This section discusses the guidelines for determining which cases are subject to a technical/quality review in FSLG.

Examination cases in the groups will be sent to the Compliance and Program Management (CPM) staff of FSLG. Cases that meet the technical/quality review criteria should be sent to CPM staff in Austin. The mailing address for CPM technical/quality review is:

Management has authority to designate any type or group of cases as a 100% review category if it considers this to be essential.

An Exempt Organization Inventory Control (EOIC) system generated Form 3210, Document Transmittal, must accompany all cases. For those cases that are subject to a technical/quality review, the AIMS status will be updated to "20" by the CPM Staff.

All open cases received in CPM should have a minimum of 240 days on the statute for unagreed cases and 180 days for agreed cases. The Manager, CPM must be notified by telephone of cases with less time remaining on the statute before forwarding to CPM for action. This will include " No-Change" cases.

Once received in CPM, the Manager (or his/her Designee) will control the case and assign it to a Reviewer. The cases will be distributed to the Reviewers on the basis of current workload without respect to geographical location of the organization. This will provide flexibility in meeting workload demands and facilitate interaction between Reviewers and the Field Managers and their employees. Additionally, every effort will be made by the CPM Staff to complete its work on a case within 60 days.

Once assigned, the Reviewer will review the case. If there are no problems or questions regarding the case, the case file will be forwarded to the Exempt Organization (EO) closing unit in Dallas, which will close the case to the appropriate Service Center. Only examination cases are forwarded to the Dallas closing unit.

If there is a need to return the case to the group, the Reviewer will first forward the case file via Form 3210 to the Manager, CPM (or his/her Designee) for his/her review, agreement and approval. If the Manager, CPM (or his/her Designee) agrees with the Reviewer, the case file, along with the Form 3990, Reviewer’s Report, or equivalent, will be sent back to the originating group for consideration of the Reviewer’s concerns. The group should reply within 60 days of receipt.

After the group takes the action it deems appropriate regarding the Form 3990 or equivalent, the case file will be returned via Form 3210 to CPM staff in Austin at the address given above. The group should fax an information copy of the Form 3210 to the Manager, CPM (or his/her Designee) so he/she will be aware that the case has been returned to the Reviewer.

Once the Reviewer has considered the group's reply, the case will be forwarded to the Manager, CPM (or his/her Designee) for final review and approval. If all parties agree, the examination case will be closed through the EO closing unit in Dallas, which will close the case to the appropriate Service Center. If the Manager, CPM (or his/her Designee), has any questions or problems regarding the case, he/she will contact the Reviewer for clarification.

In the event of any significant disagreement between CPM and the group regarding a Form 3990 or equivalent, a conference will be held between the affected Specialist, his/her Field Manager, the CPM Reviewer, and the Manager, CPM, to resolve the issues. Ultimately, the decision of the Field Manager and the Manager, CPM, is final.

IRM 8.2.1.2.1 requires that all docketed cases "must contain the original return--the Tax Court requires exactly what the taxpayer filed. " When this is not possible, a copy of the return as well as a CC ESTAB/ELFREQ PRINT requesting the original return must be in the case file. If the original return is still not obtainable, a certified transcript along with the copy is required. Also, Form 1532A, Appeals Transmittal, is required on any case forwarded to Appeals with less than 270 days left on the statute. Caution: Cases sent to Appeals should have at least 180 days remaining on the statute (See IRM 8.2.1.3). CPM will be responsible for ensuring that these tasks are accomplished.

Procedures regarding statutes are contained in IRM 25.6.23, Examination, TE/GE and Service Center Examination Statute Controls.

Specialists should remember the following points concerning statutes:

To maintain statute controls, it is crucial that each Field Manager monitor and work his or her group's Table 4.0 on a monthly basis. Each group should forward an annotated copy of his or her Table 4.0 to the Director, FSLG, and an information copy to the Manager, FSLG CPM at the following addresses:

Prior to forwarding cases to CPM, it is the group’s responsibility to ensure that the statute is protected for at least one year. Upon receipt in CPM, it will be CPM’s responsibility to secure any further necessary extension to the statutes.

Technical advice cases will be maintained in the groups with a copy of the technical advice memorandum kept in CPM for information and follow-up. Because a technical advice request may have far-reaching ramifications due to the issue(s) involved, the reply from Headquarters office will be shared with all the Field Managers for dissemination to all Specialists.

CPM will provide guidance as to when 30-day letters may be issued at the group level as preliminary notices in cases involving proposed tax assessments. In most 30-day situations, the Specialist will prepare the letter, even if ultimately issued from CPM.

Cases that involve adjustments to taxable returns will have the 30-day letters issued from the group as a preliminary report.

Refer to IRM 4.90.9, Workpapers and Compliance Case Preparation.

The CPM staff will prepare all 90-Day letters and Statutory Notices of Deficiency. CPM will coordinate with the TE/GE Area Counsel staff serving the taxpayer’s mailing address regarding pre-issuance review, but only with the Manager, CPM (or his/her Designee’s) prior approval, and/or, involvement.

Once approved by TE/GE Area Counsel, CPM will issue the Statutory Notice.

All 90-Day cases will be held in CPM Austin during the 90-day period.

If a Specialist or Field Manager discusses an issue with his or her TE/GE Area Counsel at the group level, there should be documentation in the file (such as Form 5464, Case Chronology Record) indicating that TE/GE Area Counsel was consulted, the name of the attorney, and the attorney’s telephone number.

Refer to IRM 4.90.9 - Workpapers and Compliance Case Preparation.

Refer to IRM 4.23.10.9 - Special Procedures for Notices of Determination of Worker Classification or Section 530 Treatment.