Managerial Review and Case Closure

All completed case files go to the group manager for closing.

Group managers must:

Review the case within 10 calendar days after receipt from the examiner in RCCMS and/or paper for concurrence with the conclusions reached and procedural accuracy.

Verify statute date – see IRM 4.70.12.3.7, Statute of Limitations

Ensure required case processing documents are properly completed and included in RCCMS

Ensure all relevant case related documents received from the taxpayer/POA are in the RCCMS Office Documents folder, and the case file documents are organized using the applicable TE/GE RCCMS Naming Convention.

Ensure the required sections in the "Closing Record" in RCCMS are accurate.

Promptly return the case to the examiner if, upon review of the case file, the manager determines that additional examination or procedural work must be completed.

Ensure documentation of any penalties requiring manager approval was completed. IRC 6751 requires written documentation of your involvement in any decision to assess most penalties. Document your interaction on Form 9984. The following penalties do not require your approval:

IRC 6651, Failure to File or Failure to Pay - except where fraud is involved

IRC 6654, Failure to Pay Estimated Tax for Individuals

IRC 6655, Failure to Pay Estimated Tax for Corporations

Any other penalties automatically calculated through electronic means.

Review and mail the appropriate closing letters to the taxpayer and any designated representatives. Upload a copy of the signed closing letter to the RCCMS office documents folder.

If a referral is warranted, review referral documents the examiner prepared and forward to the applicable recipient. See IRM 4.70.11.14 - Collateral Examinations & Referrals.

Update the case chronology to reflect group manager review of required case processing documentation and approval of examined case closure. It should also reflect the date the managerial review was completed, date the closing letters were mailed and any other actions taken.

For TEB, Notify the examiner that the manager has concluded the case review so the examiner can return records to the issuer or conduit borrower.

Close case to the appropriate function through RCCMS, and mail paper file if applicable. See IRM 10.5.1, Privacy Policy, and IRM 10.5.1.6.9.3, Shipping, for procedures when shipping PII.

Function case is closed to

RCCMS codes for closure

Mail paper file to

EO Mandatory Review

PBC - 400 SBC - 11113 EGC - 7994 Status Code: 20

Internal Revenue Service EO Mandatory Review MC: 4920 DAL 1100 Commerce St. Dallas, Texas 75242

Closing Unit for EO

PBC - 400 SBC - 11115 EGC - 7997 Status Code: 51

Internal Revenue Service EO Closing Unit MC: 4980 DAL 1100 Commerce St. Dallas, Texas 75242

EP Mandatory Review

PBC - 400 SBC - 12113 EGC - 7694 Status Code: 20

See Employee Plans Examination Exhibits – Contact Information

Closing Unit for EP

PBC - 400 SBC - 12115 EGC - 7697 Status Code: 51

See Employee Plans Examination Exhibits – Contact Information

ITG or TEB Technical

PBC - 400 SBC - 20011 EGC - 7271 for ITG Technical or 7211 for TEB Technical Status Code: 20

Contact the ITG & TEB Technical manager

Closing Unit for GE

PBC – 400 SBC – 20011 EGC – 7204 Status Code: 51

Contact the Closing Unit manager

For EO, close certain excepted-agreed cases directly to Mandatory Review. For example, examiner proposes a revocation to ABC Charity while conducting an examination of Form 990. The proposed revocation is unagreed without protest, but ABC agreed to additional unrelated business income tax by signing Form 4549 in the event its exemption is sustained. Because the agreed issue can’t be finalized due to the pending revocation issue, the Form 990-T examination is excepted-agreed. Therefore, the Form 990-T case file will ride with the Form 990 file to Mandatory Review. Note that an open Form 990-T examination must be addressed as an alternative issue in a revocation RAR, whether agreed or unagreed.

Group managers must notify the receiving manager of the Closing Group or Mandatory Review / Technical, via secure email, that a short statute return is forthcoming. See IRM 4.70.12.3.7 for short statute control procedures. See the table below for actions to take when a case meets certain deadlines.

The EP Mandatory Review group mailbox is *TE/GE-EP Exam - MR. The EO Mandatory Review group mailbox is *TEGE EO Review Staff.

Advance written notification includes:

The returns and years being closed

Actual statute expiration date for each return

The reason for the short statute condition

The dates a statute extension was solicited

The amount of tax and penalty for the short statute returns

An explanation why a statute extension wasn’t needed or wasn’t executed after extension requests.

The group manager does the final review of cases before closing to Appeals, function specific closing unit, mandatory review or to the TE/GE Closing Group. Each recipient needs sufficient time for processing. See the table below for actions to take when a case meets certain deadlines:

Type of Case

Days left on statute at closing

Actions to take

Closing a valid unagreed protest to Appeals.

395 or more

Close to the TE/GE Closing Group, who sends the case to Appeals

Closing a valid unagreed protest to Appeals.

394 days or less

Secure a statute extension. If none secured, close as unagreed without protest.

Appeals returns a case for more work and it stays unagreed.

330 days or more

Return the case to Appeals.

Appeals returns a case for more work and it stays unagreed.

329 days or less

Secure a statute extension. If unable to do so, close as unagreed without protest. If secured, return the case to Appeals.

Closing an unagreed excise tax /income tax/worker classification case without protest.

270 days or more

Close to Mandatory Review or ITG Technical for preparation and issuance of the statutory notice of deficiency.

Closing an unagreed excise tax /income tax/worker classification case without protest.

269 days or less

Email the Mandatory Review or ITG Technical manager before closing, to discuss special handling instructions.

Closing an unagreed non-worker classification employment tax case without protest.

180 days or more

Close to the TE/GE Closing Group.

Closing an unagreed non-worker classification employment tax case without protest.

179 days or less

Email the TE/GE Closing Group manager before you forward them to the TE/GE Closing Group.

Appeals returns a case for more work and you secure agreement.

180 days or more

Close to the TE/GE Closing Group.

Closing an agreed case.

180 days or more

Close to TE/GE Closing Group.

Closing any case.

91 to 179 days

Email the TE/GE Closing Group manager before you forward them to the TE/GE Closing Group.

Imminent statute.

90 days or less

Group manager places a phone call to both the Manager of the Closing group and the Program Manager for CP&C Planning and Monitoring, to discuss special handling instructions. Review functions will not accept an imminent statute return until the area office has issued a statutory notice of deficiency notice to the taxpayer covering the imminent statute return. See IRM 4.70.12.3.7.11, for full discussion on imminent statute procedures.

For EO, imminent statute returns subject to a mandatory review, examiners assume the responsibility for preparing final closing letters including 90-day letters. Review functions will not accept an imminent statute return until the area office has issued a 90-day SNOD letter to the taxpayer covering the imminent statute return. An imminent statute return is a return with 90 days or less remaining until the statute expiration date.

For instructions on preparing a final adverse determination letter (FADL), see IRM 4.70.14.6.9.2, Final Adverse Determination Letter Case Processing. The Area office will forward the two copies of the FADL to the Manager, FSL/ET (or designee) for signature. The Manager, FSL/ET (or designee) will return the signed FADLs to the area office for issuance via certified mail.

For instructions on preparing a SNOD, see IRM 4.70.14.6.6.1, SNOD Preparation and Issuance, and IRM 4.8.9, Statutory Notices of Deficiency.

For instructions on preparation of Letter 3523, Notice of Employment Tax Determination Under IRC section 7436. See IRM 4.8.10, Notice of Employment Tax Determination Under IRC 7436. The area manager signs and issues the SNOD / 90-day letter to the t/p via certified mail, Letter 3523, Notice of Employment Tax Determination Under IRC section 7436.

Arrange for pre-issuance review of the draft 90-day letter with TEGEDC. See Exhibit 4.70.14-41, EO Memorandum to TEGEDC, Memorandum to Area Counsel. Refer also to the TE/GE Area Counsel Directory.

Review functions are not available for pre-issuance review.

With the group manager’s approval, send the completed 90-day letter package to the appropriate area address in order to obtain the signatures on the 90-day letter. Include pre-addressed mailing envelopes with the package.