Note:

EO Exam Director’s Staff is responsible for updating the state list and giving the updated list to the field.

For an IRC 501(c)(3) organization located in one of the approved states, the examiner will send the 30-day proposed revocation letter and RAR to the taxpayer per current group closing letter procedures. Hold the case for 30 days.

Examiner will prepare and send a package to the electronically to: *TE/GE-EO-Field Reports with copies of the following:

30-day letter.

Form 6018, Consent to Proposed Adverse Action.

RAR.

Form 990 for all applicable tax periods.

Note on the case chronology IRC 6104(c) package for [state(s)] was sent to the *TE/GE-EO-Field Reports on MM/DD/YYYY).

Prepare a 3198-A, TE/GE Special Handling Notice, indicating the case involves a state agency authorized to receive disclosures under IRC 6104(c). The 3198-A lets EO Examinations Mandatory Review know that this is a case subject to these special disclosure provisions.

The EO Exam Director’s Staff:

Sends the proposed revocation package to the appropriate state agency using Letter 6401, Disclosure to State Agencies under IRC Section 6104.

Keeps the appropriate records and notifies the Disclosure Office to account for the disclosures under IRC 6103(p)(3).

Coordinates with EO MR and tracks the progress of the proposed revocation case (i.e., agreed or unagreed).

Will email each group manager a monthly report showing open cases in their groups in the eligible states, as well as recent closures that may be subject to disclosure. This is an internal control tool to allow managers to verify that IRC 6104(c) procedures are followed, when needed.

Frontline Managers and Area Manager Monthly Briefings will also include a new section on IRC 6104(c) Disclosures. Managers should report on any cases subject to 6104(c) Disclosure.

If the issue is agreed or unagreed without protest:

EO MR prepares a 90-day letter (final adverse determination letter) and sends it to the taxpayer.

The EO Exam Director’s Staff secures a copy of the 90-day letter from EO MR and sends it to the appropriate state agency.

If the issue is unagreed with protest:

EO MR sends it to Appeals.

The EO Exam Director’s Staff tracks the case progress and coordinates with the Appeals Office.

The 3198-A stays attached to the unagreed case file in order to alert the Appeals office the case involves an unagreed proposed revocation in a state which is eligible to receive disclosures under IRC 6104(c).

The EO Exam Director’s Staff notifies the appropriate state agency whether or not the proposed revocation is upheld using Letter 6400, Disclosure to State Agencies under IRC Section 6104 - Revocation not Sustained.