Form 5456, Reviewer’s Memorandum

Reviewers may contact groups informally via email, Microsoft Teams, phone calls, or in person. When providing formal guidance or feedback, prepare Form 5456, Reviewer’s Memorandum - TE/GE.

Reviewers: In preparing Form 5456, determine the type of feedback to provide:

Advisory: Errors that don’t require specialist action(s).

Inquiry: Errors that require specialist action(s), based on your initial review of a case.

Correction: Errors that still require specialist action(s), based on your subsequent review of a case you previously returned to the group.

Advisory memoranda may also be commendatory. You may prepare a commendatory advisory memo if you believe the specialist has performed exceptionally well on a case. Group managers may place these memos in the examiner's employee personnel folder.

Before determining which memo to prepare, determine whether the error involves an agreed issue. In general, don’t instruct the specialist to reopen an agreed issue, or create a new issue, unless your grounds are substantial and/or the potential effect upon the tax liability is material.

Complete Form 5456 as follows:

Check advisory, correction, or inquiry.

Box 1: Enter the group S/B manager's name who will be receiving the returned case and the group number. (e.g., Mary Beagle, Group Manager, EP Group # 7694). Select the appropriate checkbox that identifies the type of memorandum (Inquiry, Advisory, or Correction).

Box 2: Enter the name of the specialist who will receive the returned case.

Box 3: Enter the date the case will be returned to the group

Box 4: Enter the name of the organization/employee plan/taxpayer of the case being returned.

Box 5: Enter the applicable tax period (e.g., Tax year or Plan year, (yyyymm)).

Box 6: Select whether statute of limitations expires within six months.

Box 7: Select the appropriate checkbox for the type of case.

Box 8: Select the appropriate checkbox to indicate if the case was sent to Review Staff as a Mandatory review or Sample review.

Box 9: Indicate if a related case is being returned. List the name of the related case in box 12.

Box 10: If a second reviewer has performed a computation review enter the name of that reviewer and complete box 11, otherwise enter N/A, for not applicable.

Box 11: If applicable, enter the pages of the report that were reviewed, otherwise enter N/A, for not applicable.

Box 12: Enter an explanation of why the case is being returned with errors identified and explained, along with appropriate citations of law to support the reviewer’s conclusions. This may include Tax Code Sections, Treasury Regulations Sections, Tax Court cases, and the IRS IRM sections. Indicate the appropriate corrective action necessary for the specialist to take

Box 13: Enter the reviewer's name and date.

Box 14: Enter the name of the approving manager and date.

Box 15: Enter type of error. More than one type of error may apply.

Box 16: Check applicable blocks. Indicate additional information if check blocks are not sufficient, or if additional information is required to clarify the selected check block(s).

When writing an inquiry or correction memo:

Use plain language.

Provide a brief history of why Mandatory Review has the case.

Outline the errors identified in the case file.

Outline a course of action for the examiner to complete.

Provide corrected computations, if applicable.

Give directions on how to prepare Form 5457, Response to Reviewer's Memorandum - TE/GE. Specialists must respond within 60 days.

List your mailing address.