1.1.23. Tax Exempt and Government Entities Division

(1) The mission of the TE/GE Division is to provide TE/GE’s customers top quality service by helping them understand and comply with applicable tax laws and to protect the public interest by applying the tax law with integrity and fairness to all.

(2) The TE/GE Mission is the principle that guides our work and is the foundation of our institutional culture of service. In direct support of TE/GE’s mission and the IRS strategic goals, TE/GE focuses on protecting the integrity of the tax system by:

• Delivering programs and services that educate our taxpayer base, and

• Ensuring that service and compliance and enforcement coexist through all taxpayer interactions.

(3) The taxpayer experience is the backbone of the TE/GE mission. We continue this focus through the Taxpayer First Act and the Taxpayer Experience Strategy outlined in the IRS Report to Congress (1/2021) which aims to educate taxpayers by providing clear and timely communications and understanding taxpayer needs. TE/GE continues to provide a seamless experience by simplifying the tax process, increasing access, and promoting transparency.

(4) The TE/GE Division supports the IRS’ Strategic Plan and objectives through initiatives and programs that:

• Empower and enable all taxpayers

• Protect the integrity of the tax system

• Drive increased agility, efficiency, effectiveness and security

• Foster collaboration with external partners

• Cultivate a well-equipped, diverse, flexible and engaged workforce

• Advance data access, usability and analytics.

(1) The strategic goals of the TE/GE Division parallel the IRS strategic goals and the IRS Integrated Modernization Business Plan to provide service to each taxpayer, service to all taxpayers, and increase productivity through a quality work environment. TE/GE aligns with the IRS strategic areas and focuses on Putting Taxpayers First; Improving Compliance and Modernizing TE/GE. TE/GE supports the strategic goals through programs that:

• Strengthen Compliance Activities.

• Maintain a Taxpayer-Focused Organization.

• Ensure Awareness and Collective Understanding - Proactively communicate with the communities we serve to encourage compliance with tax laws through expanded outreach.

• Leverage Technology and Data Analytics.

• Improve Operational Efficiencies.

• Develop Our Workforce.

(1) TE/GE’s customers include small local community organizations; major universities; large pension funds; small business retirement plans; federal, state and local government; participants in complex tax-advantaged bond transactions; and Indian tribal governments and tribal entities and associations.

(2) Through the customer base, TE/GE uses input from enforcement workstreams to drive outreach, feedback, and progress:

• Compliance Strategies

• Data-driven Approaches

• Issue Portal Submissions

• Engagement with entities

• Referrals

• Compliance Contacts

(3) Customer outreach and interactions through evaluations, results and feedback lead to insight into trends, issues and potential abusive schemes.

(1) The authorities for this IRM include:

1. Employee Retirement Income Security Act (ERISA) of 1974 Pub. L. No. 93-406 § 1051, IRC 7802(b) (subsequently amended).

2. Reorganization Plan of 1978, Section 105, Enforcement by the Secretary of the Treasury

3. Internal Revenue Service Restructuring and Reform Act of 1998, Pub. L. No. 105-206

4. CRS Report for Congress, 97-984 E, Updated July 6, 1998

5. 26 CFR § 301.7701-9(c), Secretary of his delegate

6. 26 U.S.C. § 7804(a), Other Personnel

7. IRC 7803(a)(3), Taxpayer Bill of Rights

8. IRC 7871 - Indian tribal governments treated as states for certain purposes

9. Memorandum on Tribal Consultation and Strengthening Nation-to-Nation Relationships - Affirming Executive Order 13175

10. Presidential Executive Order No. 13175, 65 FR 67249, Nov. 6, 2000 - - Consultation and Coordination with Indian Tribal Governments

11. Revenue Ruling 94-16 - Federal Income Taxation of Indian Tribes and Corporations Organized by Indian Tribes

12. Revenue Ruling 94-65 - Federal Income Taxation of Corporations Organized by Indian Tribes Under Section 3 of the Oklahoma Welfare Act

13. IRC 7602, Examination of books and witnesses, which falls under Chapter 78 – Discovery of Liability and Enforcement of Title l.

14. IRC 6201, Assessment authority, which falls under Chapter 63 – Assessment

(1) The following table contains definitions for the acronyms used in this IRM.

(1) Internal TE/GE Website: TE/GE Connect: https://portal.ds.irsnet.gov/sites/TEGE/Pages/Home.aspx, https://portal.ds.irsnet.gov/sites/TEGE/Pages/About/About.aspx

(2) External TE/GE Website: Tax Exempt Government Entities Division At-a-Glance: https://www.irs.gov/government-entities/tax-exempt-government-entities-compliance-program-and-priorities

(1) Contact Information: To recommend changes to this IRM, see IRM 1.11.6.6. Providing Feedback About an IRM Section - Outside of Clearance, and send your suggestions to the TE/GE Internal Management Documents (IMD) Coordinator at tege.imd.spoc@irs.gov.

(1) The Program Manager, BSP, reports to the Director, Shared Services and is responsible to gather and articulate business needs for information technology projects, applications and legacy systems.

(2) The BSP staff:

1. Gathers and analyzes technology requirements for TE/GE in consultation with EP, EO/GE and CP&C.

2. Assesses the feasibility and impact of technology solutions on facilities, human resources and organizational structure to address gaps in business processes.

3. Develops business cases and unified work requests for TE/GE information services , with the TE/GE Division Information Officer (DIO) and others within the Information Systems organization.

4. Formulates IT plans and budgets.

5. Manages and monitors funds for business systems projects.

6. Develops service level agreements with (IT and Wage & Investment (W&I ) for services, procurement and planning.

7. Provides program management support and oversight of systems implementation projects to deliver business capabilities.

8. Provides oversight of TE/GE campus programs, ensuring TE/GE’s submissions are processed timely and accurately.

(3) BSP is comprised of management and program analysts who are supervised by program managers.

(4) The Program Manager, BSP, directly supervises the:

1. Manager, Operation Program Support

2. Manager, Business Customer Support

3. Manager, Systems Change Control

4. Manager, Submission Processing Programs

(1) The Program Manager, Communications and Liaison (C&L) ,reports to the Director, Shared Services and through its Web/Multimedia and Operations groups supports the IRS and TE/GE missions and business objectives using stakeholder partnerships, communication tools and processes, issue resolution and information sharing.

(2) The Office of C&L:

1. Facilitates effective communication with TE/GE employees and all other internal and external stakeholders.

2. Coordinates the development of TE/GE-wide stakeholder partnership strategy and identifies partnering opportunities.

3. Prepares speeches and briefing papers for the TE/GE Commissioner and Deputy Commissioner.

4. Serves as a central point of contact for such programs as Fed-State, Disclosure, Legislative Affairs, Public Liaison, Internal Communications, and Media Relations.

5. Coordinates meetings of the Advisory Committee on Tax Exempt and Government Entities (ACT).

(3) C&L is comprised of public affairs specialists, web analysts and revenue agents who are supervised by managers.

(4) The Program Manager, C&L directly supervises the:

1. Manager, Web/Multimedia Services

2. Manager, Operations

(1) The Program Manager, Human and Capital Resources (H&CR), reports to the Director, Shared Services and is responsible for the TE/GE budget, the execution of its centralized financial plan, TE/GE workforce management.

(2) The HR staff:

1. Fosters a good working relationship with the National Treasury Employees Union (NTEU) throughout TE/GE.

2. Develops and implements HR policies, guidelines and procedures for the division within parameters set by the Human Capital Office (HCO).

3. Designs and develops TE/GE specific training and develops the division-wide training plan.

4. Provides workforce planning and strategic recruitment guidance.

5. Manages the resource distribution process, including the development of a financial plan that supports the program priorities of TE/GE.

6. Manages financial resources for TE/GE, including tracking resource usage against targets, and makes projections of resource needs through yearend.

(3) H&CR is comprised of specialists, budget and financial management analysts, management and program analysts, and human resource specialists and assistants who are supervised by managers.

(4) The Program Manager, H&CR directly supervises the:

1. Manager, Human Resources (HR) Customer Support Manager

2. HR Resources Development – Learning and Education Manager (L&E)

3. Manager, Finance

(1) The Director, EP Examinations, reports to the Director, EP, and is responsible for the examination of qualified retirement plans to verify compliance with qualification, reporting/disclosure, excise and income tax matters.

(2) The Office of EP Examinations supervises the activities of the EP Examinations Area offices.

(3) EP Examinations Area Managers directly supervise EP Group Managers who are responsible for their staff.:

(4) EP examination revenue agents, EP examination reviewers, tax compliance officers, and tax examiners report to group managers who are supervised by a senior manager.

(5) Field actuaries are supervised by an actuary senior manager.

(6) The Director, EP Examinations, directly supervises the:

1. Area Manager, Pacific Coast

2. Area Manager, Northeast

3. Area Manager, Mid-Atlantic

4. Area Manager, Great Lakes

5. Area Manager, Gulf Coast

(1) The Director, EP R&A, reports to the Director, EP, and is responsible for three types of services for retirement plans voluntary compliance, determination letters, and technical guidance.

(2) The EP R&A staff:

1. Processes determination letter requests from employers regarding the qualified status of their pension, annuity, profit sharing, and stock bonus plans.

2. Issues opinion and advisory letters to specific requestors regarding pre-approved pension, annuity, and profit-sharing plans, individual retirement accounts, simplified employee pensions and saving incentive match plans for employees, and tax sheltered annuities.

3. Develops and operates voluntary correction programs, such as the EPCRS, and issues compliance statements or enters into closing agreements under these programs.

4. Processes requests for changes in funding method and makes other actuarial determinations and interpretations.

5. Coordinates with Chief Counsel on requests for funding waivers.

6. Develops and maintains responsibility for actuarial publications and other standards for the valuation of transfers of future interests for income, estate and gift tax purposes.

7. Coordinates with TE/GE Division Counsel, Associate Chief Counsel and the DOJ on litigation issues and declaratory judgment cases under the Internal Revenue Code (IRC 7476).

(3) EP Determinations is comprised of EP determination specialists and supervised by EP group managers who are supervised by senior managers.

(4) EP Technical is comprised of Actuarial and Knowledge Management functions.

1. The actuaries are supervised by an actuary manager who is supervised by a senior manager.

2. EP Knowledge Management (KM) consists of groups of EP specialists, revenue agents, and tax law specialists reporting to group managers who are supervised by a senior manager.

3. Quality Assurance group members include senior revenue agents, tax examiners, and clerks reporting to a group manager.

(5) Voluntary Compliance is comprised of Voluntary Compliance and Quality Assurance functions:

1. Voluntary Compliance consists of groups of EP specialists, revenue agents and tax law specialists reporting to group managers who are supervised by a senior manager.

2. Quality Assurance group members include senior revenue agents reporting to a group manager who is supervised by a senior manager.

(6) The Director, EP R&A, directly supervises the:

1. Managers, Determinations Areas 1 & 2

2. Manager, EP Technical

3. Manager, Voluntary Compliance

(1) The Manager, EP Program Management, reports to the Director, EP, and coordinates EP programs of staffing, IRM/IMD, and risk.

(2) The EP Program Management Office:

1. Facilitates all aspects of the IRM/IMD process at the EP level.

2. Facilitates Risk Management at the EP level.

3. Coordinates annual updates to EP Forms 5500, 8955-SSA and 5330, schedules and instructions.

4. Manages interagency relations with the Department of Labor (DOL), Pension Benefits Guaranty Corporation (PBGC) and Social Security Administration (SSA).

5. Reviews the EP non-labor budget and assists in the resolution on novel budgetary issues.

6. Coordinates Federal Employee Viewpoint Survey (FEVS)-related activities for EP.

7. Coordinates the Federal Managers' Financial Integrity Act (FMFIA) and Annual Assurance Review process for EP.

(3) EP Program Management is comprised of management and program analysts who are supervised by a program manager.

(1) The Director, EO Examinations, reports to the Director, EO/GE, and develops and implements the overall EO enforcement strategy; develops goals to enhance compliance consistent with overall TE/GE strategy; and evaluates policies, procedures, and measures for the EO examination program that balance customer satisfaction, employee satisfaction and business results.

(2) The Office of EO Examinations:

1. Coordinates with EP with respect to examinations of employee plans maintained by EO customers and coordinates with GE with respect to issues that exempt organizations and government entities have in common.

2. Coordinates with SB/SE and LB&I to develop strategies to address cross-functional issues.

3. Monitors and evaluates the quality and effectiveness of the EO Examination programs.

4. Supervises the activities of Financial Investigations Unit and the EO Area offices.

5. Coordinates with Directors, CP&C and EO Rulings and Agreements, to identify emerging noncompliance areas and identify opportunities for improvement of EO processes.

6. Coordinates with TE/GE Division Counsel, Associate Chief Counsel and the DOJ on litigation issues and declaratory judgment cases under IRC Section 7428.

(3) EO Examinations is comprised of EO Examinations specialists and supervised by EO group managers who are supervised by the EO area manager within a given geographic area.

(4) The Director, EO Examinations, directly supervises the:

1. Area Manager, Pacific Coast

2. Area Manager, Northeast

3. Area Manager, Great Lakes

4. Area Manager, Gulf Coast

5. Area Manager, Compliance & Review

(5) For additional information on EO Examinations go to: https://portal.ds.irsnet.gov/sites/TEGE/Pages/EO-FSL/EOFSL-Landing.aspx

(1) The Director, EO R&A, reports to the Director, EO/GE, and is responsible for up-front, customer-initiated activities such as determination applications, tax-exempt organization inquiries and knowledge management for EO technical issues.

(2) The Office of EO R&A:

1. Processes determination letter requests from exempt organizations under the provisions of the IRC governing such organizations, including organizations seeking recognition of tax-exempt status.

2. Processes or responds to inquiries from or about tax-exempt organizations.

3. Coordinates with TE/GE Division Counsel, Associate Chief Counsel and the DOJ on litigation issues and declaratory judgment cases under IRC Section 7428.

4. Develops and maintains EO Knowledge Networks within TE/GE Knowledge Management.

5. Supervises the activities of EO Determinations, EO Business Performance, Quality Assurance, and Processing; and EO Knowledge Management.

(3) EO Determinations is comprised of groups of EO Determinations specialists, and tax examiners reporting to EO group managers, who are supervised by a senior manager (Area 1 and Area 2).

(4) EO Business Performance, Quality Assurance, and Processing is comprised of the following groups: Quality Assurance, Processing Units, Correspondence Unit, Adjustments Unit and Files & Records Unit. Group members include senior revenue agents, analysts, tax examiners, and clerks reporting to group managers, who are supervised by a senior manager (Area 3).

(5) EO Knowledge Management (KM) consists of groups of EO specialists reporting to group managers who are supervised by a senior manager (Area 4).

(6) The Director, EO R&A, directly supervises the:

1. Managers, Determinations (Areas 1 and 2)

2. Manager, Business Performance, Quality Assurance, and Processing (Area 3)

3. Manager, Knowledge Management (Area 4)

(7) For additional information on EO R&A, go to: https://portal.ds.irsnet.gov/sites/TEGE/Pages/EO-FSL/EOFSL-Landing.aspx

(1) The Director, GE, reports to the Director, EO/GE, and is responsible for the tax compliance of government entities.

(2) The office of GE:

1. Develops and operates voluntary correction programs and enters into closing agreements under these programs.

2. Coordinates with other TE/GE functions with respect to examinations on issues that exempt organizations and government entities have in common and compliance checks in support of all GE, EO and EP programs.

3. Coordinates with SB/SE and LB&I to develop strategies to address cross-functional issues.

4. Coordinates with W&I to address cross-functional issues impacting GE programs.

5. Develops the strategic direction of the nationwide education and outreach programs for GE customers in order to promote up-front voluntary compliance.

6. Coordinates with TE/GE Division Counsel, Associate Chief Counsel and the DOJ on litigation issues.

7. Coordinates with the Department of Treasury and other federal agencies.

(3) GE includes Federal, State, Local/Employment Tax (FSL/ET), Indian Tribal Governments (ITG), Tax Exempt Bonds (TEB), the Tax-Exempt Compliance Unit (TECU), and the Government Entities Compliance Unit (GECU).

(1) The EO/GE Program Management Office:

1. Assists in the development of functional reviews in consultation with Directors, EO Examinations, EO Rulings and Agreements and GE, and monitors workplan accomplishments and conducts annual operational reviews of EO/GE’s functional areas.

2. Facilitates all aspects of the IRM/IMD process at the EO/GE level.

3. Facilitates the processing of Treasury Inspector General for Tax Administration (TIGTA) and the Government Accountability Office (GAO) audits, and Risk Management at the EO/GE level.

4. Coordinates the development, update or revision to EO/GE forms, instructions, publications, letters; assists in the development and publication of EO/GE newsletters, information on IRS.gov, and social media posts; develops updates, and reviews EO/GE workshops, seminars, and presentations; including those on StayExempt.IRS.gov and at the IRS Nationwide Tax Forum.

5. Reviews the EO/GE non-labor budget and supply purchasing process and assists in the resolution on novel budgetary issues.

6. Conducts FEVS focus groups and prepares an annual report on the findings for the Director, EO/GE.

7. Monitors and coordinates the response to all EO/GE Freedom of Information Act (FOIA) requests.

(2) EO/GE Program Management Office is comprised of revenue agents, and management and program analysts, who are supervised by the program manager.

(1) The Manager, Classification and Case Assignment (C&CA), reports to the Director, CP&C and is the program manager for the classification and case assignment program.

(2) The Office of C&CA:

1. Reviews and classifies returns, referrals, and Whistleblower claims.

2. Conducts 501(r) reviews.

3. Establishes cases and processes claims.

4. Fills case orders for Exam managers.

(3) C&CA is comprised of revenue agents, tax examining technicians, and tax and system analysts supervised by group managers who report to a program manager.

(4) C&CA is comprised of the following functions:

1. Classification groups, which consist of revenue agents and tax examining technicians that report to a group manager.

2. Case assignment group, which consists of tax examining technicians and tax and system analysts that report to a group manager.

(5) The Manager, C&CA directly supervises the following groups:

1. Classification Group 1 (CL1)

2. Classification Group 2 (CL2)

3. Classification Group 3 (CL3)

4. Classification Group 4 (CL4)

5. Case Assignment (CA)

(1) The Manager, Issue Identification and Special Review (II&SR) reports to the Director, CP&C. The manager is responsible for a variety of priorities impacting TE/GE ranging from supervising the development and presentation of compliance strategies to the TEGE Governance Board on a monthly basis, overseeing data driven exam workload selection, and coordination and oversight of quality reviews of TEGE’s five exam functions known as the Tax Exempt Quality Measurement System (TEQMS). The manager regularly oversees the completion of TEGE-related TIGTA and GAO audit responses and completion of post-audit recommendations where matters involve compliance activities and related issues.

(2) The Office of II&SR:

1. Reviews all submissions to the TE/GE Issue Submission Portal.

2. Develops potential compliance treatment streams.

3. Presents strategy proposals to the TE/GE Governance Board for consideration.

4. Reviews, measures, and reports on the quality of TE/GE exam issue resolution, taxpayer communication, and timeliness through administration of the TE/GE TEQMS program.

(3) II&SR is comprised of revenue agents, tax analysts, economists, statisticians, supervised by group managers who report to a program manager.

(4) II&SR is comprised of:

1. Issue ID and Research Groups (Group 1 & 2) which consistent of revenue agents, tax analysts, economists and statisticians that report to a group manager.

2. EO Special Review Group which consists of revenue agents and tax analysts that report to a group manager.

3. EP Special Review Group which consists of revenue agents and tax analysts that report to a group manager.

(5) The Program Manager, II&SR directly supervises the:

1. Managers, Issue ID & Research Groups (Group 1 and Group 2)

2. Managers, EO Special Review and EP Special Review Groups

(1) The Manager, Planning and Monitoring (P&M) reports to the Director, CP&C and is responsible for monitoring and reporting TE/GE activities for management and external stakeholders.

(2) The Office of P&M:

1. Monitors TE/GE’s Examination, Determination Letter, and Voluntary Compliance programs.

2. Creates and maintains the workplan.

3. Stocks the Virtual Shelf for TE/GE’s Examination programs

4. Develops automated, standardized management reports and provides analysis for all TE/GE’s programs: Examination, Determination Letter, and Voluntary Compliance programs.

5. Performs closing procedures for TE/GE’s examination cases.

(3) P&M is comprised of tax examining technicians, revenue agents, tax analysts and program analysts supervised by group managers who report to a program manager.

(4) P&M is comprised of the following functions

1. Rulings and Agreements Development and Monitoring, which consists of tax analysts and revenue agents that report to a group manager.

2. Exam Development and Monitoring Teams 1 and 2, which consist of tax analysts and revenue agents that report to a group manager.

3. EO Closing Unit, EP Closing Unit, and Misc. Closing Units, which consist of tax examining technicians and program analysts that report to a group manager.

(5) The Manager, P&M directly supervises the:

1. Managers, Exam Development and Monitoring Teams 1 & 2

2. Manager, R&A, Development & Monitoring

3. Managers, EO Closing Unit, EP Closing Unit and Misc. Closing Unit