US Treasury: 0127 plg mtg

8/14/2019 US Treasury: 0127 plg mtg

http://slidepdf.com/reader/full/us-treasury-0127-plg-mtg 1/58

StatutoryAudits

January 1999



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



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



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.



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.



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



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.



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.



Seizures & Levies


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.



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.



Seizures (only)

Population

118 (5 DO + PR had no seizures)

Projecting Results

N/A - 100% case review


None needed



Levies (only)

Estimated Population

Unknown

Projecting Results

Can not identify entire population


None needed at this time



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.



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.



Liens


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.



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).



Liens

Estimated Population Unknown

Projecting Results Plan to sample 6 weeks of data


Request for Jan/Feb 99 liens hasbeen submitted



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.


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



EnforcementStatistics


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.



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.



Enforcement Statistics


Can not be determined

Projecting Results



None needed



Direct Contact with TaxpayersVersus Representatives

(Mandatory)


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.



Direct Contact with TaxpayersVersus Representatives


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.



Taxpayers VersusRepresentatives


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.




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.





Projecting Results Can not identify entire population


None needed



Fair Debt Collection Act(For Information Only)


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.



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.



Fair Debt Collection Act


Projecting Results Can not identify entire population


None identified at this time



Taxpayer Designations(Mandatory)


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.



Taxpayer Designations


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



TaxpayerDesignations


The IRS is establishing newprocedures to eliminate the ITP

designation (and possibly implement

another program) and to monitor thenew UTAAP nonfiler designation.




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)





Unknown

Projecting Results N/A - 100% match to be performed


“Before date of law” data received

“After date of law” request to besubmitted



FOIA(Mandatory)


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.



FOIA


No new law requiringimplementation was created by

the Act.



FOIA


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.



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.



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



Filers(Mandatory)


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.



Disclosure and JointFilers


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





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




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





Unknown

Projecting Results



None needed



Statutes(For Information Only)


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.



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.



Statutes


Guidelines and procedures are

being implemented.



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.



Statutes

Date of First Planned Audit

October 1999



Terminations and Mitigation

(Mandatory)


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



Terminations andMitigation

Current IRS Management Control System

Not determined

Terminations and



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.



Terminations and Mitigation


Projecting Results N/A

Status of EDP Request None identified at this time

omp a n s an



omp a n s anAllegations of Employee

Misconduct

(Mandatory)


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



Complaints and Allegationsof Employee Misconduct


TIGTA Investigations andLabor Relations are working

together to develop asystem to report this

information.

Complaints and



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



Allegations of EmployeeMisconduct


Projecting Results N/A

Status of EDP Request None identified

US Treasury: 0127 plg mtg

Documents

Transcript of US Treasury: 0127 plg mtg