In 1926 Congress enacted legislation providing for a Congressional Joint Committee on Internal Revenue Taxation. The name of this committee was changed in 1976 to the Joint Committee on Taxation (JCT). The JCT monitors the operation of the Internal Revenue Service and its administration of the tax laws. The JCT’s duties are set forth in IRC 8022 which include consideration of possible changes in the tax laws leading to their clarification, simplification or revision to prevent undue hardships or the granting of unintended benefits. In addition, concerns over the potential for corruption and favoritism prompted the enactment of IRC 6405. IRC 6405 provides the JCT with oversight (as opposed to approval) authority of refunds of income, estate and gift taxes, and certain excise taxes in excess of a statutorily prescribed amount. It is to these refund cases that these procedures apply.

A refund or credit subject to Joint Committee review can arise from either an examination or the service center forwarding to the field unpaid claims or tentative allowances in excess of the jurisdictional amount. The examiner is responsible for determining whether a case falls under Joint Committee jurisdiction. The fact that a return or examination must be reported to JCT does not alter the nature of the examination that may be conducted, nor does it limit the examiner’s ability to survey the returns if this is the action deemed appropriate.

The present jurisdictional amount is $2,000,000, the aggregate of the net amount of the refund(s) and previously assessed interest attributable thereto. See IRM Section 4.36.2.4.1.

The Joint Committee Specialist groups are headquartered in Manhattan and Chicago, with additional specialists located in Oakland, Evansville, Boston, and Philadelphia.

These groups oversee the preparation of Joint Committee reports for all examined/surveyed cases, regardless of the business operating division. A specialist reviews the case files for procedural and technical accuracy and prepares the report that is submitted to the JCT. Once the approving official has signed the report, it is forwarded to the Joint Committee Program Analyst in LMSB Performance, Quality and Audit Assistance for processing and transmission to the Refund Counsel Office of the Joint Committee on Taxation.

The JCT staff attorneys (also known as Refund Counsels) will review the Joint Committee report, the revenue agent's report and other documentation, as deemed necessary. Should the Refund Counsel have questions, they are usually resolved informally through phone calls or e-mails to the Joint Committee Specialist. In some instances, a written inquiry may be issued. Upon being notified that the staff attorney has no further questions or concerns, the case is released and the unpaid jurisdictional overpayments are processed. In the event the JCT disagrees with or questions the position taken in the report, the refund is, generally, as a matter of agency policy, not processed pending the resolution of the dispute.

The manual is organized to follow the processing of a Joint Committee case from inception to completion. IRM 4.36.2 discusses determining if a case falls under JCT jurisdiction. It also outlines the procedure for determining whether a multi-year examination case with deficiencies and overassessments falls under JCT jurisdiction.

IRM 4.36.3 describes the examiner's responsibilities, including documentation requirements and statute control. It also addresses examination procedures for issue support and dispute resolution.

IRM 4.36.4 provides guidance for the specialist's review and report preparation responsibilities, including procedures relating to issue support and dispute resolution

Finally, IRM 4.36.5 discuses the various reports that may be submitted to the JCT.

For contact information, frequently asked questions and Joint Committee forms refer to the Joint Committee Specialist web site at http://lmsb.irs.gov/hq/pqa/Joint Committee/index.asp.