Employment Tax Examination Reports

For instruction on the preparation of reports covering examination of employment tax see:

IRM 4.23.10, for preparation of employment tax reports.

IRM 4.24.20, Excise Tax Report Writing Guide, for guidance on excise reports.

IRM 4.10.8, Examination of Returns, Report Writing, and individual exam reports, respectively.

Report Generation Software (RGS) is required for generation of all income tax examination reports. See IRM 4.10.8.18, Reports Generation Software (RGS).

The Examiner prepares and provides the examination report to the taxpayer and solicits agreement. If necessary, various closing letters are available for the Examiner to use when the report is issued by mail. The letter should remain undated until issued.

Where possible, all correspondence with taxpayers should be prepared using standard forms and letters, since the specific language in these documents has been approved for general use. Examiners are never authorized to modify the context of National letters and forms except for short-term changes. (IRM 4.10.1.3.2, Written Communication.)

Any executed Form 2504 series, as applicable, received from a taxpayer must be date stamped on the day received.

Original paper Forms must be date stamped in the upper right corner:

If the Form is received via EEFax then the file itself contains the date and time stamp it was sent to the IRS and no further action is required to evidence receipt.

If the Form is received via facsimile and the date and time stamped by the sender’s fax machine is correct no further action is required to evidence receipt. If the sender’s date and time stamp is not correct you must treat it as a paper form and use the procedures in (1) above.

The Examiner should include on Form 4668 that the taxpayer needs to send to the Social Security Administration any Forms W-2/W-3 or W-2c/W-3c that are required to be filed, but that are not secured during the exam.

Generally, the Examiner should attach to the Form 4668 a listing of each affected worker and, for each worker, the wage and employment tax adjustment. The list should provide: the worker's name, SSN, amount of adjustment to total compensation, FICA, and Medicare wages, as well as related employment tax adjustments.