control the enforcement selection decision making process which aligns with IRM 1.2.1.2.36, Policy Statement 1-236 (Rev. 1), Fairness and Integrity in Enforcement Selection. Adherence to the principles in this policy statement ensures the Service is meeting its commitment in the IRS Mission Statement by enforcing the tax law with integrity and fairness to all. An important component of fairness and integrity in enforcement selection includes the assignment of work by the group manager. The purpose of this section is to provide a framework for the assignment of work to ensure case assignments are consistent with the goals and objectives of the Service and are free from personal bias.

(2) Managers are responsible for ensuring that cases are assigned at the proper grade, based on all indicators of case difficulty.

(3) Managers must review inventory and case grade reports monthly to ensure employees are not working over 25% direct time above grade. If employees works higher grade cases, the manager should track the higher graded work to ensure the 25% threshold is not exceeded. Employees who exceed 25% level for a four-month period may be entitled to a temporary promotion.

(1) Insolvency Interface Program (IIP). The CIO must run IIP processes C and D daily to ensure new cases are processed timely. If IIP is unavailable the manager must direct employees to input bankruptcy freeze codes (TC 520s) with appropriate closing codes manually within five work days of receiving notification of new bankruptcies. (See IRM 5.9.5.6.1, Closing Codes, for TC 520 closing codes.)

1. Caseworkers must add bankruptcy court case information into AIS as soon as Insolvency receives electronic notice, paper notice, or referral information from other internal sources (e.g., Automated Collection System (ACS), Customer Service, or Accounts Management). Adding new cases to AIS is a CIO duty. However, Field Insolvency caseworkers are not prohibited from loading new cases that come to their attention through the identification of a stay violation.

2. The Potentially Invalid TIN (PIT) and Cross-Reference TIN Reports must be worked daily. The court debtor name and TIN data must match the master file information to allow the TC 520 to post to the correct taxpayer's account. The CIO will work all of these reports except for those pertaining to Chapter 9 and Chapter 15 cases. Cases that cannot be resolved by the CIO must be transferred to Field Insolvency for resolution.

3. IIP generates reports identifying cases in status 22 - ACS, status 24 - Federal Payment Levy Program (FPLP), status 60 - installment agreements (IA), status 26 - field revenue officer (RO), and status 71 - Offer in Compromise (OIC). The CIO works all status reports except those pertaining to Chapter 9 cases, Chapter 15 cases, and some Chapter 11 cases. Cases that cannot be resolved by the CIO must be transferred to Field Insolvency for resolution. (See IRM 5.9.12.5.1, IIP Status Reports.)

4. TC 520 closing codes in the 60 - 67 series, 81, and 83 - 85 series are input taking into consideration court rules, standing orders, and the IRS's mission to increase compliance. Only the CIO is authorized to change closing code designations on IIP and may only do so with approval from Collection Policy.

5. Managers are to analyze the impact on work processes when the TC 520 closing code used by their group changes.

(1) Receipt of Notices. Insolvency must protect the interests of the government during bankruptcy proceedings. Following the procedures listed below will increase appropriate and timely processing actions.

(1) The APOC program systemically calculates and classifies liabilities to populate AIS proofs of claim fields so Forms B410, Proof of Claim, can be produced for the bankruptcy court. A full discussion on employee instructions for generating and perfecting APOC data is found in IRM 5.9.14, Automated Proofs of Claim (APOC). This IRM 1.4.51 subsection deals with manager reports and APOC permissions, topics not covered in IRM 5.9.14.

(2) Managers can access APOC by accessing a case and selecting the "APOC" tab.

(3) Cases that were selected for APOC processing but did not make it through the process will need to be “Restored to AIS” by an Insolvency Manager. Managers should select the "Restore APOC" button located on the APOC Case Detail screen to restore these cases when necessary.

(4) APOC Reports. The following is a list of APOC reports that should be reviewed by managers:

1. Flagged Cases report. The Flagged Cases report lists all cases that have unresolved flags. Most flags should be worked at least five calendar days before the 341 meeting.

2. Period Detail Flag - Credits Posted After Petition Date report. The Period Detail Flag - Credits Posted After Petition Date report lists all modules with a TC designated as Pay in the Payment Designation Tables and the TC date is greater than the Petition Date. Since these credits could be in "Violation of the Automatic Stay" caseworkers should work the cases on this report within "five" calendar days of APOC identifying the flagged condition.

3. Period Detail Flag - Lien Recorded Date Blank or After the Petition Date report. The Period Detail Flag - Lien Recorded Date Blank or After the Petition Date report lists all modules with a notice of lien date that is either not recorded on AIS, or the date recorded is greater than the Petition Date. Since these NFTLs could be in "Violation of the Automatic Stay", the caseworker should work the cases on this report within "five" calendar days of APOC identifying the flagged condition.

4. Period Detail Flag - Secured Period report. The Period Detail Flag - Secured Period report lists all modules classified by APOC as "Secured" based on AIS Lien records. The caseworker should work the cases on this report within "10" calendar days of APOC identifying the flagged condition for all chapters other than Chapter 7 and Chapter 13.

5. APOC Summary report. This report provides the manager with statistical data relating to the processing of cases through APOC.

(1) Group managers are responsible for ensuring that their employees have access to the Integrated Data Retrieval System (IDRS) command codes necessary to perform their assigned tasks and required research.

(2) Examples of the tasks Insolvency performs on the IDRS are:

1. Account research for a filing compliance check

2. Assigning a case to another area (e.g., assign a case to a revenue officer or the Automated Collection System (ACS))

3. Resolving incompatible data (e.g., matching data from the bankruptcy petition to a taxpayer’s name and social security number on the IRS’s master file)

4. Accessing account information to prepare adjustment requests

5. Inputting or reversing bankruptcy freezes

6. Inputting account adjustments other than bankruptcy freeze actions (CIO only)

(3) Whenever practical, Insolvency groups should not be included with IDRS data security work groups from other functions within SB/SE (for example, Civil Enforcement Advice and Support Operations (CEASO) or Field Collection (FC)). If the physical office accommodates two or more Insolvency groups, all of the Insolvency groups in the same office can be under the same IDRS group code. To change, consolidate, or request a new group code, the IDRS-Unit Security Representative (USR) or the Functional Security Coordinator (FSC) must be contacted. By keeping Insolvency separate from other groups, managers can identify and oversee command codes needed to perform Insolvency specific duties.

(4) Managers must ensure required security measures are in place regarding on-line IDRS account adjustments.

(5) Managers should monitor command code usage by all members of the group. Suggested profiles for Insolvency employees may include the following:

(6) A command code is considered "sensitive" if it can be used to adjust account balances, change the status of a tax module or account, or affect the tax liability. Sensitive command code combinations give an employee the ability to perform more than one type of transaction where the intentional mishandling of a taxpayer’s account may occur (e.g., change the entity or address information of an account and transfer payments).

(7) The following chart lists common IDRS command codes and their functions.

(8) Resources:

• IDRS Command Codes Job Aid on SERP at: http://serp.enterprise.irs.gov/job-aids/command-code/command-code.html

• Document 6209, IRS Processing Codes and Information

• IRM 10.8.34, IDRS Security Controls

• IRM 2.3, IDRS Terminal Responses

• IRM 2.4, IDRS Terminal Input

(1) Dismissal actions must be initiated within 30 calendar days of the Service's receiving notification of dismissal.

(2) Managers must ensure case discharge processing begins no later than 30 calendar days after receipt of the discharge notice for all cases except non-liquidating corporate Chapter 11 cases or individual Chapter 11 cases commenced prior to October 17, 2005. Discharge actions on non-liquidating corporate Chapter 11 cases or individual Chapter 11 cases commenced prior to October 17, 2005, must be initiated within 30 calendar days of plan completion.

(3) The Service will initiate closing actions required for the release of liens on discharged taxes within 30 days of receipt of notice of the discharge order. The lien will systemically release once all adjustments have posted to IDRS. Generally, manually requesting a lien release is not required. However, if a certificate of release will not be systemically issued, the release should be requested manually on the Automated Lien System (ALS). Quarterly checking of the Lien Research report will identify liens that have not been released so corrective actions can be taken. See Exhibit 1.4.51-25, Guide for Lien Research Report (Field Insolvency and CIO). In the instance of individual Chapter 11 cases filed prior to BAPCPA or non-individual Chapter 11 cases filed at any time, closing actions will be initiated within 30 calendar days from plan completion. In these Chapter 11 cases, manually requesting the lien release may be required if the adjustments will not result in a systemic release within 30 days of receipt of the final plan payment.

(4) If exempt, excluded, or abandoned assets are identified, Insolvency managers should ensure prompt action is taken to determine if such assets are worth pursuing, including appropriate investigation and valuation of the assets. (See IRM 5.9.17.5.3, Addressing Lien Issues, for specific time frames.) Once a determination is made not to pursue such assets, managers should ensure that caseworkers are initiating closing actions to adjust the dischargeable modules within 30 days of the determination, which will result in a systemic release of the lien. Generally, manually requesting a lien release is not required. However, if a certificate of release will not be systemically issued, the release should be requested manually on ALS. Quarterly checking of the Lien Research report will identify NFTLs that have not been released so corrective actions can be taken. See Exhibit 1.4.51-25, Guide for Lien Research Report (Field Insolvency and CIO).

(5) Chapter 7 and Chapter 13 cases discharged by the court will be run through ADS by the CIO twice a week. ADS processing allows all discharged cases in these chapters to be reviewed by the same standards. Some circumstances may warrant a case's remaining open even though the court has entered a discharge. IRM 5.9.5.4(6), Classifications and Summary Histories, explains procedures for these cases. A majority of cases are closed systemically as either non-dischargeable and a TC 521 is input, or dischargeable and a TC 971 is input followed by a TC 521 after a two-cycle delay. Discharge determination reports (DDRs) are generated for cases that cannot be fully processed without caseworker intervention. Insolvency caseworkers must begin resolving DDRs within 30 calendar days of the Service's receiving notification of discharge. (See IRM 5.9.17.4, Time Frames for Required Actions.) Those DDRs for accounts assigned to the CIO and involving complex issues should be forwarded to the appropriate Field Insolvency office for resolution. The review frequency for DDR resolutions on specific cases is set by the CIO Operation Manager. IRM 5.9.18, Automated Discharge System (ADS), outlines procedures for running ADS and resolving DDRs.

(6) A Field Insolvency caseworker evaluates the government's interest in exempt, excluded, or abandoned property if an NFTL:

1. Was filed before the bankruptcy action began;

2. Is valid; and

3. Contains Unpaid Balance of Assessments (UBA) that exceed the established tolerance.

(1) An important aspect of workload management and quality control for Insolvency managers is the establishment of group controls and reviews. Use the EQ managerial review process to conduct case reviews.

(2) Use AIS to monitor and maintain controls in these areas:

• Pyramiding

• Collection Statute Expiration Date (CSED)

• Assessment Statute Expiration Date (ASED)

• Large Dollar

• No touch/activity for specific time period

• Higher graded duties

(3) Insolvency must protect assessment statute expiration dates (ASEDs) and collection statute expiration dates (CSEDs). For information on ASEDs and CSEDs including the effect of BAPCPA on cases filed on or after October 17, 2005, see IRM 5.9.5.7, Serial Filers, IRM 5.9.4.3.1, BAPCPA and BRA 94’s Effect on Assessments, and Exhibit 5.9.6-6, TC 520 Input Guide for Trustee Turnover Requests.

(4) Once established, these control reports can be utilized to identify cases needing regular review and follow-up by the manager. Reviews should address issues such as:

1. Are timely and effective actions being taken to appropriately resolve the case?

2. Is the accuracy of high priority cases (CSED, ASED) being verified?

3. Are taxpayer rights being observed?

4. Is the employee providing good customer service?

(1) The IRS vision focuses on three high level goals: service to each taxpayer, service to all taxpayers, and productivity through a quality work environment. The IRS has developed a set of Balanced Measures in three major areas: Customer Satisfaction, Employee Satisfaction, and Business Results. Business Results is comprised of measures of quality and quantity. In reaching our goals we consider our impact on customer and employee satisfaction while we strive to improve quality and achieve quantifiable results. The Embedded Quality (EQ) process was developed to support Balanced Measures objectives.

1. EQ is a tool designed to assist managers in identifying areas of strength and need in their employees’ individual performance. Employee performance is evaluated against attributes that are designed to identify actions that move cases toward closure through appropriate and timely case activity. The attributes link individual performance to organizational goals and are used by both managers and National Quality Reviewers to assess significant case actions.

2. EQ enables the manager to measure the quality of both individual and group performance. It allows National Quality Review to assess the quality of the function to facilitate recommendations for improvement through policy changes, training, and updated procedural guidelines.

3. The focus of EQ is on improving performance while the performance occurs. The attributes can be measured on open or closed cases. EQ is designed to identify gaps in quality case work at the earliest point in activity. It assists the manager in targeting corrective steps that positively impact performance.

4. To conduct employee case reviews, managers use the Embedded Quality Review System (EQRS) to rate case actions against the attributes. EQRS also provides managers with tools to capture and share review feedback to show employees how they performed in relation to both the attributes and their CJEs. This should assist managers in providing employees with specific examples of how to sustain or enhance their performance.

(2) An important aspect of workload management and quality control for Insolvency managers is the establishment of group controls and reviews. Use the EQ managerial review process to conduct case reviews.

(3) Managers are responsible for the quality of all work assigned to their group and for all work which leaves their group regardless of the methods used. Managers must devise a system of quality control which works for them. Consider the following:

1. Encourage employees to work with their manager to improve the quality of their work.

2. Solicit suggestions from the group to address ways that can improve the quality of the work.

3. Develop a plan to ensure a high level of quality in the group.

4. Use Embedded Quality Review System (EQRS) and National Quality Review System (NQRS) reports available through EQ systems as diagnostic tools to focus attention on specific quality issues and identify training needs. The EQRS application used by front line managers and the NQRS application used by centralized reviewers mirror each other and feature numerous reporting capabilities that will facilitate comparison of results from both reviews at various levels of the organization.

   Example: If specific aspects of NQRS reports for a certain Area Office start to decline, area, territory / operation, and even group results for the same aspect measured under the managerial EQ review can be viewed to help isolate potential root causes.

(4) Ensure appropriate time is devoted to coaching and mentoring employees, as well as providing guidance that will assist in resolving their most difficult assignments.

(5) Reviews can help determine an employee’s needs for training and development. This will help decide how much time to devote to each employee.

(6) Choose from the following reviews and controls in designing a plan:

1. Field visitations.

2. Office observations.

3. Spot reviews of open and closed cases.

4. Formal inventory analysis.

5. Time utilizations.

6. Reviews of work submitted for approval.

7. Initial contact reviews.

8. TFRP cases pending determination or recommendation.

9. Regular reviews of high priority cases (ie. pyramiding, CSED, ASED, large dollar, and in-business accounts).

(1) Guidance in this section is for Insolvency Territory / Operation Managers. An optional template to assist with planning operational reviews can be found in Exhibit 1.4.51-45, Operational Review Plan Guide.

(1) Guidance in this section is for the Director. See Exhibit 1.4.51-46, Director Operational Aid (DOA).

(1) Below is suggested text for a letter to a claimant asking for payment of damages from the Service because the Service has violated the automatic stay or the discharge injunction. This letter is to be used when the claimant fails to provide complete information with his claim application. Local Counsel may suggest changes in wording or content.

(2)

(1) Below is suggested text for a letter to a claimant asking for payment of damages from the Service because the Service has violated the automatic stay or the discharge injunction. This letter is to be used when the Service agrees to pay all or a portion of the claimant's application. Local Counsel may suggest changes in wording or content.

(2)

(1) Below is suggested text for a letter to a claimant applying for payment of damages because the Service has violated the automatic stay or the discharge injunction. This letter is to be used when the Service denies payment of all portions of the claimant's application. Local Counsel may suggest changes in wording or content.

(1) Group Review Schedule

(1) EQRS, Form 6850-BU, Bargaining Unit Performance Appraisal and Recognition Request, and narratives are important in all actions regarding caseworker performance. The review documents should justify the numerical ratings and average indicated on the Form 6850-BU.

(2) These documents will assist the manager in substantiating a decision to take any action regarding the performance of a caseworker. These actions can include awards, reduction of a rating of record, or removal from Telework. These documents should be clear and concise. They should provide the caseworker with a clear understanding of their level of performance.

(3) EQRS review documents, narratives and other evaluative documents should provide positive feedback and specific strategies for improvement as applicable. The narrative should be specifically written to enhance performance, identify weaknesses, and explain potential consequences when warranted.

(4) Ensure that the reviews are written and encompass a wide spectrum of cases from the caseworker's inventory.

(5) When performing case reviews utilizing the Embedded Quality Review System:

1. Review any hard copy case file(s). This is to ensure documents that will expedite case resolution are included, (e.g., financial statements, bank records, etc.) and that an appropriate evaluation of case direction has been made.

2. Ensure clear comments are included for each case reviewed. If the employee is performing well, document it in the comments.

3. If case direction is needed, ensure directions are specific. If warranted, reference specific documents reviewed in the case file.

(6) When preparing the review documentation the manager should:

1. Ensure the employee's actions were appropriately documented on each case.

2. Base comments on actions pertaining to the applicable CJE and sub-element.

3. Ensure conformity with the employees’ CJE’s by utilizing the employee’s Performance Plan.

4. When appropriate, reference relevant IRM sections, subsections, and case file documents.

5. Document strategies for improvement.

6. Be realistic in expectations.

7. Prepare a narrative of the overall findings.

(7) Meet with the employee and engage in an open dialogue. Be sure to discuss the positive as well as the negative aspects of the employee’s performance. Discuss the comments on the EQRS Feedback Report given on each case and ensure the employee understands.

1. Ask for their input regarding the interpretation of their actions.

2. If warranted, discuss the documents included in the case file, and address any that are missing.

3. If appropriate, add their proposed actions to the comments as additional action items.

4. Ensure that time lines are realistic.

5. Ensure that case direction is clear.

(8) Discuss the EQRS Feedback Report narrative with the employee to ensure they understand the document and its possible impact on their annual appraisal/evaluation (positive or negative).

(9) Managers should have the employee sign for receipt of both the Individual Feedback Report and any accompanying documents. Document and date the Individual Feedback Report and narrative if the employee refuses to sign.

(10) Annual Appraisal Document Form 6850-BU:

(11) Form 6850-BU is the numerical representation of the employee's performance during the course of the evaluation period. It must be consistent with the employee's casework and evaluative documents prepared during the course of the evaluative period. Managers should ensure that the preparation of Form 6850-BU is in accordance with Article 12, Performance Appraisal System, of the National Agreement - IRS/NTEU. Base the appraisal of the employee on documented materials:

1. Evaluative documents retained in the caseworker's EPF, such as EQRS Individual Feedback and/or Cumulative Feedback Reports. Also IRM 1.4.51.5, Performance Management, and IRM 1.4.51.5.2, Reviews (Overview), for other considerations.

2. Taxpayer correspondence.

3. Internal customer correspondence.

4. All awards received during the period.

(12) Performance and Evaluative Narratives:

(13) Narratives are an effective tool in documenting and informing a employee of their performance. They should be used to emphasize the positive as well as the negative aspects of the employee's performance. They can be used as either stand alone documentation (EQRS Individual and/or Cumulative Feedback Reports) and/or with the Form 6850-BU (when appropriate). See Article 12, Section 4.N, of the National Agreement - IRS/NTEU, regarding Form 6850-BU narratives. Effective narratives:

1. Are clear and concise.

2. Address each Critical Element and its accompanying sub-element (for Form 6850-BU).

3. Reference prior reviews and other evaluative documents completed during the course of the evaluation period and the dates completed or received.

4. Are of sufficient length for the employee to have a clear understanding of their current level of performance and what is expected from them in the future.

5. Summarize the findings during the course of a review or the overall performance during an evaluative period. may choose to use specific examples or sanitized case references.

6. Refer to specific Critical Job Elements and sub-elements.

7. Describe strengths and weaknesses found within specific element(s).

8. Describe strategies for improvement (if necessary).

9. Identify the level of performance (overall and within a specific CJE).

10. Describe potential consequences if performance is at an unacceptable level or regressing.

11. Note that the manager is available for assistance.

(14) In conjunction with the steps to address employee performance ensure that:

• Prescribed actions are specifically documented and appropriately worded. Consult with the Territory / Operation Manager or Labor Relations Specialist as appropriate.

• Documentation includes a description of any problems and documentation of the discussion with the employee involved. Inform the employee of possible consequences if the issue is not resolved. Managers may inform the employee verbally, but confirm the discussion via memorandum. The proposed resolution of the issue should include a specific time period for completion. The resolution may include actions the employee must take and meetings between managers and the employee to resolve the problem.

Note: The employee is entitled to request representation by the Union when the employee and the supervisor or other management official meet to discuss action or potential action, based on unacceptable performance.

(1) Purpose of Reports. There are numerous APOC reports available on AIS Business Objects. IRM 5.9.14.2.5(3), APOC Reports, provides a list of the APOC reports. This exhibit will only cover the reports designated as "mandatory".

• Period Detail Flag - Credits Posted After the Petition Date report identifies cases where there is a credit that may have been received after the petition date in violation of the stay. These cases should be worked within five calendar days of APOC identifying the flagged condition.

• Period Detail Flag - Lien Recorded Date Blank or > Petition Date report identifies cases where the date of the notice of lien is not recorded on AIS, or the date recorded is greater than the petition date. These cases should be worked within five calendar days of APOC identifying the flagged condition.

• Period Detail Flag - Secured Period report identifies cases where the Service may have a pre-petition NFTL on file and may be entitled to an adequate protection or cash collateral agreement. These cases should be worked within ten calendar days of APOC identifying the flagged condition.

• Flagged Cases report lists all cases that have encountered a flag which has not yet been resolved. These cases require manual intervention by the user.

  Reminder: Cases that have the Period Detail Flag - Credits Posted After the Petition Date, the Period Detail Flag - Lien Recorded Date Blank or > Petition Date, and the Period Detail Flag - Secured Period will also be included on this report.

(2) Accessing the Reports. Use AIS Business Objects to access, run, and print the APOC reports.

(3) Frequency of Use by Caseworker. Caseworkers must ensure the time frames required for processing each of the flags is met, therefore they should work the reports at least weekly.

(4) Frequency of Use by Manager. Managers should review the Period Detail Flag - Credits Posted After the Petition Date report, and the Period Detail Flag - Lien Recorded Date Blank or > Petition Date report, weekly. They should review the Period Detail Flag - Secured Period report bi-weekly and the Flagged Cases report, monthly.

(5) Range of Uses. All chapters where claims may be processed by APOC are subject to this report.

(1) Introduction. Use of the Bar Date Follow-Up Report is "Mandatory". This AIS Business Objects report identifies cases where a POC is presumed to be required, yet no POC has been printed. A case is included on the report when a "Yes" appears in the "Proof Required" field on the AIS Taxpayer screen and claim data has not been entered on the Proofs of Claim screen(s).

(2) Accessing the Report. Use AIS Business Objects to access, run, and print the Bar Date Follow-Up report.

1. Populate Parameter field(s) for specific report selected based on output desired.

2. Enter beginning date. An old date, like 01/01/1950, should be input to capture cases previously overlooked or cases entered with an erroneous date.

3. Enter ending date. Generally use 90 days into future.

(3) Frequency of Use by Caseworker. This list must be generated and checked by caseworkers at least "Bi-weekly" to encourage timely preparation and filing of proofs of claim.

(4) Frequency of Use by Manager. The Bar Date Report is reviewed by managers "Monthly" to identify inventory management concerns, systemic noticing problems, or other issues.

(5) Retention. The retention period for this report is one month.

(6) Range of Uses. The report provides data on all chapters where it may be appropriate for the Service to file a claim.

(7) Presumptive Bar Dates. Cases are listed in ascending chronological order by a "presumptive" bar date. A proof of claim (POC) must be filed before 180 days (the government bar date) from after the date of the order of relief (which is the date the bankruptcy petition was filed in voluntary cases). (See 11 USC 502, Allowance of claims or interests, and Bankruptcy Rule 3002, Filing Proof of Claim or Interest.)

(8) Managerial Review. When reviewing this report, the petition date and bar date time period should be checked to note if the time period is consistent with locally established practice.

(9) Monitoring. Cases falling beyond the 70 day period should be highlighted or otherwise annotated for review on a biweekly basis. When awaiting receipt of unfiled tax returns, filing a claim with estimates within 70 days is more efficient than postponing the filing thereby risking a claim's being barred. Awaiting the receipt of unfiled returns is usually the reason for delays in the claim filing process.

(10) Deleting a Case from the Bar Date Report. A case is removed from the Bar Date Report by:

• Preparing/printing POC;

• Entering conversion to 7 No Asset data to AIS Taxpayer screen;

• Entering "NL NO LIABILITY" in the Closure Method field with a date when a case is determined to be not liable;

• Closing a case on AIS as dismissed; or

• Manually changing "Proof Required" field from "Yes" to "No".

(11) AIS Documentation. Managers should be conservative in requiring documentation from caseworkers on an ongoing basis. Highlighting a case with a bar date beyond 70 days is effective. Groups may agree on one letter codes to identify cases in a certain category, e.g. "L" for -L freeze present awaiting call back from exam or the underreporter unit, "E" for complex estimated claim being calculated, or "I" for restricted interest calculation.

(12) Administrative Claims. The report does not list administrative claims. For example, in conversions, the reviewer may note the Proof Required field shows "Yes" indicating a claim is required, yet an admin claim (Form 6338-A, Request for Payment of Internal Revenue Taxes) has been filed. The caseworker should change the "Yes" to "No" if no taxes are due at the time the debtor filed bankruptcy. Leaving the "Yes" reduces efficiency if a caseworker continues to check on a case where the determination has already been made.

(1) Purpose of Report. The Proof of Claim Follow-Up report lists all cases with proofs of claim that were sent to the court, but have not yet received an acknowledgement of the filing by the court. It is important to ensure that all cases where a claim is required are filed and acknowledged by the court prior to the bar date. Generally, it takes only a day or two for the court to acknowledge filing, so the date used can be one from a few days prior to the current date.

(2) Accessing the Report. Use AIS Business Objects to access, run, and print the Proof of Claim Follow-Up report.

(3) Frequency of Use by Caseworker. Caseworkers must work the Proofs of Claim Follow-Up report at least bi-weekly to ensure proper claim filing.

(4) Frequency of Use by Manager. Managers should review the report monthly to identify trends or as part of employee reviews.

(5) Range of Uses. Although AIS does not limit the query criteria, chapters where claims are filed are the most useful for this report.

(1) Purpose of Reports. The Litigation Transcript System (LTS) matches master file data with TIN records of the AIS database. The transcripts provide new assessment data, potential manual refunds, unreversed TC 520s, delinquent federal tax deposits, and issues that may result in violations of the Bankruptcy Code automatic stay provisions.

(2) Frequency of Use by Caseworker. Field Insolvency will work these weekly reports for cases in its inventory within five work days of receipt. The CIO will work required LTS reports for cases in its inventory. The reports must be worked in accordance with the instructions and time frames established in IRM 5.9.16.2, Litigation Transcript System.

(3) Frequency of Use by Manager. Managers should review the reports at least monthly to ensure potential stay violations are being addressed and resolved on a timely basis.

(4) Range of Uses. The scope of the LTS reports touches all chapters.

(5) Retention. The retention period for this report is one cycle.

(6) Referrals. Appropriate receiving offices should be notified of events identified through LTS reports affecting previously issued referrals.

(7) AIS History. Caseworkers should document the AIS history in accordance with IRM 5.9.5.4(2), History Documentation, noting all actions taken to resolve the LTS issue.

(8) Transaction Codes Identified. Examples of the types of transaction codes the LTS process identifies are:

• Posting of TC 277

• Posting of TC 430 and no TC 150 posted

• Posting of TC 520 with xx code

• Posting of TC 280 bad check penalty

• Posting of TC 670 cc05/99

• Posting of TC 820/700 (if that is the only issue)

• Posting of TC 846

• Posting of TC 971 ac031/033

• Posting of a TC 582 Notice of Federal Tax Lien

• Post-petition refunds and credits

• Zero balance due/even returns (wholly post-petition)

(9) Transcript Categories. LTS transcripts fall into one of six categories:

• After Petition

• Credit Balance

• Other Credit Balance

• Case Closed on AIS

• New Assessments

• All Other (optional for CIO)

(1) Purpose of Report. This report gives a synopsis of individual employee inventories and the percentage of work that is graded 07, 09, 11, and 12 as well as the percentage of ungraded work.

(2) Accessing the Report. Use AIS Business Objects to access, run, and print the Case Grade report.

(3) Range of Uses. This report is for all chapters.

(4) Percentages of Above Grade Work. Employees with work that is 10% above their grade level should have their inventory monitored weekly to avoid the risk of being assigned additional higher graded work. Employees should not spend more than 25% of their time each month on work above their grade level.

(5) Ungraded Cases. If an employee has a percentage of ungraded cases, managers should also run the Ungraded Case Follow Up report in order to identify the specific cases requiring a grade. See Exhibit 1.4.51-29, Guide for Case Assignment Reports (Field Insolvency and CIO).

(1) Introduction. The Court Closure Follow-Up report is mandatory for use by both Field and Centralized Insolvency. This report provides a list of open AIS cases where the court has notified the IRS of closure. It identifies cases where closing actions should be initiated immediately. The AIS generated report denotes discharges as (DC) and dismissals as (DM).

(2) Accessing the Report. Use AIS Business Objects to access, run, and print the Court Closure Follow-Up report.

(3) Days Threshold Parameter. When generating this report, the user must enter a days threshold parameter. Since employees are required to initiate closure actions within 30 days of notification, generally this report should be run using no more than 30 days.

(4) Frequency of Use by Caseworker. This report must be generated and worked weekly so closure actions are initiated within 30 days of the Service being notified of the discharge or dismissal.

(5) Frequency of Use by Manager. Managers should review the Court Closure Follow-Up report "Monthly" to determine if cases are being closed in compliance with BCCP standards.

(6) Range of Uses. This report identifies closures for Chapters 7N, 12, and 13 as well as individual Chapter 11 cases filed on or after October 17, 2005.

(7) Chapters 7A and 11. This report is of limited value in listing Chapter 11 discharges because the courts issue Chapter 11 discharges upon plan confirmation with one exception. (See "note" below.) "Discharge" does not always mean the same thing for Chapter 11 cases as it does for other chapters. The Court Closure Report is of little value in listing Chapter 7A discharges because the courts usually issue Chapter 7A discharges immediately.

(8) Use of Aged Case Report. The Aged Case Report is more useful than the Court Closure Report for identifying overage Chapter 7A cases.

(9) History Documentation. Managers should be conservative in requiring documentation from caseworkers on an ongoing basis. The use of accepted acronyms should be encouraged. (See Exhibit in IRM 5.9.1-2, Acronyms and Abbreviations.)

(1) Overview. The Tech Review Follow-Up report may be used by both Field Insolvency and the Centralized Insolvency Operation. This report provides a listing of open cases selected by an Insolvency caseworker to be reviewed for a particular purpose within a specified range of dates. The user can create a list of follow-up priority items with action dates. A required action statement appears on the AIS Follow-up screen. This statement identifies the action needing attention by the caseworker.

(2) Accessing the Report. Use AIS Business Objects to access, run, and print the Tech Review Follow-Up report.

• When entering the beginning date, an old date, such as 01/01/2000, should be input to capture cases previously overlooked or cases entered with an incorrect date.

(3) Frequency of Use by Caseworker. This list must be generated and checked by caseworkers at least "Monthly" to ensure cases continue towards closure.

(4) Frequency of Use by Manager. The Tech Review Follow-Up report is reviewed by managers "Quarterly" to ensure cases continue towards closure.

(5) Range of Uses. All chapters benefit through the use of the Tech Review Follow-Up Report.

(6) Avoiding Redundancy. The Tech Review Follow-Up report contributes to workgroup efficiencies if used in conjunction with the other AIS Business Objects reports. Scheduling a future review of the master file for receipt of delinquent returns demonstrates an effective use of this report. Actions loaded by the user to this report should not duplicate actions listed on other reports.

(7) Report Uses. The purpose of the Tech Review Follow-Up report is to focus on a particular range of cases (for example, Chapter 11 cases or large dollar Chapter 13 plans). Assigning follow-ups on every case may be counterproductive. A report listing non-critical action items debases its value for prioritizing case work.

(8) Report Misuse. The caseworker who has not completed a scheduled action timely has the ability to change the action item with a future date giving the manager or reviewer a false impression the inventory is being effectively managed.

(9) Critical Follow-Up Categories. Case actions that may be identified for follow-up include:

1. Refiling of a Notice of Federal Tax Lien at least six months before the refile period expires because Automated Lien System (ALS) does not generate refile reports on accounts in bankruptcy;

2. Monitoring federal tax deposits when appropriate (weekly, monthly, quarterly) depending on the size of the deposits and the case issue (e.g., not liable compliant Chapter 11s for one quarter, in-business Chapter 13 debtors, pre-confirmation Chapter 11 FTD monitoring); and

3. Issuing courtesy investigations to protect ASEDs or make ASED determinations.

(10) Updating Action Items. An action item can be added to a Tech Review Follow-Up report a number of ways by any user with update permissions. The AIS Follow-Up screen displays the follow-up fields directly.

(1) Purpose of Report. The AIS Tech Review No Follow-Up report lists cases open on AIS where the assigned Insolvency caseworker has not input a future follow-up date. Since follow-ups can be input by anyone on any case, and this report only shows cases where the assigned caseworker did not input the follow-up, this report might prove to be of little value in managing case loads.

(2) Accessing the Report. Use AIS Business Objects to access, run, and Tech Review No Follow-Up report.

(3) Frequency of Use by Caseworker. This list must be generated and checked by caseworkers at least "Quarterly" to ensure cases continue towards closure.

(4) Frequency of Use by Manager. The Tech Review No Follow-Up report is reviewed by managers "Quarterly" to ensure cases continue towards closure and no cases are overlooked.

(5) Range of Uses. All chapters are subject to this report.

(1) Unreversed TC 520s. This report identifies cases closed on AIS but with at least one IDRS module showing an unreversed TC 520. IRM 5.9.16.4.1, LAMS Closed Case Listing, provides step instructions for printing and working this report.

(1) Purpose of Report. The Pending Refunds report lists all cases with pending refunds on the Manual Refund screen of AIS.

(2) Accessing the Report. Use AIS Business Objects to access, run, and print the Pending Refunds report.

(3) Frequency of Use by Caseworker. Caseworkers must work the report at least weekly to ensure credits are processed timely.

(4) Frequency of Use by Manager. Managers should review the report quarterly to identify trends or as part of employee reviews.

(5) Range of Uses. All chapters are subject to this report.

(1) Purpose of Report. This AIS Business Objects report lists all ASEDs expiring before the date set by the caseworker or reviewer. Once the cases are identified, the caseworker must make a determination if proceeding with a TFRP investigation is appropriate. If so, actions must be taken to prevent the expiration of ASEDs on trust fund recovery penalty cases pursuant to IRC 6672 , Failure to Collect and Pay Over Tax, or Attempt to Evade or Defeat Tax.

(2) Accessing the Report. Use AIS Business Objects to access, run, and print the ASED report.

1. Enter beginning date. An old date, like 01/01/2000, should be input to capture cases previously overlooked or cases entered with an erroneous date.

2. Enter ending date. Generally use 04/15/xxxx with the year being one year from the date of running of the report.

(3) Range of Uses. Although AIS Business Objects allows the selection of every chapter and bankruptcy type, this report is most useful in Chapters 7A, 9, 11, and 12.

(4) Time frames. This report should be run quarterly to identify ASEDs due the following April 15, the presumptive filing date of 941 returns. This catches cases that may have been recently filed or cases where a TFRP review was overlooked.

(5) Updating AIS. Because AIS Business Objects bases the extraction for this report on the earliest ASED in any module, whether the MFT deals with a trust fund liability or not, the ASED date pulled by this report may be of no use to the caseworker or reviewer. Thus the ASED on the AIS Taxpayer screen should be updated to the true most imminent ASED for trust fund liabilities. Managers should ensure caseworkers update each period on the Proof of Claim (POC) tab to ensure the proper TFRP drop down is selected, when necessary.

(1) Purpose of Report. This Unfiled Plans report identifies Chapter 11, 12, and 13 cases where the plan filed date has not been entered on the AIS Taxpayer screen. Each case should be reviewed to determine if a plan has been received and the plan date was entered into AIS. Through the bankruptcy court's electronic records, the docket can be searched to see if a plan has been recorded. If necessary, the debtor's attorney or the bankruptcy court can be asked for a copy of the plan depending upon court jurisdiction requirements. All actions completed should be updated in the case history.

(2) Accessing the Report. Use AIS Business Objects to access, run, and print the Unfiled Plans report.

(3) Report Date Parameter. When generating this report, the user must enter a date parameter. Selecting dockets more than six months old for Chapter 13 cases and more than 12 months old for Chapter 11 cases is recommended. The date format is MM/DD/YYYY.

(4) Chapter 13 Plans. IRM 5.9.10.6.1, Field Insolvency (FI) Actions Prior to Case Transfer, provides instructions on required AIS actions concerning input of plan data.

(5) Chapter 11 Plans. Chapter 11 plans are frequently not received until at least six months after the petition date. Delays in plan filing will alert the caseworker to other problems with the Chapter 11 case.

(1) Overview. The Delinquent Case report provides a list of delinquent payments by extracting data from the AIS CPM Screen. The information it provides is only as accurate as the information from which it is compiled. A plan must be added into the CPM screen stating the payment amount, the due date of the first payment frequency, and the review date. If a plan is amended, the CPM data must be amended.

(2) Accessing the Report. Use AIS Business Objects to access, run, and print the Delinquent Case report.

(3) Chapters Affected. This report may be used in Chapters 11, 12, and 13. But it is most effective in Chapter 11 cases where the plan payment date is established for a specific date each month.

(1) Purpose of Report. The LAMS Post-Petition Case Listing lists both IMF and BMF post-petition liabilities found on master file. Although the LTS transcripts identify pyramiding more promptly, the post-petition report gives a complete history of post-petition compliance and lists all the post-petition modules involved, be they IMF or BMF. IRM 5.9.16.4.3, LAMS Post-Petition Case Listing provides information on generating and distributing this report.

(2) Range of Uses. This report pertains to all chapters involving plans lasting more than 180 days (Chapters 9, 11, 12, and 13).

(1) Purpose of Report. The Referral to Counsel report lists outstanding cases referred to Counsel for various actions, such as dismissal or conversion actions, or advisory opinions where the IRM, IRC, or Bankruptcy Code require specialized interpretation.

(2) Accessing the Report. Use AIS Business Objects to access, run, and print the Referral to Counsel report.

1. Enter beginning date. An old date, like 01/01/2000, should be input to capture cases previously overlooked or cases entered with an erroneous date.

2. Enter finish date. Generally use 90 days into future.

(3) Range of Uses. This report identifies cases in all chapters where referrals have been made, and the AIS Referrals screen has been completed. (See IRM 5.9.4.15, Referrals – Representing IRS in Bankruptcy Court.) For month end reporting purposes, the group secretary or designee can pull the report to count Chapter 11 referrals within the monthly reporting period.

(4) Reliability. The report is reliable if the Field Insolvency caseworker loaded the referral information to the Referrals screen for follow-up. Some offices maintain a manual log of cases referred. The automated system must be used, because a technician or clerk closing a case receives a notification a referral is pending when they attempt to close the case. If a manual system is used, the clerk or technician receives no notification of a pending referral when closing.

(5) Pending Referrals. If case closure occurs and Counsel continues to work on a case that is resolved, valuable Counsel resources are wasted, and relations with Counsel might suffer. If numerous referrals for non-filing or objections are worked with Counsel (usually related to Chapter 13 cases), the report is a tool for determining the age of an unresolved issue.

(1) Purpose of Report. Cases are listed on this report because their TINs do not match any TINs in the presumed AIS database, and the Bankruptcy/Litigation Location Code (BLLC) is for a district other than the presumed district. Under normal conditions these cases belong to taxpayers with a Primary Location Code in the home district and a bankruptcy in a foreign district. IRM 5.9.16.4.2, LAMS Not Found on AIS Case Listing Report, provides step instructions for generating and working this report.

(2) AIS Notification. LAMS reports are updated quarterly somewhere between one week before the end of the calendar quarter and up to five weeks after the end of the calendar quarter. A message appears on AIS when LAMS is updated. In some instances a case on this list may indicate a situation involving joint returns where only one spouse has filed bankruptcy.

(1) Purpose of the Report. The Non-Master File (NMF) Listing report must be worked by both Field Insolvency and the Centralized Insolvency Operation. It provides a roster of status 72 NMF assessments to be matched against the AIS open database to ensure the cases should be in litigation status and the CSED is not tolling.

(2) Accessing the Report. Reports are generated at the SB/SE Campus in Cincinnati.

(3) Contents of the Report. The TC 520 NMF listing includes litigation cases primarily involving bankruptcies and non-debtor spouses or other MFTs that still require NMF processing.

(4) Frequency of Use by Caseworker. The TC 520 listing should be generated quarterly for reconciliation. Insolvency should respond to the NMF unit within 60 days of receiving the report.

(5) Frequency of Use by Manager. Managers should review the report annually for performance feedback purposes and to determine if CSED issues or other inventory management issues are addressed appropriately.

(6) Retention. The NMF list should be retained for use in the following quarter to verify if accounts for which closing requests were previously submitted are truly closed.

(7) Range of Uses. This report is used for all chapters of bankruptcy.

(8) Case Matching. Cases should be matched against AIS and electronic court records if necessary due to age (greater than one year for Chapter 7 cases and greater than three years for all others) or lack of documentation in the AIS history.

(9) IDRS Review. Caseworkers should check the IDRS status of cross referenced TINs to ensure their current collection status is appropriate in light of the pending bankruptcy.

(1) Purpose of the Report. This mandatory Lien Research report identifies cases that have been discharged and for which a Notice of Federal Tax Lien has not been systemically released. Insolvency must review the cases to identify those that require a manual release of the NFTL (excepting cases where pursuit of exempt, abandoned and excluded property is being considered). Failure to work this report may result in lien releases not being initiated within 30 days of notification of discharge when the liability is fully satisfied as defined in IRC 6325 , Release of Lien or Discharge of Property.

(2) Accessing the Report Use AIS Business Objects to access, run, and print the Lien Research report.

(3) Report Date Parameter. When the user is generating this report, they must enter a date parameter. Managers generating the report for review should use the start date of the prior quarter and an end date of the prior quarter.

(4) Range of Uses. This report is used for Chapter 7 Asset, 7 No Asset, and Chapter 13 cases that have been discharged.

(5) Procedures for Working the Report. The employee must review each case on the report and determine any lien requiring release within the 30 day requirement (IRC 6325, Release of lien or discharge of property) will be timely released through systemic actions. If it appears the release will be delayed due to a Discharge Determination Report (DDR), mirroring, etc., and all statutory liens for periods on the NFTL are satisfied as required under IRC 6325, a manual lien release should be requested. The lien release can be input directly into ALS.

(6) History Documentation. The employee must document the history to reflect the lien research report was reviewed and whether or not a manual lien release requested, any periods deemed non-dischargeable, etc.

(7) Frequency of Use by Caseworker. This report must be generated and worked weekly.

(8) Frequency of Use by Manager. Managers should review the report quarterly.

(9) Retention. The Lien Research report should be retained for one year.

(1) Purpose of Report. The CSED Follow-Up report lists all CSEDs expiring before the date set by the caseworker or reviewer. This report is used to identify non-debtor spouses where the collection statute will expire within two years.

(2) Accessing the Report. Use AIS Business Objects to access, run, and print the CSED Follow-Up report.

1. Enter beginning date. An old date, like 01/01/2000, should be input to capture cases previously overlooked or cases entered with an erroneous date.

2. Enter finish date. Generally this is a future expiration date so cases with imminent CSEDs may be identified and reviewed. A date two years in the future is recommended.

3. Select Chapter type.

(3) Frequency of Use by Caseworker. Caseworkers must work the CSED Follow-Up report semi-annually.

(4) Frequency of Use by Manager. Managers should review the report semi-annually to identify trends or as part of employee reviews.

(5) Range of Uses. Chapters 7A, 11, 12, and 13 are subject to this report.

(6) Non-Debtor Partners. Partnerships, joint ventures, and limited liability companies with multiple TINs may have similar issues where collection may be pursued, but release of the TC 520 could increase the risk of a stay violation if assigned for routine collection processing. Through use of this report, the caseworker can identify cases where courtesy investigations should be issued before the stay is lifted.

(1) Purpose of Report. This Aged Cases report identifies cases that are older than a certain number of days (270 for 7N and 7A cases, and 2190 for Chapter 13 cases) and do not yet have a dismissal/discharge date on AIS. IRM 5.9.16.6, Aged Case Reports, gives more information on this report.

(2) Accessing the Report. Use AIS Business Objects to access, run, and print the Aged Cases report.

(3) Frequency of Use by Caseworker. Annual matching is required. The CIO must work Chapter 7 No Asset and Chapter 13 cases assigned to its inventory. Field Insolvency must work the report for cases assigned to its inventory.

(4) Frequency of Use by Manager. The manager should review this report annually to determine if trends are evident in cases' not being closed timely.

(5) Range of Uses. This report is available for Chapters 7N, 7A, and 13.

(6) AIS Documentation. Managers should be conservative in requiring documentation from caseworkers on an ongoing basis. A short history in the case to be closed may state "DS or DC per aged."

(1) Purpose of Report. This Plan Review report lists all cases in the database and provides an overall review of each case.

(2) Accessing the Report. Use AIS Business Objects to access, run, and print the Plan Review report.

1. Enter beginning date. An old date, like 01/01/2000, should be input to capture cases previously overlooked or cases entered with an erroneous date.

2. Enter finish date. Generally use 90 days into future.

3. Select Chapter type.

(3) Range of Uses. This report can be run for Chapters 11 and 13.

(4)

(1) Purpose of Reports. There are three Case Assignment Reports:

• Assigned Profiles identifies how cases will be systemically assigned via the CAG program using information based on the CAG matrix.

• CAG Assignment lists cases successfully processed and assigned to a caseworker during a specific period of time.

• Ungraded Case Follow-Up lists cases that have not passed all systemic checks and remain unassigned. Generally, cases should not remain unassigned for more than five days.

(2) Accessing the Report. Use AIS Business Objects to access, run, and print the Case Assignment reports.

(3) Frequency of Use by Caseworker. The CIO Automated Process Control (APC) team is responsible for working the "Ungraded Case Follow-Up report". This listing should be printed and reviewed weekly. The majority of the cases on the report are attributed to "Potentially Invalid TINs or Process D errors". Prompt resolution of the error condition will allow assignment of the case the next time the IIP processes are run.

(4) Frequency of Use by Manager. CIO Managers should review the Ungraded Case Follow-Up report monthly and Assigned Profiles report as needed. Field Insolvency Managers should review the Assigned Profiles and CAG Assignment reports as needed.

(5) Range of Uses. All chapters are subject to this report.

(6) Procedures for Working the Ungraded Case Follow-Up report. The caseworker must review each case on the report and determine the action to be taken in accordance with local procedures to resolve the condition preventing assignment.

(7) Retention:

• Assigned Profiles: when no longer needed.

• CAG Assignment: when no longer needed.

• Ungraded Case Follow-Up: electronic or hard copies should be retained six months from date of printing.

(1) Purpose of Report. The Letter 1714 Follow-Up report lists all cases where a letter requesting return information has been sent. The letter explains the debtor's duties under the Bankruptcy Code to file returns and the consequences of non-compliance which may include dismissal or conversion.

(2) Accessing the Report. Use AIS Business Objects to access, run, and print the Letter 1714 Follow-Up report.

(3) Range of Uses. Although AIS allows the selection of every chapter and bankruptcy type, this report is most useful in Chapters 7A, 9, 11, 12, and 13.

(4) IDRS Research. This report provides a complete listing of unassessed returns and should be cross-checked against IDRS master file to determine if the return was filed in response to the claim of unassessed tax.

(5) Referrals. This report is a resource to determine which cases to review for referral to Counsel requesting a case be dismissed or converted for non-filing of pre-petition tax returns.

(6) LAMS. The report is related to the LAMS Unfiled Return Case Listing report in that it identifies unfiled returns when a POC determination is made. The LAMS Unfiled Return Case Listing report provides all delinquency investigation information on all TINs in the open AIS database. This report limits the information to cases where claims have been filed.

(1) Purpose of Report. The OI Follow-Up report lists outstanding other investigations issued by Field Insolvency to Field Collection. The actions requested are usually related to Trust Fund Recovery Penalty investigations with time sensitive ASEDs or asset valuation cases where the IRS retains a secured lien interest in property.

(2) Accessing the Report. Use AIS Business Objects to access, run, and print the OI Follow-Up report.

(3) Range of Uses. This report covers Chapters 7, 9, 11, 12, and 13 for Trust Fund Recovery investigations and Chapters 7, 11, and 13 for exempt, abandoned, and excluded property investigations.

(4) Cooperation with Field Collection. Effective communication between Field Insolvency and Field Collection managers reduces the need for extending the deadlines on other investigations. Insolvency caseworkers should establish cases on ICS for each AIS other investigation issued to facilitate the assignment of the investigation to Field Collection. Insolvency caseworkers should provide all relevant information concerning the bankruptcy case when an investigation request is issued. In most Trust Fund Recovery cases involving large companies, this necessitates review of the Statement of Financial Affairs so responsible officers located in different areas of the country can be identified promptly.

(5) Multiple Investigations. Multiple other investigations can be routed and coordinated more effectively through ICS than through manual controls. The majority of cases involve closely held corporations with one or two officers in one location. Reviewing the Statement of Financial Affairs of corporations, partnerships, and LLCs gives the caseworker an idea of the complexity of the issues involved and the number of potentially responsible parties. Providing Field Collection with all available bankruptcy court or trustee information with the case assignment reduces delays in investigations.

(6) Bankruptcy Schedules. Schedules relating to property should be provided to revenue officers whenever possible. Where the government has a secured position in exempt assets, caseworkers should determine from the bankruptcy schedules if exempt assets provide sufficient interest to pursue further collection action through referral to Field Collection. Web-based sources to determine the value of the government’s interest in real property should be consulted when possible. For further information on quick sale value analyses see IRM 5.8.5.4.1, Net Realizable Equity.

(1) Purpose of Report. This report will identify all cases assigned to the manager’s employees on ICS.

(2) Accessing the Report. This report is generated from the ICS system.

1. On the ICS Main Menu, click on the "Reports" button.

2. On the Reports menu, click on "Advisory Reports".

3. On the Advisory Reports menu, click on "Inventory".

4. Click "View" next to "Employee Case Type Report".

5. Highlight either the report for a specific employee or for the entire group, as needed.

6. Click "Get Report".

(3) Range of Uses. The report identifies cases assigned to Insolvency personnel that are open on ICS and therefore encompasses all chapters.

(4) OI Control. Insolvency primarily uses ICS to control OIs it sends to Field Collection for 6672 investigations, exempt and abandoned asset determinations, and other coordinated activities.

(1) Purpose of Report. The Large Dollar Report lists all cases in the open AIS file with POC data meeting a dollar criterion established by the caseworker or reviewer allowing prioritization of casework by dollar amount. IRM 5.9.4.15.3, Significant Bankruptcy Case Referrals, requires all cases meeting certain criteria to be identified and reported to Counsel as significant. This report also identifies cases likely to have post-petition trust fund or income tax pyramiding, assuming a large proportion of bankruptcy filers who owe prior to bankruptcy have the likelihood of owing significant dollar amounts after bankruptcy is filed.

(2) Accessing the Report. Use AIS Business Objects to access, run, and print the Large Dollar report.

(3) Range of Uses. All chapters are subject to this report.

(4) Who Prints the Report. The secretary or caseworker who processes the ICS month end inventory reports can generate this report at the end of each quarter when Chapter 11 referral information is being gathered for reporting purposes. Grade 12 Field Insolvency caseworkers should be able to generate this report to identify significant cases for referral and to improve inventory management skills.

(5) Other Uses. During the pendency of extended bankruptcy, this report can identify debtors who fund bankruptcy plans by not paying current taxes, thus creating post-petition liabilities. Taxpayers owing significant amounts of money at the time of bankruptcy filing may not resolve their nonpayment issues during the bankruptcy. The Field Insolvency caseworker may, for example, review all taxpayers owing over $25,000 at bankruptcy filing. Similar parameters can be set for long term plans with in-business Form 941 liabilities. The LAMS Post-Petition Case Listing report is the most effective tool to use because it draws its information every quarter from true master file account information. If LAMS is unavailable, this report is an alternative for prioritizing cases for post-petition review.

(6) Inventory Management. The Large Dollar report, as an inventory management tool, lists priority cases by the delinquency amount established by the user in docket number order

(7) Large Dollar Chapter 7N Report. CIO does the screening of Large Dollar Chapter 7N cases following IRM 5.9.6.10.3(2), CIO Screening. If assets are located, the CIO documents those assets in the AIS History screen and reassigned the case to FI. Upon receipt of the case from CIO, the FI caseworker follows IRM 5.9.6.10.3(3), FI Investigation.

(1) Purpose of the Report. The Unpostable Report, also called the Generalized Unpostable Framework (GUF), lists cases Insolvency entered a transaction on that went unpostable. Insolvency (both FI and CIO) is responsible for resolution of the resulting unpostable condition. General guidance for identifying and resolving unpostable transactions can be found in IRM 21.5.5, Unpostables.

(2) Accessing the Report.

• FI receives their overage reports from SB/SE Collection IDRS Data Security Group in Collection Automation Support and Security (CASS) monthly.

  Note: The FI Nullified Distribution listing is available weekly from CASS. This weekly listing is processed by the CIO Unpostable 168 IAT tool. Cases from the listing that cannot be resolved by the tool will appear on the monthly overage report.

• CIO usually pulls their overage reports via Control-D or Overage Report Compiler and Sorter (ORCAS) on a weekly basic.

(3) Report Types. Two types of reports are produced.

1. Overage Report is discussed in detail in IRM 5.9.16.5.1, Overage Report.

2. Nullified Distribution List is discussed in detail in IRM 5.9.16.5.2, Nullified Distribution List (NULL DIST LST).

(4) Frequency of Use by Caseworker. Time frame for completion of the unpostable reports:

• CIO reports are worked weekly when the listing becomes available.

• FI reports are worked monthly when the listing becomes available.

(5) Frequency of Use by Manager. Managers should review reports when completed by the caseworker to ensure issues are properly addressed and potential stay violations have been addressed/corrected.

(6) Range of Uses. This report is pertinent for all chapters.

(7) Statutes. ASEDs and CSEDs are two reasons these cases should be worked as soon as they are received. Imminent statute information must be included in the history when requesting resolution of an unpostable.

(8) Retention. Reports should be destroyed when no longer needed in current operations.

(9) Requisite Command Codes. Those working this report must have command code ACTON in their IDRS profile.

(1) GS-07 Technician

(2) GS-09 Specialist

(3) GS-11 Specialist

(4) GS-12 Specialist

(1) Coverage. This portion of the Insolvency Case Assignment Guide (CAG) is primarily used to provide information which assists managers in determining if a task should be referred or an entire case reassigned. The post-assignment factors identify tasks/issues that are encountered or develop during the process of working the case. Careful review of post assignment factors should be made, as the case evolves, to ensure the case is assigned to the proper grade level of employee.

(1) Program Review Areas:

• Case file reviews

• NFTL determination accuracy

• Quality – EQ/NQ analysis

• Quality – Consistency reviews with GM

• Alternative case resolution discussion – are we fully utilizing Counsel, FTAs, CI, and our Abusive Tax Avoidance Transaction (ATAT) and OIC resources such as the OIC Pre-Qualifier tool located on irs.gov at: http://irs.treasury.gov/oic_pre_qualifier/?

• TFRP/ATFR process

• ENTITY/Management Information Systems (MIS) analysis of trends in performance indicators.

• GM controls

• Employee Performance Folder (EPF) reviews

• Communications

• Employee Satisfaction

• Customer Satisfaction

• ATAT Program

• Group Time Reporting and Analysis – relating to productivity and cycle time

• Group Productivity and Efficiency

• Annual Appraisal/Performance Document Approval

• Fraud program/identification and FTAs involvement

• Inventory ranges and assignment practices/ Inventory delivery process

• Above grade work

• Million dollar case assignments

• Multi-module strategy

• Trends and patterns report – teller errors

• Span of control

• Summons errors

• Hold file composition and time in hold file – review for any issues with assignment and staffing

• Group Meeting attendance

• Field Visits

• Other/Local

(2) Mandatory: Administrative and Compliance Reviews / Territory / Operation Manager Oversight:

• EPF – administrative review

• Controls monitoring

• SETR and timekeeping

• Security – after hours and computer systems

• Form 3210 transmittals review

• Correspondence and file retention

• Travel vouchers and authorizations

• Credit bureau

• Purchase cards and supplies

• Section 1204 / ROTERs

• EQ consistency review for territory

• Sensitive Case Reports – timely and appropriate

• GMs Employee review schedule at beginning of fiscal year

• Other

(3) Optional: One on One Briefing - Periodic scheduling:

• GM is scheduled for periodic briefings during the months of: (fill in)

• Topics covered will include: (fill in )

(1) Operational Reviews:

(2) Purpose - to assess Territory / Operation Manager performance in achieving Area, HQ, and territory / operation business plan goals and to improve Employee Satisfaction and Customer Satisfaction while enhancing Business Results.

(3) Frequency - Operational Reviews are to be performed on an annual/fiscal year basis with follow-up reviews to be performed when appropriate.

(4) Scope - all general and specialized Collection territories.

(5) Documentation - all Operational and Follow-up Reviews are to be documented in a memorandum format. These documents should be shared with the Territory / Operation Manager within sixty (60) days of completion of the actual review. The operational review should also include a candid discussion regarding the Territory / Operation Manager’s performance.

(6) Pre-Operational Review Actions:

(7) Trend Analysis - to identify and evaluate trends that may require managerial involvement.

(8) Technique - utilize cumulative data acquired during the fiscal year, identifying areas of achievement and those that require improvement. (See Trend Analysis, under Additional Reviews and Actions). A comparison to the prior year as well as the current goals may be appropriate. The Operational Review narrative should indicate what the trend analysis revealed, areas of concern or achievement, additional actions taken in the operational review as a result of the trend analysis, recommendations, etc.

(9) Operational Reviews should include at a minimum, assessments of the following:

(10) Territory / Operation Operational Reviews / Follow-Ups - to ensure that Territory / Operation Managers are addressing issues identified in the Territory / Operation Manager’s Operational Aid as well as the Director’s goals.

(11) Technique - review Territory / Operation Manager operational and follow-up reviews to ensure adherence to guidelines set by the Territory / Operation Manager’s Operational Aid. Ensure that areas identified as concerns are being proactively addressed in Territory / Operation operational reviews and follow-ups and corrective actions are prescribed when applicable.

(12) Territory / Operation Manager Performance - to ensure that:

1. Territory / Operation Manager activities are promoting the achievement of the Director’s Collection Business plan, and

2. Group managers are establishing proactive commitments and goals and are fulfilling the requirements of their Critical Performance Expectations.

(13) Technique -

1. Determine if Territory / Operation Manager is proactively contributing to the Director’s Collection Business Plan.

2. Ensure Territory / Operation Managers are issuing operational, follow-up, and mid-year feedback in a timely manner. Ensure Territory / Operation Manager compliance with the established review schedule.

3. Ensure Territory / Operation Manager mid-year feedback is addressing proactive actions established in the manager’s initial performance agreement. These reviews should identify areas of accomplishment as well as those in need of improvement with recommended strategies. This should also be apparent in operational reviews and final performance evaluations.

4. Determine if Territory / Operation Managers’ evaluations of group managers align with mid-year feedback and other evaluative documents. If discrepancies are noted or concerns exist, ensure appropriate actions are taken.

(14) Training - to ensure managers are receiving appropriate training to facilitate efficient group operations.

(15) Technique - discuss with Territory / Operation Manager what training has been made available to group managers. For some courses budgetary ramifications must be considered.

(16) Communication - to ensure Territory / Operation Managers are effectively communicating to group managers the goals of Headquarters and territory / operation.

(17) Technique - review minutes of territory / operation meetings. Ensure Territory / Operation Managers are discussing special interest cases within their groups, e.g., suits, seizures, fraud referrals. Include observations from territory / operation meeting(s) attended. Consider conducting focus group interviews with group managers and/or revenue officers.

(18) Employee Satisfaction - to ensure that employees’ and manager’s concerns are being addressed to facilitate effective and appropriate casework.

(19) Technique -

1. Review Territory / Operation operational reviews to ensure Territory / Operation Managers are adhering to Employee Satisfaction guidelines of the Territory / Operation Manager aid and addressing managerial adherence to established policies and procedures.

2. Ensure Territory / Operation Manager and GMs are addressing issues raised in most recent employee survey.

(20) Case File Reviews - to promote proactive, timely, and appropriate case actions and managerial involvement when appropriate.

(21) Technique - based upon trend analysis results and Director’s goals, select a mix of cases representative of the inventory.

(22) Alternative Case Resolutions - to ensure that all possible forms of case resolution are investigated.

(23) Technique - discuss with the Territory / Operation Manager their involvement in promoting the appropriate use of the Fraud Technical Advisor, Counsel, and Criminal Investigation.

(24) Customer Satisfaction - to ensure customers are receiving timely and appropriate actions, and receiving fair and adequate treatment to assist in resolving their delinquency issue(s).

(25) Technique - assess Territory / Operation Manager’s involvement in addressing customer service issues. This should be evident in operational reviews and discussions with Territory / Operation Managers.

(26) EQRS Consistency Reviews - to ensure Territory Managers are conducting EQRS Consistency Reviews annually and actions are taken to promote consistent application of the EQ attributes.

(27) Additional Reviews and Actions to be Completed During the Fiscal Year:

(28) Mandatory actions:

(29) Trend Analysis - to identify possible case trends on a monthly and cumulative basis, and ensure appropriate actions are being taken to achieve Headquarters goals.

(30) Technique - engage Collection Policy Analysts to identify trends in accordance with Director’s goals and other pertinent indicators such as time utilization (field, and administrative time), large dollar cases, ATFR controls, no touch reports, etc.

(31) Frequency - reports and trends should be reviewed on a monthly basis

(32) Suggested Optional Actions:

(33) Field Reviews - to ensure employees are effectively contacting taxpayers and making optimum use of field time.

(34) Technique -

1. Review a sampling of field visitation reviews completed by at least two group managers in a territory.

2. Accompany an employee during a field visit. (When budgetary guidelines allow).

(35) Frequency - the frequency should be established by the facts and circumstances of the and group.

(36) Documentation - provide a written narrative to the Territory Manager or discuss the findings.

(37) Communication - to ensure expectations of performance are understood and managerial concerns are heard and addressed.

(38) Technique -

1. Convene meetings including Territory / Operation Managers, Collection Policy Analysts, and Senior Insolvency Specialist to ensure that trends and goals are being monitored and acted upon in an appropriate and timely manner.

2. Hold town hall meetings to discuss goals and concerns with group managers and Territory / Operation Managers. This should also include involvement of peripherally involved divisions such as Labor Relations, Counsel, Appeals, etc.

3. Attend at least one territory meeting between managers and Territory / Operation Manager for each territory.

4. Attend a sample of group meetings to ensure top down messages are understood and encourage open communication lines.

(39) Frequency - all meetings are subject to budgetary constraints as well as facts and circumstances of the Area. Preferably these meetings would be held in person, but attendance via conference call is also acceptable.

1. Meetings should be held at least quarterly.

2. Town Hall meetings should be held once each fiscal year if possible.