Unagreed

cases are those in which a taxpayer and/or representative do not agree with the findings of the examination. The following are unagreed situations:

A status/qualification issue is raised and the taxpayer or representative does not agree with the findings.

A status/qualification issue is raised and is not resolved under a correction or settlement program.

The examiner solicits and does not receive agreement to additional assessments or filing of returns due.

The examiner provides the taxpayer with their right to appeal and the taxpayer either: i. Responds with a formal appeal ii. Does not respond to 30-day notice

If agreement can be reached on one or more, but not all issues or years, taxpayers should be encouraged to enter into partial agreement covering the agreed issues or years where functional procedures allow for partial agreement.

Managerial involvement is required in all unagreed cases. The group manager should review the case file to ensure the taxpayer has submitted requested information and all issues are fully developed and documented.

Managers are required to make contact in person or by telephone with taxpayers and/or representatives on all unagreed cases. See IRM 4.70.14.2.2, Managerial Conference

TE/GE functional unagreed examination processing guidance is listed in the table below:

Functional Unit

Unagreed Processing Guidance

EP & EO

An unagreed Discrepancy Adjustment is one for which:

The taxpayer disagrees and files a protest with Appeals.

The taxpayer doesn’t submit a proper response to the 30-day letter. See IRM 4.70.15.6, Unagreed Case Procedures, for procedural guidance on unagreed discrepancy adjustments.

EP

An unagreed Form 5500 examination is one that involves a qualification issue that cannot or has not been resolved through EPCRS or a DO 8-3 closing agreement. See IRM 4.70.14.2.4.2.1, EP - Unagreed Form 5500 Examination Procedures.

An unagreed SEP, SIMPLE or SARSEP examination is one for which an IRA-based plan is non-compliant and the taxpayer does not agree to correct the issue using EPCRS. See IRM 4.70.14.2.4.2.2, EP - Procedures for IRA-based Plans (SEP, SIMPLE or SARSEP) Found to Be in Non-Compliance and Not Resolved Through a Closing Agreement.

An unagreed Form 5330 and 990-T examination is one for which:

The taxpayer does not agree to adjustments to a filed return.

The taxpayer does not respond to solicitation of a delinquent return.

A taxable failure for which required correction is not complete. See the following sections for return specific procedural guidance:

IRM 4.70.14.2.4.2.3, EP - Unagreed Forms 5330 and 990-T

EO

An unagreed Exempt Organization examination is one in which a Taxpayer disagrees with either a proposed adverse status change (revocation, disqualification of a status 36 organization, or reclassification from public charity to a private foundation) or tax adjustment, and does not make correction under a closing agreement program, fast track settlement, or classification settlement program. See the following sections for specific procedural guidance:

IRM 4.70.14.2.4.3.1, EO - Formal Examination Reports

IRM 4.70.14.2.4.3.2, EO - Fast Track Settlement (FTS)

IRM 4.70.14.2.4.3.3, EO – Unagreed SFR Tax Cases

IRM 4.70.14.2.4.3.4, EO – Special Procedures for Unagreed Worker Classification

IRM 4.70.14.2.4.3.5, EO – Unagreed Proposed Adverse Status Change

FSL & ITG

An unagreed FSL/ET or ITG employment tax examination is one in which a Taxpayer disagrees with proposed adjustments and/or worker classification determination and does not participate in fast track settlement, an early referral to appeals, or a settlement or agreement program. See the following sections for specific procedural guidance:

, IRM 4.70.14.2.4.4, Employment Tax Unagreed Cases

IRM 4.70.14.2.4.4.1, Procedures for Failure to File Form W-2 – Unagreed

IRM 4.70.14.2.4.4.2, Special Procedures for Notices of Determination of Worker Classification or Section 530 Relief

IRM 4.70.14.2.4.4.3, Fast Track Settlement (FTS)

IRM 4.70.14.2.4.4.4, ITG – Appeals Alternative Dispute Resolution Programs

IRM 4.70.14.2.4.4.5, Early Referral to Appeals

IRM 4.70.14.2.4.4.6, Employment Tax Cases Subject to Mandatory Review

TEB

An unagreed Tax Exempt Bond examination is one in which non-compliance is unresolved, including:

Denials of claims for recovery of an asserted overpayment of an arbitrage payment under IRC 148.

Unagreed disallowances to credit payments under IRC Section 6431 (claim denials.)

IRM 4.70.14.2.4.5, TEB – Unagreed Case Processing

IRM 4.70.14.2.4.5.1, TEB - Communicating Identified Issues

IRM 4.70.14.2.4.5.2, TEB - Technical Assistance

IRM 4.70.14.2.4.5.3, TEB - 30-Day Letter

IRM 4.70.14.2.4.5.4, TEB – Cases Subject to Mandatory Review

IRM 4.70.14.2.4.5.5, TEB – Cases Closed to Appeals