1.4.40 SB/SE Compliance Field Examination Group Manager (Cont. 2)

1.4.40.8
Guiding and Evaluating Employees

1.4.40.8.1  (08-01-2003)
Performance Appraisal

  1. The formal mechanism for providing written feedback about an employee’s accomplishments is Form 6850, Performance Appraisal. The performance appraisal serves as a:
    • Record of performance
    • Basis to provide further training
    • Tool to improve performance
    • Document for personnel actions
    • Rating of Record
  2. Under the performance evaluation system, the first year of employment serves as a probationary period. During this time, each employee must demonstrate fully successful performance. This requires you to closely monitor and review a probationary employee’s work.

1.4.40.8.2  (08-01-2003)
Service Policies, Procedures and Guidelines

  1. Your evaluation of employee performance must conform with procedures detailed in the IRM and National Agreement, IRS and NTEU, Document 11678.
  2. Policies of the Internal Revenue Service Handbook specify the factors which must be considered in evaluating performance. These policies prohibit the use of predetermined quantitative standards, enforcement results, or quotas to influence the evaluation of an examiner’s performance (refer to IRM 1.5, Managing Statistics in a Balanced Measurement System and Section 1204 of the Restructuring and Reform Act of 1998). You may look to your manager, labor relations, and personnel for additional direction and guidance.

1.4.40.8.3  (08-01-2003)
Appraisals and Documentation

  1. An efficient and effective employee appraisal depends on your active involvement and timely direction. Fair and balanced feedback is essential to maintain and improve skills.
  2. Keep an employee’s overall performance in mind when you discuss work and related activities. Timely inform your employee when some aspect of performance may negatively influence the next performance rating. Verbal notification must be followed by written documentation. A recordation is defined as a manager’s written record evaluating an employee in a positive or negative manner. Recordation must be shared with bargaining unit employees within 30 calendar days of being developed or received by the manager.
  3. Your role as instructor and evaluator is to assess the quality of your employee’s work and provide timely feedback and guidance. By maintaining documentation throughout the rating period, you have sufficient information to prepare the annual appraisal. Remember that performance appraisals are used to give your employees official feedback and need to be clearly and timely communicated.

1.4.40.8.4  (08-01-2003)
Awards

  1. Employee recognition is designed to reward and recognize employees, either individually or as a member of a team or group, for their performance, adopted suggestion ideas, or other exemplary contributions to the Service’s mission. Employee recognition may include monetary awards, time-off without charge to leave, honorary recognition (e.g., plaques, certificates, etc.), informal recognition items, or a combination.
  2. Forms of recognition are as follows:
    1. Performance Awards–Based on an employee’s annual rating of record for the current appraisal period.
    2. Quality Step Increase–A faster than normal within-grade pay increase. May be granted at management’s discretion only to employees who have been rated “Outstanding” .
    3. Special Act or Service Award–Granted to recognize an employee, team or group achievement on a special assignment.
    4. Manager’s Awards–A type of special act award, which is limited in amount ($50.00 - $250.00) per individual.
    5. Honorary Awards–Non-monetary informal recognition items of nominal value.
    6. Suggestion Awards–Employees may recommend improvements for a particular function, process, or operation by formally submitting their ideas in writing. Awards are based on the tangible and intangible benefits resulting from adopting of suggestions.
    7. Time-Off Awards–Time-Off awards may be granted, at management’s discretion, in lieu of any monetary award. Employees desiring time-off in lieu of monetary awards will so specify by completing Form 13261, FY XXXX Bargaining Unit Employee Time-Off Award Election, at the beginning of the rating period.
    8. Federal Career Service Awards–Honors IRS employees upon attainment of 5 years of Federal Service and at each subsequent 5-year milestone. Allow sufficient time to request the award before service date anniversary.
    9. Retiree Emblems–A retiree emblem and retirement certificate is issued to retiring employees who have completed ten years or more of service with the IRS.
    10. Albert Gallatin Award–The Department of Treasury’s highest career service award. Conferred by the Secretary upon the retirement or death of Federal employees who served twenty or more years in the Department and whose record reflects fidelity to duty. Allow sufficient time to request the award before retirement date.
    11. Processing–Form 9127, Recommendation for Recognition, shall be used to recommend, approve, certify and authorize payment of an employee, team or group award. See the Strategic Human Resources Performance Management and Recognition website for additional information and IRM 6.451.1.9, Payment of Awards.

1.4.40.8.5  (08-01-2003)
Employee Performance Files (EPFs)

  1. An Employee Performance File (EPF) is a record of performance-related data maintained on an employee. EPFs must be established and maintained for all full-time, part-time, seasonal, intermittent, term and temporary employees expected to be employed at least 120 days in a calendar year.
  2. An Employee Performance File (EPF) is a required file for each employee. Managers are responsible for maintaining and assuring effective use of the EPF system by:
    • Establishing EPFs
    • Updating EPFs
    • Securing performance records/documents
    • Forwarding EPFs to the new manager upon transfer or reassignment
  3. Each EPF must be clearly labeled as “Employee Performance File” , along with the employee’s name and social security number. Access to an EPF is limited to the employee, management officials with a need to know, and any representative designated by the employee, such as NTEU. EPFs should be kept in a locked cabinet, room, or other secured area.
  4. Information to be retained in the EPF includes:
    • Performance plan (critical elements and standards);
    • Form 6774, Receipt for Performance Plan and/or Numerical Standards;
    • Form 12337, Retention Standard;
    • Annual appraisals, departure appraisals and ratings;
    • Any records of performance documentation such as workload reviews, case file reviews, job visitations, progress reviews, mid-year assessments and all appraisal forms, such as Form 6850, needed to justify a personnel action (e.g., promotion, award, furlough, or removal);
    • Records of performance counseling;
    • Rebuttal statements submitted by the employee;
    • Individual Development Plan; and
    • Student employment work agreement.
  5. No documentation related to disciplinary or adverse action will be placed in an EPF unless such action was based on performance.
  6. All EPFs containing documentation over four years old should be purged annually.
  7. If the employee leaves the Service, the EPF is sent to your servicing Transactional Processing Center (TPC). Contact your local Labor Relations section to identify the specific items that should not be sent to TPC. Form 1122, EPF Transmittal, may be used for this purpose. Additional information can be accessed at http://shr.web.irs.gov/.
  8. Documents related to an employee’s conduct, such as failure to file taxes, tardiness, or leave abuse, may be filed in a “drop” file which will be kept separate from the EPF. Documents should be sanitized for any items in violation of federal law (i.e., birth dates).

1.4.40.8.6  (08-01-2003)
In-Process Reviews

  1. An in-process case review is an opportunity for you to be involved in an examination while the case is ongoing. The involvement may be extensive or may be limited to a very specific part of the examination. Some areas you may wish to consider are:
    1. Determining overall examination abilities
    2. Training in a new or unique issue
    3. Developing accounting and/or auditing skills
    4. Observing communication skills
    5. Assisting in the proper development of technical issues
    6. Determining and/or improving proper time utilization
    7. Reviewing and/or improving workpapers
    8. Determining scope and depth of examinations
    9. Improving your knowledge of certain industries and/or issues
    10. Observing interview techniques and offering constructive feedback
    11. Providing assistance with overage cases
  2. Completion of in-process reviews should be annotated in the case file on Form 9984, Examining Officer’s Activity Record.

1.4.40.8.7  (08-01-2003)
Workload Reviews

  1. Workload reviews will give you the best overall picture of each examiner’s work and activities. A complete understanding is needed for evaluating performance, providing direction, and deciding when you should become more involved in specific examinations. For this reason, a sufficient number of in-depth workload reviews should be performed.
  2. It is essential that you discuss areas where there is above-average performance as well as problem areas. Agreed action plans should be noted in the case file, workload review, or a separate Iisting. Completion of workload reviews should be annotated in the case file on form 9984, Examining Officer’s Activity Record. Secure mutual understanding of the results of the review and agreement on the action items. Your assessment of performance and areas needing improvement should be summarized in a timely appraisal addressing quality and as many of the job elements as practical. The composite of these appraisals, as well as other evaluative documentation, will serve as the basis for the annual performance evaluations. If any of the knowledge gained is to be used for a negative recordation, you must document in the manner required by the National Agreement, IRS and NTEU, Document 11678.
  3. Begin the workload review by securing a list of all returns assigned to the examiner. With ERCS, you are able to pull the inventory list in several different arrangements, i.e., priorities, status codes, age, activity codes, etc. You may decide to limit the review to include priority work, overage cases, etc., or perform a complete review of all inventory including unstarted work. See ERCS Reports of this chapter for a list of reports that may be useful when conducting workload reviews.
  4. To organize the review and obtain the desired information, consider using some or all of the following headings:
    • Activity Code
    • DIF score
    • Taxpayer’s name
    • Year(s)
    • Status Code
    • Priority
    • Source Code
    • Statute date
    • Date assigned
    • Date started
    • Hours to date
    • Estimated hours to complete
    • Expected completion date
    • Comments
    • Follow-up dates
  5. Have the examiner pull cases to be reviewed. These should be matched against the listing during the review. All case files should be available during your discussion of the examination. This should identify ” copies of returns” and years which are being worked but are uncontrolled. It will also identify potential “lost” or reassigned returns where the ERCS controls were never properly reassigned or closed.
  6. When conducting either a partial or complete review, it is imperative that each workload review is meaningful to both you and the examiner.
  7. Areas of concern which may require action are:
    • Adequacy of inventory
    • Work problems and delays
    • Awareness to fraud indicators
    • Compatibility of work with grade
    • Need for special advice and assistance
    • Awareness of the computer assisted audit program and utilization of a computer audit specialist
    • Consider retention requirements
    • Application of statistical sampling techniques
    • Use of computer report writing programs
    • Awareness of the ES and ISP
    • AIMS/ERCS controls
  8. Pinpoint specific actions which should be taken to improve the status of the examination and/or your employee’s work performance. Typical actions include:
    1. Prevent frequent cancellation of appointments
    2. Correct deficiencies in preaudit plans
    3. Curtail repeated contacts for piecemeal development of facts
    4. Resolve unwarranted case closing delays
    5. Require follow-up on unanswered requests for information
    6. Follow-up on progress in fraud cases
    7. Research specific technical issues
    8. Review appropriate examination techniques
    9. Group manager involvement in the examination activity
  9. Review ERCS procedures and test check such items as:
    1. Timely updates of status codes, project codes, statute dates, claim amounts, and aging codes
    2. Proper requests for related pickups and reference returns
    3. Proper source code used
    4. Proper requests for specialists, i.e., Engineer, CAS. Economist, or International
    5. Accurate time charges to case
  10. Watch for symptoms of unusual difficulties. Try to prevent complications through discussions with your employee. Some early indications of potential problems are:
    1. Diversionary tactics by taxpayers and representatives to forestall factual development
    2. Oral and written complaints by taxpayers about requests for factual information
    3. Inordinate amount of time spent to develop facts
    4. Inordinate amount of time spent to research issues
    5. Complaints about unreasonable taxpayers or representatives
    6. Frequent cancellations of appointments by taxpayers or representatives
    7. Frequent and substantial deviations from original plans and schedules
    8. Time lags in referrals to specialists
    9. Lack of responsiveness or examination activity by specialists
    10. Taxpayer complaints regarding requests for information
    11. Floundering
    12. Lack of skills in recognizing and developing issues
    13. Inability to use indirect methods of determining income
  11. Identify potential problems. Some of the actions you can take to resolve problems are:
    1. Suggest new approaches to your employee in scheduling appointments
    2. Point out valid objections by the taxpayer which the employee has failed to consider
    3. Urge employees to reach decisions when there is enough information to do so
  12. Set target dates for completion of specific actions.
  13. A copy of the worksheet and evaluation should be presented during a timely discussion with the employee. If this meeting does not occur within the first few days after the review, the effectiveness is greatly diminished. The reviews should never be left in the employee’s mail drop for later discussion.
  14. Conducting workload reviews is a time-consuming job. Much of this time will be wasted if you do not schedule and perform follow-up reviews to determine if the agreed-upon actions have been completed.
  15. Exhibit 1.4.40-1, Guide for Workload Reviews, will assist in this process.

1.4.40.8.8  (08-01-2003)
On-the-Job Visits

  1. To achieve our quality objectives, there must be managerial involvement at all stages of the examination. On-the-job visits (OJVs) are one of the most effective tools you have to accomplish this task and are essential since much of your employees’ work and activities are performed independently of your direct supervision.
  2. Have a specific purpose for making a visit such as observing an examiner’s auditing abilities, observing an examiner’s communication skills, teaching an examiner new auditing techniques, etc. Purposeful and essential visits are valuable. Frequency of visits should be dictated by the needs of the employee and/or the specific case.
  3. Visitation needs can often be pinpointed during a workload review. You should avoid making on-the-job visits only at the conclusion of examinations. You can Iearn more about performance and correct more case-related problems early in an examination rather than at the conclusion of an examination.
  4. An OJV with an employee has a psychological effect on the employee, the taxpayer, and the representative. If you routinely make visits with your employees, your presence will seldom cause concern. Be sure to explain the reason and purpose of your visit. In order to minimize anxiety, let all parties know of your plans to visit. Remember that many taxpayers and virtually all representatives are well-acquainted with the normal practices of examiners.
  5. Communicate your assessment to the examiner after every visit. This should include specific and factual observations related to the actual situation, timely and appropriate advice, and mutual agreement on ways to improve work performance. Respect your employee and avoid discussing any work problems in the presence of others. Discussion about areas of needed improvement should consider the need for feedback, follow-up, and firm decisions concerning future actions. This should be documented or summarized in a timely appraisal, addressing as many of the critical job elements as practical. Completion of on-the-job visits should be annotated in the case file on Form 9984, Examining Officer’s Activity. A composite of these, as well as other appraisals, will serve as a basis for the annual performance evaluations.
  6. Exhibit 1.4.40-2, Guide for On-the-Job Visits, and Exhibit 1.4.40.1–3, Alternative Guide for On-the-Job Visits, offer suggestions for these visits.

1.4.40.8.9  (08-01-2003)
Completed Case Review

  1. Perform a cursory inspection of every closed case. From this inspection and your knowledge of the employee’s abilities and past performance, you can select cases for in-depth reviews. With new employees, you should be concerned at first with how they handle all aspects of their work.
  2. Your assessment of performance and areas of needed improvement should be summarized in timely documentation, addressing as many of the critical job elements as practical.
  3. While you are not expected to function as the Technical Services staff, you should be satisfied that the work product flowing from your group is of acceptable quality and meets the auditing standards provided in the IRM.
  4. The group secretary can assist with the administrative aspects of completed case reviews by checking correspondence, reports, and closing documents. Instruct the secretary to keep you informed about:
    • Accurate completion of examination records
    • Arrangement of case files
    • Association of related cases
    • Presence of customary forms and data

    Caution:

    Do not rely on completed case reviews to assess performance, identify concerns, solve problems, and manage inventories. Although the completed case review is a helpful tool, you must realize that, at this point, the examination has been completed. It is too late to change the direction of the examination and ensure that quality is built into the process. There can be many deficiencies in communicating with the taxpayer, identifying issues, and applying audit techniques that cannot be corrected after the examination is completed.

  5. See Exhibit 1.4.40–4, Guide for Review of a Completed Case.

1.4.40.8.10  (08-01-2003)
Review of Examination Technical Time Reports — (ETTR)

  1. Examination Technical Time Reports should provide a quality check on the accuracy of form preparation and should provide a basis for follow-up action.
    1. For Field Examination: Examination Technical Time Reports should be reviewed monthly when submitted by examiners.
    2. For Office Examination: Tax Auditor Daily Time Reports should be submitted daily and reviewed at the discretion of the manager.
  2. Exhibit 1.4.40–5, Guide for Use and Analysis of Examination Technical Time Reports, outlines information available by reviewing the ETTR and ERCS reports. The guide addresses many areas that directly or indirectly relate to employee’s job elements and auditing standards.

1.4.40.8.11  (08-01-2003)
On-Going Observation (Management by Wandering Around)

  1. Observations of activities in the work area can provide you with countless indicators of how things are going. You can develop insight into each employee’s personality, behavior, and attitude through what you see and hear. The interest you sincerely demonstrate concerning your employees’ welfare will encourage discussions and help build a team spirit within your group.
  2. Casual and brief visits with employees in the work area permit you to provide assistance in an informal, timesaving manner. Some of the benefits gained through these visits are:
    1. Solutions to work difficulties
    2. Substitution of oral feedback for written feedback
    3. Timely communication of new procedural and technical developments
  3. Observations of in-office activities can identify and correct improper or ineffective work habits.
  4. Informal discussions with your employees serve to solve many work problems. You often serve as a sounding board for your employees, they resolve problems as they talk with you. Always endeavor to bring about discussions that are friendly, helpful, fair, and objective.
  5. To enhance this type of effective communication with your employees. avoid assessing negative performance as a result of these interactions. To the extent possible, also avoid revisiting information with employees which may make them feel uncomfortable or wish they had not voluntarily discussed the matter with you.

1.4.40.8.12  (08-01-2003)
Feedback from Other Areas

  1. Solicit written feedback when employees are given assignments outside of your group. Some of these assignments will include:
    • Classifying returns
    • Details to Technical Services staff
    • Instructing
    • Acting group manager
    • Details to other divisions

1.4.40.8.13  (08-01-2003)
Disciplinary and Adverse Actions

  1. References
    1. IRM 6.751, Discipline and Disciplinary Actions
    2. IRM 6.752, Disciplinary Suspensions and Adverse Actions
    3. APM Guide (http://apm.web.irs.gov/)
    4. National Agreement, IRS and NTEU, Document 11678
  2. Disciplinary and adverse actions are tools managers can use to enforce the rules, regulations, and work requirements that allow the Service to accomplish its mission in an effective and efficient manner.
  3. The goal of both disciplinary and adverse actions is to use the lowest level of discipline possible to correct inappropriate behavior. Each case is considered individually. See the above references for various actions and options.
  4. Seek assistance from the Labor Relations Office whenever dealing with any conduct problem that has the potential to result in a disciplinary action.

1.4.40.8.14  (08-01-2003)
Grievances

  1. References:
    1. IRM 6.771, IRS Employee Grievance System
    2. IRM 30.4.10, Grievances, Appeals & Procedures
    3. APM Guide (http://apm.web.irs.gov/
    4. National Agreement, IRS and NTEU, Document 11678

1.4.40.9  (08-01-2003)
Employee Development

  1. Group managers must ensure that clerical, paraprofessional, and technical employees receive training and guidance for successful performance in their group. Assess each employee’s abilities and performance, in order to develop the individual in their current position and for higher-level and more responsible work. In many instances, the Service provides formal training programs designed to meet employee’s basic and advanced needs. These programs provide for classroom training, on-the-job instruction, Continuing Professional Education (CPE), correspondence courses, and other approaches. Become familiar with the purpose and content of the various training programs and your local training coordinator.
  2. To be successful, you must be aware of the talents, current level of accomplishments, goals, and aspirations of the employees you manage. Completing employee profiles for your group will provide a basic foundation for assessing the group’s training and development needs. The degree of imagination, ingenuity, and creativity in this vital area is up to you. Mentoring and Pre-Management Programs provide for the identification and development of employees who exhibit management skills and potential. Review each employee’s Individual Development Plan (lDP) and provide assignments to implement the plan.
  3. Emphasize the development, performance, and conduct of each employee in your group through your role as:
    • Instructor
    • Counselor
    • Evaluator
    • Mentor
    • Leader

1.4.40.9.1  (08-01-2003)
New Employee Training

  1. An important responsibility you have as a manager is to ensure your new employees receive quality training. You must be involved with trainees throughout their classroom and on-the-job training period. You and the On-the-Job Instructor (OJI) must establish checkpoints to inform trainees of performance. Keep your manager and training coordinator apprised and involved throughout the training process.

1.4.40.9.2  (08-01-2003)
Examiner Training

  1. As a group manager you have some very definite responsibilities to provide a quality CPE program. CPE should be presented in accordance with the current fiscal year guidelines. CPE may be limited to group meetings. To ensure success:
    1. Solicit topics
    2. Select the best individuals as instructors
    3. Solicit feedback from participants
  2. Other training needs may exist. The most efficient and effective method for conveying this information may be memoranda, group meetings, self-study, or external seminars.

1.4.40.9.3  (08-01-2003)
Clerical Training

  1. Employee development is a shared responsibility between you and the employee. Each employee prepares an Individual Development Plan (IDP) to meet their specific needs. This plan should be a fluid document.
  2. Check with other managers and secretaries to ensure the appropriate desk references are available to assist your secretary with day-to-day tasks.

1.4.40.9.4  (08-01-2003)
Individual Development Plan (IDP)

  1. Employee development is a shared responsibility between you and the employee. Each employee prepares an Individual Development Plan (IDP) to meet their specific needs. This plan should be a fluid document.
  2. The National Agreement, IRS & NTEU provides that employees should also spend their own time on self-development.
  3. Develop a monitoring and follow-up system to enable you to meet the individual needs of your employee. An effective lDP should be:
    • Mutually developed
    • Realistic
    • Balanced
    • Attainable
    • Mutually supported
  4. Employee development is directed toward improving skills in present and target positions. This can be accomplished through a variety of activities including: details to other areas or functions, instructing, OJI, acting group manager assignments, task force, and special projects. See Exhibit 1.4.40–6 Guide for Development and Self-Assessment.

1.4.40.9.5  (08-01-2003)
Helping People Achieve

  1. You are an advocate for your employees. Help them to achieve their career objectives by remembering:
    1. Enthusiasm is contagious
    2. Clearly shared objectives and standards are a must
    3. Intermediate goals must be set, shared, and monitored
    4. Small successes build confidence
    5. Individual performance is evaluated against set standards
    6. Prompt corrective action may be necessary
  2. Identifying, planning, and monitoring of employee needs and their development requires open communication. Your direct involvement and ongoing attention are essential to the enhancement of your employees’ skills and career advancement.
  3. Remember, a group manager is only as effective as the employees in the group. Thus, it stands to reason you need to assist in your employee’s development by:
    1. Encouraging and appreciating excellence
    2. Creating a climate of support, encouragement, recognition and team spirit
    3. Remaining flexible and resourceful

1.4.40.9.6  (08-01-2003)
Group Manager Development

  1. Attainment of your career objectives is a shared responsibility between you and your manager. Look for guidance in developing your own goals and direction.
  2. Increased responsibility, advancement, and job enrichment should continue throughout your career. The support of your manager is vital to your career development and advancement. You should develop and fully utilize an Individual Developmental Plan. Managerial career planning requires goals, actions, and commitment.

1.4.40.10  (08-01-2003)
Interactions with Other Functions

  1. Throughout this handbook the importance of working as a team in order to accomplish the Mission of the Service is discussed. The team is made up of all the employees of our organization. The interaction of employees is the lifeblood of the organization. Your initial interactions in your work environment will form the basis for relationships with the key people you must work for, with, and through.
  2. The following presents an overview of the individuals and functions you will look to for information, assistance, and guidance. These are all members of the team with whom you must work effectively in order to accomplish the organization’s goals.

1.4.40.10.1  (08-01-2003)
Appeals and Area Counsel

  1. For the most part, contact with Appeals and Area Counsel is through the manager, Technical Services Group Manager. Recognize Appeal’s responsibilities and support their efforts. Take advantage of Area Counsel for legal advice. Cases in which taxpayers request Appeals’ consideration should be promptly transferred but only after all issues have been fully developed, quality assured, and appeal rights fully explained. Appeals also provides feedback on case quality and the resolution of the appeal.

1.4.40.10.2  (08-01-2003)
Collection

  1. Close coordination with and feedback to Collection personnel is essential on failure-to-file referrals, frivolous filer/nonfiler cases, and claims for refunds submitted during the collection process. When securing agreements with an unpaid deficiency of more than $100,000, you must involve Collection personnel prior to closing the case. If the taxpayer requests an installment agreement that exceeds Examination limits, Collection personnel should be contacted to accommodate the taxpayer.

1.4.40.10.3  (08-01-2003)
Criminal Investigation

  1. The success of the Area fraud program requires cooperation between your employees and those of CI. You must work closely with the Fraud Referral Specialist (FRS) to ensure that adequate staffing is available to complete joint investigations, ensure proper use of staffing on joint investigations, ensure timely completion of joint investigations, and obtain feedback on the quality of fraud referrals.

1.4.40.10.4  (08-01-2003)
Disclosure

  1. The Disclosure Officer can provide invaluable assistance in resolving questions regarding disclosures of tax returns, tax return information and Privacy Act (PA) information, such as personnel records. The Disclosure Officer handles all requests for information under the Freedom of Information Act (FOIA) or the PA. A FOIA or PA request received in your group should be immediately forwarded to the Disclosure Officer for processing. However, absent a FOIA or PA request, the examiner/manager has the authority to provide the taxpayer/representative with copies of documents related to the issues in question but only after a page by page review of all requested documents for any questionable items. Contact Disclosure if there are any questionable items that you may wish to withhold from the requester.
  2. Subpoenas received by employees must be immediately faxed or hand-carried to the Disclosure Officer for processing. An employee is allowed to testify in a tax administration case as a witness for the government without a subpoena and without an authorization from the Territory Manager. You should make full use of your disclosure officer by inviting him/her to group meetings and requesting orientation for new employees (both technical and clerical). See IRM 11.3, Disclosure of Official Information.

1.4.40.10.5  (08-01-2003)
TIGTA

  1. Internal Security should be viewed as a positive resource in maintaining a respected, ethical organization. They support employees against false claims, threats, and accusations, as well as investigate allegations of wrongdoing. Invite them to your group meetings to emphasize their role.
  2. Supervisors will not, under any circumstances, conduct an investigation into these matters unless TIGTA concurrence is obtained.
  3. All information received concerning misconduct of IRS employees or officials will be reported to TIGTA via the local TIGTA office or the TIGTA hotline at 1-800-366-4484 or e-mail through the website – www.hq.irs.gov/IRSHOTLINE/hotline.htm.
  4. After TIGTA conducts an investigation of alleged improper conduct, the report will be presented to management for review and decision on whether disciplinary action will be required. If no disciplinary action is required, one of the following actions must be taken:
    1. Clearance letter
    2. Closed without action letter
    3. Warning or caution letter
  5. Internal Audit is an independent third party which reviews our systems, procedures, and effectiveness.

1.4.40.10.6  (08-01-2003)
National Headquarters (NHQ) Office of Research

  1. National Headquarters (NHQ) Office of Research identifies noncompliance at the issue level. Their activities may include demographic, economic, and other studies as requested by the Director, Compliance.

1.4.40.10.7  (08-01-2003)
Taxpayer Advocate Service

  1. If you are unable to satisfy a taxpayer’s complaint, a referral to Taxpayer Advocate Service (TAS) should be considered. When a referral is warranted, complete Form 12412, Taxpayer Advocate Service Assistance Request, and forward to your local TAS.
    1. TAS is designed to provide an avenue to resolve taxpayers’ problems and complaints that have not been resolved by existing procedures.
    2. IRM 13.1.7 provides a listing of situations in which a referral to TAS is appropriate.
    3. Form 4442, Inquiry Referral, may be appropriate in circumstances not meeting TAS criteria, such as a request for a photocopy of a refund check. These should be forwarded to your local W & I Field Assistance office.
  2. Prompt action to resolve a taxpayer’s complaint will result in increased respect for the Service. You and your employees share the responsibility for maintaining favorable public relations.

1.4.40.10.8  (08-01-2003)
Communications & Liaison

  1. C & L coordinates all media contacts. All media contact must be cleared through their office. They may request you or your employees to make presentations to groups of taxpayers through taxpayer education programs.

1.4.40.10.9  (08-01-2003)
Campus Contacts

  1. Your secretary may have occasion to have contact with one of the campuses to resolve a return requisition, payment postings, or other problems. Each Campus has three Directors: Accounts Management, Submission Processing and Compliance Services. Maintaining these valuable contacts will assist in the smooth operation of the group.

1.4.40.10.10  (08-01-2003)
Collateral Duties

  1. We have discussed the importance of working as a team in order to accomplish the Mission of the Service. This team is made up of all Service employees. The following presents an overview of some collateral duties which you may be called upon to handle.

1.4.40.10.11  (08-01-2003)
Classroom Instructor

  1. Managers are given instructor assignments in both technical and administrative areas. These assignments give the manager a change of pace and the ability to refresh their skills.

1.4.40.10.12  (08-01-2003)
Commissioner Representative

  1. Commissioner Representative (CR) responsibilities are assigned to one or more managers in a POD. Duties include taxpayer concerns, security, supplies, safety, and morale.
  2. Senior Commissioner Representative means the individual designated by the Commissioner of the IRS to serve as the point of contact on matters impacting more than one Division in a specified geographical area. Responsibilities may be assigned to one or more managers in a POD.
  3. Generally the Senior Commissioner’s Representative is a GS-14 or GS-15 management position. SCR responsibilities include:
    1. Addressing cross-functional administrative issues and concerns, including serving as the IRS representative on interagency organizations and committees.
    2. Providing leadership for local cross-functional labor relations and negotiations.
    3. Acting as the designated representative for the Combined Federal Campaign for their geographic area.
    4. Taking a leadership role and acting as the designated official for their local areas during emergencies, crisis situations, and weather closures.

1.4.40.10.13  (08-01-2003)
Recruiting

  1. You play a key role in recruiting qualified candidates. When internal employees are being considered for a crossover to another position or external applicants are seeking initial appointments, you may be in a position to influence an individual’s decision to work for the Internal Revenue Service. Represent the Service in a professional manner when talking with prospective employees or school officials. Review recruitment literature and talk with a Personnel Staffing Specialist before making recruitment visits so you are knowledgeable of job duties and educational requirements.

1.4.40.10.14  (08-01-2003)
Wage & Investment (W & I) Customer Service

  1. You may be called upon to provide examiners during filing season to assist taxpayers with the preparation of their returns or technical assistance.

Exhibit 1.4.40-1  (08-01-2003)
Guide for Workload Reviews

Area to Review Questions to Be Answered Records to Be Used
1. Priority work
a. Statute Cases
b. NRP Cases
c. Reconsideration
Cases
d. Reviewer’s Reports
e. Requests for
Information/
Collateral
Investigation
f. Claims
g. Informants’ Claims
h. Inadequate Records
Follow-Up
i. Linked Cases
j. Prior Year Returns
k. Refund Hold Cases
l. Overage Inventories		 a. Has employee identified
priority work?
b. Which priority work is in
process?
In proper priority?
Any closing problems? Which
cases must I review? Should
employees set target dates?
c. What priority work is not
started? Why? How soon can
it be started? How soon can it
be finished? Should work be
reassigned?
d. What cases should be
surveyed? Why have unstarted
cases that have been in
inventory for extended periods
of time not been surveyed or
returned to group manager?		 Examination Records and
Technical Time Reports—
Compare dates assigned to
date case was started.
2. Cases in Process over
extended periods such as 3.6.
or 9 months		 a. What specifically is holding up each case?
b. Do the files indicate closing delays could be avoided by better taxpayer relationships, better follow-up procedures, more effective examination planning, improvement in examination techniques, better planning and scheduling of activities?
c. Has employee considered tax potential? Compliance problems?
d. Can I help close these cases?
e. Should mutual agreement be reached on target date for closing or on additional time to be devoted?
f. If this is a repeat case from my last review. Has employee taken steps previously agreed upon?
g. Does employee consistently keep examinations in process over a prolonged period?
h. Is employee having trouble with issue recognition or issue development?		 Technical Time Reports. Prior Workload Review Notes and Case Flies.

Review Technical Time Report for last month to obtain pattern on time charged. Consider time charged in light of information in case files.

Review case files to:
a.  appraise progress on specific examinations:
b. ascertain necessary facts and reach a mutual understanding with employee on specifically what should be done and when.
3. Cases in Process: no activity
for extended period		 a. Should any of the cases be placed in the suspense file?
b. If case is to be suspended, has it been worked completely except for suspense issue?
c. Specifically, what is preventing action in each case?
• Inaction of the
employee
• Delay caused
by taxpayer/
practitioner
• When was last
follow-up
d. What are employee’s follow-up procedures?
e. Does employee consistently have inactive cases? Why? Have we discussed this before?
f. What must be done to get each case moving or closed?
• Determine
actions to
be taken
• Set target date
for closing		 Technical Time Reports. Case Files
Determines time charging patterns and last activity in case from Technical Time Report.

Review case files to determine facts for reaching mutual agreement on actions to be taken.
4. Other Work in Process or
Unstarted		 a. Are returns with the most potential worked first?
b. After returns have been held a prolonged period (for instance, 6, 8, or 12 months) does employee either survey the returns or initiate examinations? Why not?
c. How is employee progressing in each case?
d. Where employee nears or exceeds pre-audit planned time, should I question:
• Are plans
effective?
• Are deviations
from plan
warranted?
• Do issues
warrant the
amount of time?
• Is examination
orderly?
• Are proper
audit techniques
being employed?
• Is employee
aware of
possible fraud
implications
and actions
to be taken?
e. Is it necessary to reappraise any case with the employee to reach agreement on additional work to be performed, target dates etc.?
f. Should I arrange for the employee to discuss a case with me before exceeding a specified amount of time? Why? How will this affect the employee?
g. Should I ask the employee to talk with me before starting other cases?
h. Was consideration properly and timely given to specialists’ referrals — Engineering, International, TE/GE, CAS, etc.?
I. Has timely consideration been given for request of technical advice or area counsel advisory opinion?		 Technical Time Reports Examination Records. Case Files

Review examination records and correlate information with cases in process to determine whether earliest assigned returns are regularly acted upon first.

Review technical time reports for time-charging patterns.

Review case files where time equals or exceeds pre-audit planned time.
j. Did the employee conduct a review and record evaluation of record adequacy as required in those cases where the taxpayer used ADP accounting records?
k. Has the employee considered the use of statistical sampling techniques?
I. Is the employee using a computer to prepare reports?
5. AIMS Procedures a. Does the employee’s inventory reconcile with group controls?
b. Have all related pickups been requisitioned?
c. If necessary, have all been updated from Status Code 10 to 12?
d. Have all statute updates been made? Are alpha codes properly used?
e. Have all aging reasons and claim amounts been updated?
f. Have applicable procedures been followed in partnership examinations?
g. Are all years on AIMS?
h. Have substitute/delinquent returns been properly controlled?
I. Has necessary action been taken on weekly update report cases?
j. Does AIMS reflect the proper project code, if applicable?
k. Have the returns been established with the proper source code?		 Technical Time Reports, Group Controls Daily Activity Records
6. Total Workload a. Does employee have a proper balance and amount of work in process? Consider:
• Extent to which
cases are
dormant
• Mix of difficult
and rou-tine
cases in process
• Employee’s
ability to shift
from one case to
another with
minimum loss
of time
• Employee’s
ability to
plan work,
schedule
required
activities,
institute and
undertake
follow-up
procedures
b. Does employee have too much priority work for timely completion?
c. Does employee have an adequate supply of unstarted returns to effectively use time? (field exam)
d. Is work assigned commensurate with employee’s grade?
e. Are assignments between this and other employees well balanced? Should work be reassigned? Surveyed?		 Technical Time Reports, Examination Records, Daily Activity and Sign-Out Records
7. Use of Time a. Is employee planning time and scheduling activities sufficiently in advance?
b. Is time being charged excessively to other than direct examination activities? What are scheduling practices for new work, work in process?
c. Does employee regularly schedule appointments to start early in the day?
d. How much time is spent in office time used? (field exam)
e. To what extent is case- hopping indicated?
f. Are any ineffective time charging patterns discernible?
g. Where are field cases normally worked? At taxpayer’s place of business? In practitioner’s office? Why? What does this pattern indicate? How does this affect time on cases? Quality of work?		 Technical Time Reports, Daily Activity and Sign-Out Records

Review Technical Time Reports for activities to which time is charged and time charging patterns.

Correlate information from all reports to determine office time, appointment practices and effective planning.

Consider your observations of practices in the office.
8. My Effectiveness in
Conducting Workload Reviews		 a. Am I reviewing each employee’s work too frequently, not frequently enough?
b. Have I identified the specific areas where I can achieve the greatest results? Help each employee the most?
c. Have I reached mutual understanding in the areas of greatest potential?
d. Am I helping each employee as much as I should?
e. Am I being fair? What are employees reactions to my reviews?
f. Is more day-to-day follow-up necessary for any employee?
g. To what extent must agreements and understandings reached with employees be reduced to writing? Should employees be given a copy?
h. Do I have enough information on all critical elements and auditing standards.		 Employee Performance Folders.
Feedback from Territory Mgr., employees and others.

Exhibit 1.4.40-2  (08-01-2003)
Guide for On-the-Job Visits

Suggested Use: To Observe, Assist and Gain Insights into Employee Knowledge, Attitudes, Skills and Behavior. Discuss Observation With Employee During the Visit. Your Observations Should Reflect Both Accomplishments and Deficiencies. Make Suggestions and Arrange For Follow-up. Documentation Should be Prepared as Necessary.
Areas To Be Covered Observations
PLANNING
Use returns and employee’s preplanning
worksheet		 Does employee’s work plan cover the necessary items suggested by the return? Present ideas or suggest approaches if necessary.
CONTACT How does employee schedule an appointment? Has employee requested the necessary books and records and been successful in getting them? No? Why? How does employee handle the introduction; is tact used in getting things set up for the actual examination of records?
ACCOUNTING SKILLS Does employee have a problem of what to do first and is the preplanning schedule followed? Does employee reconcile the accounts per books with return; compare prior years with current years; follow transactions to see that they have been properly recorded? Does employee’s inspection of the various accounts lead to questioning the proper items, recording them and requesting proper substantiation? Does the analysis and documentation give a reasonable basis for consideration of the issues? Does employee know when to stop?
WORKPAPERS Are workpapers arranged in a logical and orderly manner? Legible? Numbered? Properly headed? Does employee understand the proper used of workpapers (as an audit trail)? Are they meaningful in conjunction with the audit? Does employee recognize the impropriety of copying documents when a copy could be requested from taxpayer? Does employee record accounts when adding machine tapes could be used?
TAX KNOWLEDGE Does employee recognize and develop issues of substance? Are the questions or issues raised arbitrary or are they real and logical? To taxpayer? To you?
CLOSING How does examiner present findings? Is the necessary time taken to present and discuss findings with taxpayer? Does employee listen? Is tact and discretion exercised when pointing out errors in books and records? Is taxpayer advised of right to appeal?

Exhibit 1.4.40-3  (08-01-2003)
Alternative Guide for On-the-Job Visits

Suggested Use: To Identify and Correct Problems in Handling of Cases
Methods and Tools
To Be Used Questions, Comments and Observations
Previsit/Precontract Analysis:
Technical Time Reports, Sign-Out Sheet.
Examination Records, Returns, Preplanning
Sheets		 When was case assigned and put in process? Why was it put in process? Was return the best the employee had at the time it was put in process? Was it a priority case? How much time has employee charged on case to date? Estimated time to complete? Was time utilized properly?
Workpapers Review return, preplanning and workpapers with employee. Does pre-examination sheet reflect proper depth of audit?
Does the employee know what constitutes a quality audit? Is a quality audit being conducted? Are auditing standards being met?
Discuss proposed adjustments. Determine if there is adequate documentation to support findings. Are the facts mutually agreed to? Has the applicable law been correctly related? Should alternatives or additional adjustments be considered?
On-the-Job Visit Book and Records Review books and/or documents with employee. Compare documents with information in employee’s workpapers. Has information been correctly interpreted? Are there other Code sections or regulations that apply?
Guide the employee to independently arrive at the right conclusion.
Recordation and Evaluation Evaluate your information and document it at the earliest possible time. Analyze employee’s technical time reports and sign-out sheets for indecisions and delays.
Follow-Ups and Acknowledgment Discuss observations with the employee and make recommendations for improvements. Suggest a way to follow up your recommendations. Recognize and build on employee’s strong points.
If recordation is prepared, have employee initial and date to acknowledge receipt.

Exhibit 1.4.40-4  (08-01-2003)
Guide for Review of a Completed Case

Area Of Review Questions To Be Answered
1. General—Purpose and Scope of Your Review a.  How much do I already know about this
case?
b. Did I become involved in this case during an on-the-job visit, workload review or otherwise?
What did I learn about the case? What, if any,
problems were encountered and how well were
these handled?
c. What problems does this employee normally have? What is done best? What could be done better?
d. Is there anything unusual about this case which indicates a need for close attention?
e. Should I release this case for appropriate disposition? Should I review any feature of the case before I release it? Should I give it back or confer with the employee about the case? Should I commend, or counsel employee, and prepare a record for use in a performance rating?
2. Pre-examination Plan a. What questionable items can I detect by scanning the returns in this case? Has the employee covered these or other items?
b. Did the employee develop a written plan where appropriate before contacting the taxpayer or practitioner? What does the employee usually do? What did I learn during my last workload review?
c. Were preplanned items significant? Unusual? Recurring issues? Do I agree with the items covered in the plan?
d. Is the plan realistic for this case?
e. Did the employee revise the plan as additional facts became available? Did employee properly expand or limit the original plan? What did this accomplish?
f. Were related returns identified for examination? If so, were returns promptly requested?
g. Do I detect any need for better pre-examination planning? If so, how can I help this employee achieve improvements in planning new cases? Are IRM’s and specialized guidelines being used to the best advantage? Is additional coaching needed?
3. Workpapers a. Were workpapers titled, numbered, initialed, dated and indexed?
b. Do workpapers reflect what was accomplished during the examination? Do they contain relevant notes on contacts, facts, discussions and conclusions?
c. Do any workpapers appear to have been rewritten? If so, why? Is there any unnecessary documentation?
d. Did the employee test accounts or copy ledger pages? Were test checks effectual? If test was unnecessary, did the employee explain why?
e. Are there positive indications of a systematic approach to this examination? Was the examination superficial? If improvements are needed, what can I do to help the employee?
4. Report a. Is the report neat, legible, acceptable in format? Were any inappropriate or unnecessary forms and schedules used?
b. Are computerized reports used when appropriate?
c. Have large or unusual items been commented upon? Does the report contain too much or too little explanation? Is there unnecessary duplication in the report and workpapers? Are appropriate Code and other citations used? Does the employee normally do well in this area? Has feedback been received from the Technical Services, Appeals, taxpayers, or other sources.
d. Does factual development support the employee’s conclusions in this case? How does the employee normally support recommendation? What feedback do I have on this?
e. What can this employee do to improve report writing skills? Are available guidelines used? What can I do to help the employee improve?
5. Scope—Quality of Audit a. Do the facts and circumstances in the case support the scope and techniques used by the employee?
b. Did the employee substantially deviate from what was planned? In scope? In methods or techniques? Why? Does the past record indicate problems in this regard?
c. Does this case cover multiple years? If so, was scope in prior and subsequent pick-up years limited to areas changed for year originally assigned? Why? What should have been done?
d. Were related returns examined where appropriate? What is employee’s typical practice?
e. Has the employee taken appropriate steps to follow-up examinations? How can this employee improve the quality of the examination? Were secondary methods of verifying income employed? Did employee identify unusual issues, recognize signs of fraud and follow through? Can I assign different kinds of work and take other steps to increase professional capabilities?
g. Has the employee considered the use or statistical sampling techniques? If not, should the employee have used this technique?
6. Use of Time a. How much time did the employee spend on this case and how was the time accumulated? Full and consecutive days? Fractional or intermittent days? What did I learn during my last review of this employee’s workload concerning use of time?
b. How does the employee normally schedule appointments? To start work early in the day? Sufficiently in advance of examination starting date? What do I know about employee’s approach from sources such as daily reports, sign-out sheets, or observing behavior in the office?
c. How much prime time has the employee spent on this case in relation to total time?
• Preplanning
• Examination of
records
• Research
• Discussion and
resolution of issues
• Preparation of report
d.  What practices or work habits contributed to the time charged to this case?
• Ineffective
preplanning
• Excessive or
unnecessary workpapers
• Research difficulties
• Ineffectual
taxpayer/practitioner
relationships
• Report writing
difficulties
• Too much time in
office
e. How did the employee’s workload affect the time spent on this case?
• Too many or too few
cases in process
• Too many conflicting
priorities
• Too much or too little
unstarted work
f. What can this employee do to utilize time effectively? How can I help employee to use time to better advantage?

Exhibit 1.4.40-5  (08-01-2003)
Guide for Analysis and Review of Examination Technical Time Reports (ETTRs)

Modifications of this guide will lend itself to a complete or partial analysis of technical time reports.
Part I — Useful Modifications
1. Have the employee or, if feasible, your group clerk indicate the type of work undertaken using a coding system to identify priority work and related case situations. This information is available through automated systems. For example:
a. Priorities or status — Use C for Claims, T/A for Tentative Allowance, RR for Returned from Technical Services (Exam), S for Suspense, etc.
b. Related cases — enter cross-reference number or letter by taxpayer’s name or identify related items under key case.
2. Have employees identify cases they plan to close next month.
3. Ask employees to list cases they plan to start next month.
4. Ask your employees to enter necessary and meaningful information. For example, have them briefly explain unusual expenditures of time.
Part II — Analysis
Situation Reflected Questions To Be Answered
1. Follow-up on previous instructions a. Why have actions not been taken?
• Case closed
• Appointment scheduled
• Work performed
• Return requested
• Case started
2. Significant time in process on one or more
cases — No time applied during month		 a. Why is case inactive?
b. How long has case been inactive?
c. When will examination be resumed?
d. Was case deferred to work on higher priority
case?
e. If in suspense, why?
3. New examinations started. Cases in process
with significant opening time not, closed		 a. Why were new cases started?
Priority
• Delays on cases in process
• Old cases near completion
• Other reasons
b. Are new cases related to ones already in
process?
c. Were new cases adequately planned?
d. Should I have assigned new cases?
4 Each day’s time divided among several
taxpayers — no full days charged to same
taxpayer for several consecutive workdays.
(field exam)		 a. Are cases being worked piecemeal?
b. Are examinations well planned?
c. Is planned time being scheduled to eliminate
callbacks?
d. Are firm appointments being set?
e. Are returns being examined efficiently?
f. Is time charged to the appropriate case?
5. Significant time charged to other than direct
examination activities.		 a. How is time being spent?
• Reading
• Coffee breaks
• Maintaining private library of printed
material
• Continually reviewing inventories
• Working on cases
b. Is employee performing activities outside
area of responsibility?
c. Is time charged to the correct activity?
d. How much time is spent in the office? Why? (field exam)
e. Are cancellations of appointments being
anticipated? Does employee have some
unscheduled activities such as report writing,
research, and preplanning to effectively use time
in these contingencies?
f. Is time being spent to re-write workpapers?
6. Leave patterns a. Is leave usually taken on certain days or the
week? Why?
b. Is leave taken on days when time is charged
to other than direct examination activities?
c. Is leave being planned and taken wisely?
d. How does use of leave pattern affect overall
performance?
7. Unusual patterns a. Are cases closed during the month without
time being charged in month closed? Why?
b. Are required related returns on hand?
c. Are fractional days attributable to related
cases?
d. Are complex cases closed too quickly?
e. Are cases worked on basis of first-in, first-out?
8. General a. Based on case-by-case time in process, do I
know what each employee is doing or must I
obtain more information now?
b. Has priority work been started? Is it being expedited?
c. Is employee undertaking work and committing
time as mutually agreed?
9. My effectiveness in analyzing time reports a. How effectively am I using time reports to
keep abreast of each employee’s activities?
b. Do I look at trends only once a month? Do I
need to follow up more frequently? Daily?
Weekly?
c. Do I ask too many questions about cases and
time? Too few?
d. Am I using case and time records to the best
advantage in helping to maintain integrity and
security? Am I overcontrolling?
e. Do I need to discuss time reports with
employees more often? Am I helping the
employee in these discussions? What is the
employee’s attitude toward my inquiries? Am I
developing desirable and effectual working
relationships?

Exhibit 1.4.40-6  (08-01-2003)
Guide for Development and Self-Assessment

Areas to Review Questions To Be Answered
1. Organization (a) Does each employee know to whom to report?
(b) Are employees acquainted with their own organization and with units from which work is received and units to which work is sent?
2. Dissemination of instructions (a) Do you disseminate HQ, area and territory office instructions and guidelines to the employees as you receive them?
(b) Are these instructions and guidelines maintained on a current basis and all changes made or posted promptly?
(c) Do you give new employees proper orientation?
(d) Are new or revised procedures discussed with your employees?
(e) Are operations conducted in accord with established procedures except for approved deviations?
3. Managerial Controls (a) Do you maintain your own file containing directives, organization data, and schedule follow-up?
(b) Do you plan and schedule your time so that each area under your supervision is given at least a minimum of your time?
(c) When projects or assignments are given to subordinates, is follow-up action scheduled to ensure timely completion and evaluation of results?
(d) Do you take prompt and decisive action within your delegated authority?
(e) Do you maintain effective controls to ensure that program requirements are met?
(f) Do you generally meet deadlines?
4. Supervision (a) Do you have an up-to-date Exam Group Manager IRM?
(b) Do you exercise the necessary control over employees to ensure compliance with local office practices?
(c) Do you distribute work evenly in your group?
(d) Do you encourage suggestions from your employees?
(e) Do you engage in or permit office politics or favoritism?
(f) Are designated acting managers made known to all concerned?
(g) Do you keep adequate records of workload and take appropriate steps to keep it in balance?
(h) Do you assign work evenly neither spreading work thinly nor giving too much work to one employee?
(i) Do you avoid poor supervisory habits such as criticizing workers before others, showing favoritism, being unwilling to praise good work, or failing to accept responsibility for ineffective results of your group?
(j) Do employees in your group clearly understand what is expected of them?
(k) Do you give employees in your group opportunities to show that they can accept greater responsibility?
5. Personnel Administration (a) Does an analysis of sick and annual leave reveal proper administration and lack of abuses?
(b) Do employees promptly inform you when they will be absent?
(c) Are vacation schedules prepared in advance to facilitate planning for periods of employee absence?
(d) Are employees encouraged and given the opportunity to take annual leave?
(e) Are position descriptions current and correct?
(f) Are corrective actions taken when appropriate and are they consistent with existing procedures?
6. Ethical Standards (a) Are all employees familiar with the regulations concerning outside employment that might affect their status in the IRS?
(b) Have the subjects of integrity and favorable projection of the public image been discussed with and understood by all employees?
(c) Do all employees know that they should immediately report to TIGTA any improper request or offer?
(d) Have all employees been furnished a copy of the Rules of Conduct?
7. Training (a) Do you recommend special training or appropriate correspondence courses for employees as needed?
(b) Have you instituted on-the-job training for experienced examiners to develop potential managers?
(c) Are you involved with the inventory of your examiners?
(d) Are you sharing your experience with your examiners?
8. Forms and Publications (a) Are the tax services kept up-to-date?
(b) Are sufficient tax services available to satisfy needs?
(c) Do all examiners know how to research on-line services?
9. Authority for Examinations (a) Do all examiners know what authority they have for conducting examinations?
(b) Are they familiar with restrictions on examinations and reexaminations?
(c) Do they know what to do when it becomes necessary to make a second examination of a taxpayer’s records covering a year already examined?
10. Classification and Assignment (a) Are all employees acquainted with the procedure for classification and selection of tax returns?
(b) Do they know the procedure for assignment after a return has been selected for examination?
11. Requisitioning Returns (a) Are all employees familiar with the procedures for requisitioning returns or other documents and how to follow-up on requests?
(b) Status of open requisitions:
(1) Are requisitions for prior year returns adequately explained?
(2) Do requisitions pending longer than 30 days need referral to your immediate manager?
12. Reports and Examinations (a) Do all examiners know under what circumstances they may submit a report without the original return?
(b) Do you review a representative sample of examiners’ reports before submitting them to the Case Processing?
(c) Are you properly reviewing explanations of items in examiners’ reports?
(d) Do you note if there is a factual basis for adjustments proposed?
13. Taxpayers’ Representatives (a) Are all employees familiar with the requirements of enrollment and powers of attorney?
(b) Are all employees familiar with limitations on preparers of returns?
14. Information Documents (a) Do all examiners know when and how to prepare a Form 5346, Examination Information Report?
15. Related Cases (a) Are all examiners familiar with the procedures in interrelated and related cases?
(b) Do they know how to initiate collateral investigations in their area and between areas?
16. Waivers Extending Statutes (a) Do you determine that there are compelling reasons for securing Form 872, Consent to Extend the Time to Assess Tax, before giving your approval?
(b) Do you have adequate procedures for follow-up action on Form 895, Notice of Statute Expiration?
(c) Do you make a reconciliation from Table 4.1, Returns with Statute Date Pending, to manual statute controls and determine that proper follow-up action is being taken?
(1) Are there any Forms 895 when the period of limitations will expire within 150 days?
(2) If so, is a follow-up being made?
17. Priority Work (a) Do you stress from time-to-time the importance of resolving as soon as possible claims for refund, statute cases, collateral investigations, and other priority assignments?
18. Remittances and Cash Management (a) Are examiners soliciting advance payments on agreed cases?
(b) Are all examiners familiar with the procedures for processing remittances received?
(c) Are they fully acquainted with the circumstances in which voluntary payments are accepted on closed years?
19. Time Reporting (a) Are you checking on accuracy of time reporting by examiners?
(b) Do you have a means of handling:
(1) Tardiness
a. Are employees arriving late for work?
b. Have remedial actions been taken?
(2) Coffee breaks
a. Are employees extending their break period?
b. Have corrective measures been taken?
(3) Lunch period
a. Are employees extending their lunch period?
b. Have corrective measures been taken?
20. Audit Cycle (a) Do all employees know the audit cycle of income tax returns?
(b) Are they familiar with the procedures regarding extension of examinations covering current years?
(c) Are you making every effort to reduce the inventory of old returns?
21. Fraud and Fraud Procedures (a) Are all examiners fully acquainted with the procedures for referring cases to Criminal Investigation & who is the territory FRS?
(b) Do you know which of your examiners are working fraud referrals?

Exhibit 1.4.40-7  (08-01-2003)
Guidelines for Determining the Grade Levels of Field Examination Income Tax Cases

This text provides a guide to group managers for assigning and determining the final grade levels of regular field examination income tax cases. The objectives of this guide are to establish a uniform system for evaluating income tax cases selected for assignment to revenue agents under the “one case, one agent” concept; to provide a better basis for determining workloads for financial planning; to provide valuable information in making position classification determinations; and to improve the utilization of agents’ time and talents. This guide will also aid in reviewing internal revenue agent positions for grade structure change purposes. It does not evaluate an agent’s performance. In addition, it cannot be considered as the sole predictor of the appropriate overall grade level for individual positions. Variables such as extent of supervision or the impact of other duties are not given consideration in the guide. It is emphasized this is primarily a guide and not a substitute for supervisory judgment.
Characteristics
(1) These guidelines apply to all individual returns (non-business and business), fiduciary returns, all types of corporation and partnership returns.
(2) This guide has four parts which are intended to assist group managers with the assignment of cases to individual revenue agents, and with the final grading of each case. These four parts are:
PART I: Chart of Case Grading Factors (based on GS–512 Classification Standards).
PART II: NAICS Codes, Exhibit 1.4.40-8 (199812 & subsequent).
PART III: Probable Grade Levels of Cases Based on Type of Industry/Occupation, and Size.
PART IV: List of Upgradable Issues that May Result in an Upgrade.
(3) A case is defined as the primary return for one year plus other returns, if any, involving interrelated interests and/or transactions that require concurrent examination. The primary return is the return around which related entities and other types of returns revolve, regardless of how and when selected or assigned. Other returns are defined to include returns subsequent and/or prior to the primary return of the taxpayer, as well as returns for related taxpayers for the primary year and subsequent and/or prior years. When the primary return and related returns are examined by the same agent, the related returns will usually (for Management Information System purposes) carry the same grade as the primary return. If related entities are examined by other agents, each group of entities examined by a separate agent will be graded as a separate case under this guide.
(4) Part I of these guidelines consists of the position classification standard for the GS–512 Revenue Agent occupation which forms the basis for determining the grade of a case. The standards have been adapted to evaluate cases rather than positions, therefore, factors such as supervision/guidance have not been included. Case Grading Factors shown in Part I are: Accounting Systems. Issues/Knowledge, Guidelines/Tax Laws, Scope/Effect and Contacts. These must be used particularly for the final grade of cases. In arriving at a final grade, all case grading factors do not have to be met in Part I, however, normally, more than one of the most important factors are necessary. The important case grading factors are Accounting Systems, Issues/Knowledges, Guidelines/Tax Laws, and Scope/Effect.
(5) Part II considers the NAICS code listings used to establish the business/occupation class to which a business return is to be assigned, see Exhibit 1.4.40-8.
(6) Part III consists of basic elements that indicate the difficulty of a case from an examination point of view. These include type of business or occupation and its relative size as measured by total assets and/or gross receipts. The dollar criteria for each business type is indicative of the issues, tax law knowledge and accounting complexities normally encountered by Revenue Agents at the GS–12, and GS–13 levels. Part III is most applicable to the assignment of cases to revenue agents; whereas all four parts of the guide must be used when the case closes and a final grade is assigned.
(7) Part IV of these guidelines presents a list of 13 upgradable issues which may cause a case to be upgraded. Additionally, a 14th upgradable issue called “Unusual Complexity” is included to allow managers the freedom to upgrade a case based upon the facts and circumstances encountered during a particular examination.
(8) Exhibit 1.4.40–7 is not intended to cover all possible factors that may influence a final case grade. New projects or programs and other unusual situations that were not present in the sample