part4-429

This section discusses the guidelines for determining which cases are
subject to a technical/quality review in FSLG.

Examination cases in the groups will be sent to the Compliance and Program
Management (CPM) staff of FSLG. Cases that meet the technical/quality review
criteria should be sent to CPM staff in Austin. The mailing address for CPM
technical/quality review is:

Management has authority to designate any type or group of cases as
a 100% review category if it considers this to be essential.

An Exempt Organization Inventory Control (EOIC) system generated Form
3210, Document Transmittal, must accompany all cases. For those cases that
are subject to a technical/quality review, the AIMS status will be updated
to “20″
by the CPM Staff.

All open cases received in CPM should have a minimum of 240 days on
the statute for unagreed cases and 180 days for agreed cases. The Manager,
CPM must be notified by telephone of cases with less time remaining on the
statute before forwarding to CPM for action. This will include ”
No-Change”
cases.

Once received in CPM, the Manager (or his/her Designee) will control
the case and assign it to a Reviewer. The cases will be distributed to the
Reviewers on the basis of current workload without respect to geographical
location of the organization. This will provide flexibility in meeting workload
demands and facilitate interaction between Reviewers and the Field Managers
and their employees. Additionally, every effort will be made by the CPM Staff
to complete its work on a case within 60 days.

Once assigned, the Reviewer will review the case. If there are no problems
or questions regarding the case, the case file will be forwarded to the Exempt
Organization (EO) closing unit in Dallas, which will close the case to the
appropriate Service Center. Only examination cases are forwarded to the Dallas
closing unit.

If there is a need to return the case to the group, the Reviewer will
first forward the case file via Form 3210 to the Manager, CPM (or his/her
Designee) for his/her review, agreement and approval. If the Manager, CPM
(or his/her Designee) agrees with the Reviewer, the case file, along with
the Form 3990, Reviewer’s Report, or equivalent, will be sent back to
the originating group for consideration of the Reviewer’s concerns.
The group should reply within 60 days of receipt.

After the group takes the action it deems appropriate regarding the
Form 3990 or equivalent, the case file will be returned via Form 3210 to CPM
staff in Austin at the address given above. The group should fax an information
copy of the Form 3210 to the Manager, CPM (or his/her Designee) so he/she
will be aware that the case has been returned to the Reviewer.

Once the Reviewer has considered the groups reply, the case will be
forwarded to the Manager, CPM (or his/her Designee) for final review and approval.
If all parties agree, the examination case will be closed through the EO closing
unit in Dallas, which will close the case to the appropriate Service Center.
If the Manager, CPM (or his/her Designee), has any questions or problems regarding
the case, he/she will contact the Reviewer for clarification.

In the event of any significant disagreement between CPM and the group
regarding a Form 3990 or equivalent, a conference will be held between the
affected Specialist, his/her Field Manager, the CPM Reviewer, and the Manager,
CPM, to resolve the issues. Ultimately, the decision of the Field Manager
and the Manager, CPM, is final.

IRM 8.2.1.2.1 requires that all docketed cases “must contain
the original return–the Tax Court requires exactly what the taxpayer filed.
”
When this is not possible, a copy of the return as well as a CC ESTAB/ELFREQ
PRINT requesting the original return must be in the case file. If the original
return is still not obtainable, a certified transcript along with the copy
is required. Also, Form 1532A, Appeals Transmittal, is required on any case
forwarded to Appeals with less than 270 days left on the statute. Caution:
Cases sent to Appeals should have at least 180 days remaining on the statute
(See IRM 8.2.1.3). CPM will be responsible for ensuring that these tasks are
accomplished.

Procedures regarding statutes are contained in IRM 25.6.23, Examination,
TE/GE and Service Center Examination Statute Controls.

Specialists should remember the following points concerning statutes:

To maintain statute controls, it is crucial that each Field Manager
monitor and work his or her groups Table 4.0 on a monthly basis. Each group
should forward an annotated copy of his or her Table 4.0 to the Director,
FSLG, and an information copy to the Manager, FSLG CPM at the following addresses:

Prior to forwarding cases to CPM, it is the group’s responsibility
to ensure that the statute is protected for at least one year. Upon receipt
in CPM, it will be CPM’s responsibility to secure any further necessary
extension to the statutes.

Technical advice cases will be maintained in the groups with a copy
of the technical advice memorandum kept in CPM for information and follow-up.
Because a technical advice request may have far-reaching ramifications due
to the issue(s) involved, the reply from Headquarters office will be shared
with all the Field Managers for dissemination to all Specialists.

CPM will provide guidance as to when 30-day letters may be issued at
the group level as preliminary notices in cases involving proposed tax assessments.
In most 30-day situations, the Specialist will prepare the letter, even if
ultimately issued from CPM.

Cases that involve adjustments to taxable returns will have the 30-day
letters issued from the group as a preliminary report.

Refer to IRM 4.90.9, Workpapers and Compliance Case Preparation.

The CPM staff will prepare all 90-Day letters and Statutory Notices
of Deficiency. CPM will coordinate with the TE/GE Area Counsel staff serving
the taxpayer’s mailing address regarding pre-issuance review, but only
with the Manager, CPM (or his/her Designee’s) prior approval, and/or,
involvement.

Once approved by TE/GE Area Counsel, CPM will issue the Statutory Notice.

All 90-Day cases will be held in CPM Austin during the 90-day period.

If a Specialist or Field Manager discusses an issue with his or her
TE/GE Area Counsel at the group level, there should be documentation in the
file (such as Form 5464, Case Chronology Record) indicating that TE/GE Area
Counsel was consulted, the name of the attorney, and the attorney’s
telephone number.

Refer to IRM 4.90.9 – Workpapers and Compliance Case Preparation.

Refer to IRM 4.23.10.9 – Special Procedures for Notices of Determination
of Worker Classification or Section 530 Treatment.