Technical Services performs procedural case reviews to improve quality of examinations and to develop and implement alternative resolution strategies and procedures.

IRM 1.1.16.5.1.1.1.1, Technical Services Territories.

IRM 1.2.1.2.2, Policy Statement 1-2, Principles of Quality.

IRM 1.2.1.2.36, Policy Statement 1-236 (Rev. 1), Fairness and Integrity in Enforcement Selection.

IRM 1.2.1.5.19, Policy Statement 4-63, No unwarranted adjustments in statutory notices.

The Director of SB/SE Examination Operations, Field Examination is the Executive responsible for providing policy and guidance to TS employees.

The Examination Area Directors in Examination Field with TS territories have executive responsibility for ensuring mandatory reviews are conducted on cases outlined in this IRM.

Cases subject to mandatory review are identified by several TS IRM 4.8 guidance. Field compliance areas may identify other types of cases for mandatory review if reviews are essential. Mandatory review of cases from designated programs for accuracy and quality may also be identified.

The following table lists the acronyms used throughout this IRM section.

Examiners identify case files subject to mandatory review on Form 3198, Special Handling Notice for Examination Case Processing. The applicable mandatory review category should be indicated.

Overpayment in excess of $2,000,000 ($5 million for C corporations) must be reported to and approved by the Joint Committee on Taxation as required by IRC 6405, Reports of Refunds and Credits.

Large Business and International (LB&I) field groups should send agreed, no change, and surveyed Joint Committee cases by means as established by LB&I Policy. See IRM 4.36.3.8.1, Electronic Referral Case Review (LB&I Cases, Except LB&I IIC), for additional information.

Small Business/Self-Employed (SB/SE) field groups follow IRM 4.36.3.8.2, Closed Case Review/Electronic Referral Case Review (LB&I IIC, SB/SE and TE/GE Cases).

Unagreed Joint Committee cases are sent to Technical Services and processed in the same manner as non-Joint Committee cases.

Complete instructions for processing and review of Joint Committee cases are included in IRM 4.36.

See the Joint Committee Knowledge Management home page located at https://portal.ds.irsnet.gov/sites/vl051/lists/jcc/landingview.aspx.

All employee return examinations, including returns accepted upon classification or surveyed, are subject to mandatory review. Except as reflected in paragraph 2 below, IRS employees, regardless of grade or position, are subject to the same initial screening and classification process. The general rules relating to examinations, proposed changes, appeal rights, and other case related issues, will apply to the same extent as they do for to all individual income tax returns. Once the case file is selected for examination, it is identified as an employee audit on Form 5546, Examination Return Charge-Out Sheet.

Survey procedures are applicable only to new employee examinations and regularly classified returns. Treasury mandates (TIGTA referrals) and executive selections cases cannot be surveyed.

Review of employee audits, including surveys, are centralized in the South Atlantic Area Technical Services Legacy Baltimore office. Employee audit cases are closed directly to the Baltimore Technical Services office. Technical Services forwards cases to the Independent Office of Appeals directly and the remaining cases are sent to the South Atlantic Area TS Legacy Baltimore office via Form 3210, Document Transmittal. The Independent Office of Appeals will forward the employee’s appeal case after their review to the Baltimore Technical Services for the mandatory review..

The RGS records on Correspondence Examination Automation Support (CEAS) should be updated to the centralized Technical Services RGS group identification number for the South Atlantic Area TS Legacy territory.

For more information on Employee Audits refer to the Knowledge Management site, Employee Audits-Exam Technical Services.

The individual tax returns for the President and the Vice President are subject to mandatory review and will be closed directly to the "employee audit reviewer" in Baltimore Employee Audit Contacts. See IRM 4.2.1.15 (8), Processing Returns and Accounts of the President and Vice President. The "Other" box in the "Forward to Technical Services" section of Form 3198 must be checked, and the examiner should notate "President (or Vice President) Examination, Forward to South Atlantic Area Technical Services Legacy Baltimore" . The examining area will notify the group manager for the Baltimore Technical Services when the return is being shipped. Baltimore Technical Services will provide advance notice to Memphis Centralized Case Processing (CCP), "Miscellaneous Group" , when the return is being closed.

The location of the returns of the President and Vice President will be monitored at all times throughout the examination process.

See IRM 4.8.4.2.3.3(1) (a) and (b) for key points to remember during the review of the returns.

Reviewers must remember to protect tax information when communicating with the taxpayer using a fax machine or EEFax. IRC 6103 provides details on the confidentiality and disclosure rules that must be followed when working with the taxpayer return or taxpayer return information. Refer to IRM 4.10.1.3.6, Use of Fax Machine or Enterprise e-Fax (EEFax) for Taxpayer Communication for guidance.

For additional information refer to IRM 21.2.3.5.5, Using Electronic Fax Services.