Employment Tax Unagreed Report

Any report that is given to the taxpayer must include a statement that the report is subject to the approval of the EO Examination Director, FSL/ET Program Manager, or ITG Program Manager.

With your group manager, examine and confirm the statute date to determine whether a 30-Day Letter, Statutory Notice of Deficiency (90-Day Letter), or Notice of Employment Tax Determination Under IRC 7436 should be issued. Primary guidance and procedures for unagreed cases including the 30-Day letter process can be found at:

IRM 4.23.22, Employment Tax Unagreed Employment Tax Case Procedures.

IRM 4.10.8.12, Unagreed Case Procedures.

Complete unagreed case write-up. See IRM 4.23.10.16.1, Preparing Explanation of Adjustments.

Separate reports MUST BE prepared for IRC 7436 and non-section 7436 issues. See IRM 4.23.10.10, Preparation of the Employment Tax Report, and IRM 4.23.10.10.4, Employment Tax Change Report.

To assist in the preparation of Tables 1 and 2 of Letter 3523, prepare a list of reclassified workers as defined in IRM 4.23.22.11.1, General Overview of Section 7436 Procedures, (5) and (6). In addition, examiners should prepare a work copy draft of Tables 3 and 4 to assist ITG Technical or EO Mandatory Review in the preparation of Letter 3523. Both the list of workers and the table of taxes should be included with the Employment Tax Examiner's Report (ETER) package in the front of the case file for use by ITG Technical Group or EO Mandatory Review in preparation of the Letter 3523. See IRM 4.23.22.11, Special Procedures for Letter 3523 under IRC 7436.