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Part 4. Examining Process

Chapter 24. Excise Tax

Section 12. Excise Tax Technical Guidance Program

4.24.12  Excise Tax Technical Guidance Program

4.24.12.1  (08-13-2008)
Excise Tax Technical Guidance Overview

  1. Questions arising in excise tax cases which cannot be resolved on the basis of law, regulations, or a clearly applicable presidential ruling, must be referred to the Excise Issue Specialist (EIS) assigned the tax abstract. The request for assistance on an issue may be made through the National EIS Technical Coordinator or to the EIS directly. This includes all requests for advice that arise on excise tax cases. A listing of current EIS’s is available on the EIS web page of the Excise web site http://sbse.web.irs.gov/ex/Policy/EIS/default.htm .

  2. A request for EIS assistance directly on a case may be made through the Examiner’s Group Manager and Territory Manager to the National EIS Technical Coordinator via an on-site request form located on the specific abstract page found on the EIS web page.

  3. All requests for Counsel opinions, guidance, and any other type of legal assistance are to be routed through the Excise Territory Managers, to Headquarters (HQ) Excise Policy Manager, who will forward the request to the Policy Analyst assigned to the tax for technical review before final approval by the Chief, Excise Tax Program.

  4. Upon the Chief, Excise Tax Program approval, the request will be routed either to the Associate Chief Counsel, Passthroughs and Special Industries (PSI Branch 7), or to the Division Counsel SBSE assigned to excise tax matters.

  5. There will not be any technical advice requests, opinion, guidance, or assistance going directly to local Counsel offices, even on an informal or draft basis.

4.24.12.2  (08-13-2008)
Excise Issue Specialist Program Overview and Definitions

  1. The Excise Tax Technical Guidance Program and the EIS Program:

    1. Ensures uniform and consistent treatment of excise issues nationwide.

    2. Provides for better identification, development and resolution of excise issues.

    3. Provides a vehicle for coordination of excise technical issues for all operating divisions.

    4. Provides technical coordination with field examinations.

    5. Assists in the identification of workload in partnership with PSPWIC.

    6. Performs industry outreach and education.

  2. The following definitions apply specifically to the Excise Tax Technical Guidance Program and its operation. For additional information covering the Fuel Excise Tax Technical Guidance Program see http://sbse.web.irs.gov/EX/Policy/FuelPolicy.htm .

    1. HQ EIS Program Coordinator
      The HQ EIS Program Coordinator is the focal point for all excise tax issues. The HQ EIS Program Coordinator is responsible for providing program oversight and direction to all EIS’s.

    2. HQ EIS Program Analyst
      The HQ Program Analysts may also serve in the capacity of an EIS in addition to their primary role as Headquarters (HQ) staff members of Excise Tax Policy. Each HQ Program Analyst is responsible for certain Excise tax abstracts and works closely with the HQ EIS Program Coordinator to accomplish program objectives.

    3. EIS Member
      The EIS serves as a nationwide subject matter expert (SME) for a particular excise tax, and ensures consistent treatment of all taxpayers within their excise abstract.

4.24.12.3  (08-13-2008)
General Duties and Responsibilities of the EIS HQ Program Coordinator and the Excise Tax Issue Specialists

  1. Identify Excise Issues - Utilize public source internet resources, including external databases, Fed-State, Fed-Fed, and industry statistical information to identify potential issues in their respective assigned abstracts. The EIS will focus on forensic workload identification activities found in the SBSE Tax Gap Strategy and Priority Objectives. The EIS will:

    • canvass industries for issues and trends,

    • assess viability of excise issues identified by the field,

    • analyze and interpret legal developments,

    • conduct studies to determine excise compliance, and

    • collaborate with other functions on excise issue selection criteria.

  2. Develop Excise Issues - Gather pertinent facts; research excise issues, law and industry practices; obtain legal advice ( See IRM 4.24.12.1 and See IRM 4.24.12.7 for examples) and assistance in the development of excise issues; write technical material such as Coordinated Excise Issues; assists in development of technical excise guidance.

  3. Resolve Issues - Partner with other Divisions, Appeals and Counsel in traditional excise issue resolution processes; advise Counsel and Treasury in development of technical excise guidance; recommend legislation and excise tax law changes; initiate Excise Compliance Initiative Projects (CIP).

  4. Educate Internal and External Customers - Conduct continued professional education (CPE) sessions, Basic Excise Tax sessions, seminars, and workshops as well as focus meetings for LMSB and other Divisions; speak at industry conferences and conventions; write and disseminate excise informational material such as Digests and Alerts; prepare and present videos and IVTs.

  5. Conduct Case Consultations - In coordination with Excise Field Managers and Examiners, visit cases; review records; analyze excise Information Document Requests and taxpayer responses; dialogue with taxpayers; assess, assist, and advise further action.

  6. Field Assistance - Answer questions from internal and external customers and disseminate responses to frequently asked excise questions through appropriate means. Develop and maintain excise issue/abstract expertise; attend external industry conferences and conventions for continued professional education; network with industry professionals; read industry publications and periodicals to keep abreast of industry practices for each excise abstract; participate in special assignments.

  7. Workload Identification - Partner with PSPWIC in identifying work stream strategies, monitor results of excise issues identified; identify excise filing trends by abstract. See IRM 4.24.3 for more information regarding workload identification.

  8. Communication Strategy - Develops guidelines and disseminates information to stakeholders. Ensures that the EIS information posted on the excise intranet web site is supported and up to date.

  9. Pre-Filing and Issue Resolution - For excise issues that are part of the Pre-Filing Program, will participate with Excise Tax Issue Specialists on each case, and be the first point of contact with the Excise Field Examiner assigned a Pre-Filing issue. Will serve on Issue Resolution Program teams, working with Counsel and others in resolving technical and procedural excise issues.

4.24.12.3.1  (08-13-2008)
HQ EIS Program Coordinator Responsibilities

  1. The EIS Headquarters Program Coordinator has the overall responsibility for the Excise Issue Specialist Program, including:

    • Establishing overall program direction and assistance to the Headquarters Excise Policy Program Managers.

    • Providing guidance and assistance to EIS members.

    • Assessing staffing needs of the EIS Program and making appropriate recommendations to the Headquarters Excise Policy Program Managers.

    • Acting as the central clearing point for monitoring the Excise Issue Guidance process.

    • Processing Coordinated Issue Requests.

    • Conducting operational reviews of the EIS Program as appropriate.

    • Approving EIS meetings, EIS travel, and EIS requests for outreach programs.

    • Communicating directly with the field as appropriate.

    • Ensuring that the findings of the EIS Program are disseminated to the field as appropriate.

    • Proposing Coordinated Excise Issues based on recommendations of the EIS.

    • Serving as the selecting official for EIS Programs vacancy announcements.

    • Ensuring that the EIS Program is adequately staffed.

    • Establishing liaison with other government agencies.

    • Ensuring that the EIS are provided with adequate resources to do their job.

    • Providing appropriate training for EIS.

    • Coordinating contacts and requests for legal advice with the Office of Chief Counsel (PSI Branch 7) and SBSE Excise.

    • Coordinating Technical Advice request received from the field with the proper EIS.

    • Developing and maintaining effective communications with the Office of Appeals and Office of the Chief Counsel.

4.24.12.3.2  (08-13-2008)
Excise Issue Specialists Responsibilities

  1. Each EIS may spend up to 75% of their direct compliance time for the fiscal year on Excise Issue Specialist duties. The remaining 25% of their time should be spent on direct examination time auditing taxpayers.

  2. Each EIS reports to the HQ EIS Program Coordinator on the use of this time. Due to special circumstances, an EIS may need to exceed the 75% level of time. If this need arises, the EIS will first discuss the matter with their Group Manager. If the time issue cannot be resolved at the local level, then the Territory Manager will contact the HQ EIS Program Coordinator.

  3. The role of the EIS is to serve as a Subject Matter Expert (SME) in their market segment. The EIS will apply expert knowledge in identifying, developing and resolving Excise issues.

  4. The EIS will keep informed of current industry/excise issue activities and monitor developing trends in order to forecast future compliance. The EIS will also provide SME counsel/advice to Legislative Affairs/Joint Committee on Taxation upon request and approval of the Chief, Excise Tax Program.

  5. In order to identify unique and/or controversial excise tax transactions, an EIS may:

    1. Review relevant publications such as trade journals, market reports, corporate annual reports and other SEC filings.

    2. Collaborate with industry trade associations and other professional organizations.

    3. Attend industry conferences, conventions, and meetings.

    4. Meet with other Federal, State and local government agencies responsible for regulating, or otherwise monitoring, the assigned abstract excise tax area.

    5. Establish a communications network with the Excise Examiners to facilitate flow of information.

    6. Communicate with, and obtain feedback from, Excise Examiners engaged in auditing taxpayers within the assigned abstract excise tax area.

    7. Seek opportunities to address trade and industry groups in order to discuss the excise issues in the assigned abstract. In accepting invitations to address such groups, the current IRS guidance on the subject will be observed.

  6. Enhance communication and coordination with both internal and external customers. Speeches before external stakeholders should be coordinated and approved by the HQ EIS Program Coordinator and if applicable the Stakeholder Liaison Field Manager.

  7. Ensure timely release of formal and informal guidance.

  8. Assess the need for educating customers through training classes and/or Audit Technique Guides and, if necessary, develop the required training material.

  9. Clarify the excise law and simplify procedures in order to facilitate excise tax administration and compliance.

  10. Communicate with Field personnel concerning Coordinated Excise Issues within the assigned abstract/issue area.

  11. Develop pro forma Information Document Requests and Audit Plans for Coordinated Excise Issues.

  12. Keep informed of regulations and treaties issued by other government agencies and notify Excise Examiners of any development.

  13. Meet with Excise Examiners and other functions, as needed, to discuss issues, trends, audit procedure, and means of resolution. Meetings may be local or national in scope.

  14. Utilize the Excise Tax Web site to disseminate information.

  15. The EIS will record time charged as follows:

    1. Use Activity Code 521000 for all EIS activities with the exception of outreach activities.

    2. Use Activity Code 521040 for all outreach activities, i.e. trade and industry meetings.

4.24.12.4  (08-13-2008)
Excise Technical Advisor Meetings

  1. Excise Technical Advisor Meetings are periodic meetings held by the HQ EIS Program Coordinator with EIS to discuss issues, problems and other matters affecting their excise tax abstracts. Coordinated through appropriate offices, the meetings will be attended by EIS and or selected Excise Tax Examiners, representatives from Appeals, PSP, Counsel, and others who would benefit from such meetings.

4.24.12.5  (08-13-2008)
Coordinated Excise Issues

  1. Coordinated Excise Issues may be proposed by an EIS to ensure key excise issues within a particular abstract are raised, developed and resolved on a consistent basis. The purpose of Coordinated Excise Issues is to provide Excise Examiners with guidance on significant national issues that are not being resolved consistently.

  2. Coordinated Excise Issues establish uniform positions within the excise tax abstract or issue area. Excise Examiners cannot deviate from such positions without the concurrence of the HQ EIS Program Coordinator.

4.24.12.6  (08-13-2008)
Coordination of Excise Technical Advice and Guidance

  1. This section covers the duties and responsibilities of Excise Management with regard to technical advice and guidance.

  2. Excise Management should:

    1. Ensure that the policies and procedures instituted by the HQ Excise Program for uniform and consistent excise tax administration is followed.

    2. Ensure that Excise Coordinated Issues are considered during the examination process.

    3. Ensure that Excise Examiners consult with the EIS as warranted whenever the excise examination involves an abstract/issue within the EIS program.

    4. Ensure that Excise Tax Examiners consult EIS in preparing requests for Technical Advice whenever the request involves an excise issue. Requests should be made as early as possible in the examination process. A copy of each request should be sent to the appropriate EIS in accordance with the yearly Technical Advice Request Revenue Procedure. The EIS should be involved in every step in the process leading to the release of the Technical Advice Memorandum including Chief Counsel requests for additional information, conferences, discussions of tentative conclusions, etc.

    5. Ensure that the EIS is involved on all excise issues selected for the LMSB Pre-Filing Program, Industry Issue Resolution Program, or Fast Track Mediation Program.

4.24.12.7  (08-13-2008)
Excise Technical Advise Memorandum Procedures

  1. Excise Technical Advice Memorandum (TAM’s) are furnished as a means of assisting personnel in closing cases and establishing and maintaining uniformity in the treatment of Excise issues. The Office of Associate Chief Counsel issues TAM’s. The procedures to request a TAM are found in Rev Proc 200X-2. The Excise Examiner must:

    1. Follow the requirements of the yearly Technical Advice Request Revenue Procedure.

    2. Request assistance of the EIS assigned to the specific abstract involved.

    3. Forward the completed request immediately to the HQ EIS Program Coordinator.

    4. Notify the Excise Tax LMSB Program Analyst if the request for Technical Advice Memorandum originates from a Coordinated Industry Case (CIC) in LMSB.

  2. The HQ EIS Program Coordinator will forward the Request for Technical Advice to the Office of Associate Chief Counsel.

  3. Other Technical Requests, such as Coordinated Issues, and issues resulting from the Compliance Assurance Process (CAP) program will involve the following procedures:

    1. Forward the request immediately upon receipt to the HQ EIS Program Coordinator.

    2. Notify the Excise Tax LMSB Program Analyst if the request originates from a Coordinated Industry Case.

    3. Obtain the involvement of the EIS including the Program Analyst for the excise issue abstract if needed.

  4. Coordination of Technical Excise Issues with other divisions:

    1. All Technical Excise Issues will include involvement by the Chief, Excise Tax Program through the HQ EIS Program Coordinator.

    2. All Technical Excise Issues originating from a Coordinated Industry Case will include involvement by the Headquarters Program Manager, Excise Tax through the Excise Tax LMSB Program Analyst.

    3. The Excise Policy Program Manager, through the EIS Program, will work jointly with the LMSB Technical Advisors to resolve Excise issues in the case, but the resolution of the excise issue is the responsibility of the Excise Tax Program.


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