Under certain circumstances, returns initially selected for examination may not be examined. These cases may be closed by survey. Such cases are commonly referred to as—

Form 5596 is used for all TE/GE non-examined closings.

After appropriate coordination with Classification and their Area Manager, group managers will survey returns or referrals before or after assignment if no examination is warranted or if the number of returns assigned to the group exceeds the number that can be examined and processed in a timely manner.

When surveying referrals care should be taken to ensure that notification of Department of Labor and other functions is made in a timely manner as specified in IRM 4.71.6.

Any referral or return closed from an EP group before assignment to an agent and before contact with the taxpayer is considered surveyed before assignment.

Returns or referrals surveyed before assignment will be stamped as indicated in Exhibit 4.71.7-1 and must be signed by the group manager.

Form 5596 should be completed to reflect the EIN, MET, Plan Number, Year, Taxpayer Name, and the appropriate AIMS non-examined disposal code.

When surveying a referral from Department of Labor and referrals from another function, a written explanation should be reflected on the referral form or attached to it. The referral form should be forwarded to EP Classification.

A return, referral or claim may be surveyed after assignment, if the agent has not contacted the taxpayer, and after consultation with the group manager, they believe an examination would result in no material change in tax liability.

Claims for refund (including amended returns and informal claims) may be surveyed after assignment if the agent determined that the claim issue is clearly allowable in full and that the return does not otherwise warrant examination. See IRM 4.71.8.5 for more information regarding surveyed claims.

To allow Area Offices flexibility in managing workload, under certain circumstances, cases may be surveyed after assignment even though initial contact was made by the agent. When surveying a case after contact has been made with the taxpayer, use Letter 1024 (Catalog #40458E) to notify the taxpayer the case is closed.

When surveying a referral from Department of Labor and referrals from another function, a written explanation should be reflected on the referral form or attached to it. The referral form should be forwarded to EP Classification.