Confidential information related to the case file must be secured from unauthorized disclosure. All IRS employees are responsible for the security of Federal government property and sensitive taxpayer information. See IRM 10.5.1, Privacy Policy, for handling instructions and IRM 11.3, Disclosure of Official Information.

The protection of confidential tax data and taxpayer privacy extends to paper documents, computer data and portable media storage devices. Employees working offsite are responsible for protecting taxpayer data from improper disclosure, for storing and disposing of sensitive documents according to security protocols, and for ensuring that unauthorized persons do not overhear discussions with practitioners or their representatives.

Documents and other information may only be disclosed or released as authorized or required by applicable provisions of IRC 6103, the FOIA, or the Privacy Act of 1974 (5 USC 552a). See IRM 1.25.4.10.11, Procedures for Processing Practitioner File Requests in Disciplinary Cases, for additional information about disclosure of OPR records under FOIA and IRC 6103.

Refer any questions involving disclosure of official information to your manager or the Disclosure Office.

All documents in the case file are official government records, as well as potential evidence in an administrative hearing or any subsequent Federal District Court proceeding. They must be protected and maintained in their original, unaltered condition. Never write or use a highlighter pen on any documents received from a practitioner, his / her representative, or any third party. Even a minor pencil notation can render a document inadmissible due to the alteration. If an employee needs a work copy of a document, make a photocopy and return the original to the case file.

All written communication pertinent to the investigation is part of the official investigation, and must be maintained in the practitioner’s case file. This may include:

Under no circumstance will an employee dispose of or separate any case documents from the administrative file. This does not include tax transcripts that have been replaced by updated tax transcripts.

Employees, managers, and other government agencies, may need to use the file after the investigation is closed. The work papers in the case file are an important aspect of the overall quality of case work.

The following are reasons that the work papers should be neat and legible:

The following will help ensure that work papers are legible and professionally prepared:

Review the referral, background material, and supporting evidence.

Prepare a recommendation and, if appropriate, a Notice of Proposed Determination of Ineligibility and Letter of Transmittal.

The unenrolled return preparer has 30 calendar days from the date of service to respond to the Notice of Proposed Determination of Ineligibility, unless the time for filing is extended based on the preparer’s request.

If the unenrolled return preparer requests a conference (under section 10.02 of Rev. Proc. 81-38), schedule, as soon as possible, a conference at a time convenient to the unenrolled return preparer and OPR.

After any conference, and after any receipt from the unenrolled return preparer of additional information as discussed during the conference (or the deadline has passed), review the evidence in the case file as a whole to determine whether to proceed with an ineligibility determination.

Draft either a Determination of Ineligibility or Determination Regarding Eligibility (as appropriate), and a Letter of Transmittal to the unenrolled return preparer and to the preparer’s representative (if applicable).

Assuming a preparer is determined ineligible for limited practice, then after expiration of the 30 day period for filing an appeal:

An unenrolled return preparer served with a Determination of Ineligibility must appeal the Determination within 30 calendar days. An appeal must be written and signed by the preparer and includes the preparer’s reasons for appeal.

Under Rev. Proc. 81-38, an unenrolled return preparer may request, as part of an appeal, a conference. If the unenrolled return preparer requests a conference, schedule, as soon as possible, a conference at a time convenient to the unenrolled return preparer and OPR. If a request for a conference is not made in the appeal, or the unenrolled return preparer’s appeal is untimely, the unenrolled return preparer will be deemed to have waived the right to a conference.

After a conference (if any), make a preliminary determination on the appeal, incorporating into the record any additional information received from the unenrolled return preparer. The Director of OPR will grant or deny the appeal.

After the Decision on Appeal is rendered:

Rev. Proc. 81-38 entitles an unenrolled return preparer to request reinstatement of the privilege of limited practice after one year following the effective date of the Determination of Ineligibility or Decision on Appeal, whichever is later. Per the revenue procedure, any decision as to reinstatement "will consider the nature of the violation that resulted in ineligibility, the period of ineligibility, and the preparer's current adherence to the standards of ethics and conduct established by this revenue procedure in evaluating the request for reinstatement to limited practice."

When a request for a section 10.60 Proceeding pursuant to section 10.82(g) of Circular 230 is made to OPR, a new case is opened in CCMS. If possible, the employee who worked the XP Case, or the Attorney that attended the XP Case conference with a Paralegal, will be assigned the section 10.82(g) request for a section 10.62 Complaint.

Immediately determine if the section 10.82(g) request is timely. Once an Order for Indefinite Suspension has been mailed, the practitioner has two years from the action effective date to request in writing a section 10.60 Proceeding / 10.62 Complaint pursuant to section 10.82(g) of Circular 230.

With a timely 10.60 Request, immediately email a 10.60 Request Notification to management, the GLS Branch Chief, and the appropriate GLS Counsel. The email notification must include the 10.60 Request Received Date (i.e., the OPR stamped received date).

Develop and submit the draft Complaint, draft GLS Matrix, and a Cover Memorandum for approval within 20 calendar days of the 10.60 Request Received Date. If the draft Complaint cannot be submitted for approval within the first 20 calendar days, immediately notify management. If management agrees, submit the draft GLS Matrix and Cover Memorandum as soon as they are ready within the 20 calendar day period, and submit the draft Complaint no later than a date specified by the Section Manager.

Ensure that the original XP Case file contains all of the information and documentation required to successfully defend the Order of Indefinite Suspension pursuant to section 10.82. If any necessary documentation or information is missing (e.g., State Board / State Bar decisions, correspondence, copies of tax returns) immediately take appropriate action(s) to obtain the missing documents / information as soon as possible.

Research for other Circular 230 violations not associated with the original Order of Indefinite Suspension:

If a potentially new Circular 230 issue is discovered, immediately take action to obtain supporting documents as soon as possible (i.e., ESTAB requests and email requests to IRS personnel). Assess the documentation to determine whether there is proof to support a new allegation. If there is proof, OPR will inform GLS of the discovery of the new allegation.

Organize the original XP case file documentation into a six-panel red case folder. The six-panel red case folder will be kept at OPR and used throughout the 10.60 Request case. Documents not relevant to the original XP Case and the current 10.60 Request may be retained in the original XP case file. The six-panel red case folder is organized as follows starting with panel 1 on the inside of the left cover of the case file:

If OPR decides to pursue a new Circular 230 allegation with the intent to include it in the final Complaint as a supplemental allegation, attempt to mail a Supplemental Allegation Letter within two weeks of the 10.60 Request OPR Received Date. The Supplemental Allegation Letter should instruct the practitioner to respond directly to OPR and, whenever possible, the letter should provide the practitioner a minimum of 10 calendar days to respond.

Complete development of the draft Complaint and the draft GLS Matrix. The GLS Matrix must list the documents OPR will use as the "Evidentiary File." This includes all jurisdictional documents, procedural correspondence with the practitioner, and documents evidencing the elements of the alleged violation(s). The list of documents effectively covers Panels 2, 5, and 6 of the six-panel red case folder.

Submit the draft Complaint, draft GLS Matrix, and a Cover Memorandum for approval within 20 calendar days of the 10.60 Request Received Date. The Director must approve any draft Complaint or Revised Complaint prior to sending to the GLS Attorney.

Email the approved draft Complaint, draft GLS Matrix, and the Cover Memorandum to the GLS Attorney.

Prepare the evidentiary file in a two-panel green folder containing copies of the entire six-panel red folder, except for documents that are covered under the Privacy Act exemptions, such as attorney-work product, attorney-client, and deliberative process privileges, or, are immaterial or irrelevant. Effectively, Panels 1 and 3 of the OPR Six-Panel Red Case File are excluded. In practice, the evidentiary file will provide all documents listed in the GLS Matrix as OPR’s Evidentiary File.

Prepare a total of four evidentiary files (3 redacted and 1 un-redacted). Provide two of the redacted files to the GLS Attorney at least three business days prior to the 60 calendar day deadline. Under section 10.63(d), the practitioner is entitled to receive the evidence on which the complaint is based (a redacted copy of the evidentiary file) within ten calendar days of filing the Complaint. The two remaining evidentiary files (1 redacted, and 1 un-redacted) stay with OPR. Redactions should be should be in both italics and brackets.

Complete the final Complaint (or Revised Complaint), final GLS Matrix, and a Cover Memorandum. Upon receipt of the Director’s approval and no later than three business days prior to the 60 calendar day deadline:

The practitioner has 30 calendar days to respond. Subsequent action will depend on whether the practitioner timely files a proper response.

If the case proceeds to hearing, at the conclusion of discovery, the ALJ will schedule an evidentiary hearing date no later than 180 calendar days after the time for filing a response has elapsed. Hearings are formal events, and recorded by a court reporter with the testimony of all witnesses taken under oath. OPR will set up the court reporter.

If a hearing is held, the ALJ will set a briefing schedule in consultation with the parties. OPR will assist with the drafting of any post-hearing briefs. Within 180 calendar days after the conclusion of the hearing and the receipt of any post-hearing briefs (proposed finding of facts and conclusions of law) timely submitted by the parties, the ALJ should enter a Preliminary Decision and Order. With an entered decision, the ALJ will also forward the ALJ’s judicial file to OPR. An ALJ’s file constitutes an official administrative record. OPR is responsible for producing the entire official administrative record if there is a request for an appeal to the AA. The AA should only review information presented to the ALJ that is part of the official record. The ALJ administrative file should never be altered in any way.

If a Motion for Summary Adjudication is filed, the ALJ should rule on the motion within 60 calendar days after the party in opposition files a written response, or after 90 calendar days if no written response is filed.

After the ALJ Decision, as a courtesy, immediately prepare for the practitioner a letter detailing the procedures for appeal including the Rights and Responsibilities document, along with a copy of the ALJ Decision. A copy of the Guidance on Restrictions During Suspension or Disbarment will be provided if the ALJ Decision imposed either a suspension or disbarment and the practitioner does not appeal timely.

Either party has 30 calendar days from the date the ALJ decision is served on the parties (section 10.77(b)) to appeal by filing a Notice of Appeal (NoA) and supporting brief with the Treasury AA. The AA makes the final agency decision (FAD).

If the practitioner (the respondent in the proceeding) appeals the ALJ Decision, the practitioner will serve a copy of the NoA and brief on OPR. Upon receipt, OPR transmits the copies to HQ GLS, the appropriate GLS Area Counsel, and OPR’s Director.

The assigned OPR attorney should immediately transmit a copy of the practitioner’s NoA and supporting brief to the Legal Processing Division of CC:P&A (LPD) (effectively, the Counsel Service Desk for the AA). Bring one additional copy of the Letter of Transmittal to be time and date stamped as proof of filing the practitioner’s appeal with the LPD and provide GLS a copy of the time and date stamped Letter of Transmittal as proof of filing, if requested.

The response brief for OPR must be filed with LPD within 30 calendar days after OPR is served with the practitioner’s NoA. If OPR has already received the ALJ’s case file (Administrative Record), proceed to copy the Administrative Record and submit it with the practitioner’s NoA and brief to LPD.

Prepare the Proof of Service, the Administrative Record (if not previously submitted), and a Letter of Transmittal to accompany the response brief. Deliver the documents to LPD. Bring one additional copy of the Letter of Transmittal to be time and date stamped as proof of filing the responsive brief with the LPD and provide GLS a copy of the time and date stamped Letter of Transmittal as proof of filing, if requested.

At the same time as the response brief is filed with the LPD for transmission to the AA, OPR serves a copy of the response brief on the practitioner or, if the practitioner is represented, the practitioners representative. Retain in the case file one copy of all documents filed with the AA.

For an OPR appeal, the NoA, brief, Proof of Service, and Administrative Record (from the ALJ’s file), along with a Letter of Transmittal, are delivered to the LPD.

At the same time as OPR’s NoA and supporting brief are filed with LPD for transmission to the AA, OPR serves a copy of the NoA, brief, and administrative file on the practitioner or, if the practitioner is represented, on the practitioner’s representative.

The practitioner has 30 calendar days to file a reply brief. Immediately upon receipt of the practitioner’s reply brief OPR will transmit it to HQ GLS and the appropriate GLS Area Counsel. OPR will also immediately deliver the practitioner’s brief to LPD. OPR will bring one additional copy of the Letter of Transmittal to be time and date stamped as proof of filing the practitioner’s reply brief with LPD. OPR will provide GLS a copy of the time and date stamped Letter of Transmittal as proof of filing, if requested. OPR retains in the case file one copy of all documents filed with the AA.

In accordance with section 10.78 of Circular 230, the AA should issue a Decision on Appeal within 180 calendar days after receipt of the appeal. The AA’s Decision on Appeal constitutes the FAD when issued.

While the AA Decision on Appeal may be appealed by the practitioner to a Federal District Court, OPR proceeds with announcing the sanction in the IRB and updating the practitioner’s practice status.

Should the practitioner disagree with the AA’s Decision on Appeal, a complaint may be filed in Federal District Court. The Federal District Court reviews the entire administrative record. The proceeding is not a new trial. The Administrative Procedure Act contains provisions governing the proceeding (Refer to 5 USC 551-559, 702). After the AA issues a Decision on Appeal, the AA will also forward the appellate case file to OPR. An AA’s file constitutes an official administrative record of the Agency. OPR is responsible for producing the entire official administrative record if a complaint is filed in Federal District Court.

The ALJ decision becomes a FAD if neither party appeals within 30 calendar days from the date of the ALJ decision. If either party appeals to the AA, then the AA Decision on Appeal becomes the FAD when issued.

After a FAD:

If settlement cannot be reached, a complaint, described in section 10.62, will be filed to initiate an administrative hearing before an ALJ. Attorneys from the IRS Office of Chief Counsel - GLS file the administrative complaint and represents OPR at an administrative hearing before the ALJ. The ALJ issues a decision that may be appealed by either OPR or the practitioner to the Treasury AA, who will then render the FAD.

The MOU between OPR and GLS provides that OPR performs litigation support and the assigned OPR attorney acts as the OPR point of contact for GLS. GLS litigates the case.

OPR will consider settlement negotiations with a practitioner throughout the 10.60 hearing process.

A final check should be completed of the existing allegations, as detailed in the Allegation Letter, and a final check done for additional Circular 230 misconduct outside the scope of the original case. Request and obtain supporting documents for any possible supplemental Circular 230 misconduct. If additional provable misconduct is discovered, a superseding Allegation Letter must be sent to the practitioner in order to provide proper notice and opportunity to respond.

For tax-compliance allegations, update the compliance history by checking both the existing allegations (of unfiled returns and balances) as well as any recent filing requirements of the practitioner not reflected in the Allegation Letter. Tax transcripts should be checked within two weeks after sending the file to GLS for recent filings or other account activity. Additional counts of tax non-compliance (for other tax years or quarters), of the same basic type previously included in the Allegation Letter, may be included for the first time in the GLS Last Chance Letter to provide the practitioner notice and opportunity to respond before the additional allegations are included in the Administrative Complaint.

If substantial recent tax non-compliance is found, such as involving business entities with which the practitioner is associated, then a superseding Allegation Letter must be sent. Generally, for cases that at the time of the Allegation Letter were limited to conduct as a practitioner, a superseding allegation letter is mandatory to newly raise any tax-compliance allegations.

Prepare the case file for GLS. Review the original case file, particularly the file memorandum, and determine whether all supporting documentation for the proceeding is present. If not, supplement the file as soon as possible.

Organize the original case file into a six-panel red case folder. The six-panel red case folder will be kept at OPR and used throughout the 10.60 process. Documents not relevant to the allegations in the 10.60 proceeding may be retained in the original green case file . The six-panel red case folder is organized as follows starting with panel 1 on the inside of the left cover of the case file:

Prepares the appropriate GLS documents by drafting a GLS Cover Memorandum, GLS Matrix, and draft Administrative Complaint.

After the GLS documents are approved by the Director of OPR, email the GLS documents (GLS Cover Memorandum (signed by the Director), GLS Matrix, and the draft Administrative Complaint) to the appropriate GLS Area Counsel and GLS Branch Chief (Claims, Labor and Personnel Law Branch). Hard copies of the GLS Matrix and Cover Memorandum are mailed to the appropriate GLS Area Counsel.

All future documents and correspondence in the case will be sent from OPR to the GLS attorney assigned to the case.

Prepare the GLS case file in a two-panel green folder by copying relevant documents from OPR’s six-panel red case folder. All original documents remain with OPR. Make two copies of the GLS case file. One copy will be kept as proof of what documents were sent to GLS.

Ship, per IRS procedures (See IRM 1.22.3, Addressing and Packaging), one copy of the green GLS case file to GLS.

No later than seven calendar days after the initial 28 day review period and after receipt of any supplemental information GLS requests from OPR, GLS sends a Last Chance Settlement Letter to the practitioner outlining the proposed counts to be included in the Administrative Complaint. The practitioner has 21 calendar days to respond to the letter.

If the practitioner responds to the Last Chance Settlement Letter and proposes a settlement, the settlement proposal will be duly considered. A determination will be made to accept, reject, or make a counter-offer. The Matrix should include a short section prescribing a settlement range for GLS to work within during negotiations with a practitioner and reach a tentative agreement, subject to OPR’s acceptance and to finalization.

Begin preparing the evidentiary file if:

The evidentiary file must be completed within 10 calendar days of filing the original complaint. It is a copy of the entire six-panel red folder, except for documents that are exempt from disclosure under applicable law, such as attorney-work product, pre-decisional material protected by the deliberative-process privilege, or immaterial or irrelevant information in relation to the proceeding. In practice, the evidentiary file will provide all documents listed in the GLS Matrix as OPR’s Evidentiary File.

In a two-panel green folder, copy all relevant documents. All original documents remain with OPR. Per section 10.72(d)(3)(iv), redact all relevant third-party tax return information or other identifying information from the evidentiary file and code each redaction. A key to the redaction codes must be provided separately to allow the practitioner to decipher the codes. The ALJ will also use the redaction codes, if third-party tax information is to be included in the Decision.

Two copies of the evidentiary file are mailed to GLS and an email is sent with the redaction key. One copy is for GLS and the second is for the practitioner. The formal evidentiary file must be provided by GLS to the practitioner within 10 calendar days of filing the Complaint. Retain one unredacted and one redacted copy of the entire evidentiary file.

The expiration of the 21-day response period for the practitioner to reply to the GLS Last Chance Letter will ordinarily result in filing with the presiding ALJ the finalized complaint. The practitioner has 30 calendar days to respond to the complaint from the date of service on the practitioner.

If the practitioner does not file a proper response (pursuant to section 10.64(b)) within 30 calendar days of service of the complaint and does not request an extension of time from the ALJ, GLS files a Motion for Default Judgment with the ALJ, and serves the Motion for Default Judgment on the practitioner. The content of the motion is coordinated with OPR.

If the practitioner files a proper response (pursuant to section 10.64(b)) to the Complaint within 30 calendar days of service, or within an extension period as provided by the ALJ:

After a pre-hearing conference call with GLS and the practitioner (or representative), the ALJ will issue a Prehearing Conference Report and Scheduling Order. If a deposition of the practitioner is desirable, it will be discussed at the prehearing conference. The Scheduling Order will outline the timeframes for the matter to move forward, including any deposition, with the goal of holding a hearing within 180 calendar days from the time the practitioner’s response was due.

If the case proceeds to hearing, at the conclusion of discovery, the ALJ will schedule an evidentiary hearing date no later than 180 calendar days after the time for filing a response has elapsed. Hearings are formal events, and recorded by a court reporter with the testimony of all witnesses taken under oath. OPR will set up the court reporter.

If a hearing is held, the ALJ will set a briefing schedule in consultation with the parties. OPR will assist with the drafting of any post-hearing briefs. Within 180 calendar days after the conclusion of the hearing and the receipt of any post-hearing briefs (proposed finding of facts and conclusions of law) timely submitted by the parties, the ALJ should enter a Preliminary Decision and Order. With an entered decision, the ALJ will also forward the ALJ’s judicial file to OPR. An ALJ’s file constitutes an official administrative record. OPR is responsible for producing the entire official administrative record if there is a request for an appeal to the AA. The AA should only review information presented to the ALJ that is part of the official record. The ALJ administrative file should never be altered in any way.

If the ALJ grants a Motion for Default Judgment under section 10.64(d), in circumstances where the practitioner failed to properly respond, then a Default Decision will be entered by the ALJ. The ALJ serves a copy of the Default Decision on GLS and the practitioner. GLS will provide OPR with a copy.

If a Motion for Summary Adjudication is filed, the ALJ should rule on the motion within 60 calendar days after the party in opposition files a written response, or after 90 calendar days if no written response is filed.

After the ALJ Decision, as a courtesy, immediately prepare for the practitioner a letter detailing the procedures for appeal including the Rights and Responsibilities document, along with a copy of the ALJ Decision. A copy of the Guidance on Restrictions During Suspension or Disbarment will be provided if the ALJ Decision imposed either a suspension or disbarment and the practitioner does not appeal timely.

Either party has 30 calendar days from the date of the ALJ decision is served on the parties (section 10.77(b)) to appeal by filing a Notice of Appeal (NoA) and supporting brief with the Treasury AA. An AA, through a series of delegations from Treasury, General Counsel, and Chief Counsel, is designated to review and independently decide appeals from ALJ decisions in OPR cases. The AA makes the FAD.

If the practitioner (the respondent in the proceeding) appeals the ALJ Decision, the practitioner will serve a copy of the NoA and brief on OPR. Upon receipt, OPR transmits the copies to HQ GLS, the appropriate GLS Area Counsel, and OPR’s Director.

The assigned OPR attorney should immediately transmit a copy of the practitioner’s NoA and supporting brief to the Legal Processing Division of CC:P&A (LPD) (effectively, the Counsel Service Desk for the AA). Bring one additional copy of the Letter of Transmittal to be time and date stamped as proof of filing the practitioner’s appeal with the LPD and provide GLS a copy of the time and date stamped Letter of Transmittal as proof of filing, if requested.

GLS, in consultation with OPR, drafts OPR’s response brief. The brief must be filed with LPD within 30 calendar days after OPR is served with the practitioner’s NoA. If OPR has already received the ALJ’s case file (Administrative Record), proceed to copy the Administrative Record and submit it with the practitioner’s NoA and brief to LPD.

Prepare the Proof of Service, the Administrative Record (if not previously submitted), and a Letter of Transmittal to accompany the response brief. Deliver the documents to LPD. Bring one additional copy of the Letter of Transmittal to be time and date stamped as proof of filing the responsive brief with the LPD and provide GLS a copy of the time and date stamped Letter of Transmittal as proof of filing, if requested.

At the same time as the response brief is filed with the LPD for transmission to the AA, OPR serves a copy of the response brief on the practitioner or, if the practitioner is represented, the practitioners representative. Retain in the case file one copy of all documents filed with the AA.

If OPR, in consultation with GLS, decides to appeal, then GLS, with assistance from OPR, drafts the NoA and brief. Compile the Proof of Service, the Administrative Record (from the ALJ’s file), and a Letter of Transmittal. Deliver the entire package to the LPD. Bring one additional copy of the Letter of Transmittal to be time and date stamped as proof of filing OPR’s appeal with the LPD and provide GLS a copy of the time and date stamped Letter of Transmittal as proof of filing, if requested.

At the same time as OPR’s NoA and supporting brief are filed with LPD for transmission to the AA, OPR serves a copy of the NoA, brief, and administrative file on the practitioner or, if the practitioner is represented, on the practitioner’s representative.

The practitioner has 30 calendar days to file a reply brief. Immediately upon receipt of the practitioner’s reply brief OPR will transmit it to HQ GLS and the appropriate GLS Area Counsel. OPR will also immediately deliver the practitioner’s brief to LPD. OPR will bring one additional copy of the Letter of Transmittal to be time and date stamped as proof of filing the practitioner’s reply brief with LPD. OPR will provide GLS a copy of the time and date stamped Letter of Transmittal as proof of filing, if requested. OPR retains in the case file one copy of all documents filed with the AA.

In accordance with section 10.78 of Circular 230, the AA should issue a Decision on Appeal within 180 calendar days after receipt of the appeal. The AA’s Decision on Appeal constitutes the FAD when issued.

While the AA Decision on Appeal may be appealed by the practitioner to a Federal District Court, OPR proceeds with announcing the sanction in the IRB and updating the practitioner’s practice status.

Should the practitioner disagree with the AA’s Decision on Appeal, a complaint may be filed in Federal District Court. The Federal District Court reviews the entire administrative record. The proceeding is not a new trial. The Administrative Procedure Act contains provisions governing the proceeding (Refer to 5 USC 551-559, 702). After the AA issues a Decision on Appeal, the AA will also forward the appellate case file to OPR. An AA’s file constitutes an official administrative record of the Agency. OPR is responsible for producing the entire official administrative record if a complaint is filed in Federal District Court.

The ALJ decision becomes a FAD if neither party appeals within 30 calendar days from the date of the ALJ decision. If either party appeals to the AA, then the AA Decision on Appeal becomes the FAD when issued.

After a FAD:

In order to ensure timely and relevant publicity, it is imperative that the Office of the Director be notified of all ALJ and AA decisions immediately upon receipt. For noteworthy cases, the Director will request a preliminary draft press release.

For press releases, consent agreements, suspensions, disbarments, or practitioner reinstatements are the only potential instances when publicity may be issued. For BUN articles, consent agreements in which a press release has been negotiated and practitioner reinstatements are the only instances when publicity may be issued. Both are given the following requirements:

It is imperative that the press release being drafted after a FAD contain only disclosable information, under section 6103 and Circular 230. If a press release is being negotiated pursuant to a negotiated settlement, the extent of disclosure may be broader than in a nonconsensual case, but regardless the BUN should not exceed the information agreed to for the press release.

If a press release negotiated with the practitioner will include tax information of the practitioner that is not publicly available as a matter of law, the settlement must include a separate written disclosure consent addressing only the disclosure. The separate disclosure consent can be an exhibit or attachment to the substantive settlement agreement. See 26 CFR 301.6103(c)-1.

The Director will collaborate with Media Relations to publish the final press release.

The finalized press release is posted to OPR’s News and guidance on IRS.gov/ and sent out via OPR’s Bulletin.

The finalized BUN article is posted to OPR’s Business Units News webpage on OPR’s internal website. The article is also posted on IRWeb’s homepage under News From the Business Units.

Upon closure of a case that results in a suspension, disbarment, reinstatement, CAF Notification Letter, or C&D Letter, notify the IRS CAF Unit and EAP&M (for EA’s only) by email to update the practitioner’s eligibility status.

Update a practitioner’s eligibility to the OPR intranet database.

Upon closure of a case that results in a suspension, disbarment, censure, or reinstatement (if requested by the practitioner), include the practitioner in an IRB submission.

All closed case files with sanctions are reviewed by the designated IRB coordinator within OPR and included in the IRB. In preparing for the IRB posting:

Post the finalized IRB to OPR’s Disciplinary sanctions - Internal Revenue Bulletin webpage on IRS.gov/ and send out via OPR’s Bulletin.

Provide instructions to the practitioner on how and where to remit the penalty, discussed below.

Prior to being assigned cases for processing, obtain access to ANMF by submitting an OL5081 for the ANMF-TCC-RESEARCH GROUP ORACLE to receive research access as well as capability to update the Title 31 penalties account histories.

There are two types of settlement agreements relevant to this section:

Settlement agreements are drafted when the parties appear to be agreeable to settlement without further litigation. Draft agreements are provided first to the individuals and firms involved in the matter for their signatures. After being signed and returned, the documents are final only when they are signed by the Director, OPR.

Agreements are not final until all necessary signatures are received, but individuals and firms are to be encouraged to submit the remittance along with their signed agreement. Remittances cannot be processed until the agreement is final.

Once all signatures are in place, if a remittance did not accompany the draft agreement, secure from the practitioner, firm or other entity which has agreed to a monetary penalty as part of a settlement a check or money order made out to the United States Treasury in the agreed amount of the monetary penalty.

The transmittal memorandum along with a copy of the signed agreement should be transmitted as indicated below. The fax cover sheet should instruct that the settlement agreement be routed to the Accounting Branch for assessment.
≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Using a method of overnight delivery, transmit the payment, Form 3210 and the related Form 3244-A to the address indicated below. See IRM 1.22.3 , Addressing and Packaging. The check or money order shall be accompanied by a copy of the transmittal memorandum.
Internal Revenue Service
201 West River Center Blvd.
≡ ≡ ≡ ≡ ≡
≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
Covington, KY 41011

Follow up with respect to the above remittance by regularly checking the relevant ANMF account to ensure that there has not been a dishonored check or money order. If ANMF shows that the check or money order has been dishonored, then the matter needs to continue to be handled as if it were imposed by a FAD.

Upon obtaining a FAD imposing a monetary sanction:

The stub on the notice will indicate that the remittance should be mailed or delivered to the appropriate OPR address, either in the National Headquarters building or elsewhere, if applicable. Monitor the account to ensure payment is received.

When in receipt of the remittance, use express overnight delivery to transmit the payment, Form 3210 and the related Form 3244-A to the address indicated below. See IRM 1.22.3, Addressing and Packaging. The check or money order shall be accompanied by a copy of a transmittal memorandum identical to that which would be used in an agreed case and will include a copy of the FAD.
Internal Revenue Service
201 West River Center Blvd.
≡ ≡ ≡ ≡ ≡
≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
Covington, KY 41011

When the monetary payment is not received by the anticipated due date, contact OPR's Special Counsel to the Director who will coordinate with the Office of Chief Counsel in providing advice regarding the amount of interest due.

Interest will be calculated pursuant to 31 USC 3717. Use Form 3465, Adjustment Request, and direct to the Kansas City Submission Processing Campus (*ITS KCSPC Non-Master File Team).

In the event the practitioner or firm is uncooperative in remitting payment, generate follow-up notices every 30 calendar days until a Fourth Notice.

Alert the Director for facilitating the consideration of all available options in protecting the interest of the United States Government including but not limited to:

Freedom of Information Act: 5 USC 552. FOIA requires federal agencies to disclose records sought by written request (i.e., by a FOIA request) unless a FOIA exemption applies. There are a handful of FOIA exemptions that are often applicable in OPR cases, but of most significant note in the context of practitioner requests for files is:

Title 26 USC 6103(e): "Disclosure to persons having material interest.-- (1) In general.--The return of a person shall, upon written request, be open to inspection by or disclosure to-- (A) in the case of the return of an individual-- (i) that individual…" Key Practical Points for 6103(e): Under subsection (e)(7) of section 6103, persons having a material interest in a return also have a material interest in associated "return information." For compliance cases under section 10.51(a)(6) of Circular 230, practitioners, and their representatives (upon submission of a properly executed Form 2848), are entitled under IRC 6103(e)(7) to the practitioner’s own return information, unless a determination is made that disclosure would seriously impair tax administration. They do not need to, nor should they, invoke the provisions of FOIA. OPR, like all BODs, has delegated authority under IRC 6103(e) to respond to a taxpayer’s request for his / her own tax records. To the extent that practitioners with OPR cases pending obtain their own return information from OPR, they are free to re-disclose that information as they wish.

Title 26 USC 6103(l)(4): "Disclosure of returns and return information for use in personnel or claimant representative matters.--The Secretary may disclose returns and return information-- * * * (ii) to any person, or to the duly authorized legal representative of such person, whose rights are or may be affected by an administrative action or proceeding under section 330 of title 31, United States Code, solely for use in the action or proceeding, or in preparation for the action or proceeding, but only to the extent that the Secretary determines that such returns or return information is or may be relevant and material to the action or proceeding; …" Key Practical Points for 6103(l)(4): To the extent that a practitioner’s pending Circular 230 case involves third-party tax information (as it almost inevitably will when the case involves the practitioner’s alleged misconduct as an advisor, return preparer or representative of others), 6103(l)(4), not FOIA, is the mechanism for producing material from the OPR administrative file to the practitioner (or the practitioner’s representative). All recipients of 6103(l)(4) information receive this information with limitations on its re-disclosure. As part of a request for the information, practitioners and representatives must acknowledge, in writing and under their signatures, the restrictions and the civil and criminal penalties for improper disclosure.

Circular 230, section 10.63(d): "Service of evidence in support of complaint. Within 10 days of serving the complaint, copies of the evidence in support of the complaint must be served on the respondent in any manner described in paragraphs (a)(2) and (3) of this section." Key Practical Points for section 10.63(d): As provided in Circular 230, practitioners who are parties to an ALJ hearing have a right to the relevant, non-privileged, documents in their case. OPR intends to make 10.63(d) documents available as soon as the practitioner wants them, while the practitioner’s matter is still pending with OPR on a pre-complaint basis. It is the expectation of Treasury that Circular 230 proceedings are, in practical effect, "open file" to an accused practitioner. OPR expects to withhold documents rarely - and those documents will likely be items protected by the work product doctrine or other evidentiary privilege. Notwithstanding this transparency policy, the acknowledgement discussed in paragraph (3) above must be obtained by OPR before making any third-party tax information available to a practitioner or the representative, and the case must still be active, i.e., the practitioner still has a need for the material to defend in the Circular 230 disciplinary proceeding. Requests for third-party tax information made after an OPR case has been closed (irrespective of the manner in which closure has occurred) are FOIA or Privacy Act requests and should be referred to PGLD immediately upon receipt.

In order to determine whether a request should be processed under the FOIA (and therefore controlled by PGLD) or section 6103 (and therefore handled directly by OPR), first look to the essence of the case that is the subject of the request and initiate a response according to how the essence of the case matches the most relevant authority governing production. There are four general request types, as follows:

When a request for information comes in from a practitioner (or representative) on that practitioner’s case, determine which of the first three categories above is controlling by conferring with management, as needed. Requests from third parties regarding a specific case will be processed as a "Generic FOIA" (category 4) request. Requests for OPR documents outside the context of a particular case will be directed to staff on a case-by-case basis for handling as a FOIA. Production of records in response to the request will go forward as provided above, depending upon the category.

With respect to FOIA requests, these must be promptly sent to PGLD for control. PGLD needs the incoming request immediately, to determine if it is a perfected request and, if so, will in turn assign a disclosure specialist who will control the case and contact OPR.

After management review, FOIA requests should be scanned from hardcopy and sent promptly to:
IRS FOIA Request
IRS-GLDS Support Services
4800 Buford Highway
≡ ≡ ≡ ≡ ≡ ≡ ≡
Chamblee, GA 30341
≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

FOIA contains statutory response times. Consistent with principles of transparency, respond to administrative-file requests under 6103(e)(1)(A)(i) and (e)(7), or 6103(l)(4), in a comparable timeframe, barring unusual circumstances. If a delay is unavoidable, notify and consult with management at the earliest possible time.

The following timeframes apply to production of practitioners’ requests for case files.

When a practitioner requests the contents of his / her file, a copy of the request should be immediately scanned and emailed to the Section Manager and to Special Counsel to the Director.

For document requests in the two categories described above in IRM 1.25.4.10.11.2(1)(a) and (b), have the entire contents of the file reproduced and make initial evaluations regarding material that should be withheld pursuant to a privilege within five business days of OPR’s receipt of the practitioner’s request.

Consultation with Special Counsel should occur as necessary. The proposed response, complete with Letter of Transmittal, should be submitted to the Director within 15 business days of receipt of the request. The final response should be sent within 20 business days of receipt of the request.

For requests in the two categories described above in IRM 1.25.4.10.11.2(1)(c) and (d), a copy of the request should be immediately scanned and emailed to the appropriate Section Manager and to Special Counsel. The request should be transmitted to PGLD within one business day of receipt. For these requests, PGLD is operating under its own, strictly defined timeframes. With these requests, OPR’s responses should be made within deadlines prescribed by PGLD (unless extended by agreement of OPR and PGLD). For FOIA requests, agency responses generally must be made within 20 business days.