4.2.8. Guidelines for SB/SE National Quality Review

(1) Embedded Quality (EQ) creates a link between individual performance and organizational goals. This linkage is achieved through a common set of attributes that both National Quality Reviewers in FSEQ and front-line managers use to evaluate the quality of case work.

(2) EQ reviews focus on whether the examiner took the right actions at the right time while protecting taxpayer rights.

(3) National Quality Reviewers in FSEQ use the National Quality Review System (NQRS), an automated web based system used to record results from case reviews for:

• Field and Office Exam Program

• Bank Secrecy Act (BSA) Program

• Employment Tax Program

• Estate and Gift Tax Program

• Excise Tax Program

(4) Reports generated from NQRS provide data which may be used to evaluate organizational processes, procedures and successes, and identify areas in need of improvement.

(5) The NQRS database is accessed through the Embedded Quality home page at http://mysbse.web.irs.gov/examination/examinationeq/default.aspx.

(6) Managers use the Embedded Quality Review System (EQRS) database to evaluate employee performance. For more information regarding front line manager use of EQRS see IRM 1.4.40.3.7, Performance Feedback..

(1) The requirement for an organizational measure of quality for the IRS was established by CFR 801.6(b)Quality measures as part of the Restructuring and Reform Act of 1998 (RRA 98).

(2) CFR 801.6(b) states that quality measures focus on whether IRS personnel:

• Devoted an appropriate amount of time to a matter

• Properly analyzed the facts of the situation

• Complied with statutory, regulatory and IRS procedures

• Took timely actions

• Provided adequate notification and made required contacts with taxpayers

(3) The Taxpayer Bill of Rights (TBOR) lists the fundamental rights taxpayers have when working with the IRS, including a right to quality service. Consideration of these rights in every interaction with taxpayers helps to reinforce the fairness of the tax system. All IRS employees must be:

• Informed about taxpayer rights

• Conscientious in the performance of their duties to honor and respect those rights

• Communicate effectively, those rights that aid in reducing taxpayer burdens

• Administer the law with integrity and fairness

• Exercise professional judgment in conducting enforcement activities

(4) See IRM 4.10.1.2, Taxpayer Rights, Taxpayer Rights, for more information about TBOR.

(1) Listed below are the primary roles and responsibilities of the Program Manager, Quality Analysts, management, and quality reviewers involved in the quality review process.

(1) Program reports are available on NQRS by selecting Reports from the Main Menu screen.

(2) FSEQ also generates quarterly performance reports for stakeholders. These reports provide data to aid in:

• Establishing baselines to assess program performance

• Identifying quality strengths and weaknesses

• Determining specific training/educational needs

• Identifying opportunities to improve work processes

• Measuring the success of quality improvement efforts

(3) An overall quality score serves as the Balanced Measure for Business Results – Quality. This measure is reported to various levels of the organization and to external stakeholders such as Congress.

(1) Access to EQRS and NQRS data and reports is controlled based on the user’s assigned permission level, assigned function and assigned organization. System coordinators are responsible for assigning users to the appropriate permission level based on the user’s role in the organization. Users are only given privileges that are required for the user to perform their job. Users do not have access to security and other functions/features that require elevated privileges.

(2) Operations Support in collaboration with EQRS and NQRS Site System Coordinators (SSC) has oversight of the Online Form 5081, Information User Registration/Change Request, which is used to request access to the EQRS and NQRS applications. See http://mysbse.web.irs.gov/sbseorg/eq/syscoordguidance/default.aspx for more information.

(3) EQRS/NQRS checks information inputs for accuracy and completeness by:

• Restricting data input to established system parameters to ensure data accuracy

• Using drop downs lists as much as possible to restrict users from typing invalid information

• Displaying an error message if invalid data is input into the system

• Requiring data field input before proceeding

(4) Operations Support, Technology Solutions, Collection Systems provide core information technology management and support services for both EQRS and NQRS. They are responsible for:

• Ensuring compliance with the Federal Information Security Management Act (FISMA)

• Managing Unified Work Requests (UWR) for system updates and changes

• Leading the development of enhanced data and computer security process and controls

(1) The following table contains commonly used terms and acronyms found in this IRM:

(1) Field and Specialty Exam Job Aids are reference tools for Field and Specialty Exam management and FSEQ review staff to aid in rating the quality attributes in a uniform and consistent manner. Guidelines in the Job Aids align the EQ concepts to current Field and Specialty Exam procedures. IRM references support each quality attribute.

(2) Headquarters Examination, Examination Field and Campus Policy is responsible for ensuring the consistency of the Field and Office Exam Job Aids and training materials, along with the IRM and other guidelines.

(3) Headquarters Examination, Specialty Policy is responsible for ensuring the consistency of the Specialty Exam Job Aids and training materials, along with the IRM and other guidelines.

(4) The help menu, located at the top of the EQRS/NQRS main menu screen, contains links to the Program Job Aids.

(1) Quality attributes address whether:

• Timely service was provided to the taxpayer

• Facts of the case were properly analyzed

• Law was correctly applied

• Taxpayer rights were protected by following applicable IRS policies and procedures including timeliness, adequacy of notifications, and required contacts with taxpayers

• Appropriate determination was reached regarding liability for tax and ability to pay

(2) Quality attributes are organized into measurement categories which allow quality data to be generated based on the following criteria:

• Timeliness - resolving issues in the most efficient manner through proper time utilization and workload management techniques

• Professionalism - promoting a positive image of the Service by using effective communication techniques

• Regulatory Accuracy - adhering to statutory/regulatory process requirements

• Procedural Accuracy - adhering to internal process requirements

(3) Quality attributes can also be organized by DCI attribute group:

• Planning

• Income Determination (Field Exam)

• Investigative/Audit Techniques

• Timeliness

• Customer Relations/Professionalism

• Documentation/Reports

(1) Reviewers evaluate case work utilizing attributes specific to their Specialized Product Review Group (SPRG).

(2) Reviewers rate all attributes that apply to the case being reviewed.

(3) Attribute ratings must be accurate and consistent. Reviewers must strive for consistency in rating similar case actions.

(1) The scoring system provides for the equal weighting of each attribute. Each attribute is rated as Yes, No, or in some instances Not Applicable.

(2) The quality score is computed as a percentage. The percentage is calculated as total Yes ratings divided by total Yes and No ratings. A total score of 100 is possible for each case.

(1) The physical case file is the primary source for case reviews for Field and Specialty exam reviewers. Reviewers may need to view case information stored electronically.

(2) Documents found in the electronic case file might not be in the physical case file because they were not printed or were inadvertently removed. If there are indications in the physical case file that electronic documents exist, reviewers should access the electronic file to determine if additional information is available.

(3) Electronic case files for the Excise, Employment and Estate and Gift Programs are located on the Issue Management System (IMS) Team Website.

(4) Electronic case files for Field Exam are located in Correspondence Examination Automation Support (CEAS).

(1) The first input section of the DCI is the header fields that capture basic case information. The bold header fields are mandatory and must be entered to complete the DCI.

(2) Header information is categorized into four groupings:

• Review Information - specific information about the review itself

• Case Information - specific information about the case

• Process Measures - case actions taken by the examiner that are used to measure the efficiency of the examination process

• Special Use - special tracking for local or national purposes

(3) Process Measures data may be analyzed in conjunction with the quality attributes. Process Measures data fields capture:

• Specific tasks performed during the examination

• How these tasks were completed

• Key dates

• Delays in activities

• Hours associated with the case

(1) When a quality attribute is rated not met, at least one reason code, if available, must be selected that supports the not met rating.

(2) The most appropriate reason code should be selected for the error. Multiple reason codes may be selected for multiple errors, if warranted.

(3) A narrative is required, describing the facts, for each not met attribute rating.

(4) Reviewers should contact their manager when other is used regularly as a reason code to determine if additional reason codes should be added to NQRS.

(5) Reviewer narratives must be thorough, providing clear, concise, and specific descriptions of any errors, offering sufficient detail to allow for specific recommendations for improvement.

(6) Reviewers must avoid using canned statements in their narratives.

(7) Attribute narratives should:

• Clearly state the facts that resulted in the attribute rating

• Identify the nature of the error in the first sentence of the narrative

• Indicate what was not done, not what should have been done

• Evaluate the case, not the examiner

(8) Reviewer should not include taxpayer specific or PII data in the narrative comments.

(1) The ERCS Sample Review program may select unagreed cases as part of the random sample of cases for review.

(2) Technical Services is responsible for sending unagreed Appeals cases and unagreed Appeals cases with at least one agreed/no-change year that are selected for sample review to the appropriate review site. These cases are high priority and procedures are established to ensure their timely review. Refer to IRM 4.8.2.3.4, Technical Services, Case Processing, for more information.

(3) When “open” cases are transmitted to the review site by Technical Services, they should be updated to Status Code 23, Sample ReviewSample Review and Review Type 33 on ERCS.

(4) Field and Specialty Exam reviewers will complete their review of the open unagreed case within 10 business days and return the case to Technical Services via ground mail service.

(5) Appeals policy requires a non-docketed case to have at least 365 days remaining on the statute as of the date the case is received in Appeals. If a non-docketed case is selected for sample review there needs to be an additional 30 days on the statute to allow for the completion of the review and for Technical Services to receive and prepare the case for closing to Appeals.

(6) Cases that do not meet this criteria will be deselected and returned to Technical Services.

(7) Reviewers prepare an Appeals Advisory Memo to Technical Services when tax application/computation errors are found or if any taxpayer confidentiality issues are discovered. Technical Services decides whether to forward the case to Appeals or return it to the group.

(1) The ERCS Sample Review program may also select unagreed cases closing for issuance of statutory notice of deficiency as part of the random sample of cases for review.

(2) Technical Services will affix the sample selection sheet to these case files and update all returns with an account transfer out freeze code ("M" freeze code).

(3) If the case defaults, Technical Services will send the case to CCP. The "M" freeze code along with the Sample Selection Sheet will alert CCP that the case must be sent to the appropriate review site.

(4) CCP will update the case to Status Code 90, remove the "M" freeze code and forward the case to the appropriate review site.

(1) Cases selected for review should be transmitted to their respective review site.

(2) Field Exam cases are shipped to NQRS-Oakland.

(3) Specialty Exam cases are held in the Covington campus for screening. After screening, cases are shipped directly to reviewers.

(4) Closed case files should remain intact after they leave CCP and Technical Services. Dismantling, purging, or discarding documents from a case file could negatively affect the case if legal actions are pursued.

(5) A separate Form 3210, Document Transmittal, shall be attached to the closed case files. Each selected case shall include the full physical case file.

(1) Each review site will maintain an inventory control system. This will facilitate an orderly flow of case files and supporting documents between closing units, the review site, and the reviewer.

(2) All closed (status 90) physical case files along with Form 3210 are transported via ground shipment for final disposition.