1.4.28. Appeals Managers Procedures

(1) Appeals is the only administrative function of the Service with authority to consider settlements of tax controversies and has the primary responsibility to resolve these disputes without litigation to the maximum extent possible. Appeals’ mission is to resolve Federal tax controversies without litigation on a basis which is fair and impartial to both the Government and the taxpayer, promotes a consistent application and interpretation of, and voluntary compliance with, the Federal tax laws, and enhances public confidence in the integrity and efficiency of the Service. See IRC Section 7803(e)(3), Purposes and Duties of Office. Appeals accomplishes this mission by considering protested and Tax Court cases, holding conferences, and negotiating settlements in a manner which ensures Appeals employees act in accord with the Taxpayer Bill of Rights (TBOR) in every interaction with taxpayers. See IRC 7803(a)(3), Execution of Duties in Accord with Taxpayer Rights, Pub 5170, Taxpayer Bill of Rights. and IRM 8.1.1.1, Accomplishing the Appeals Mission. All Appeals managers are accountable for supporting Appeals’ mission and core values and for managing the activities of their employees. Managers are expected to motivate their employees and establish a positive work climate.

(1) Settlement Authority in Protested and Tax Court Cases - The authority to settle protested and Tax Court cases is delegated to Appeals Team Managers (ATMs) and Appeals Team Case Leaders (ATCLs) as to their respective cases. This does not include the authority to set aside a closing agreement. See IRM 1.2.2.9.1 , Delegation Order 8-1 (formerly DO-60, Rev. 7), Appeals Functions - Settlement of Cases Docketed in the United States Tax Court, and IRM 1.2.2.9.8 , Delegation Order 8-8 (Rev. 1) (formerly DO-66, Rev. 15), Authority of Appeals in Protested and Tax Court Cases.

(2) Authority to Enter into Closing Agreement - The authority to enter into and approve a written agreement with any person relating to the internal revenue tax liability for such person (or of the person or estate for whom he or she acts) for a taxable period or periods ended prior to the date of the agreement and related specific items affecting other taxable periods. This does not include the authority to set aside any closing agreement. See Delegation Order 8-3 (paragraphs 14 and 15) in IRM 1.2.2.9.3, Delegation Order 8-3 (formerly DO-97, Rev. 34), Closing Agreements Concerning Internal Revenue Tax Liability. This authority is delegated to the following for cases under their jurisdiction (but excluding cases docketed before the United States Tax Court):

1. Director, Collection Appeals

2. Director, Examination Appeals

3. Director, Specialized Examination Programs and Referrals

4. Appeals Area Directors

5. Appeals Team Managers

6. Appeals Team Case Leaders

(3) Authority to Execute Consent to Extend Period of Limitation on Taxpayer Suits Under IRC 6532 - Delegated to Director, Appeals Operating Units (Appeals Area Directors). See IRM 1.2.2.9.4, Delegation Order 8-4 (formerly DO 171, Rev. 2), Authority of Appeals Under 26 CFR 301.6511 and 26 CFR 301.6532, and IRM 8.7.7.3.3, Form 907, Agreement to Extend the Time to Bring Suit.

(4) Authority to Administer Dispute Resolution Procedures under IRC 7123 - Redelegated by the Chief, Appeals, as identified in IRM 1.2.2.9.9, Delegation Order 8-9, Authority of Appeals to Administer Dispute Resolution Procedures, and IRM 8.26, Alternative Dispute Resolution (ADR) Program .

(5) Authority to Designate Appeals Coordinated Issues - Delegated to the Director, Specialized Examination Programs and Referrals (SEPR). See IRM 1.2.2.9.6, Delegation Order 8-6 (formerly DO-179, Rev. 2), Coordination of Certain Issues Before Approval of Settlement or Other Disposition in Appeals. The Director, SEPR, is authorized to make the final determination as to the disposition of the Appeals Coordinated Issue in any case involving an Appeals Coordinated Issue if the coordinating official has not concurred and the Appeals Team Manager cannot resolve the dispute. See IRM 1.2.2.9.8 , Delegation Order 8-8 (Rev. 1) (formerly DO-66, Rev. 15), Authority of Appeals in Protested and Tax Court Cases, and IRM 8.7.3, Domestic and International Operations Programs.

(6) Authority to Decide Appeals of Participation Denial and Sanctions in the IRS e-File Program - Delegated to ATMs to make final agency decisions. See IRM 1.2.2.9.5, Delegation Order 8-5, Authority to Decide Appeals of Participation Denial and Sanctions in the Internal Revenue Service.

(7) Authority of Appeals in Termination Assessments of Income Tax, Jeopardy Assessments and Jeopardy Levies - Delegated to ATM and ATCLs as to their respective cases. See IRM 1.2.2.9.7, Delegation Order 8-7 (formerly DO-160, Rev. 6), Authority of Appeals in Termination Assessments of Income Tax, Jeopardy Assessments and Jeopardy Levies.

(8) Authorities do not include authority to:

1. Eliminate the fraud penalty in any case in which the penalty has been determined by an originating office for which criminal prosecution against the taxpayer (or related taxpayer involving the same transaction) has been recommended to the Department of Justice for willful attempt to evade or defeat tax, or for willful failure to file a return, except upon the recommendation or concurrence of the Office of Chief Counsel (Counsel);

2. Act in any case in which a recommendation for criminal prosecution is pending, except with the concurrence of Counsel;

3. Make a final decision in any case if Appeals’ proposed disposition is contrary to the Headquarters ruling or technical advice on the case concerning tax exemption, private foundation classification, or plan qualification; or

4. Determine liability for an excise tax imposed on alcohol, tobacco and firearms.

Note: See IRM 1.2.2.9.8 for Delegation Order 8-8 (Rev. 1) and IRM 8.6.3.3, Procedures if Appeals Conclusion is Contrary to Service Position.

(1) The Chief, Appeals, reports to the Commissioner of Internal Revenue Service and is responsible for planning, managing, directing, and executing nationwide activities for Appeals. The Chief/Deputy Chief, Appeals, has functional responsibility for all Headquarter operations in Appeals, including the following and their staff:

• Director, Collection Appeals

• Director, Examination Appeals

• Director, Specialized Examination Programs and Referrals

• Director, Case and Operations Support

• Communications

(2) The Operations Directors are responsible for providing operational support in meeting the Appeals Strategic Business Plan in a manner consistent with Appeals’ Mission and Vision Statements. The Operations Directors supervise and are responsible for the activities of Appeals Area Directors, Senior Operations Advisors, and Technical Advisors.

1. Collection Appeals - The Director, Collection Appeals, is responsible for collection issues. This mission is accomplished by providing oversight through Directors and staff of policies and tax issues not otherwise coordinated by the Appeals subject matter experts. This function is primarily staffed by Appeals Settlement Officers.

2. Examination Appeals - The Director, Examination Appeals, is responsible for examination issues not in a specialized examination program. This mission is accomplished by providing oversight through Directors and staff of policies and tax issues not otherwise coordinated by the Appeals subject matter experts. This function is primarily staffed by Appeals Officers, including Appeals Team Case Leaders (ATCLs).

3. Specialized Examination Programs and Referrals (SEPR) - The Director, SEPR, is responsible for overseeing timely identification of significant tax issues and coordination of issue resolution through subject matter experts to insure technically consistent, impartial and independent settlements across Appeals. This mission is accomplished through Directors and staff of International Operations, Technical Guidance, Appeals TEFRA Team (ATT), and Technical Support (a/k/a Tax Computation Specialists). SEPR includes Appeals Technical Employees who consider the following cases: Estate and Gift, Innocent Spouse Relief, Penalty Appeals, and cases from Compliance TE/GE functions. The Director also provides oversight of the Commissioner’s Art Advisory Panel (Art Appraisal Services).

(3) The Appeals Area Director reports to the Operations Director for planning, organizing, directing, and evaluating activities associated with the hearing, negotiation, and settlement of taxpayer appeals.

(4) The Appeals Team Manager (ATM) reports to the Appeals Area Director and has full accountability for the overall team success in delivering and balancing customer satisfaction, employee satisfaction, and business results. The ATM plans, organizes, leads, and evaluates a team of ATEs and appropriately supports personnel engaged in the hearing, negotiation, and settlement of taxpayer appeals. For non-ATCL cases, the ATM approves case settlements, ensuring team member settlements and team objectives comply with Appeals vision and values.

(5) The Director, Case and Operations Support (COS), is responsible for providing technical and procedural guidance, coordinating with GAO and TIGTA, overseeing the Appeals Internal Management Document program, developing and implementing alternative dispute resolution programs, providing trend and data analyses, planning expertise, detailed summary reports and assistance, conducting quality reviews of cases, providing guidance on human capital issues, planning and executing Appeals budget, supporting Appeals information technology needs, developing and delivering training and implementing knowledge management strategies, and processing on all Appeals cases.

(6) Communications is responsible for facilitating effective communication with Appeals employees and other internal and external stakeholders. For more information, visit Appeals Communications webpage.

(7) All managers are responsible for:

1. ensuring the development, performance, and conduct of each employee they direct;

2. defining clear goals and courses of action to their employees and ensuring such actions are carried out;

3. ensuring the well-being and progress of their employees;

4. displaying proper attitude and behavior, job knowledge, and effective communication to build good working relationships thereby motivating people to accomplish programs and meet objectives.

(8) For internal control responsibilities, see IRM 1.4.2, Resource Guide for Managers, Monitoring and Improving Internal Control.

(9) This IRM section focuses on Appeals’ case-related management roles.

(1) The Director, Policy, Planning, Quality, and Analysis (PPQA) provides trends and data analyses and detailed summary reports for Appeals. The systems and reports shown below are available to authorized Appeals users depending on their position description, access level, and responsibilities.

(2) There are a series of reports available within ACDS from the Main Reports Menu.

(1) The table lists commonly used acronyms and their definitions:

(1) IRM 1.4, Resource Guide for Managers, and IRM Part 6, Human Resources Management, contain information on several employee-related matters, including those listed below:

(2) Employees can find helpful information on performance management, leadership development, and various other topics on the following websites:

1. Appeals Managers Advisory Group (MAG)

2. Appeals Human Capital Programs (HCP)

3. IRS Human Capital Office - New Manager Orientation Support Center

4. IRS Human Capital Office - Labor Relations

(1) Managers obtain and ensure a high level of compliance with program objectives and policies through communication, review, and follow-up on:

• Program and Case Decisions

• Workload Management

• Performance and Commitments

(2) The Executive and Management levels address this as follows:

(1) The ATM is responsible for promptly assigning work units. At the time of assignment, the ATM determines:

1. The grade level of the work unit (see IRM exhibits),

2. Whether the associated group of cases received constitutes a proper package of cases for inclusion as an Appeals work unit, and;

3. Whether cases involve an Appeals Coordinated Issue or a tax shelter

Note: Compare the date stamped on Compliance’s transmittal memorandum and the ACDS assignment date to indicate whether work units were unduly delayed in being made available for assignment.

(2) The ATE will complete the statute verification and send the appropriate initial contact letter within the time frames shown below:

Re: Liability, Penalty Appeals, and Innocent Spouse work streams

Appeals Team Managers will be reasonable in extending the contact time frame if circumstances (e. g. leave, workload, case complexity or other priorities) prevent the ATE from meeting them. If the ATE extends the time frame, the ATE will document this decision and the agreed upon time frame in the CARATS on ACDS. The statute verification time frame shall not be extended beyond 45 days. If the contact time frame is extended beyond 75 days, the ATM will contact the taxpayer/representative by correspondence providing a status of the case and to whom the case is assigned.

(3) For more information on initial case actions, see the following:

• IRM 8.6.1.2, New Receipts and Initial Case Actions, and

• IRM Exhibit 8.6.1-1, Pre-Selected Enclosures for Initial Contact Letters Based on Category and Case Type

(1) Control of work units for the office is the responsibility of APS. See IRM 8.20 Account and Processing Support (APS). Each employee is responsible for controlling assigned inventory. Monitor the work unit while in process. Basic tools available are workload reviews and live case reviews.

(2) In addition, Appeals managers should utilize trial status requests and trial calendars in order to achieve Appeals' objectives under Rev. Proc. 2016–22 for cases docketed in the United States Tax Court.

(3) The Appeals Account Resolution Specialist Team Manager is responsible for controlling AARS inventory. The AARS manager’s closing actions do not include entering an ACAPDATE on ACDS.

(1) The ACDS proxy module provides managers with a means to delegate access to their ACDS accounts to acting managers.

(2) A proxy has full managerial access to ACDS and all actions taken by the proxy will be recorded as those having been completed by the manager. ACDS does not record the proxy’s name on these actions. However, ACDS lists all proxies assigned.

(3) An ACDS Proxy Manager's Guide was prepared by Appeals and should be utilized to answer general, functional questions about the proxy program. Access this guide from the Appeals Intranet Home Page > Systems & Technology > ACDS > Resources > Manager Proxy User Guide.

(4) The following managers will have permissions to assign a proxy on ACDS. The bulleted positions identify the proxy population appropriate for each manager:

(5) Business Systems Planning Account Administrators have global access and have permission to assign a proxy on ACDS when a manager is not available to make the assignment.

(6) The following limitations apply:

1. The manager can assign multiple proxies, but the "effective" dates cannot overlap.

2. A manager cannot assign a proxy for any other manager.

3. If a manager is unavailable to assign a proxy, the office of the Area Director/Area Manager will request a proxy assignment by submitting an OS GetServices ticket.

(7) Actions of the proxy will be restricted as follows:

1. The proxy cannot approve an update to his or her own case.

2. The proxy cannot approve a closure of his or her own case.

3. The proxy cannot assign another employee as proxy.

(8) The following question and answer scenarios discuss the most routine situations encountered where a proxy is involved:

(1) Appeals Team Managers should ensure that their employees properly adhere to IRC Section 7521(b)(2), Right of Consultation, and IRC Section 7521(c) , Representatives Holding Power of Attorney, pertaining to the taxpayer's right to consultation and power of attorney authorization. ATMs should include this item in case reviews to ensure hearing officers are involving representatives in all case actions. Taxpayers are afforded the right to designate a qualified representative to act on their behalf when interacting with the IRS. IRS employees are required to stop an interview if the taxpayer requests to consult with a representative and may not bypass a representative without supervisory approval. See IRM 8.6.1.5.3, Right of Consultation with Representative, and IRM 8.6.1.5.3.3, Bypass of a Representative, on the ATM’s role where a recognized representative has unreasonably delayed or hindered the appeal process.

(2) The ATM should also ensure that employees adhere to the requirements of IRC Section 6304, Fair Tax Collection Practices, in their communications with taxpayers in connection with the collection of any unpaid tax. See IRM 1.4.28.5.2, Restricted Contact with Taxpayer.

(1) Taxpayers' rights to representation are protected under the fair tax collection practices found in IRC Section 6304(a)(2). Without prior consent of the taxpayer given directly to an employee, or the express permission of a court of competent jurisdiction, the employee is prohibited from communicating with a taxpayer in connection with the collection of any unpaid tax, if the employee knows the taxpayer is represented by any person authorized to practice before the Internal Revenue Service with respect to such unpaid tax. Contact is also prohibited if the employee has knowledge of, or can readily determine the authorized representative’s name and address, unless the authorized representative fails to respond within a reasonable period of time to a communication or consents to direct communication with the taxpayer. See IRM 8.6.1.5.3.3, Bypass of a Representative.

(2) During a case review or upon receiving a complaint from a taxpayer, managers may identify a potential violation of the restrictions under IRC Section 6304. The manager must report potential employee violations of IRC Section 6304 to the Area Director by the close of the next business day following the identification of the potential violation. If the Area Director concurs, the Area Director will report the violation to Labor Relations by the close of the next business day following the notification of the alleged violation. If the violation is confirmed, the Area Director will work with a LR Specialist to determine the next appropriate action.

(1) Workload reviews when combined with live/closed case reviews are the best tools available to a manager when evaluating the case management practices and work habits of Appeals personnel.

(2) Managers will do a minimum of one workload review per year; preferably at mid-year, which will focus on case management issues such as imminent statutes, overage cases, significant time on case and cases with no conference or no activity for an extended period of time. This review should also help you identify exemplary casework, good workload management skills and employee strengths. The review can also confirm workload issues, calendar management skills and areas of training needs for your employee and team.

(3) More frequent reviews are necessary when serious performance deficiencies and a need for development are identified.

(4) Generally, the tools in conducting a workload review are the Case Activity Record (CAR), time report, the Appeals case summary cards, a copy of the prior workload review report, if any, a discussion with the employee and live case reviews.

(5) The primary objective of a workload review is for the manager to gain a specific understanding of the status of each work unit in an employee's inventory. Workload reviews, when properly conducted, involve a substantial amount of time. This will be time well spent as it gives the manager insight into each employee's work habits, case management practices, technical abilities and identifies areas where training and development are needed. It provides managerial insight as to the exact status of each employee's inventory and gives them a basis for frequent but quick follow-up. Strengths and weaknesses in performance are clearly identified with specific examples. A workload review also offers an opportunity to give specific guidance and direction with respect to specific management practices and technical abilities.

(6) A workload review enables the manager to evaluate and give feedback as to how well an employee is managing inventory by appraisal of the following factors:

1. Adequate initial review of new work units

2. Adequate statute procedures and documentation

3. Adequacy of inventory

4. Units being worked on a first in, first out (FIFO), basis except when priorities dictate otherwise

5. Overall workload planning

6. Prompt conferences*

7. Conference preparation (for prompt decision and to minimize number of conferences)*

8. Additional information requested, whether actually needed, timely target dates for its submission established

9. Timely follow-up, follow-up control

10. Prompt decisions reached*

11. Prompt submission of work unit for review*

12. Accumulated time-in-process in total and on individual work units (in relationship to the status of the work unit)*

13. A workload review helps the manager identify whether the employee is maintaining communications with the taxpayer, keeping the taxpayer aware of their options and appropriately including their representative in all communications*

    Note: Managers are to monitor this on all non-docketed cases that remain in inventory over one year.

(7) In addition to the above, a workload review enables the manager to make judgments concerning an employee's:

1. Overall workload planning ability

2. Application of technical and procedural guidelines

3. Effective use of time

4. Efficient travel habits*

5. Compatibility of work with grade*

6. Need for special advice and assistance

(8) A workload review also offers an opportunity for:

1. Early identification of unagreed units*

2. Identification of units on which a decision is needed

3. Resolution of unwarranted case closing delays

4. Curtailment of repeated contacts for piecemeal development of facts

5. Establishing priorities

6. Verification of the grade of the work unit*

7. Determining if the employee's workload is appropriately balanced in regard to time spent working on units below, at, and above their grade level*

8. A forum for discussion of the employee’s career goals and career learning plan

(9) Following a workload review, the manager should promptly give the employee their written analysis and summary. Cite specific instances of exemplary performance or weaknesses in performance. Clearly state guidance and direction. Set out any agreements between you and the employee with respect to specific action, target dates and overall performance.

(10) Have the employee acknowledge receipt of the memorandum or any other document summarizing the results of the workload review by initialing the manager's copy.

(1) The initial preparation for the workload review can be done in advance. This includes a worksheet listing all work units in the employee's inventory, setting out the following information for each work unit:

1. Name of key taxpayer

2. Date assigned

3. Number of cases

4. Deficiency (overassessment)*

5. Accumulated time

6. Initial conference date*

7. Closed Case Referral acknowledgement provided timely (applies AARS ATM only)

8. Status of the work unit and

9. Statute of limitations dates

(2) The information required in (1) above is obtainable from the employee's most recent time report and the case inventory screen on ACDS. Obtain additional information for the workload review from the "Diagnostic and Balanced Measures" (D&BAM) database, ACDS statute listings and AdHoc reports. Make sure the work sheet provides space for the manager to make notes during the live case review.

(3) The worksheet described in (1) above could be the foundation, at the conclusion of the workload review, for the memorandum to the employee. Set out any brief discussions of each work unit reviewed, including the information itemized.

(4) Whenever possible, a manager may use ACDS to document reviews. The manager can then use ACDS to document and share workload and live case reviews and conference observations with their employees.

(1) A live case review is a review conducted by a manager before the employee submits a work unit for approval, but generally after the employee has had an opportunity to make significant progress with the work unit.

(2) A closed case review is a review conducted by a manager after the employee has submitted a work unit for approval. See IRM 1.4.28.8.2, Closed Case Work Reviews.

(3) The following lists the minimum number of live (open) and/or closed case reviews required each year by employee grade level. The mix of reviews conducted annually is at the discretion of the manager.

• GS 7/9/11/12 Appeals Officers, Appeals Account Resolution Specialists, and Appeals Tax Specialists - seven (7) cases reviewed per year

• GS 13 Appeals Officers - five (5) cases reviewed per year

• GS 14 Appeals Officers - three (3) cases reviewed per year

(4) The grade (case difficulty) of the case selected for these reviews should be the same as the grade level of the employee being reviewed. See case grading exhibits at the end of this IRM starting with Exhibit 1.4.28-1.

(5) Where there are observed deficiencies in case work performance, whether related to timeliness or decision quality, the manager will review additional cases beyond the required number noted above sufficient to impact improvements or to support rating reductions.

(6) The scope of these evaluative reviews will be limited to a simple affirmation next to each performance standard that it has been met. Additional supporting narrative will only be required when a standard is not met, or when it has been exceeded.

(7) A thorough live case review gives a manager an in-depth view of the work habits of an employee that cannot be obtained during normal review of the case file at closing. A live review during the time a work unit is in process also saves review time at closing.

(8) The use of ACDS to document workload and case reviews (open and closed) is encouraged.

(9) If ACDS is not used to document the review, prepare a memorandum briefly setting out the following with respect to each work unit reviewed:

1. Work unit number

2. Date assigned

3. Number and dates of conferences

4. Time (hours) to date

5. Tax and penalties in dispute

6. Major issues and status

7. Case management (prompt contact, prompt conference)

8. Adherence to power of attorney requirements

9. Rough draft of the Appeals Case Memo (issues framed properly, facts, law and argument adequate, questions set forth)

10. Work papers filed in chronological order

11. Conference memo (if appropriate)

12. Specific target dates set

13. Follow-up made

14. Progress towards settlement (a proposal by taxpayer, proposal by ATE, ATE's settlement position known by taxpayer)

15. Time commensurate to work performed

16. Other information and observations

17. Agreements between employee and manager with respect to future action

(10) Have the employee acknowledge receipt of the memorandum or other document summarizing the results of the live case review by initializing the manager's copy. This can be done electronically if ACDS is used for the live or closed case review.

(11) The AARS ATM performs a "priority review" in place of a live case review based upon inventory prioritization needs and cases requiring special attention. For additional information, see IRM 1.4.28.5.6, AARS ATM Priority Review.

(1) The AARS ATM performs priority reviews which also serve as a modified workload review based upon the following guidelines:

• Cases older than 60 days

• Cases 30 - 59 days old - discuss as necessary

• Cases with missed follow-up dates

• Random statute review on open inventory to include Assessment, Collection, and Refund Statute Expiration Dates - as appropriate to the case type

• Transcripts of taxpayer accounts related to the selected case(s)

(2) The AARS ATM provides written documentation of the items reviewed and includes the following information:

• Examples of exemplary performance or weaknesses in performance

• Clearly stated managerial guidance and direction as applicable

• Set out any agreements between the manager and employee with respect to specific actions, target dates and overall performance expectations

• Document special activities [e.g., collateral duties, On-the-Job Instructor (OJI) activities, team workshop presentations, developing or reviewing training material, or assisting team members with inventory management and case closing]

(3) The AARS ATM will provide the employee with the written priority review within 15 workdays of completing the review.

(4) The AARS ATM will set a meeting date and time to discuss the priority review document with the employee and upon conclusion of the meeting, request the employee sign the document which then becomes part of the Employee Performance File (EPF).

(1) Periodically, the AARS ATM will observe a live customer service call to review the AARS employee’s preparation for the call and performance during the call.
Factors to observe:

• Preparation for the call

• Adherence to security and disclosure guidelines

• Exchange of information

• Engagement to facilitate an open discussion

• Clarity and appropriateness of communication

• Appearance of impartiality

• Identification of issue(s)

• Application and analysis of relevant technical and procedural information

• Technical and procedural information shared in a strategic and productive manner (as appropriate) to fully address the customer’s inquiry

• Identification of additional information and/or documentation needs

• Discussion of proposed timeframe for resolution

• Consideration of taxpayer’s rights and resolution of taxpayer’s concerns

• Duration of the call is commensurate with the items identified and addressed

• Documentation of the call interaction and relevant facts

(2) The AARS ATM will provide the employee with written documentation of the live call review within 15 workdays. The documentation is written in relation to the applicable Critical Job Elements and Aspects and once signed by the employee becomes part of the EPF.

(1) The ATM must make a review of sufficient depth to assure the correctness of the action proposed. Judgment must be exercised, however, in determining the scope of the review activity. You are expected to know the staff and adapt the depth of review to what is actually needed. For example, close review is needed for new employees, those with identified performance deficiencies, and employees going into new areas of marked increased difficulty. Some work of all employees should be comprehensively reviewed on a random basis. Tailor the degree of review to the ability of the employee and the characteristics of the specific case.

(2) A comprehensive review includes technical and procedural accuracy as well as case management practice and adherence to Appeals' objectives and policy statements. Documents to be inspected in a comprehensive review include:

1. Transmittal memorandum (Customized Form 5402, Appeals Transmittal and Case Memo)

2. Settlement memorandum

3. Agreement documents

4. Closing agreements

5. Contracts and other supporting documental evidence

6. Revenue Agent's or Revenue Officer's report (Special Agent's report, if any)

7. Returns

8. Power of Attorney

9. Correspondence

10. Conference memos

11. Affidavits

12. Protest

13. Notice of Deficiency and petition (if docketed)

14. Revenue Agent's, Revenue Officer's, and ATE's workpapers

15. Applicable statutory and case law

16. Case summary cards

17. ATE inventory and unit time report

18. Case Activity Record

(3) Additional information regarding possible material to be reviewed is provided in this chapter.

(4) Notify the employee in writing when exemplary performance or a deficiency in performance is identified during a case review. Place copies of such documentation in the employee's performance file.

(5) Generally the ATM reviews cases submitted by employees under the ATM’s supervision. However, in rare instances, such as when the ATM’s workload is very heavy, selected cases may be assigned to an ATE for preliminary review. The ATM remains responsible for the correctness of the conclusion.

(6) Review functions are necessary to ensure accuracy in transmittal memoranda, supporting statements, and related materials. Such a review could range from verification of format, caption data and grammar to soundness of determination of tax liability. Many of these functions can, and should, be handled by clerical personnel.

(7) It is important that review of cases occur promptly upon submission by the employee. This is a continuation of the attitude of experience and good case management expected of Appeals employees. If it is an agreed case, proposed assessment or overassessment, it is incumbent upon us to have the tax assessed and to process refunds for overassessments as promptly as possible in order to stop the accrual of interest. See IRM 8.2.1.10.1, Expedite Processing for Certain Large Dollar Cases, and IRM 8.7.7.14, Expedite Closing of Large Dollar Examination-Sourced Overpayment Cases.

(8) For agreed Collection cases, prompt case review is very important for timely processing Installment Agreements, Offers in Compromise, updates to Currently Not Collectible (CNC) status, and input of account adjustments.

(9) Prompt review of unagreed Collection type cases is also critically important to ensure the timely issuance of determination letters so that cases can be resolved as soon as possible and returned to Collection for enforcement actions, if appropriate.

(10) See IRM 1.4.28.5.6. AARS ATM Priority Review, for AARS case review guidance.

(1) Prepare closed case evaluations on a random or systematic basis (every xth case), consistent with area policy and the ATE’s performance and experience level. Specific cases will also be selected for review as determined by the ATM.

(2) Once the ATM approves the "recommended disposition" of a case selected for evaluation, the ATM may utilize ACDS to prepare the closed case review. The ACDS format allows rating of individual aspects of each critical job element and provides space for narrative for each aspect.

(3) When the ATM does not approve a settlement recommendation in certain Pre-90-Day, 90-Day and Agreed 90-Day income tax cases, the taxpayer may be entitled to a conference with the ATM. See IRM 8.2.1.9.2, Reviewing Official's Rejection of Settlement Proposal.

(4) Case evaluations must address specific facets of the performance, tying the description and evaluation of the performance to the aspects of the ATE’s position. See IRM 8.6.2, Appeals Case Memo Procedures.

(5) Written case reviews must be shared with the employee according to the provisions of the IRS/NTEU contract.

(6) See IRM 1.4.28.8.3, AARS ATM Closed Case Review, for additional information.

(1) The AARS ATM will perform a random review of closed cases.
Items to review:

• Adherence to security and disclosure guidelines

• Clarity and appropriateness of written communication

• Appearance of impartiality

• Identification of issue(s)

• Technical and procedural application and analysis

• Strategically informing the customer of technical and procedural information related to their inquiry

• Timeliness of actions

• Additional information, documentation needed

• Taxpayer rights and concerns were considered and addressed

• Time span is commensurate with the items identified and addressed

• Documentation of actions and relevant facts

(2) The AARS ATM will provide the employee with written documentation of the closed case review within 15 workdays. The documentation is provided in relation to the Critical Job Elements and aspects and once signed by the employee becomes part of the Employee Performance File (EPF).

(1) Appeals Officers are authorized to sign, in their own names, certain correspondence such as scheduling conferences, transmittal or agreement forms, forwarding consent forms, etc. Routine correspondence authorized to be signed by ATEs in their own names need not be reviewed by or for managers. "Spot check" these for quality after mailing.

(2) Review correspondence prepared for signature of a manager to ensure it is courteous, clear, concise, and is promptly handled.

(3) Area Directors should personally review replies to certain types of correspondence, such as Congressional letters, taxpayer complaint letters, dissenting memoranda and Headquarters' inquiries.

(1) In general, limit your review of settlement computations, Notices of Deficiency, and Rule 155 computations prepared by Tax Computation Specialists to verifying correctness of legal applications. Examine statements involving unusual audit features for technical accuracy and from time to time randomly select samples for more intensive review. Unusually difficult or complicated settlement computations and notices may occasionally need comprehensive review.

(2) Maintain an evaluation of TCS's work in the employee’s EPF.

(3) Appeals has developed specific case grading criteria for assigning TCS work. Access this guide from the Appeals Intranet Home Page > TCS tab > TCS RESOURCES > Procedures & Resources > Case Grading > TCS Case Grading IRM Exhibit. The exhibit is not all inclusive:

1. "Simple" cases are typically of limited scope and complexity, requiring limited judgment and decision-making

2. "Complex" cases typically require considerable judgment and knowledge to interpret and apply tax law and related case documents

3. A lack of clear guidelines and precedent-setting cases often require extensive research and special knowledge

(4) The grade (case difficulty) of the case selected for these reviews should be the same as the grade level of the employee being reviewed.

(1) Shared Support provides technical case processing, administrative and clerical support to all areas of the Appeals organization. Shared Support employees (Case Processors) are responsible for their local office duties (for example: receiving/distributing mail, preparing/acknowledging/tracking Forms 3210, mailing correspondence and cases, photocopying/faxing documents, answering the door, greeting and escorting visitors, distributing security badges, inventorying the supply room, posting checks, monitoring shred/burn bins, supporting the maintenance of office equipment, and, for those Case Processors that are purchase card holders, requesting supplies). Other administrative support duties are equitably distributed among the Case Processors by the Supervisory Case Processors and Lead Case Processors through a Share Point-based assignment system. Visit Appeals’ Shared Administrative Support Organization web page for more information on the duties of the Case Processor and for requesting administrative support.

(2) The Supervisory Case Processor is also responsible for directing and reviewing employees’ work, planning, scheduling and coordinating work operations, planning and carrying out the training and development of employees, and evaluating employees’ work performance.

(1) These guidelines do not supersede Office of Personnel Management (OPM) classification standards. Position classification factors such as supervision and guidance cannot be measured by these guidelines.

(2) Appeals employees may be assigned some work units above their grade level for developmental purposes. Such experience is considered to be at the higher level if normal supervision is given. However, when assignments above the grade level of the employee are completed under closer than normal supervision, the assignment is considered to be consistent with the employee's grade. The assignment of higher or lower grade work units does not affect the grade level of an employee's position if it is for short periods to provide developmental opportunities or to meet specific operational needs. See IRM 6.511.1.6.4.5, Assignment of Higher Graded Work.

(3) Grade levels of positions are not based solely on grade levels of work units assigned; other factors are considered, such as degree of supervision received and personal contacts.

(4) Appeals managers are responsible for:

1. Assigning work consistent with an employee's grade level

2. Keeping developmental assignments within reasonable limits and

3. Informing an employee of the distinctions between the work unit grades and position grade

(5) Position classifiers are responsible for:

1. Making the final determinations on the position grade levels

2. Providing advisory services to Appeals' managers on position management and work assignment practices and

3. Assisting Appeals management in determining that case grades accurately reflect the relevant OPM standards and that the grade structure is appropriate for the workload of the Appeals employee

(6) If the ATM decides that a systemically assigned grade level should be lowered, the ATM will make an entry in the activity record and document the reasons for the lower grade level. In accordance with the National Agreement II between the IRS and NTEU, the manager will also send an email to the employee assigned the case informing him/her of the reasons for the lower grade level. See Article 25 of Document 11678, 2019 National Agreement.

(1) Workload reviews when combined with live/closed case reviews are the best tools available to a manager when evaluating the case management practices and work habits of APS personnel.

(2) A workload review does not replace the formal mid-year review requirement.

(3) Processing Team Managers will do a minimum of one workload review per year; preferably at mid-year, which will focus on the following:

• Adherence to and application of IRM policy and procedure(s) for performance of duties

• Case management issue(s) and action(s)

• ACDS database accuracy

• ASED determination

• ASED control(s)

• ASED protection

• Timeliness of case related action(s)

• Accuracy of account adjustment forms prepared

• Adherence to mandatory review process, per IRM 8.20.7, Closing Procedures

• Accuracy of account adjustment input action(s)

• PEAS Suspense case(s) and recordation of reason for PEAS Suspense

• PEAS Case Activity Record (CAR) entries sufficient to explain delays and time applied to the case

• Other systems used by APS to control, monitor and process Appeals cases (i.e. ISTS, AOIC, AIMS, IDRS, DIMS, etc.)

(4) In addition to devoting undivided time to each employee, the workload review will also help identify exemplary casework, good workload management skills, and employee strengths. The workload review can also confirm the cause for inventory management issues, identify skill gaps and training needs, and provide awareness of time management practices that are beneficial or detrimental towards accomplishment of the team’s goals and objectives.

(5) More frequent reviews are necessary when serious performance deficiencies and a need for development are identified.

(6) The tools for conducting a workload review are as follows:

• Tax Examiner’s PEAS Inventory Validation Listing (IVL) to identify a sample of cases for live case review

• Tax Examiner’s ACDS Overage Report

• Tax Examiner’s IDRS Overage Report

• Tax Examiner’s PEAS Suspense Report

• Tax Examiner’s PEAS Time Sheet for the applicable time frame

• Copy of the prior workload review report for the TE (if available)

• Other report(s) applicable to the TE’s workload and inventory

• Current AIMS, IDRS, ACDS and PEAS prints for the specific cases identified for live case review (request other systems’ prints, as needed)

• Pre-workload review discussion with employee to identify items to be provided

• Workload review report of your findings

Workload review close-out discussion with the employee

Step	Action
a.	Share the review findings, in writing, with the employee
b.	Encourage two-way communication related to the review findings
c.	Encourage the employee to express work related concerns
d.	Encourage the employee to identify training needs
e.	Solicit the employee’s input and questions, document the workload review report as appropriate
f.	Clarify/update items included in the workload review report as appropriate
g.	Encourage the employee to develop a Career Learning Plan (CLP). Share the ELMS course number and explain the National Agreement guidelines for official time allowed for completing the training and preparing a draft CLP. Offer to help the employee or identify someone who can
h.	Encourage the employee to update the CLP, if previously developed
i.	Document in the workload review report the CLP discussion
j.	Include on the final page of the workload review report the following statement: "By signing this document, you acknowledge receipt on the date specified. This document becomes an official part of your Employee Personnel File as of the date signed by the manager."
k.	Print two copies of the final workload review report. Include the following in the report: page numbers, a line for the employee’s initials/date, and a line for the reviewer’s signature/date
l.	Obtain the employee initials and dates on both copies
m.	Sign, and date both copies
n.	Provide the employee with one signed copy, and place the other signed copy in the EPF

Note: To the extent possible, use the same standard format for all workload reviews. If the PTM manages employees with different grades and duties, use the same standard format and identify as Not Applicable (N/A) items that do not apply to a specific employee.

(7) The primary objective of a workload review is for the manager to gain a specific understanding of the status of each work unit in an employee's inventory. Workload reviews, when properly conducted, involve a substantial amount of time. This is time well spent as it gives the manager insight into each employee's work habits, inventory management practices, technical abilities and identifies areas where training and development are needed. It provides managerial insight as to the exact status of each employee's inventory as well as an opportunity to openly discuss both challenges and opportunities towards accomplishing the employee’s work related goals. When strengths and weaknesses are clearly identified with specific examples, a workload review is beneficial to the manager, the employee and the organization because we all have the same customer. A workload review also provides the manager with an opportunity to both learn from and share with the employee while identifying potential best practices that can be shared with other team members or other APS teams.

(8) A workload review enables the manager to evaluate and give feedback as to how well an employee is managing inventory and taxpayer account adjustments by appraisal of the following factors:

1. Adequate statute procedure followed and adequate documentation

2. Adequate prioritization of inventory to protect statutes and avoid overage cases

3. Accurate update of systems i.e. ACDS, AIMS, IDRS, DIMS

4. Accurate suspense and monitoring of cases in accordance with IRM policy and procedure

5. Appropriate follow-up when one or more necessary forms or worksheets are either missing or incorrect

6. Awareness of interest review requirements and requesting interest reviews when appropriate and/or mandatory

7. Accurate interest computation and account adjustment processing

8. Accurate preparation of account adjustment documents:

• Form 2424, Account Adjustment Voucher

• Form 2859, Request for Quick or Prompt Assessment

• Form 3753, Manual Refund Posting Voucher

• Form 3870, Request for Adjustment

• Form 5403, Appeals Closing Record

• Form 5792, Request for IDRS Generated Refund (IGR)

• Form 8485, Assessment Adjustment Case Record

• Form 12810, Account Transfer Request Checklist

• Other account adjustment documents for the taxpayer’s case

(9) A workload review helps the manager identify whether the employee:

• Consistently follows applicable IRM policy and procedures

• Effectively protects Assessment Statute Expiration Dates

• Requests interest reviews, when mandatory or otherwise needed

• Efficiently manages assigned inventory

(10) In addition to the above, a workload review enables the manager to make judgments concerning an employee's:

1. Overall skill level appropriate to the position description, work assignments and training/developmental needs

2. Application of technical and procedural guidelines

3. Effective use of time

4. Compatibility of work with grade

5. Need for On-the-Job Instructor (OJI), peer assistance, or conclusion of On-the-Job Training

(11) A workload review also offers an opportunity for:

1. Identifying cases that require additional information, e.g., 6404(g) worksheet, Sequa spreadsheet, etc.

2. Verifying the work unit grade and reassigning the case to a higher graded TE when appropriate

3. Reassigning cases to balance workloads or resolve aging cases

4. Establishing or directing case inventory priorities

5. Reviewing the Direct Time applied to the case and determining if it is appropriate, based on the complexity and case actions taken

6. Providing a forum for discussion of the employee’s career goals and career learning plan

(12) The workload review must include specific instances where the employee’s Critical Job Elements and performance aspects are reflected in the work products reviewed and that they clearly state guidance and direction. The workload review must also set out agreements between the manager and employee with respect to specific actions, target dates and overall performance.

(13) Within 15 business days of the conclusion of the workload review, the manager will provide the employee with the workload review analysis and summary. The employee will initial and date the document (as "received"), and the manager will sign and date the document. The employee receives one copy, and the manager inserts the original into the EPF.

(1) The initial preparation for the workload review can be done in advance. The PEAS Inventory Validation Listing (IVL) includes all cases currently assigned to the employee and can be used to identify the specific cases chosen for review. Each selected case should involve the same level of review; and if one or more items do not apply, enter "Not Applicable" as appropriate. The workload review items must be documented in writing with page numbers included (e.g. 1 of 3, 2 of 3, etc.) An example of workload review items for each inventory case follows:

1. Taxpayer Name Control, partially redacted "ABXX" with XX replacing and obscuring the last two letters

2. Tax Period(s)

3. WUNO

4. Case Type (e.g., CDP Notice for issuance, SND Notice for issuance, PENAP Closing, Employment Tax Closing, etc.)

5. Date assigned on PEAS

6. Statute date accurate on ACDS and AIMS? Yes, No, N/A

7. ACDS and PEAS database information accurate? Yes, No, N/A

8. Grade of the case appropriate for employee’s Position Description, training and skill level? Yes or No

9. PEAS Case Activity Record (CAR) accurate? Yes, No, N/A

10. PEAS Suspense and monitoring action(s) accurate and timely? Yes, No, N/A

11. Processing action(s) taken timely? Yes, No, N/A

12. Interest-related forms and schedules included, properly considered and applied? Yes, No, N/A

13. Mandatory "interest review" requested and completed? Yes, No, N/A

14. Completion date or expected completion date

15. IDRS controls open or closed timely? Yes, No, N/A

16. Download of the Tax Court petition, and upload to ACDS timely? Yes, No, N/A

17. Deletion of the petition from the SharePoint site timely? Yes, No, N/A

18. Additional case related items or comments, as appropriate

(2) Additional (non-case) items that may also be included in a workload review:

• PEAS timesheet management practice and adherence to policy and procedure for current performance period

• Direct/Indirect time Report

• PEAS Follow-up Report use

• PEAS Suspense and monitor practices

• Frequency of unpostables and repeat unpostables

• Training needs and/or accomplishments

• Special project actions and accomplishments

• Team meeting contribution(s)

• Performance actions of note (highlight and recognize, or improvement needed)

• Other, as determined by management

(3) The workload review document described in (1) above serves as the foundation for preparing the employee’s performance memorandum and for documenting the employee’s mid-year and annual performance appraisals.

(4) Since a CLP is formatted to align goals and development opportunities with CJEs and performance aspects, the manager may also document in the workload review the invitation for the employee to prepare or update the CLP.

(1) The PTM, or designee, must review the selected case in sufficient depth to identify and document the accuracy and timeliness of the employee’s actions taken for the case. The live case review covers performance actions taken by the employee from the date assigned to the date submitted for review. Tailor the degree of review to the employee’s ability and the characteristics of the case.

(2) A comprehensive review includes technical and procedural accuracy, as well as case management practice and adherence to applicable IRM procedure(s). Documents to be inspected in a live case review include:

1. Assessment Statute, Refund Statute, or Collection Statute forms, extensions, or other items applicable to statute determination

2. Forms, documents, worksheets and reports provided for processing and/or closing action(s) by APS

3. Authorization for adjustment documents prepared and provided by the ATE [e.g. signed waiver form, defaulted Statutory Notice of Deficiency, Tax Court Decision (entered or dismissed), Form 3870, Form 5402, etc.]

4. Power of Attorney, if applicable

5. ACDS case summary card

6. PEAS case activity record

7. Documents prepared by the APS TE to include interest-related entries

8. Interest computations prepared by the TE, if any

9. AIMS and IDRS prints, as appropriate

10. DIMS tracking notation record

11. Other items or documents, as needed

(3) A live case review can be requested by the employee, Lead TE, or PTM for a particular case.

(4) Live case reviews will include performance-related documentation associated with the applicable CJE(s) and aspect(s) of the employee’s position. Upon conclusion of the review, share and discuss the performance documentation with the employee, who initials the document to verify receipt. One copy is given to the employee, and one is placed in the EPF.

(5) A live case review can be completed by the PTM, designated Lead TE, or employee’s OJI as appropriate. The PTM retains responsibility for the correctness of the review documentation for including it in the EPF.

(1) The PTM, or designee, must review the selected case in sufficient depth to identify and document the accuracy and timeliness of the employee’s actions taken for the case. The closed case review covers the performance actions taken by the employee, from the date assigned to the date closed on PEAS. The manager is expected to know the staff and adapt the depth of review, as needed. For example, close review is needed for new employees, those with identified performance deficiencies, and employees going into new areas of marked increased difficulty. Some employees’ work should be comprehensively reviewed on a random basis. Tailor the degree of review to the employee’s ability and the characteristics of the specific case.

(2) A comprehensive review includes technical and procedural accuracy, as well as case management practice and adherence to applicable IRM procedure(s). Documents to be inspected in a closed case review include:

1. Assessment Statute, Refund Statute, or Collection Statute forms, extensions, or other items applicable to statute determination

2. Forms, documents, worksheets and reports provided for processing and/or closing action(s) by APS

3. Authorization for adjustment documents prepared and provided by the ATE [e.g., signed waiver forms, defaulted Statutory Notice of Deficiency, Tax Court Decision (entered or dismissed), Form 3870, Form 5402, etc.]

4. Power of Attorney, if applicable

5. ACDS case summary card

6. PEAS case activity record

7. PEAS suspense and monitoring actions and documentation

8. Documents prepared by the APS TE to include interest-related entries

9. Interest computations prepared by the tax examiner

10. AIMS and IDRS prints, as appropriate

11. Correspondence with the taxpayer, if applicable

12. Accuracy of account updates and adjustments

13. Accuracy of account adjustment processing to avoid unpostables

14. Resolution of the taxpayer’s account (e.g., overpayment amount, offset or refunded as appropriate)

15. Accuracy and timeliness of DIMS tracking notation

16. Other items or documents, as needed

(3) A closed case review can be requested by the employee, Lead TE, or PTM for a particular case.

(4) Closed case reviews will include performance-related documentation associated with the applicable CJE(s) and aspect(s) of the employee’s position. Upon conclusion of the review, share and discuss the performance documentation with the employee, who initials the document to verify receipt. One copy is given to the employee, and one is placed in the EPF.

(5) A closed case review can be completed by the PTM, designated Lead TE, or employee’s OJI as appropriate. The PTM retains responsibility for the correctness of the review documentation and for including it in the EPF.

(1) Account and Processing Support leadership employs a wide variety of reports and methods for gauging inventory size, inventory management, and time management for each Appeals office, APS office, APS area, and nationally.