8/14/2019 US Treasury: 0127 plg mtg
http://slidepdf.com/reader/full/us-treasury-0127-plg-mtg 1/58
StatutoryAudits
January 1999
8/14/2019 US Treasury: 0127 plg mtg
http://slidepdf.com/reader/full/us-treasury-0127-plg-mtg 2/58
Mandatory Audit Coverage(all audits start in 1/99 except as noted)
Audits
1. Technology (various audits) - WR
2. Seizures & Levies3. Liens
4. Enforcement Stats
5. Direct Contact – TP vs Rep6. Fair Debt Collection Act
8/14/2019 US Treasury: 0127 plg mtg
http://slidepdf.com/reader/full/us-treasury-0127-plg-mtg 3/58
Mandatory Audit Coverage(all audits start in 1/99 except as noted)
Audits
7. TP Designations
8. FOIA9. Disclosure & Joint Filers
10. Statutes
11. Terminations & Mitigation(12) Complaints & Employee Misconduct
8/14/2019 US Treasury: 0127 plg mtg
http://slidepdf.com/reader/full/us-treasury-0127-plg-mtg 4/58
Mandatory Audit Coverage
Initial Planning Work
Researched RRA98, IRC, intent of law.
Met with N.O. officials to discusssources of information, existingsystems of records to capture new
provisions, planned IRM changes,etc.
Met with limited district personnel on
plans for implementing RRA98.
8/14/2019 US Treasury: 0127 plg mtg
http://slidepdf.com/reader/full/us-treasury-0127-plg-mtg 5/58
Mandatory Audit Coverage
Premise
Scope would start from date of enactment.
Objective would be focused only on TIGTA
mandates, not our traditional full-scope obj. Initial reviews will evaluate the effectiveness of
control systems to determine reliability of
populations.
Due to limited timeframes for first round, we
limited the obj to what we could accomplish.
Next round would continue in 4th Q FY99.
8/14/2019 US Treasury: 0127 plg mtg
http://slidepdf.com/reader/full/us-treasury-0127-plg-mtg 6/58
Format for Presentation
Explanation of RRA98 Provision
Status of IRS Implementation
Current IRS Management ControlSystem
Audit Objective
Estimated Population (if known)
Projecting Results
Status of EDP Request
8/14/2019 US Treasury: 0127 plg mtg
http://slidepdf.com/reader/full/us-treasury-0127-plg-mtg 7/58
Seizures & Levies
(Mandatory)Explanation of the Provision
The TIGTA shall evaluate the IRS’s
compliance with required procedures for seizure of property for collection of taxes,including required procedures under IRC §6330 regarding levies.
IRC § 6330 requires pre-notification and theopportunity for a formal hearing and judicialreview to taxpayers against whose propertythe IRS may levy.
8/14/2019 US Treasury: 0127 plg mtg
http://slidepdf.com/reader/full/us-treasury-0127-plg-mtg 8/58
Seizures & Levies
Status of the IRS’s Implementation
The IRS has issued guidelines for most
RRA98 provisions regarding seizures andlevies. The IRS is in the process of developing
procedures for personal residence seizures.
New procedures are also being developed for
the new levy notice. RRA98 mandates that
the Service start sending the levy notice on
January 18, 1999.
8/14/2019 US Treasury: 0127 plg mtg
http://slidepdf.com/reader/full/us-treasury-0127-plg-mtg 9/58
Seizures & Levies
Current IRS Management ControlSystem
The only known management control systemis the Collection quality review system,CQMS. CQMS reviews a sampling of TDAcases to determine the overall quality of
closed TDA cases. Management uses theprogram to determine root causes of qualitydeficiencies and to develop positive plans for improvement.
8/14/2019 US Treasury: 0127 plg mtg
http://slidepdf.com/reader/full/us-treasury-0127-plg-mtg 10/58
Seizures & Levies
Audit Objective
Determine if levies and seizures
conducted by the IRS adhere to legalguidelines set forth in IRC Ch. 64, subch D,
incl IRC § 6330, which was added by
RRA98. Audit will cover all aspects of levies
and seizures of all types of properties from
initiation of field collection activity to the final
disposition of the asset.
8/14/2019 US Treasury: 0127 plg mtg
http://slidepdf.com/reader/full/us-treasury-0127-plg-mtg 11/58
Seizures (only)
Population
118 (5 DO + PR had no seizures)
Projecting Results
N/A - 100% case review
Status of EDP Request
None needed
8/14/2019 US Treasury: 0127 plg mtg
http://slidepdf.com/reader/full/us-treasury-0127-plg-mtg 12/58
Levies (only)
Estimated Population
Unknown
Projecting Results
Can not identify entire population
Status of EDP Request
None needed at this time
8/14/2019 US Treasury: 0127 plg mtg
http://slidepdf.com/reader/full/us-treasury-0127-plg-mtg 13/58
Liens
(Mandatory)Explanation of the Provision
The TIGTA shall evaluate the IRS’s compliance
with required procedures under IRC § 6320
upon the filing of a notice of lien.
IRC § 6320 requires that taxpayers, against
whom a Notice of Federal Tax Lien has been
filed, receive notification and the opportunity to
request a formal hearing.
8/14/2019 US Treasury: 0127 plg mtg
http://slidepdf.com/reader/full/us-treasury-0127-plg-mtg 14/58
Liens
Status of the IRS’sImplementation
The Service is in the process of designing the new lien notice and
developing procedures for issuingthe notice before the January 18,
1999 implementation date.
8/14/2019 US Treasury: 0127 plg mtg
http://slidepdf.com/reader/full/us-treasury-0127-plg-mtg 15/58
Liens
Current IRS Management ControlSystem
There is no known management controlsystem in place at this time to ensure that
the new notice is issued to taxpayers as
mandated by IRC § 6320. The IRS may beable to use either ALS or Master File to
ensure that the notices are issued after the
lien filing.
8/14/2019 US Treasury: 0127 plg mtg
http://slidepdf.com/reader/full/us-treasury-0127-plg-mtg 16/58
Liens
Audit Objective
Determine if the IRS is complying with IRC §
6320 regarding the issuance of lien notices totaxpayers within five days after filing the lien andto determine if the IRS is properly adhering toprocedures regarding taxpayer’s request for a
hearing. We will also ensure that all applicablelaw or administrative procedures have been metfor all taxpayers requesting a hearing (IRC §6330).
8/14/2019 US Treasury: 0127 plg mtg
http://slidepdf.com/reader/full/us-treasury-0127-plg-mtg 17/58
Liens
Estimated Population Unknown
Projecting Results Plan to sample 6 weeks of data
Status of EDP Request
Request for Jan/Feb 99 liens hasbeen submitted
8/14/2019 US Treasury: 0127 plg mtg
http://slidepdf.com/reader/full/us-treasury-0127-plg-mtg 18/58
Enforcement Statistics(Mandatory)
Explanation of the Provision
The TIGTA shall evaluate the IRS’scompliance with RRA98 restrictions on the
use of enforcement statistics to evaluate IRSemployees.
Status of the IRS’sImplementation
IRS is revising the IRM and has determineddirector certifications will be centrally filed.Front-line forms will be filed in the local
offices (District or POD).
E f t
8/14/2019 US Treasury: 0127 plg mtg
http://slidepdf.com/reader/full/us-treasury-0127-plg-mtg 19/58
EnforcementStatistics
Current IRS Management ControlSystem
Cross-functional independent managementreview 12/31/98, 6/30/99 and annually
thereafter to correspond with the quarter
ending 6/30.
IRM guidelines to be established by January
1999.
8/14/2019 US Treasury: 0127 plg mtg
http://slidepdf.com/reader/full/us-treasury-0127-plg-mtg 20/58
Enforcement Statistics
Audit Objective
Determine the IRS’s compliance
with restrictions on the use of enforcement statistics to evaluateIRS employees. We will also
determine if the IRS is using “fairand equitable treatment” as anevaluation standard.
8/14/2019 US Treasury: 0127 plg mtg
http://slidepdf.com/reader/full/us-treasury-0127-plg-mtg 21/58
Enforcement Statistics
Estimated Population
Can not be determined
Projecting Results
Can not identify entire population
Status of EDP Request
None needed
8/14/2019 US Treasury: 0127 plg mtg
http://slidepdf.com/reader/full/us-treasury-0127-plg-mtg 22/58
Direct Contact with TaxpayersVersus Representatives
(Mandatory)
Explanation of the Provision
TIGTA shall evaluate the IRS’s compliance with
restrictions under IRC § 7521(b)(2) on directly
contacting taxpayers who have indicated that
they prefer their representatives be contacted.We will also include IRC § 7521(c) provisions on
notifying a taxpayer directly that their rep is
causing unreasonable delay or hindrance.
8/14/2019 US Treasury: 0127 plg mtg
http://slidepdf.com/reader/full/us-treasury-0127-plg-mtg 23/58
Direct Contact with TaxpayersVersus Representatives
Status of the IRS’sImplementation
There is no new law requiringimplementation.
However, there are no IRS systems to
capture this information (suspendedinterviews that resulted in taxpayer
representation). Only case files may
document this situation.
8/14/2019 US Treasury: 0127 plg mtg
http://slidepdf.com/reader/full/us-treasury-0127-plg-mtg 24/58
Taxpayers VersusRepresentatives
Current IRS Management ControlSystem
There is no management control systemidentified other than the local and nationalprocedures requiring the employee tosuspend the interview.
There is no system to capture the informationwhen this issue arises; therefore, there areno reports for management to use to monitor the issue.
8/14/2019 US Treasury: 0127 plg mtg
http://slidepdf.com/reader/full/us-treasury-0127-plg-mtg 25/58
Taxpayers VersusRepresentatives
Audit Objective
Evaluate the IRS’s compliance with
restrictions under IRC § 7521(b)(2)
and (c) regarding directly contacting
taxpayers. We will also determine if
any IRS systems capture this
information.
8/14/2019 US Treasury: 0127 plg mtg
http://slidepdf.com/reader/full/us-treasury-0127-plg-mtg 26/58
Taxpayers VersusRepresentatives
Estimated Population Unknown
Projecting Results Can not identify entire population
Status of EDP Request
None needed
8/14/2019 US Treasury: 0127 plg mtg
http://slidepdf.com/reader/full/us-treasury-0127-plg-mtg 27/58
Fair Debt Collection Act(For Information Only)
Explanation of the Provision
TIGTA shall report information regarding anyadministrative or civil actions with respect toviolations of the fair debt collectionprovisions of IRC § 6304, including asummary of judgments or awards granted.
Status of the IRS’s ImplementationCollection issued an August 31, 1998memorandum that outlined guidelinesadvising employees of these requirements.
8/14/2019 US Treasury: 0127 plg mtg
http://slidepdf.com/reader/full/us-treasury-0127-plg-mtg 28/58
8/14/2019 US Treasury: 0127 plg mtg
http://slidepdf.com/reader/full/us-treasury-0127-plg-mtg 29/58
Fair Debt Collection Act
Audit Objective
Obtain information regarding any
administrative or civil actions resultingfrom violations of the fair debt
collection provision as required by IRC §
6304. This will include a summary of judgments or awards granted to taxpayers.
We will also determine if any IRS systems
capture this information.
8/14/2019 US Treasury: 0127 plg mtg
http://slidepdf.com/reader/full/us-treasury-0127-plg-mtg 30/58
Fair Debt Collection Act
Estimated Population Unknown
Projecting Results Can not identify entire population
Status of EDP Request
None identified at this time
8/14/2019 US Treasury: 0127 plg mtg
http://slidepdf.com/reader/full/us-treasury-0127-plg-mtg 31/58
Taxpayer Designations(Mandatory)
Explanation of the Provision
TIGTA shall evaluate the IRS’s compliance with
restrictions under RRA98 Section 3707 on
designation of TPs. Sec. 3707 prohibits IRS
from designating TPs as illegal tax protesters
and requires IRS to remove these protestor
designations from the IMF and to disregard suchdesignations on other systems. Also, nonfiler
designations must be removed once the TP has
filed and paid tax returns for 2 consecutive
years.
8/14/2019 US Treasury: 0127 plg mtg
http://slidepdf.com/reader/full/us-treasury-0127-plg-mtg 32/58
Taxpayer Designations
Status of the IRS’sImplementation
Employees in the field have been educatedon the new law. Related IRM sections arebeing revised to reflect the elimination of the ITP designation.
A RIS to eliminate the ITP designation fromthe Master File as required by RRA98 hasbeen approved and is in process. This RISis to be completed by January 15, 1999.
Taxpayer
8/14/2019 US Treasury: 0127 plg mtg
http://slidepdf.com/reader/full/us-treasury-0127-plg-mtg 33/58
TaxpayerDesignations
Current IRS Management ControlSystem
The IRS is establishing newprocedures to eliminate the ITP
designation (and possibly implement
another program) and to monitor thenew UTAAP nonfiler designation.
8/14/2019 US Treasury: 0127 plg mtg
http://slidepdf.com/reader/full/us-treasury-0127-plg-mtg 34/58
Taxpayer Designations
Audit Objective
Determine if the ITP designation has been
eliminated from the IMF/BMF and is beingdisregarded in the field offices, and the
nonfiler designation is being monitored.
We will also ensure that any new taxpayer designations meet the intent of the law.(note: only accounts on active MF will bereviewed, not retention register accounts)
8/14/2019 US Treasury: 0127 plg mtg
http://slidepdf.com/reader/full/us-treasury-0127-plg-mtg 35/58
Taxpayer Designations
Estimated Population
Unknown
Projecting Results N/A - 100% match to be performed
Status of EDP Request
“Before date of law” data received
“After date of law” request to besubmitted
8/14/2019 US Treasury: 0127 plg mtg
http://slidepdf.com/reader/full/us-treasury-0127-plg-mtg 36/58
FOIA(Mandatory)
Explanation of the Provision
TIGTA shall report information regarding
improper denial of requests for informationfrom the IRS identified under paragraph
(3)(A), which states TIGTA shall conduct
periodic audits of a statistically valid sample
of the total number of determinations madeby the IRS to deny written requests based
on FOIA or the Privacy Act.
8/14/2019 US Treasury: 0127 plg mtg
http://slidepdf.com/reader/full/us-treasury-0127-plg-mtg 37/58
FOIA
Status of the IRS’sImplementation
No new law requiringimplementation was created by
the Act.
8/14/2019 US Treasury: 0127 plg mtg
http://slidepdf.com/reader/full/us-treasury-0127-plg-mtg 38/58
FOIA
Current IRS Management ControlSystem
Disclosure is responsible for the Service’s
disclosure program, including the FOIA,which provides for public access to recordsmaintained by Federal agencies. This officeensures Treasury’s compliance with the law,has oversight and reporting responsibilities,provides guidance on procedural and policymatters, and provides FOIA-related training.
8/14/2019 US Treasury: 0127 plg mtg
http://slidepdf.com/reader/full/us-treasury-0127-plg-mtg 39/58
FOIA
Audit Objective
Determine if the IRS is properly
applying the exemptions cited under IRC§ 6103 or section 552(b)(7) of title 5,
United States Code to deny written
requests for information; and to identifythe process for controlling the requests for
information under FOIA or the Privacy Act.
8/14/2019 US Treasury: 0127 plg mtg
http://slidepdf.com/reader/full/us-treasury-0127-plg-mtg 40/58
FOIA
Estimated Population 3,700 (FY 98)
Projecting Results Projectable over a partial period
Status of EDP Request FY 98 data received (7/18-9/30/98)
FY 99 data to be received 1/29/99
8/14/2019 US Treasury: 0127 plg mtg
http://slidepdf.com/reader/full/us-treasury-0127-plg-mtg 41/58
Filers(Mandatory)
Explanation of the Provision
The TIGTA shall review and certifywhether or not the Secretary is complying
with the requirements of IRC § 6103(e)(8)
to disclose information to an individual
filing a joint return on collection activity
involving the other individual filing the
return.
8/14/2019 US Treasury: 0127 plg mtg
http://slidepdf.com/reader/full/us-treasury-0127-plg-mtg 42/58
Disclosure and JointFilers
Status of the IRS’sImplementation
This IRC section has been in effect since1996.
As of December 1998, the IRS has notdecided who should be responsible for
this issue.
Di l d J i t
8/14/2019 US Treasury: 0127 plg mtg
http://slidepdf.com/reader/full/us-treasury-0127-plg-mtg 43/58
Disclosure and JointFilers
Current IRS Management ControlSystem
We know of no management control
system at this time.
In fact, we have found that this
information is being disclosed verbally.
Disclosure and Joint
8/14/2019 US Treasury: 0127 plg mtg
http://slidepdf.com/reader/full/us-treasury-0127-plg-mtg 44/58
Disclosure and JointFilers
Audit Objective
Determine if the IRS is complying with therequirements of IRC § 6103(e)(8) and RRA98
section 6109(c) to disclose information oncollection activity involving an individual filing a joint return upon the written request of the other individual filing a joint return or a duly
authorized representative. We will alsodetermine if any IRS systems capture thisinformation.
Disclosure and Joint
8/14/2019 US Treasury: 0127 plg mtg
http://slidepdf.com/reader/full/us-treasury-0127-plg-mtg 45/58
Disclosure and JointFilers
Estimated Population
Unknown
Projecting Results
Can not identify entire population
Status of EDP Request
None needed
8/14/2019 US Treasury: 0127 plg mtg
http://slidepdf.com/reader/full/us-treasury-0127-plg-mtg 46/58
Statutes(For Information Only)
Explanation of the Provision
TIGTA shall report information regarding
extensions of the statute of limitations for
assessment and collection of tax under
IRC § 6501 and the provision of notice to
taxpayers regarding requests for suchextensions.
8/14/2019 US Treasury: 0127 plg mtg
http://slidepdf.com/reader/full/us-treasury-0127-plg-mtg 47/58
StatutesStatus of the IRS’s Implementation
The National Office Examination Division is
convening a team in November 1998 to
review this area, especially concerning
restricted consents and changes to the
applicable notices. The revised IRM
dealing with statutes should be issued byJune 1999.
This law goes into effect January 1, 2000.
8/14/2019 US Treasury: 0127 plg mtg
http://slidepdf.com/reader/full/us-treasury-0127-plg-mtg 48/58
Statutes
Current IRS Management ControlSystem
Guidelines and procedures are
being implemented.
8/14/2019 US Treasury: 0127 plg mtg
http://slidepdf.com/reader/full/us-treasury-0127-plg-mtg 49/58
Statutes
Audit Objective
Determine if the IRS is
complying with IRC § 6501 toinform taxpayers of their right to
refuse to extend the assessment
statute of limitations, or to limit suchextension to a particular issue or time
period.
8/14/2019 US Treasury: 0127 plg mtg
http://slidepdf.com/reader/full/us-treasury-0127-plg-mtg 50/58
Statutes
Date of First Planned Audit
October 1999
8/14/2019 US Treasury: 0127 plg mtg
http://slidepdf.com/reader/full/us-treasury-0127-plg-mtg 51/58
Terminations and Mitigation
(Mandatory)
Explanation of the Provision
TIGTA shall report any termination or
mitigation under section 1203 of RRA98.Status of the IRS’s
Implementation
TIGTA Investigations and Labor Relations are working together to
develop a system to report this
information.
T i ti d
8/14/2019 US Treasury: 0127 plg mtg
http://slidepdf.com/reader/full/us-treasury-0127-plg-mtg 52/58
Terminations andMitigation
Current IRS Management Control System
Not determined
Terminations and
8/14/2019 US Treasury: 0127 plg mtg
http://slidepdf.com/reader/full/us-treasury-0127-plg-mtg 53/58
Terminations andMitigation
Audit Objective
Evaluate the IRS’s process used toreport these terminations and
mitigations. We will also evaluate the
systems used to report theseviolations.
8/14/2019 US Treasury: 0127 plg mtg
http://slidepdf.com/reader/full/us-treasury-0127-plg-mtg 54/58
Terminations and Mitigation
Estimated Population Unknown
Projecting Results N/A
Status of EDP Request None identified at this time
omp a n s an
8/14/2019 US Treasury: 0127 plg mtg
http://slidepdf.com/reader/full/us-treasury-0127-plg-mtg 55/58
omp a n s anAllegations of Employee
Misconduct
(Mandatory)
Explanation of the Provision
TIGTA is to report the number of taxpayer complaints and employeemisconduct/abuse allegations
received by the IRS or the IG, with asummary of the status anddisposition of the serious employee
misconduct cases.
Complaints and Allegations
8/14/2019 US Treasury: 0127 plg mtg
http://slidepdf.com/reader/full/us-treasury-0127-plg-mtg 56/58
Complaints and Allegationsof Employee Misconduct
Status of the IRS’sImplementation
TIGTA Investigations andLabor Relations are working
together to develop asystem to report this
information.
Complaints and
8/14/2019 US Treasury: 0127 plg mtg
http://slidepdf.com/reader/full/us-treasury-0127-plg-mtg 57/58
Audit Objective
Evaluate the IRS’s process used
to report these complaints andallegations. We will also evaluate
the systems used to report these
violations.
Complaints andAllegations of Employee
Misconduct
Allegations of Employee
8/14/2019 US Treasury: 0127 plg mtg
http://slidepdf.com/reader/full/us-treasury-0127-plg-mtg 58/58
Allegations of EmployeeMisconduct
Estimated Population Unknown
Projecting Results N/A
Status of EDP Request None identified