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Part 8. Appeals

Chapter 1. Appeals Function

Section 8. Employee Tax Compliance

8.1.8  Employee Tax Compliance

8.1.8.1  (10-12-2007)
Employee Tax Compliance Cases - Background

  1. Employee Tax Compliance (ETC) cases involve the audit of Internal Revenue Service employees. When a taxpayer employee does not agree with the examination findings, they will have the option of exercising their right to an appeal. When working ETC cases, Appeals will limit its scope to:

    • The facts of the case

    • Applicable law

    • Appropriate resolution

  2. Appeals will not be involved in any potential disciplinary actions.

8.1.8.2  (10-12-2007)
Receiving ETC Cases

  1. All ETC cases will be routed from the originating Compliance function to the Appeals Processing Service (APS) Atlanta at the address below using a Form 3210, Documental Transmittal, and identifying it as an employee audit on Form 3198.

    Atlanta Processing

    Internal Revenue Service

    Atlanta Appeals Office

    401 W. Peachtree St., NW

    Suite 1455, Stop 1100-D

    Atlanta, GA 30308-3539

  2. Upon receipt of the case, APS will:

    • Acknowledge receipt of the case by returning Form 3210 to Compliance;

    • Card in the case;

    • Assign the case based on the pre-approved assignment list;

    • Send an encrypted message to Appeals Team Manager (ATM), the Appeals Officer (AO) and designated program analyst notifying them of the case assignment;

      Note:

      These casesmay not be assigned to other AOs, not on the pre approved list without prior clearance due to the sensitive nature.

    • Mail case file to the ATM.

8.1.8.3  (10-12-2007)
Working ETC Cases

  1. Only designated Appeals Officers will be assigned and work these highly sensitive cases. The designated Appeals Officers will work the ETC cases in accordance with the IRM 8.7.1, Technical and Procedural Guidelines, render a decision, and generate appropriate closing letters to the taxpayer and/or Power of Attorney. The Appeals Officer will give priority treatment to the extent possible.

  2. The Appeals Officer's immediate ATM will ensure the complete case is sent to the designated ATM in Field Operations East or Field Operations West for review and approval. The ATM will send an encrypted email notifying the Field East or West ATM Reviewer that a file is being forward for review. The statute on the case will be noted and any other priorities will be discussed in advance of mailing.
    There are two ATMs, one in Field East and one Field West, who are designated to

    • Review and approve the case.

    • Return the approved closed case to APS in Atlanta, Georgia for processing.

    • Notify the designated Appeals Officer's ATM to input ACAPDATE on ACDS.

8.1.8.4  (10-12-2007)
Requesting Computations

  1. If a computation is needed:

    • Send Form 3608 using secure email to the designated Tax Computation Specialist (TCS) manager. (Notate case is an Employee Audit in the email and on Form 3608.)

    • The designated TCS manager will assign to one of the approved TCS's for Employee Audit cases.

    • The TCS will prepare the Audit Statement or Notice of Deficiency.

    • When complete, the TCS will send the computations back to the originating AO for review.

8.1.8.5  (10-12-2007)
Unagreed Non-Docketed ETC Cases

  1. If the taxpayer does not agree with the Appeals determination, the AO will:

    • Complete an unagreed ACM, and CARATS record, and

    • Request TCS to prepare the Notice of Deficiency that will be included in the case file, along with envelopes, transcripts with the most recent address, and a Power of Attorney.

  2. The case will go to the ATM reviewer Field East or West who will:

    • Approve the case.

    • Sign the Notice of Deficiency.

    • Notify the Appeals Officer's ATM to input the ACAPDATE on ACDS.

    • Then route the case to the Atlanta Appeals Processing Services office.

  3. The Atlanta APS will monitor the 90 days, and if petitioned will forward case to Counsel for answer. At all times the Appeals statute guidelines will apply. See IRM 8.1.8.2.

8.1.8.6  (10-12-2007)
Docketed ETC Cases

  1. If the taxpayer files a petition, Atlanta APS will forward the case to Counsel. After the court makes a determination, the case will be sent back to Atlanta APS for closing from ACDS.

8.1.8.7  (10-12-2007)
Closing ETC Cases

  1. Upon receipt of the closed case in Atlanta, APS will:

    • Close case off of ACDS.

    • Put in the Status Code 21 on the Audit Information Management System (AIMS).

    • Mail the closing letter to the taxpayer and/or POA.

    • Process and close the case in accordance with IRM 8.20

    • Forward all Employee Tax Compliance cases to Compliance at the following address:
      Internal Revenue Service
      Attn: Technical Service
      31 Hopkins Plaza
      Baltimore, MD 21201


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