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Part 4. Examining Process

Chapter 71. Employee Plans Examination of Returns

Section 15. EP Special Review

4.71.15  EP Special Review

4.71.15.1  (07-01-2003)
Overview of EP Special Review

  1. The principle objective of the EP Special Review Staff (SR) is the fair, impartial, courteous and professional administration of revenue laws. The role of SR is to advise management of areas requiring attention and to make corrections wherever necessary. To accomplish these objectives, reviewers should review the managerial, technical and procedural aspects of examination cases. To this end, SR must continually strive for:

    1. Just, uniform, and impartial treatment of employee plan sponsors’ interests while protecting the Government’s interest;

    2. High quality standards through the review of closed examinations sample selected under TEQMS (Tax Exempt Quality Measurement System) program and their trend analysis and related reports;

    3. Constant awareness of unfavorable patterns or trends, identification of problem areas, unique issues raised, and for new or novel techniques developed by agents;

    4. Timely dissemination of information for use by others in evaluating the assignment and examination procedures;

    5. Processing of technical advice and technical assistance requests, and;

    6. Procedural and technical support, guidance and feedback to the field.

4.71.15.1.1  (07-01-2003)
Staffing

  1. Reviewers should be experienced and highly competent personnel who:

    1. Possess a comprehensive knowledge of generally accepted accounting and auditing principles, or possess superior skill in interpreting and applying tax laws, regulations, and court decisions;

    2. Are knowledgeable in Service policies and procedures;

    3. Are capable of performing a managerial review of cases;

    4. Have a fair and impartial attitude;

    5. Merit the highest respect and cooperation of EP personnel, and;

    6. Have demonstrated an ability to assume responsibility and take positive action when warranted; communicate ideas and opinions clearly, tactfully and objectively; apply good judgment; and exercise individual initiative.

  2. Agents are generally assigned to SR for 18 months to 3 years.

  3. Agents may be detailed to SR due to an increase in workload. Such temporary assignments should not exceed 90 days.

4.71.15.2  (07-01-2003)
Responsibilities of EP Special Review

  1. The responsibilities of EP Special Review include:

    1. Performing quality sample review of randomly selected, closed Examination cases.

    2. Compiling and analyzing quality review results.

    3. Providing statistical and narrative feedback to Area and National level management, Examination managers and employees.

    4. Assisting our customers in identifying quality improvement opportunities.

    5. Increasing consistency in examinations.

    6. Indirectly contacting customers through newsletters and our website.

    7. Providing technical guidance/assistance and research for field agents, and technical support to management and other functions.

    8. Developing written technical or procedural guidance.

    9. Participating in the Peer Review process.

4.71.15.3  (07-01-2003)
Case Movement

  1. SR only reviews closed examinations sample selected under TEQMS. The guidance that is provided in this section is general in nature. Refer to EP Examination TEQMS section 4.68.

  2. Any cases selected by EPIC for Special Review should be so noted when sent.

  3. EP examination groups in the Northeast Area, the Great Lakes Area, the Central Mountain Area, the Mid-Atlantic Area, and the Gulf Coast Area will send their examination cases to the Baltimore Examination Special Support Unit (ESS).

  4. EP groups in the Pacific Coast Area will continue to close non-Mandatory Review cases in accordance with their existing procedures. Any cases selected for SR will be updated to REVS Special Review on EPIC and sent to:

    Internal Revenue Service

    EP Special Review

    P.O. Box 13163, Room 1550

    Group 7695

    Baltimore, MD 21203

  5. EP examination cases will be selected for the TEQMS sample while they are "open" on EPIC. EP Examination cases that are selected for the TEQMS sample will be closed on AIMS (Automated Inventory Management System) and the closing letter will be mailed by designated individuals. A return charge-out document will be prepared before the case is forwarded to SR.

  6. Mandatory review examination cases, which are selected for the TEQMS sample, will remain open on AIMS during the review process.

4.71.15.4  (07-01-2003)
Case Review Duties

  1. SR staff is responsible for:

    1. Performing case reviews on all TEQMS selected sample closed examination cases. Reviewers will rate cases by completing an UFILL disk that contains the appropriate input form. UFILL disks will be uploaded to the TEQMS database by SR personnel.

    2. Case Return Criteria Cases will be returned to the group per procedures under TEQMS Section 4.68.

    3. Manager of SR must approve cases that meet the case return criteria. These cases will be returned with a Form 5456 (Reviewer’s Memorandum EP/EO).

4.71.15.5  (07-01-2003)
TEQMS Review

  1. Guidelines have been established for determining which cases are subject to TEQMS review.

  2. TEQMS is designed to measure the quality of work.

    1. A statistically valid sample of cases is reviewed by SR.

    2. The cases are evaluated by the reviewer using established TEQMS standards.

    3. Input forms containing TEQMS standards are completed on a UFILL disk.

    4. Input forms are compiled, analyzed, and reported to agents and managers on a regular basis by SR.

    5. Reports reflect overall trends and are not case specific. Reports reflect overall trends and are not case specific.

  3. The principal guidelines are set forth in the EP TEQMS.

4.71.15.6  (07-01-2003)
Review Procedures

  1. This section contains general case review procedures for EP examination managers, SR reviewers and agents. TEQMS review uses different procedures for processing and returning cases from review. The procedures for TEQMS review will be placed in the IRM when finalized.


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