4.1.1. Planning, Monitoring, and Coordination

(1) In addition to the duties outlined in IRM 4.1.1.6.1, Program Coordinator Duties, the AT coordinator duties include but are not limited to the following:

1. Serve as a resource person and a liaison between the Lead Development Center (LDC), area AT exam team, and HQ FCS AT Program Analyst.

2. Ensure the appropriate project and tracking codes are applied to the promoter investigation case before it is assigned to the field.

3. Ensure the white paper guidance paper, if applicable, is made available.

4. Work with the examiners after they secure the participant list to ensure they forward the lists requiring case building to the Listkeeper.

5. Assign the participant cases to the field with the appropriate project and tracking codes after they have been case built.

6. If the decision is made during the promoter investigation to perform sample examinations on 30 participants or less, the examiner, group manager, and the PSP coordinator will coordinate with the HQ AT Program Analyst (Listkeeper) to identify the participants’ tax returns to be examined in order to establish harm to the government. The selected sample of participants’ returns will be case built by the local area PSP office.

7. Assist examiners regarding AT administrative, procedural, and technical inquiries.

(1) In addition to the duties outlined in IRM 4.1.1.6.1, Program Coordinator Duties, the audit reconsideration coordinator duties include but are not limited to the following:

1. The PSP audit consideration coordinator should review the case package sent to determine if the CRU sent it to the correct area, it meets the reconsideration criteria, and all required documentation per IRM 4.13.3.5, Area Office Reconsiderations, is included in the case file.

2. Whenever possible, the PSP coordinator should assign the case to the group where the original examiner works or worked.

3. Receive audit recon referrals from field for routing to CRU.

4. Receive audit recon referrals from the campus.

5. Return recons to the CRU that do not meet the requirements.

6. Determine if audit assessment has been input.

7. Coordinate with the CRU if all information is not received (taxpayer correspondence, administrative audit file, tax returns, IDRS research, RGS file). See IRM 4.13.3, Central Reconsideration Unit, for more information.

8. Ensure cases are established on ERCS using the correct codes: generally source code (SC) 73 and aging reason code (ARC) 053.

9. Verify statute. Recons can have unique statutes. For assistance see IRM 25.6.1.10, Claims, Abatements and Refunds.

10. Take into consideration collection due process procedures.

11. Classify case and timely send to RA or TCO.

12. If not on AIMS, process abatement, if accepted by using Form 3870, Request for Adjustment, and processing it through CCP via Form 3210, Document Transmittal. See http://mysbse.web.irs.gov/examination/cp/ccpexamfaq/22504.aspx for details on Form 3870 and E-fax numbers for CCP.

    Reminder: Make sure the abatement of penalties is also considered if applicable.

13. If on AIMS, process abatement, if accepted using Form 4549, Report of Income Tax Changes and Form 5344, Examination Closing Record.

    Reminder: Make sure the abatement of penalties is also considered if applicable.

14. For additional information on penalty abatements, including RGS procedures and preparation of Form 5344, examiners should refer to the Penalty Abatement Job Aid: https://organization.ds.irsnet.gov/sites/SBSEfeMySBSE/ExamGeneralProcesses/ Penalties/Penalty%20Abatement%20Job%20Aid.pdf.

(1) The Insolvency bankruptcy caseworker will request the status of cases under PSP control by sending an e-mail to the PSP Coordinator. The e-mail should contain the bar date, taxpayer’s name, taxpayer identification number (TIN), tax year(s), statute dates, and the reason for inquiry.

(2) The PSP bankruptcy coordinator reviews the e-mail and makes a determination based on information received from Insolvency as to whether an examination should be done. The PSP coordinator will notify Insolvency of their determination at least 30 days prior to the bar date.

• If the case is on AIMS in status 06 and an examination is warranted, the case needs to be retrieved from the campus inventory, associated with the e-mail and forwarded to a group with a cover memorandum that notes if there is a bar date so the group can provide the estimated tax deficiency to Insolvency at least 30 days prior to the bar date.

• If the case is in status 08 and an examination is warranted, associate the e-mail and forward to a group with a cover memorandum that notes if there is a bar date so the group can provide the estimated tax deficiency to Insolvency at least 30 days prior to the bar date.

(3) Depending on the urgency of the issue, the PSP bankruptcy coordinator may immediately assign the case to an exam group, or hold the case until an order is placed by the group. If the case will not be immediately assigned to an exam group, the PSP coordinator will provide an estimated deficiency to Insolvency no later than 30 days prior to the expiration of the bar date so Insolvency may include this information in the proof of claim. If this information is not included on the proof of claim, the government may lose the right to collect any deficiency that may be later determined. Opening an examination may not be necessary if the government has lost the right to future collection of any deficiency that might have been determined.

(4) See IRM 4.27.1.7, Examination Coordination with Insolvency, for additional information addressing PSP office procedures for handling Insolvency inquiries and bankruptcy cases.

(1) If a case has already been established on AIMS in status 10 or 12, and PSP receives bankruptcy information, the PSP bankruptcy coordinator will send the information to the group for association with the case file and include a cover memorandum which notes if there is a bar date so the group can provide the estimated tax deficiency at least 30 days prior to the bar date.

(1) Taxpayers may, during the course of bankruptcy proceedings, file a tax return directly with Insolvency. See IRM 4.27.1.7.1, Questionable Returns Filed with Insolvency During Bankruptcy Proceedings.

(2) If Insolvency finds a return to be questionable, they will submit a copy of the tax return to the PSP office for assignment to an exam group. See IRM 4.27.1.7.1.1, Returns Eligible For Review.

(3) The PSP coordinator may accept the referral or advise Insolvency that the referral has been rejected. See IRM 4.27.1.7.1.1(2), for additional criteria.

(4) The PSP coordinator will provide Insolvency with an estimated deficiency at least 15 days before the bar date if the referral is accepted.

(5) The PSP coordinator may assign the case to an exam group. See IRM 4.27.1.7.2, PSP Classification of Questionable Returns.

(6) The PSP coordinator may refer the case directly to Technical Services for preparation of a statutory notice of deficiency. See IRM 4.27.1.7.3, Technical Services Review of Questionable Returns.

(7) The PSP coordinator may survey the return if warranted.

(1) The Technical Services bankruptcy coordinator reviews referrals from the Department of Justice (DOJ). If Technical Services recommends the case be examined, a Form 3449, Referral Report, will be prepared and forwarded to the PSP bankruptcy coordinator.

(2) The PSP bankruptcy coordinator will review the case to determine if it warrants examination.

(3) If examination is warranted, PSP staff will take the following actions:

1. Establish the case on AIMS and assign to a group.

2. Advise the Technical Services bankruptcy coordinator of the group assignment.

(4) If the PSP bankruptcy coordinator determines the case does not warrant examination, the coordinator will indicate the reason why the case was not assigned for examination and send the referral back to the Technical Services bankruptcy coordinator.

(5) Technical Services bankruptcy coordinator will advise DOJ of PSP’s decision. See IRM 4.27.1.5.2, Inquiries from Department of Justice.

(1) In addition to the duties outlined in IRM 4.1.1.6.1, Program Coordinator Duties, the PSP claims coordinator duties include but are not limited to the following:

1. Confirm the selected claim received is for the correct PSP area.

2. Verify the selected claim is accompanied by a correct Form 3210, Document Transmittal. If the Form 3210 is incorrect inform the PSP section chief and contact the originator. If the Form 3210 is correct it should be signed and mailed to the originator and a copy should be kept on file in PSP.

3. The claim should be checked for any Form 895, Notice of Statute Expiration, statute issues. Form 895 statute issues require priority processing.

4. Check the claim to verify it is timely filed.

5. Identify type of request (claim for refund, abatement request, protective claim, taxable amended) and whether the request has already been acted on.

   Reminder: Claims for Refund in excess of $2 million ($5 million for C corporations) must follow Joint Committee procedures. See IRM 4.1.1.6.13 for joint committee procedures.

6. Determine if the claim has been previously disallowed by the campus (Letter 105C, Claim Disallowed, or Letter 106C, Claim Partially Disallowed), or the area. Examiners do not typically reconsider disallowed claims for refund; however, unless the claim was closed with “finality” (e.g. closing agreement, Form 870-AD, Offer to Waive Restrictions on Assessment and Collection of Tax Deficiency and to Accept Overassessment, court order) the claim disallowance can be reconsidered, but only if time remains on the 2 year period of limitations for filing a refund suit started by the issuance of the claim disallowance letter or signing of Form 2297, Waiver of Statutory Notice of Claim Disallowance. See IRM 25.6.1.10.2.5.5, Reconsideration of a Disallowed Claim, as well as IRM 25.6.23.3, Returns Subject to Statute Control for more information.

7. Forward valid protective claims to Technical Services and update status code, source code, and project code (if necessary). See IRM 21.5.3.4.7.3, Protective Claims, for campus and IRM 4.8.2.11, Suspense Cases, for Technical Services, and IRM 4.19.16, Claims, for more information.

8. Source codes and employee group codes (EGC) should be updated correctly for each PSP area and the status code should reflect the current and correct status of the selected claim.

9. Ensure all needed documentation is attached with the claim case. The file must include the amended return and a classification sheet. Other information that may be included is the RTVUE, TRDBV, or MeF.

10. Form 9984, Examining Officer’s Activity Record, should be attached in each claim case file and annotated with case actions.

11. Confirm the claim amount shown on AIMS is correct by comparing the amended return to the amount on AIMS; update if necessary.

12. Verify the statute dates and check any cases with alpha statutes to verify the codes are applied correctly. Update any statute issues and notate them on the examining officers activity record, Form 9984.

13. Verify the correct grade of case and determine if the case should be worked by a RA or a TCO.

14. Use AMDISA and/or INOLES to determine the correct POD and group related to the taxpayer’s address.

15. Determine if the case should be surveyed. If a survey is warranted for the claim, notate the reasoning for the survey on Form 1900, Income Tax Survey After Assignment.

16. Prepare the claim case for examination. On the Form 3210, Transmittal Document, list the POD, EGC, the POD group manager’s name and any comments related to the case.

17. Mail or send in electronic format the completed claim case file to the correct POD and group identified during the claim preparation work following local procedures.

18. Return rejected, improper or incomplete claims back to the campus that forwarded the claim to the area. Be sure to indicate why the claim is being returned. If it is a paid claim with no audit potential close the case using disposal code 33.

(1) For a complete list of duties see IRM 4.17.2.2, CIP Coordinator. Following are a few of the CIP coordinator duties:

1. Provide guidance, assistance, oversight, and monitoring for all CIP activity within the area to ensure actions are completed timely, procedures are followed, and objectives are met.

2. Review CIPs for content and ensure all appropriate individuals have approved or concurred with the CIP.

3. Ensure data used to develop the project is clearly identified, available, and evaluated for accuracy.

4. Prepare CIP authorization requests, status reports, and termination reports to ensure requirements are met.

5. Request and assign project and tracking codes for monitoring purposes.

6. Ensure any data that was obtained throughout the course of the CIP is disposed of according to retentions standards or returned to the originator, if applicable.

7. Maintain records of tax enforcement results (ROTERs) for each project and make them available for status reports, termination reports, and special reports when necessary.

8. When required or appropriate, coordinate workload identification and delivery with the SB/SE Headquarters CIP analyst.

(1) In addition to the duties outlined in IRM 4.1.1.6.1, Program Coordinator Duties, the employee returns coordinator duties include but are not limited to the following

1. Receive returns from the Campus or the headquarters senior program analyst for employee audits, review, and place in confidential envelope.

2. Verify the statute.

3. Classify the return. See IRM 4.1.1.6.7.2, Employee Audit Classification for details.

4. Determine if the employee is a manager or executive and route accordingly. IRM 4.1.1.6.7, Employee Audits.

5. Use Form 3210, Document Transmittal, to transfer the return to the group's employee group code (EGC).

6. Follow IRM 10.5.1.6.7.3, Shipping .

7. Confirm source of return (TIGTA, DIF, NRP, etc.)

8. Request IDRS security clearance for individuals handling employee returns.

9. Assign return to a POD other than where employee works when possible.

(1) The impartial and independent character of examinations of IRS employees and officials must be ensured. All employee tax returns should be screened by PSP personnel prior to assignment to an exam group.

(2) If an employee return is identified during the classification of DIF or Non-DIF workload, follow normal classification procedures. If the employee return does not meet the selection criteria, it may be accepted as filed.

(3) To ensure impartiality and independence, the classification of employee returns will generally not be performed by subordinates, associates, or co-workers in the same POD as that of the effected employee. See IRM 1.2.1.5.7, Policy Statement 4-9, Highest Integrity Expected.

(4) If independence of the classification process is in question, the return will be forwarded to the area PSP office geographically closest to the employee's area where independence is not in question for classification.

(5) Normal classification criteria will be used in screening employee returns. The scope of the examination will not be expanded/contracted merely because the case has been identified as an employee.

(6) To assist classifiers in identifying employee returns prior to screening, an indicator will be placed on the Form 5546, Examination Return Charge Out Sheet. If the return is known to be or determined to be an employee return and the indicator is not present, write the word "employee" in the information section of the Form 5546. For compliance data environment (CDE) returns, "Employee Return" is at the top of the return when printed or viewed.

(7) Once an employee return has been selected for examination, on manually classified returns the pre-contact analysis box of Box B on the Form 6754, Examination Classification Checksheet, should be checked.

(8) For manual classification the employee return and all other related information will be placed in an orange folder. The case file will be stored in a secure file or in virtual inventory if classified through CDE. When the CDE return is delivered it also must be placed in an orange folder.

(9) For regularly classified employee audits, when the return order has reached the DIF score level of the employee return, the return will be transmitted to the area PSP office in a security envelope. Please refer to IRM 10.5.1.6.7.3, Shipping, for information on proper data protection when shipping personally identifiable information. Regularly classified employee audits should retain its original source code. Source Code 46 is only used when a request is made for an employee audit.

(1) All requests for an employee examination, will be routed through the Director, Examination Case Selection (ECS) or their designee for assignment to the area PSP office.

(2) The PSP coordinator will take the following actions upon receipt of a request.

1. Request the tax returns for the open year(s) identified in the employee audit request, case build the file, and classify the returns.

2. Request transcripts of account history for the open years.

3. Forward the case file to a POD close to the employee's POD. Do not send the case file to the employee's POD, whenever possible.

   Note: Follow IRM 4.1.1.6.7, Employee Audits, regarding assignment of cases.

   In situations where new hire audits are required and the closest POD is too far, the case may be worked in the POD where the employee is located. If conducive, the audit may even be performed as a correspondence audit. The area needs to exercise caution in assignment of these cases to protect confidentiality and ensure that no conflict of interest exists.

4. Examinations may be started using the employee's copy of his or her tax return, a TRDBV print, a MeF print, and/or a CDE facsimile of the return(s).

5. Employee tax cases will be kept in orange folders at all times.

(3) The following codes apply to employee audits:

1. Source code 46 is used only when an audit request is made specifically because the taxpayer is an employee.

2. Project code 0206 will be used for executive selection audits.

3. Project code 0207 will be used for TIGTA referrals (Treasury mandates.)

4. Project code 0389 will be used for new employee audits.

5. Project code 0913 will be used for employee audits-transfers from campus.

6. Project code 1030 will be used for CI pre-hire audits.

7. Tracking code 7569 may be used to track an employee examination that originated in a source code other than Source Code 46. An example of other possible source codes are DIF, Compliance Initiative Project (CIP), NRP, etc.

8. Employee indicator of "E" is automatically populated on AIMS.

Reminder: Only in unusual circumstances should a case be returned to PSP.

(4) All employee tax cases are subject to mandatory review by Baltimore Technical Services. Cases should be closed directly to Baltimore Technical Services from the group. Baltimore Technical Services will forward the case to centralized case processing in the Memphis Campus.

(5) If an employee audit has been in any status for more than 90 days, the coordinator will provide an explanation for the delay. For example, if an employee audit has been in Status 12 for more than 90 days the coordinator will contact the assigned group manager and ask for a case status. This information will be recorded in the quarterly report in the status summary field.

(1) The Director, ECS (or designee) will receive memorandums from the Treasury Inspector General for Tax Administration (TIGTA) that request the audit of an employee based upon the investigation of a possible understatement of tax liability. Generally, any TIGTA request received where the statute of any requested audit year will expire in less than twelve months will not be examined.

(2) The Director, ECS (or designee) will review the TIGTA audit request to determine the statute of limitations and the merits of the referral.

(3) For those TIGTA audit requests with more than twelve months on the statute, the Field Case Selection (FCS) program manager (or designee) will forward the TIGTA memorandum, using Form 3210, Document Transmittal, to the appropriate area PSP employee audit coordinator for case building and assignment.

(4) Any TIGTA initiated employee examination received by PSP will be assigned to an exam group and cannot be surveyed.

(5) Upon receipt of the TIGTA memorandum , the employee audit coordinator will perform the following steps:

1. Acknowledge the Form 3210, Document Transmittal, and return the proper copy to the initiator.

2. Establish the return on the Examination Returns Control System (ERCS)/AIMS, using Form 5345-B, Examination Request Non-ERCS Users or Form 5345-D, Examination Request-ERCS (Examination Returns Control System) Users, and Source Code 46. In order to expedite the employee examination, the case file may be sent to the group with a CDE return. The coordinator will forward the original return to the assigned group once received.

3. If the employee filed a return, build the employee examination case file to include, the CDE facsimile, TRDBV, MeF, or the original return, an AMDISA print, IRPTRO for the employee and any related returns, and an IMFOLT. For a job aid to the most common IDRS command codes visit http://serp.enterprise.irs.gov/job-aids/command-code/command-code.html

4. If the employee did not file a return, build a case file with the TIGTA memorandum and the IRPTRO and IMFOLT information for the current and two prior years. The assigned exam group will interview the employee to determine if a return was required to be filed. The group will follow delinquent return procedures, if necessary, and complete the examination accordingly.

5. Send the case file in a confidential information envelope (in order to maintain privacy) addressed specifically to the group manager of the group assigned the audit using Form 3210, Document Transmittal. Please refer to IRM 10.5.1.6.7.3, Shipping, for information on proper data protection when shipping personally identifiable information.

(1) Requests for executive audits are received by the Director, ECS (or designee). ECS will determine where the executive audit will be assigned. The PSP employee audit coordinator will follow all of the procedures outlined above for employee audits.

(2) The request for executive audit will be forwarded to the area PSP office for assignment. Any executive services initiated employee examination received by the PSP office will be assigned to an exam group and cannot be surveyed.

(1) The area PSP TM (or designee) will receive an electronic spreadsheet for new employee examinations from the Director, ECS (or designee).

(2) New employee examinations will be classified in PSP and may be accepted as filed in limited instances (Disposal Code 20). When an employee's return is accepted as filed, the coordinator will complete a Form 1900, Income Tax Survey After Assignment, to include in the file. The Form 1900 must clearly indicate the reasons for accepting the return.

1. After establishing the return on AIMS and completing case building and IDRS research, the PSP coordinator may determine that all items reported on the tax return are verified, there is no apparent unreported income, or there would be only deminimis adjustments based on unreported IRP information. As such, the coordinator may accept the return as filed (Disposal Code 20).

2. The decision to accept the return as filed is also subject to mandatory review per IRM 4.8.4, Mandatory Review. The file should be sent directly to Baltimore Technical Services for concurrence.

(1) In addition to the duties outlined in IRM 4.1.1.6.1, Program Coordinator Duties, the fed-state coordinator duties include but are not limited to the following:

1. Provide guidance, assistance, oversight, and monitoring for all Fed-State program activity within the area including: State Reverse File Match Initiative (SRFMI), State Audit Report Program (SARP), and referrals from state or other federal agencies.

2. At least monthly, the coordinator must access the SARP shared drive and classify the area cases electronically. The coordinator must complete a classification spreadsheet marking each tax period as selected or non-selected. Notify the HQ analyst when the classification has been completed or email the completed spreadsheet to the analyst. All non-selected cases must be marked with non-selection reason codes. See Exhibit 4.1.1-2, Non-Select Reason Codes for SARP Inventory for the legend.

3. Review returns for assignment to the groups. Verify the appropriate source codes, project codes and tracking codes. See http://mysbse.web.irs.gov/exam/mis/data/default.aspx for a list of current project codes and tracking codes.

4. Verify all case building items in the case file including: return (original, MeF, TRPRT or RTVUE), IDRS (note any other open returns or freeze codes), classification check sheet, SARP checksheet and/or report, State Audit Report case white paper, if applicable, any program guidance or other applicable memos.

5. Participate in campus coordinated SARP classification details as requested.

6. Submit disclosure office requests, as appropriate, using Form 8796, Request for Return/Information (Federal/State Tax Exchange Program), and route through the local Disclosure Office. Advise examiners to request a copy of the state tax return when a case is closing unagreed. If examiner needs any additional state audit report data, use Form 8796, and route through Disclosure.

(1) The PSP identity theft coordinator may receive Form 14027-B, Identity Theft Case Referral, from IPSU for assignment to the field on either an open or closed case. Follow the guidance below:

(1) The PSP coordinator may receive Form 14103, Identity Theft Assistance Referrals (ITAR), from the IPSU. Follow the guidance below:

1. Acknowledge receipt of Form 14103 by completing Section V Boxes 1, 2, and 3 within 5 business days via secure email (preferable) to the IPSU employee in Section II Box 1 or the fax number provided in Section II, Box 3 of Form 14103. The e-mail or fax cover sheet should indicate briefly that the case has been received and will be assigned to group XXXX [also indicate employee XXX if known].

2. Establish MFT AD. See IRM 4.1.1.6.9.4, Identity Theft Coordinator.

3. The PSP coordinator should receive an acknowledge receipt of the Form 14103 within 3 business days via secure email from the group.

4. The group will address the issues and action with IPSU.

5. If there is no open audit or status is in 90 or no longer on AIMS for the year referenced on Form 14103, refer to IRM 4.1.1.6.9.1, Form 14027-B, Identity Theft Case Referral for cases with no controls.

(1) A BMF identity theft referral may be sent from the BMF ID Theft Liaison to the area PSP identity theft coordinator. All referrals must be sent through the referring function’s liaison prior to being sent to another function. The referrals will be sent via secure e-mail to the appropriate liaison.

(2) The PSP identity theft coordinator will take the following actions upon receipt of Form 14566:

1. Review BMF ID theft referral to ensure all required research has been completed and documented. If the initial research is incomplete or the case does not belong in area, contact the SB/SE field exam BMF ID Theft Liaison within three business days of receipt.

2. Acknowledge receipt of the referral within three business days and assign to the appropriate group for resolution. If the referral is for assistance, the PSP coordinator will have 30 days to respond to the assistance request. If more time is required, provide the expected time frame to the SB/SE field exam BMF ID Theft Liaison for the response.

3. The case will remain open in the referring function until notification is received from the accepting function. If the referral is for assistance, the control will remain open in the referring function until the case is resolved.

(3) The PSP identity theft coordinator will take the following actions if referring a BMF case to another function:

1. Review Form 14566 referral to ensure all research has been completed, the case is open and controlled, and the case is documented with the required information.

2. Return referral to the group within three business days if the referral is incorrect or incomplete.

3. Monitor case for acknowledgement of receipt by the SB/SE field exam BMF ID Theft Liaison. If acknowledgement is not received within three business days, send a follow up e-mail to request the status of the determination. Send a follow up e-mail if a response to the assistance referral is not received within 30 days. Return the referral to the group within three business days when the requested assistance has been provided, the case is accepted or the referral is rejected.

(4) See IRM 25.23.9, BMF Identity Theft Processing, for additional information on BMF identity theft cases.

(1) In addition to the duties outlined in IRM 4.1.1.6.1, Program Coordinator Duties, the identity theft coordinator duties include but are not limited to the following:

1. Serve as a resource person and a liaison between the field, PSP, Identity Protection Specialized Unit (IPSU), and headquarters analysts.

2. Review all incoming referrals for appropriate routing.

3. Track incoming IMF and BMF referrals in the PSP Program Control database. See IRM 4.1.1.5.5, PSP Program Control Database, for more information.

4. Establish controls on income tax and identity theft modules as warranted.

5. Complete case building and delivery of Identity Theft inventory to the field, as necessary.

6. Monitor inventory (in status 08 or below) for identity theft indicators and ensure appropriate actions are taken.

(2) Coordinators must establish a separate ERCS control (MFT "AD") by submitting Form 5345-D, Examination Request-ERCS Users, when the referral is received.

• TIN - Use the primary taxpayer’s TIN. The primary taxpayer’s TIN is used for the MFT AD record even if the victim is the secondary taxpayer’s TIN on a return filed jointly.

• Tax period - Use the tax period impacted by identity theft. Create a separate record for each year.

• MFT - Use AD.

• Activity Code - Use 557. The second segment of the activity code will be set by ERCS to "000."

• Source Code - Use 99.

• Status Code - Use 10.

• Aging Reason Code - Use 014 (for each impacted open tax year and the related MFT AD record.)

(3) The PSP coordinator should perform monthly monitoring of the identity theft inventory including, but not limited to:

1. Reports for 97X transactions, on status 06 through status 08 inventory.

2. Reports for 5xx tracking indicators for status 06 through status 08 inventory.

3. Reports for monitoring inventory for aging reason code 014 or 095.

4. Reports for monitoring MFT AD inventory.

(1) In addition to the duties outlined in IRM 4.1.1.6.1 Program Coordinator Duties, the inadequate records notice coordinator duties include but are not limited to the following:

1. Receive and review Form 5346, Examination Information Report.

2. Input Form 5346 data fields needed to identify the taxpayer into the PSP Program Control database under the program, Inadequate Records Notice. See IRM 4.1.1.5.5, PSP Program Control Database, for more information.

3. Forward a copy of the Form 5346 and Letter 978, Notice of Inadequate Records, or Letter 979, Inadequate Record Notice, to the campus.

4. Order administrative files and returns as needed.

5. Conduct follow-ups regarding response due from taxpayer.

6. Review taxpayer returns to determine if case should be assigned to the field and record selection or non-selection in the PSP Program Control database.

7. Update to group SBC and EGC and send for follow-up examination via Form 3210, Document Transmittal.

(1) In addition to the duties outlined in IRM 4.1.1.6.1, Program Coordinator Duties, the information referrals coordinator duties include but are not limited to the following:

1. Input referral data fields from the various forms or taxpayer letter into the PSP Program Control database.

2. Review referral for examination potential.

3. Research information referrals (using ERCS/AIMS/IDRS/locator services, etc.)

4. File non-selected referrals in a cabinet for the 26 month retention period and then destroy per instructions in Document 12990, Records and Information Management Records Control Schedules, RCS 23 item number 66.

5. Receive case built referrals from the Brookhaven Campus and classify the referral.

6. Mail or send in electronic format selected referrals to an EGC using Form 3210, Document Transmittal, or place inventory in PSP inventory for assignment by the PSP SPIGOT/Returns Coordinator.

(1) The PSP territory manager (or designee) should review for completeness all Form 3031, Report of Investigation of Transferee Liability, referred to exam within 30 days after receipt.

(2) An INOLE should be obtained to determine the taxpayer's most current address.

(3) An AMDIS should be secured to determine if there is an open year in Status 10 or 12 in a group. If there is, Form 3031, Report of Investigation of Transferee Liability, should be sent to that group along with a Form 3210, Document Transmittal.

(4) If there is no open year in Status 10 or 12, the PSP territory manager or designee should requisition the return(s) on ERCS, associate the return(s) with Form 3031 and establish the case on AIMS non-master file and assign to field exam for verification of assets transferred and case write-up. Form 3210, Document Transmittal, will be used to forward the return(s).

(5) See IRM 4.10.13.3, Transferor-Transferee Liability, for understanding of this issue. For detailed instructions see IRM 4.10.13.3.1.1, Referral From Collection Function.

(1) Employment tax has established a centralized workload selection and delivery system at the Cincinnati Campus.

(2) Employment tax leads or workload received by the PSP office will be forwarded to Cincinnati using a Form 3210, Document Transmittal, via email to sbse.et.wsd.referral@irs.gov or mailed to the following address:

SB/SE Employment Tax Policy Analyst
201 W Rivercenter Blvd
Stop 5702A/Employment Tax
Covington, KY 41011

(3) Please refer to IRM 4.23.3.3.6, Employment Tax Leads, for classification, selection and assignment of employment tax cases.

(1) Information referrals are generated from the Bank Secrecy Act (BSA) program about the financial transactions of businesses and individuals that may have material compliance potential. These information leads are forwarded on Form 5346, Examination Information Report, or Form 3949, Information Report Referral.

(2) All leads are forwarded to the designated BSA staff. BSA staff screens the leads using the SNiF criteria (IRM 4.1.1.6.21(2), Special Enforcement Program (SEP)) and forwards the SB/SE income tax leads to the Brookhaven Campus for case building and distribution to the area PSP offices for classification and assignment of selected referrals to field groups.

(1) In addition to the duties outlined in IRM 4.1.1.6.1, Program Coordinator Duties, the innocent spouse coordinator duties include but are not limited to the following:

1. Review Form 8857, Request For Innocent Spouse Relief. Review statutes for correctness, order missing returns, and determine if there is a balance due.

2. Conduct initial review of all incoming cases to determine if the case meets innocent spouse criteria and contains all required documents.

3. Ensure AIMS controls are on all years meeting innocent spouse criteria. If needed, request cases in status 90, 81, or 82 to be reopened.

4. Update status code and project code if necessary. The source code is NEVER to be updated. The case should retain the original source code.

5. Add national freeze code 12, Innocent Spouse to all returns.

6. Update to group AAC and send for examination via Form 3210, Document Transmittal.

7. Update stage coding on Innocent Spouse Tracking System (ISTS). See IRM 25.15.14.4, Processing Stages, for the staging codes.

8. Complete Inventory Validation Listing (IVL) for ISTS every quarter. See IRM 25.15.14.5, Validating the Inventory Validation Listing (IVL) - Area Offices.

9. Coordinate with CCP, OIC, Bankruptcy, AIMS, ERCS, Technical Services, Appeals, and other coordinators as necessary.

10. Answer technical questions regarding innocent spouse from internal customers.

11. Respond to congressional correspondence and TAS correspondence.

12. Monitor inventory status, project accomplishments, and identify additional resources needed, if any, to accomplish programs.

(1) In addition to the duties outlined in IRM 4.1.1.6.1, Program Coordinator Duties, the NRP coordinator duties include but are not limited to the following:

1. Coordinate with the area NRP Territory Manager on area issues affecting the program (return assignments, examiner training, communications with the groups, etc.).

2. Communicate with various HQ NRP analysts on other issues affecting the program (receipt of returns, sensitive cases, issue advice, NRP Report Generation Software (RGS) directives, case closing problems, etc.).

3. Coordinate the identification of classifiers for the area.

4. Serve as classification reviewer at NRP classification sessions.

5. Liaison with servicing Campus on the receipt of cases. Monitor and acknowledge receipt of classified NRP returns.

6. Maintain the area spreadsheet containing the trained examiners with access to the NRP RGS file server.

7. Update ERCS/AIMS and assign cases to groups with trained examiners; mail or send in electronic format using Form 3210, Document Transmittal.

8. Verify cases are updated to the correct status codes on B3 on the NRP RGS file server.

9. Request access to the NRP Case Tracking System (CTS) maintained at the Detroit Computing Center (DCC).

10. Approve all return transfers in, out, or within the area.

11. Locally approve and forward exclusion requests to the NRP office for final approval.

12. Provide any NRP reports to area management if required.

13. Meet with and participate on HQ/Area case review teams.

14. Gather closed NRP returns to be reviewed during the HQ/area case reviews according to directions provided.

15. Conduct closed case procedural reviews involving the group or examiner if necessary.

16. Run the EOAD conversion program to extract the EOAD file for each NRP RGS data record. Transmit the EOAD file to DCC.

17. Correct records that fail DCC consistency tests.

18. Return cases to the groups that have incorrect or inconsistent EOAD or RGS data that cannot be corrected by the coordinator.

19. Send perfected cases to Centralized Case Processing (CCP) or Technical Services for closure or further actions.

20. Coordinate with CCP and Technical Services on return closures. Release freeze codes, as necessary to move cases through the review and closing processes.

21. Monitor all HQ NRP reports and CTS for inconsistent data. Make all necessary corrections to NRP data for the area.

(1) Any leads received in the area during the year meeting NF criteria may be forwarded to the Brookhaven Campus for filtering and case building.

(2) See IRM 4.1.1.6.15.1.1, NF Lead Criteria, for NF screening criteria for leads sent to the area PSP.

(3) The information reports and referrals sent to PSP offices also include non-filer leads received from various sources. The PSP coordinator will screen all non-filer leads to ensure they meet NF criteria. The NF criteria are designed to address the filing compliance of taxpayers with potential balance due of at least ≡ ≡ ≡ ≡ or total known sources of income exceeding ≡ ≡ ≡ ≡ ≡ ≡. The sources of income may include IRP documents, or alleged information on an information report.

(1) In addition to the duties outlined in IRM 4.1.1.6.1,, Program Coordinator Duties, the NF coordinator duties include but are not limited to the following:

1. Review locally sourced non-filer leads. Leads with at least one year of more than ≡ ≡ ≡ ≡ ≡ in IRP unreported income or a potential balance due of more than ≡ ≡ ≡ ≡ can be referred to the Memphis Campus for case building. Leads under ≡ ≡ ≡ ≡ ≡ ≡ or a potential balance due of less than ≡ ≡ ≡ ≡ ≡ ≡ ≡ should not be worked under the NF program unless related to a NF.

2. Review NF cases received from the Memphis and Brookhaven Campuses.

3. Perfect and correct inventory controls (AIMS/ERCS).

4. Perfect case building.

5. Review IDRS to confirm a SFR Transaction Code 150 has posted and the taxpayer has not filed a return.

6. Request Correspondence Imaging System (CIS) print when necessary.

7. Verify project, tracking, and source codes.

(2) To enhance quality, examination techniques and procedural guidance may be enclosed in each NF case file. Please refer to IRM 4.12, Nonfiled Returns, for additional information.

(1) Every PSP OIC coordinator needs access to AOIC.

1. AOIC access is requested using OL5081

2. The PSP coordinator will monitor the area OIC-DATL inventory using AOIC.

3. The coordinator will update AOIC with case assignment information and case updates.

4. PSP coordinators should send reminders to the field examiners for OIC-DATL cases with less than 6 months remaining on the TIPRA statute.

5. AOIC is the official record-keeping system for OIC-DATL cases.

   Note: The coordinator should look to AOIC for the offer statute date (previously referenced as the TIPRA date) rather than to the ASED on AIMS.

6. The coordinator will send letters to taxpayer/POA for perfection of OIC or request additional documentation, as needed.

7. The coordinator should research IDRS for all tax periods identified on the OIC.

8. If the OIC DATL is based on an exam assessment (TC 300) the PSP coordinator will need to order the administrative file and establish the offer on AIMS. If the offer is on an original assessment, then this may not be applicable.

   Note: Exam assessments made by a Campus PBC will not have an administrative file. The coordinator must retrieve the RGS files from Campus CEAS.

9. OIC cases will have project code 0264 and source code 73 and AIMS freeze code 08.

   Note: The AIMS freeze code prevents the group from updating the case to a status code other than status 21. This assists in preventing these cases from bypassing Technical Services.

10. Determine statutes for assessment. See IRM 25.6.23.5.7.2.1, Offer in Compromise - Doubt as to Liability (OIC-DATL) Exam Statute Controls.

    Note: OIC-DATL cases should contain a statute date that is two years from the IRS received date (generally, the earliest date stamped on Form 656-L) The statute should also carry an “R” as part of the statute date, e.g. (4-15-2015R) to assist in identifying the TIPRA statute.

11. A printed copy, from the AOIC system, of the "Exam/Specialty Checklist" should be included in the case file prior to sending to the field. Technical Services will complete this form and return electronically to PSP after the case is reviewed.

12. Review the AOIC "Remarks" section to determine if the TC 480 has been manually input. If so add that information to the case file (history sheet) so that Technical Services will have that information.

    Note: Manual input of a TC 480 will require manual input of a TC 48X closing code at the conclusion of the examination.

13. If the AOIC offer screen shows the taxpayer has made a good faith deposit with the DATL offer, a Form 3040, Authorization to Apply OIC Deposit to Liability, should be included in the case file. At the conclusion of the examination, examiners should ask the taxpayer whether the deposit should be applied or refunded. If deposit is to be applied, the taxpayer must complete and sign the Form 3040.

14. Please refer to IRM 4.18, Exam Offer-In-Compromise, for field exam guidance and procedures.

(2) After Tech Services review is complete, OIC-DATL offers must be closed on AOIC by the PSP coordinator or, if the determination is appealed, updated to Appeals.

1. Technical Services will send the coordinator a completed "Exam/Specialty Checklist." See IRM 4.8.8.8.5, Case Closing Procedures, Figure 4.8.8-1 for a copy of the checklist.

2. Checklist data should be input in AOIC for each case, even those updated to Appeals.

3. If there is a DATL deposit, and information on deposit disposition is not included with the "Exam/Specialty Checklist," contact the Technical Services OIC reviewer to find out if a Form 3040, Authorization to Apply OIC Deposit to Liability, was processed. A Form 3040 is required to apply a DATL deposit to a tax module. If the taxpayer has asked for a refund, or provided no instructions for disposition, input "R" in the prompt for disposition of the offer on AOIC, to refund the deposit. For further information on DATL deposits and more specific AOIC instructions, see IRM 5.19.24.18, Disposition of DATL Good Faith Deposits, and IRM 5.19.7.2.12.4, Deposit Dispositions for Offers on AOIC.

4. Comparison of AOIC offer information with the AIMS status for the offer case will assist the coordinator with finding offers where follow-up with Technical Services or a field group is required.

5. Closing an offer case on AIMS is not closing an offer. An offer will remain in open status until AOIC is updated to closed status.

(1) All voluntary disclosure cases, accepted by Criminal Investigation Division, are centrally processed by LB&I in the Austin Submission Processing Center (“LB&I Austin”). LB&I Austin will consolidate all CI documentation provided. Then, LB&I will forward cases for case building and field assignment to the appropriate Business Operating Division and Exam function for civil examination based on established criteria. All domestic Voluntary Disclosure Practice cases that fall within SB/SE established criteria will be forwarded to PSP for case building. Cases with no income tax issues will be forwarded to the appropriate specialty case selection group. Offshore disclosures will be forwarded to LB&I for case building. For LB&I criteria, refer to IRM 4.50.2.2, Workload Selection Program Areas.

(2) (2) LB&I Austin will electronically deliver the domestic Voluntary Disclosure Practice CI acceptance packages to PSP via the VDP Shared Drive. An electronic Form 3210 will be included, which must be acknowledged and returned.

(3) After the CI acceptance package is received, PSP will case build and input all tax years from the voluntary disclosure into the Program Control Database. However, PSP will only establish the most recent tax year. For purposes of this IRM, the use of "tax years" is generic. Employment taxes and other taxes may be reportable based on attributes other than tax years.

(4) Identify the most recent year listed on the Form 14457, Part II, Line 5. In some cases, the most recent year of the voluntary disclosure will not be the most recent calendar year. Generally, the most recent tax year of the voluntary disclosure period should be established. If the most recent tax year meets the requirements of the 26 months cycle for IMF or 27 months cycle for BMF per IRM 4.10.2.2.2, Examination Cycles, PSP will establish that year on ERCS for examination. If the most recent year of the disclosure period that would normally be established is past this cycle, the prior year may be considered and established under the applicable alpha statute code, per IRM 25.6.23-3, Instructions for Updating the Statute on AIMS. For any tax years of the disclosure period past this cycle but with statutes not yet expired, PSP will notate this in the case file and advise the receiving field group.

(5) Delinquent Returns. Taxpayers are instructed to not provide any returns, amended or delinquent, as part of the voluntary disclosure process until contacted by exam. If PSP receives an original signed delinquent return from the taxpayer, as part of the case building documents, the return should be processed and assessed by PSP. See IRM 4.4.9, AIMS Procedures and Processing Instructions, Delinquent and Substitute for Return Processing. PSP will establish all tax years for any delinquent returns received. Form 13133, Expedite Processing Cycle should be attached to the front of the return. See IRM 4.4.9.5.11, Form 13133, Expedite Processing Cycle for form completion instructions. PSP should not assess penalties and should make sure that no penalties are assessed when submitting the Form 13133. Penalties, if applicable, will be determined by the examiner.

(6) Nonfilers. If the most recent tax year is a nonfiled return and the taxpayer has not provided a delinquent return, follow delinquent return procedures to establish controls. See IRM 4.12.1, Nonfiled Returns.

(7) Voluntary Disclosure Practice cases are mandatory work and PSP may not survey the returns.

(8) Statutes. The Coordinator should identify the statute and establish examination controls for the most recent disclosure year. If the most recent disclosure year has an imminent IRC 6501(a)(1) assessment statute, please consult with your manager for guidance prior to establishing this year. If the normal ASED has expired prior to examination controls being established, refer to IRM 25.6.23-3, Instructions for Updating the Statute on AIMS, for the applicable alpha code.

(9) Payments. Taxpayers who would like to make advance payments for the voluntary disclosure years should send their payments directly to the LB&I Austin unit. Refer to payment submission procedures at IRM 21.1.3.22, Voluntary Disclosure Practice. If PSP receives an advance payment for the voluntary disclosure years, use Form 3244A to post the payment as a TC640 with .00 next to TC 570, this will prevent the payment from refunding. If the taxpayer does not designate a specific tax, penalty type, or tax year for the payment, the payment should be applied to the most recent tax year identified by the taxpayer on their voluntary disclosure submission (Form 14457).

(10) Fraud Suspense Cases. If there is a TC 914/ -Z Freeze on the module for a CI Investigation, for any year covered by the Voluntary Disclosure, please contact the FCS Analyst for assistance.

(11) Taxpayer contacts. PSP should not communicate with the taxpayer or their representative about the progress of their case assignment. All tax returns, information returns or other documents that the taxpayer would like to submit for consideration should be held by the taxpayer/representative until they are contacted by the examiner.

(1) In addition to the duties outlined in IRM 4.1.1.6.1, Program Coordinator Duties, the VDP coordinator duties include but are not limited to the following:

1. Obtain access to the VDP Shared Drive from the Field Case Selection Analyst.

2. Input information supplied by CI into the PSP Program Control database for all tax years from the voluntary disclosure.

3. Identify the most recent year listed on the voluntary disclosure applicant’s Form 14457, Part II, Line 5.

4. Complete case building, as necessary.

5. Provide monitoring reports to the area, as necessary.

6. Verify project, tracking, and source codes.

7. Perfect and correct inventory controls.

8. Update controls to group AAC and send to group via Form 3210, Document Transmittal.

(1) In addition to the duties outlined in IRM 4.1.1.6.1, Program Coordinator Duties, the prompt determination coordinator duties include but are not limited to the following:

1. Review tax return(s) and determination request.

2. Conduct IDRS research, and research bankruptcy data.

3. Determine whether to accept return as filed or select for examination and send to a group.

4. Establish controls on all qualifying prompt determination cases. Use source code 73 and project code 0668.

5. Secure a TRDBV print if the return is accepted as filed and close the case with disposal code 20 to indicate it was accepted as filed by classification.

6. Notify trustee by form letter within 60 days if selected or accepted as filed. If selected for examination, notify group to complete examination within 180 days of receipt by IRS if tax liability or 120 days if a refund.

7. In the case of Chapter 12 Bankruptcy Plan - 11 USC Section 1231(b) Requests, notify the requester within 60 days via mail advising a processable application has been received and the date received per section 3.02 of Rev. Proc. 2006-52. Immediately assign the application to an Exam group for determination with notification of the 270-day timeframe.

(1) Review the request to determine if it qualifies for a prompt determination.

1. In general, an entity qualifies for a prompt determination if it was created pursuant to a bankruptcy plan and the request includes all the requirements in Rev. Proc. 2006-24 or Rev. Proc. 2010-27.

2. If an entity does not qualify for a prompt determination, send a denial letter to the trustee or debtor-in-possession. Use Letter 5531, Prompt Determination of Tax Liability, and Letter 5531-A, Prompt Determination of Tax Refund. The PSP coordinator completes the letter by selecting the appropriate paragraph(s) based on the facts of the case and submit it to the manager for review and signature. The coordinator is responsible for completing Form 9856, Attachment Alert, and re-filing the prompt determination request at the appropriate campus location using the Document Locator Number (DLN) of the Transaction Code (TC) 150 or 290 posting. Form 3210, Document Transmittal, should be used to forward the package.

(2) Review the qualifying request to determine if it is complete based on the requirements of Rev. Proc. 2006-24 or Rev. Proc. 2010-27. If the request is incomplete, the request should be returned to CIO.

1. If the request and bankruptcy estate tax return meet the requirements of Rev. Proc. 2006-24 or Rev. Proc. 2010-27, but has an incorrect SSN, TIN, or EIN, PSP is responsible for following up with the trustee or debtor-in-possession to request the correct number or copy of the verification letter from the IRS showing the number is correct. Use Letter 5531, Prompt Determination of Tax Liability, and Letter 5531-A, Prompt Determination of Tax Refund. The PSP coordinator completes the letter by selecting the appropriate paragraph(s) based on the facts of the case and submit it to the manager for review and signature

   Note: An incorrect SSN, TIN, or EIN does not make the request package incomplete. The 60 day period to notify the trustee continues to run from the date CIO determined the package to be complete.

2. If an incomplete request is received, the 60 day period for notifying the trustee whether the return filed by the trustee is being selected for examination or is being accepted as filed does not begin to run until a complete request is received by the field insolvency office.

(3) Conduct research as noted in Exhibit 4.1.1-4, Prompt Determination Requests - Research Requirements.

(4) Classify all qualifying return(s) using Form 10264, Revenue Agent - Classification Checksheet, to determine whether to select the return for exam or accept it as filed.

(5) All qualifying requests for a prompt determination that are accepted as filed or selected for exam must be controlled on AIMS for each taxable period using:

1. Source Code 73

2. Master File Tax Code (MFT) for return filed

3. Status Code 06 (Awaiting Classification)

4. Project Code 0668

(6) Notify the trustee or debtor-in-possession by mail within 60 days from the date the complete request package was received by CIO of the decision to examine a tax return or accept it as filed. Use Letter 5531, Prompt Determination of Tax Liability, and Letter 5531-A, Prompt Determination of Tax Refund. The PSP coordinator completes the letter by selecting the appropriate paragraph(s) based on the facts of the case and submit it to the manager for review and signature.

(7) If selected for exam, place in red folder, update to the correct SBC and EGC, and mail the prompt determination package to the appropriate field group. Notify group to complete the exam within 180 days if tax liability or 120 days if a refund.

(8) If the return is accepted as filed, secure a RTVUE or BRTVUE print, and close the case with disposal code 20 to indicate it was accepted as filed by classification. The coordinator is responsible for completing Form 5351, Examination of Non-Examined Closings, and mailing the prompt determination documentation within 5 days to the appropriate campus location using Form 3210, Document Transmittal. See IRM 4.4.21.5, Surveys, for additional information.

(9) In the case of Chapter 12 Bankruptcy plan – 11 USC Section 1231(b) requests, after notifying the requestor by mail of the processable application, PSP will immediately assign the application to an Exam group. The group should be advised of the 270-day timeframe for determination.

(1) In addition to the duties outlined in IRM 4.1.1.6.1, Program Coordinator Duties, the return classification (SPIGOT) coordinator duties include but are not limited to the following:

1. Prepare area classification plan based on the current work plan available.

2. Calculate return orders in accordance with National Return Ordering Standards.

3. Update available staffing by grade and POD for orders.

4. Apply DIF Score cut-off limitations to the return order prior to submission for approval. DIF Score cut-offs are set by HQ Field Case Selection (FCS).

5. Determine proper order system to use (MCC DIF or CDE).

6. Prepare MCC order forms for approval.

7. Submit order to PSP Territory Manager.

8. Monitor DIF Inventory and Delivery Reports, CDE Reports, and Exam Plan.

9. Run CDE filters to determine returns available above DIF score cut-offs.

10. Compute classification detail needs and schedule.

11. Coordinate with area management to select teams for classification.

12. Ensure classifiers have access to all information systems for classification including CDE, IDRS, Mod-E, and yK-1.

13. Monitor classification progress to include verification that at least 10% of the cases are reviewed.

14. Collect and review team documentation from the classification detail. Compute, maintain, and analyze select rates.

15. Assist classification team members as needed.

16. Provide written feedback to each classifier (through their TM) via Form 5126, Classification Quality Review Record. IRM 4.1.5.3.3.2 (2), Review of Performance.

17. Issue approval guidance memo to campus related to surveying out of cycle inventory.

18. Ensure the periodic classification of Automatics and Specials. See IRM 4.1.1.7.3, Automatics, Specials and Campus Identified Work.

19. Work with exam groups to calculate and fulfill the needs of the group in support of the PSP TM’s requirements.

(1) The area Return Preparer Coordinator (RPC) will be responsible for planning and coordinating the implementation of area and National Headquarters Return Preparer Strategy.

(2) In addition to the duties outlined in IRM 4.1.1.6.1, Program Coordinator Duties, the return preparer coordinator duties include but are not limited to the following:

1. Plan and coordinate compliance activities related to return preparers with other functions, areas, and campuses.

2. Provide education, support, and expertise to compliance personnel on penalty issues.

3. Monitor activities of the return preparer program and the application of civil preparer penalties, identify problems within the program, and notify area offices and HQ Field Case Selection (FCS) Return Preparer Analyst of appropriate solutions.

4. Accumulate and maintain files on potentially abusive preparers from referrals received from area office functions, electronic return originator (ERO) site visits, earned income tax credit (EITC) due diligence visits, campus compliance, and Criminal Investigation (CI) both area and campus.

5. Accumulate, monitor, and report all on-going penalty investigations.

6. Communicate with the examiner and the fraud technical advisor (FTA) when a return preparer is in fraud development status (AIMS status code 17).

7. Evaluate referral information for development of program action cases (PAC).

8. Ensure the correct people are on the area Preparer Steering Committee (PSC).

9. Prepare summarization of potential PAC cases for the area PSC.

10. Prepare memo for area director for PAC approval once PSC has approved.

11. Coordinate all compliance activity of income tax returns prepared by return preparers approved by PSC for program action cases.

12. Review preparer penalty cases closed by exam.

13. Serve as the area contact with the Office of Professional Responsibility (OPR).

14. Initiate compliance activity for certified public accountants (CPA), attorneys or enrolled agents who misrepresent their status before the IRS.

15. Serve as area contact with the Centralized Authorization File (CAF) unit.

16. Interact with the Criminal Investigation (CI) Field Office Return Preparer Program (RPP) Coordinator and the Lead Development Center (LDC).

17. Initiate compliance activity under Rev. Proc. 81-38.

18. Serve as liaison with Stakeholder Liaison and Stakeholder Partnerships, Education and Communication (SPEC) employees on programs and issues that impact return preparers.

(3) Additional information for return preparer coordinators can be found in IRM 4.1.10.1, Area Return Preparer Program Coordinator (RPC) Responsibilities.

(1) In addition to the duties outlined in IRM 4.1.1.6.1, Program Coordinator Duties, other SEP coordinator duties are listed in this subsection.

(2) Complete preliminary IDRS research for proper screening of the lead to determine:

1. If AIMS controls are present, the lead should be associated with the open case file.

2. If AIMS controls are not present, the lead should follow the process starting in (5) below.

3. If an examination was previously completed, consider reopening procedures.

4. If the lead identifies a taxpayer who falls within a strategic priority program or under another Business Operating Division (BOD) contact should be made with the other operating division and the lead should be forwarded, as appropriate.

(3) Review remaining leads for program priority and audit potential using SNiF criteria as seen in IRM 4.1.1.6.21(2), Special Enforcement Program (SEP) above.

(4) Request access to the SEP_InfRef Shared Drive from the HQ SEP Analyst in Field Case Selection (FCS) in order to upload all SEP leads.

(5) If the lead does not warrant further investigation, complete the electronic SEP Lead Rejected spreadsheet located in the SEP_InfRef Shared Drive and document the reason on the lead.

(6) Scan all SEP leads and any supporting documentation into a PDF file. Create a separate folder for each PDF lead on the SEP_InfRef Shared Drive including those rejected.

(7) Prepare the SEP Lead Spreadsheet as follows:

1. Complete columns A through P on the sample spreadsheet found on the SEP_InfRef Shared Drive. See Exhibit 4.1.1-5, SEP Lead Spreadsheet for required items.

2. The SEP Lead Spreadsheet should be completed on a monthly basis for leads to be forwarded for case building and classification.

3. Once the SEP leads are in folders on the SEP_InfRef Shared Drive and the monthly spreadsheet is completed, send an email to the Brookhaven case building unit manager with a copy to the FCS HQ SEP Analyst.

(8) After the cases are built in Brookhaven and classified by the FTAs, they will be returned to PSP for assignment. The SEP coordinator will go into the SEP/Fraud shared drive to retrieve the inventory for SEP group orders. Print any cases where the SEP group will not accept an electronic version of the case. The SEP coordinator should confirm the following codes for SEP group generated leads:

• Status code 08

• Aging Reason Code 019

• Project Code 1261

• Tracking code 8306

(9) Cases should be sent to the SEP groups based on local area procedures. SEP leads should not go to the SEP group who identified the lead.

(10) Follow the records control schedule of Document 12990, Records and Information Management Records Control Schedules, for how long to maintain the leads.

(1) In addition to the duties outlined in IRM 4.1.1.6.1, Program Coordinator Duties, the TAS coordinator duties include but are not limited to the following:

1. Refer TAS to appropriate functions

2. Research open cases on AIMS to provide location information for TAS

3. Receive and review TAS operations assistance requests (OAR). Check to determine if there is an open exam or collection indicator.

4. Input tracking code 7752 on all open tax years sent to the field

5. Assign case to groups as appropriate; ensure controls are in the proper SBC and EGC and mail or send in electronic format to group via Form 3210, Document Transmittal

6. Provide TAS with the name and telephone number of the SB/SE group manager assigned the case within the prescribed time frame.

7. Survey case if appropriate (claims, etc.)

(1) In addition to the duties outlined in IRM 4.1.1.6.1, Program Coordinator Duties, the transfers coordinator duties include but are not limited to the following:

1. Determine appropriateness of transfer-in and transfer-out cases.

2. Validate statute and ensure IRM guidelines for statute time frames are met.

3. Ensure AIMS database is received (transfer-in)/(transfer-out) and contains correct information.

4. Within 30 days of PSP receipt of transfer, assign case to group and notify the Return Classification Specialist (SPIGOT) (transfer in).

5. Within 30 days of PSP receipt of transfer, forward transfer out cases using Form 3185, Transfer of Return, via Form 3210, Document Transmittal

6. Review case to determine if the return still warrants examination. See IRM 4.10.2.5.6, Surveying Returns Transferred From Another Area, for procedures.

7. Refer to IRM 4.4.33, Transfers, for specific AIMS instructions on transferring cases.

(1) In addition to the duties outlined in IRM 4.1.1.6.1, Program Coordinator Duties, the training coordinator duties include but are not limited to the following:

1. Coordinate with the HQ Field Case Selection (FCS) Training Analyst to determine the source code, activity code, number, and delivery date of returns for each training class.

2. Coordinate with the area hiring coordinator to verify the hiring locations.

3. Coordinate with the area training coordinator to confirm who will be attending training.

4. Schedule classification details if necessary.

5. Ensure AIMS/ERCS project codes, source codes, and tracking codes are correct.

6. Coordinate case building either at the campus or locally.

7. Coordinate delivery of the classified case built returns to each POD at least 6 weeks before On Job Training (OJT).

8. Provide feedback on filters, selection rates, issues, etc. to the HQ FCS Training Analyst.

9. Monitor training return results to determine areas for improvement.

10. Coordinate with the SPIGOT and classification coordinator.

(1) In addition to the duties outlined in IRM 4.1.1.6.1, Program Coordinator Duties, the whistleblower coordinator duties include but are not limited to the following:

1. Conduct initial screening of all incoming whistleblower cases for examination potential or survey

2. Perform IDRS research for case building and open compliance activity

3. Ensure whistleblower (ICE) indicator, proper tracking code and project codes are in place

4. Consider collectability

5. Update SBC and EGC on ERCS and ship cases to the exam group via Form 3210, Document Transmittal

6. Work with the whistleblower coordinator at the campus to have the informant claim indicator removed if necessary

7. Forward IRC 7623(b) cases received from the whistleblower analyst to the appropriate area Special Enforcement Program (SEP) TM or designee for a taint review. If the case is to be audited, the coordinator will work with the field to establish the case on AIMS/ERCS.

(1) In addition to the duties outlined in IRM 4.1.1.6.1, Program Coordinator Duties, the fishing industry coordinator duties include but are not limited to the following:

1. Verify incoming cases.

2. Review case built files.

3. Complete case building, as necessary.

4. Perfect and correct inventory controls.

5. Update controls to group SBC and EGC and send to group via Form 3210, Document Transmittal.

6. Verify project code is present and accurate.

(1) The Rehabilitation coordinator's duties include, but are not limited to the following:

1. Verify incoming cases

2. Review case built files

3. Complete case building, as necessary

4. Perfect and correct inventory controls

5. Update controls to group SBC and EGC and send cases to group via Form 3210, Document Transmittal

6. Verify project code is present and accurate.

(1) In addition to the duties outlined in IRM 4.1.1.6.1, Program Coordinator Duties, the IRC 183 coordinator duties include but are not limited to the following:

1. Review Form 5213, Election to Postpone Determination as To Whether the Presumption Applies That an Activity Is Engaged in for Profit, as they are received in PSP and review all tax returns under the presumptive period.

2. After each subsequent year is filed, classify the subsequent year returns for Large Unusual, and/or Questionable (LUQ) items not related to the hobby loss activity on IRC 183 returns that are transferred to PSP from Technical Services suspension during the presumptive period.

3. As the presumptive period nears completion determine the appropriate action for the return(s). Give consideration to all classification risk factors; DIF cutoff score set by DIF return ordering, collectability, materiality, etc.

4. Monitor statutes on any returns in PSP prior to transfer to Technical Services.

5. Monitor the statutes of cases in suspense every month. If 210 days or less remain on a statute, prepare Form 895, Notice of Statute Expiration, to update the statute to "MM" with an explanation the return is only open for the IRC 183 issue and the statute for this issue expires two years after the due date (determined without regard to extensions) of the last presumptive year’s return. Refer to IRM 25.6.23-3, Instructions for Updating the Statute on AIMS, for further details on updating to alpha codes.

6. Process Form 5213 when the case is NOT open on AIMS/ERCS. Technical Services suspends and monitors Form 5213 when the case is open on AIMS/ERCS. See IRM 4.8.2.11.2, IRC 183(e) Hobby Loss Suspense, for more information.

7. Enter all pertinent fields from the Form 5213 into the PSP Program Control Database. Determine validity of the taxpayer’s election and determine the appropriate action for the return: a. Forward case to Technical Services for suspense, b. Send selected cases to exam, c. Hold non-selected cases using retention standards procedures

(2) Forms 5213 are received in PSP from various sources in the IRS:

1. Campuses will route Form 5213 to the applicable area PSP office (IRM 21.3.3.4.13, Miscellaneous Elections and Forms).

2. Technical Services will route Form 5213 to the applicable area PSP office when an open AIMS case has a subsequent return filed during the presumptive period.

3. Information referral routed to PSP using Form 5213.

(1) Form 5213, Election to Postpone Determination as To Whether the Presumption Applies That an Activity Is Engaged in for Profit is considered valid or timely if it meets certain criteria. Review the form for these factors.

(2) Form 5213 NOT complete:

1. Section 2a and 2b must be completed by the taxpayer.

2. If not, return a copy of the original Form 5213 to the taxpayer with a cover letter (notify taxpayer the election was not valid and no postponement will be allowed for the activity in question) and a blank Form 5213 for them to complete and resubmit. See Exhibit 4.1.1-8, Pattern Letter - Form 5213 Request for Postponement of Hobby Loss Determination – Incomplete or Invalid Form 5213.

(3) Form 5213 NOT timely filed:

1. The election to postpone determination generally can be filed anytime within three years after the due date of the return (determined without regard to extensions) for the first year of the activity. If taxpayer was notified the IRS is proposing to disallow deductions attributable to the IRC 183 activity, the Form 5213 must be filed within 60 days after the taxpayer receives written notice from the IRS.

2. Return a copy of the filed 5213, and notify taxpayer the election was not timely filed, and no postponement will be allowed for the activity in question. Send cover letter to taxpayer. See Exhibit 4.1.1-7, Pattern Letter - Form 5213 Request for Postponement of Hobby Loss Determination – Not Timely Filed Election

(4) Invalid Election:

1. If a form is filed where the activity listed is not on the tax return, send a letter stating the election is invalid and request additional information if warranted. See Exhibit 4.1.1-8, Pattern Letter - Form 5213 Request for Postponement of Hobby Loss Determination – Incomplete or Invalid Form 5213

2. Notify taxpayer the election was invalid, and no postponement will be allowed for the activity in question.

(5) Form 5213 Timely Filed:

• Pull AMDISA to determine if case is under audit.

• If under audit, send Form 5213 to the exam group and mail or fax a copy of Form 5213 to the Technical Services 183 Suspense Coordinator to notify of case assignment.

• If not under audit, pull the following: IMFOLT, IMFOLR, INOLES, INOLEX, RTVUE/TRPRT, and IRPTRL for case building. Print a copy of the return for each tax year.

• Establish controls for the first year of the election and any years filed subsequently. Use source code 73 for the key year and 40 for all subsequent years controlled. Use project code 1197 on the case.

• Using a copy of the return(s), review to determine if there is a hobby loss issue and any other potential audit issues. This is important because the statute will only be open, under "MM", for the hobby loss activity and any income or expense item within the activity. See IRM 4.1.1.7.12.3, Classify the Return with Form 5213 for IRC 183 Issues and LUQ.

• Attach the Form 5213 to the back of the first year’s original tax return with the form number showing above the tax return. See IRM 4.10.13.6.2.2,(3)(i), Election Not to File.

• Acknowledge the postponement of determination by sending the taxpayer a letter. See Exhibit 4.1.1-6, Pattern Letter - Form 5213 Request for Postponement of Hobby Loss Determination – Acknowledgement Letter If Suspended.

(1) Form 5213, Election to Postpone Determination as To Whether the Presumption Applies That an Activity Is Engaged in for Profit, cases will be screened using the SNiF criteria ( IRM 4.1.1.6.21 (2), Special Enforcement Program (SEP)) and subjected to the National Classification guidelines if the case meets the SNiF criteria or the DIF score of the return is above the DIF cutoff score set by DIF return ordering. Consider the tax consequences when classifying the returns. If the losses are very small and/or the taxpayer is no longer in business, the returns can generally be accepted as filed.

• If the case is selected for examination, then complete the checksheet.

• If the taxpayer had been examined in the past, send back to the original TCO or RA.

• Call exam group manager and discuss case.

• Update controls to the exam group.

• Attach a cover memorandum to the case explaining a determination should be made on the IRC 183 issue.

• Update the PSP Program Control Database if the controls were established in PSP.

• See http://mysbse.web.irs.gov/examination/tip/classification/default.aspx for National SB/SE Classification Guidelines.

(2) Possible Hobby Loss Issue Exists, No Other Audit Issues Present:

1. Transfer case to Technical Services for IRC 183 suspense.

2. If 210 days or less remain on a statute, prepare Form 895, Notice of Statute Expiration, to update the statute to "MM". The month and year accompanying the "MM" alpha code will be the date determined under IRC 183(e)(4).

   Example: If you have a 5 year hobby loss that started with the 2008 tax year, the last year would be 2012. The due date for the final year (2012) involved in an IRC 183 determination is April 15, 2013. The alpha code designation for the tax years held open by IRC 183(e) election would be 04MM2015.

3. All subsequent returns in the presumptive period for taxpayers suspended in Technical Services will be reviewed by the PSP coordinator as requested by Technical Services. PSP will also request controls on subsequent return filings and either transfer to the field for non IRC 183 issues that warrant examination or if the only issue is the IRC 183 issue then transfer the controls to Technical Services for association with the primary return in suspense.

4. Update Program Control Database.

(3) Possible Hobby Loss Issue Exists, Other Audit Issues Present:

1. Classify returns with significant audit potential. Any years that do not show significant audit potential may be forwarded, unaudited to Technical Services for 183 suspense.

2. If 210 days or less remain on a statute, prepare Form 895 to update the statute to "MM".

3. Call the group manager and discuss case. Update controls to exam group.

4. Send case to exam group, per IRM 4.8.2.11.2.3, Closing the Case, attach the cover memorandum from Technical Services explaining a determination needs to be made on the IRC 183 issue.

5. Update PSP Program Control Database.

6. Attach the Form 5213 to the back of the first year’s return with the form number showing above the return. See IRM 4.10.13.6.2.2(3)(i), Election Not to File.

(4) Hobby Loss DOES NOT Appear to Exist, Other Audit Issue(s) Present:

1. If the return is the first year of the hobby, follow the suspense procedures so a determination can be made at a later date.

2. Classify return(s) for LUQ items.

3. Follow normal classification procedures.

(5) Survey case if established on AIMS:

1. If you determine the return should be surveyed and it is open on AIMS in a suspense status code, see Section 12 of Document 6209, IRS Processing Codes and Information and Document 6036, Examination Division Reporting Codes Booklet, for the appropriate disposal code.

2. Follow AIMS IRM procedures for surveying an open case. See IRM 4.4.21.5.2.1, Paper Case File, for paper cases and attaching the Form 5213, Election to Postpone Determination as To Whether the Presumption Applies That an Activity Is Engaged in for Profit.

(6) Retention of non-selected returns with Form 5213: If the return is non-selected, attach the Form 5213 to the back of the first year’s original tax return with the form number showing above the tax return. Send return to Files. See IRM 4.10.13.6.2.2(3)(i), Election Not on File

(1) End of the Presumption Period: At the end of the 6th consecutive tax year for an activity that consists mainly of breeding, training, showing, or racing horses or at the end of the 4th consecutive tax year for any other activity, the presumption period ends and a determination of whether the case warrants audit must be made. Returns that need to be examined should go back to the original TCO or RA, if possible.

1. If the coordinator determines the IRC 183 issue requires examination, the returns for all the years in the presumption period should already be established, if not request controls.

2. "MM" is used when a taxpayer makes the election under IRC 183(e) to extend the statute until two years after the due date (determined without regard to extension of time for filing) for filing the last return to be considered in determining whether or not an activity is engaged in for profit. "MM" should not be used if there are potential adjustments to tax in addition to the IRC 183 issue.

3. The month and year accompanying the "MM" alpha code will be the date determined under IRC 183(e)(4).

   Example: If the due date for the final year involved in an IRC 183 determination is April 15, 2012, the alpha code designation for the tax years held open by the IRC 183(e) election would be 04MM2014.

4. Classify the return and consider all facts when selecting the return for audit.

(1) In addition to the duties outlined in IRM 4.1.1.6.1, Program Coordinator Duties, the IRC 338 elections coordinator duties include but are not limited to the following:

1. Ensure these returns are classified in the area as a group (purchaser, seller, and target) and where possible, by agents with IRC 338 technical expertise.

2. Determine if Form 8023, Election Under Section 338(g) Corporate Qualified Stock Purchase, is timely filed and complete.

3. If the acquiring taxpayer’s assets are $10 Million and over the Form 8023, Elections Under Section 338 for Corporations Making Qualified Stock Purchases, should be forwarded to the appropriate LB&I Industry Director.

4. Research IDRS for SB/SE taxpayers (assets less than $10 Million) to see if the purchasing corporation’s return is open on AIMS. If yes, secure the related returns and forward to an exam group. If no return has been filed, hold until filed.

(1) In addition to the duties outlined in IRM 4.1.1.6.1, Program Coordinator Duties, the low income housing coordinator duties include but are not limited to the following:

1. Verify incoming cases

2. Review case built files

3. Complete case building, as necessary

4. Perfect and correct inventory controls

5. Update controls to group SBC and EGC on ERCS and send to group via Form 3210, Document Transmittal

6. Confirm project code 0670, tracking code 9812 or 6495 are applied correctly to cases

7. Technical information, contacts (both headquarters and area) can be found on the IRC 42 website at the following address: https://portal.ds.irsnet.gov/sites/vl020/lists/realestate/landingview.aspx.

(1) In addition to the duties outlined in IRM 4.1.1.6.1, Program Coordinator Duties, the non-cash contributions coordinator duties include but are not limited to the following:

1. Verify incoming cases.

2. Review case built files.

3. Perfect and correct inventory controls.

4. Update controls to group SBC and EGC and send to group via Form 3210, Document Transmittal.

5. Verify project code is present and accurate.