This IRM provides an overview of the responsibilities that examiners should understand and apply in the performance of their duties.

By law, the Service has the authority to conduct examinations under Title 26, Internal Revenue Code, Subtitle F – Procedure and Administration, Chapter 78, Discovery of Liability and Enforcement of Title, Subchapter A, Examination and Inspection, which includes, but is not limited to, the following IRC sections:

The Director, Examination Headquarters, is the executive responsible for providing policy and guidance for field employees and ensuring consistent application of policy, procedures and tax law to effect tax administration while protecting taxpayers’ rights. See IRM 1.1.16.5.5, Examination Headquarters, for additional information.

The Director, Examination Field and Campus Policy, reports to the Director, Examination Headquarters, and is responsible for the delivery of policy and guidance that impacts the field examination process. See IRM 1.1.16.5.5.1, Examination Field and Campus Policy, for additional information.

Field Examination General Processes (FEGP), which is under the Director, Examination Field and Campus Policy, is the group responsible for providing policy and procedural guidance on standard examination processes to field employees. See IRM 1.1.16.5.5.1.1, Field Examination General Processes, for additional information.

All examiners must perform their professional responsibilities in a way that supports the IRS Mission. This requires examiners to provide top quality service and to apply the law with integrity and fairness to all.

Income tax examiners and their managers should thoroughly acquaint themselves with the examination procedures and information contained in this IRM, as well as other resources, such as those listed in IRM 4.10.1.1.7, Related Resources, below.

Reports to monitor the current year’s work plan, as well as specific programs, are derived from a variety of sources including the Audit Information Management System (AIMS), AIMS - Centralized Information System (A-CIS), and Examination Returns Control System (ERCS) databases. These reports provide Headquarters and Field Examination with timely and reliable information. There are a variety of reports designed to meet the needs of the group or function. Many of the reports used to monitor examination processes are listed in the table below:

Periodic program reviews are conducted to:

Additional information can be found in IRM 4.4.27, Reports; IRM 4.7.6, Reports; and IRM 1.4.40.5, Monitoring Reports Overview.

The following table defines the key terms used throughout this IRM.

The following table defines commonly used acronyms used throughout this IRM.

The following table lists the primary sources of guidance in IRM Part 4, Chapter 10, that examiners will use.

In addition to the list in the table above, there are other relevant IRMs examiners will use, including, but not limited to:

Helpful information can be found on websites, including, but not limited to the following:

The Taxpayer Bill of Rights (TBOR) lists rights that already existed in the tax code, putting them in simple language and grouping them into 10 fundamental rights. Employees are responsible for being familiar with and acting in accord with taxpayer rights. See IRC 7803(a)(3), Execution of Duties in Accord with Taxpayer Rights. For additional information about the TBOR, see Taxpayer Bill of Rights.

The Taxpayer Bill of Rights (TBOR) provides the nation's taxpayers with a better understanding of their fundamental rights when dealing with the IRS. Pub 1, Your Rights as a Taxpayer, contains the TBOR and is provided to taxpayers at the beginning of an audit. The TBOR takes multiple rights and groups them into ten broad categories. IRC 7803(a)(3) requires the IRS Commissioner ensure that IRS employees are familiar with taxpayer rights, including the ten that make up the TBOR.

Examiners must formally notify the taxpayer of their rights by issuing Pub 1 with the initial contact letter (Section 6227 in Subtitle J (commonly referred to as TBOR I) of the Technical and Miscellaneous Revenue Act of 1988, Public Law 100-647). Also see IRM 4.10.2.8.1, Making Initial Contact.

During the initial conversation with the taxpayer by telephone or in person, examiners must explain and discuss the taxpayer's rights as outlined in Pub 1 and answer any questions the taxpayer may have. See IRM 4.10.2.8.2(2), Initial Telephone Conversation, and IRM 4.10.3.3(6), Interviews: Authority and Purpose, for additional guidance.

This section discusses how each taxpayer right referenced in the TBOR impacts the examination process, as shown below:

This section also provides additional detail regarding taxpayer rights, as follows:

The IRS Restructuring and Reform Act of 1998 (RRA ‘98) was signed into law on July 22, 1998, resulting in changes to tax law as well as in the structure and functioning of the IRS. In addition, RRA 98 resulted in a focus on improving customer service and expanded taxpayer rights. All employees should be familiar with the provisions in RRA 98, including the following:

RRA 98 did not change the Service’s long-standing commitment to the fair and equitable treatment of all taxpayers set forth in Rev. Proc. 64-22. The pertinent part of Rev. Proc. 64-22 states the law will be administered in a reasonable, practical manner. Issues should be raised by examiners when they have merit and never arbitrarily or for trading purposes.

Internal Management Documents (IMDs) are official communications that designate authorities and/or disseminate instructions to staff for IRS officials and employees. IMDs include:

Policy statements can form the basis for procedures and instructions in the IRM. Policy statements that relate to the taxpayer’s rights and examination process can be found in IRM 1.2.1, Servicewide Policy Statement.

The examiner should discuss the progress of the examination and proposed issues with the taxpayer or representative at frequent intervals throughout the examination.

Examiners should ensure verbal communication is firm, courteous, businesslike and professional by:

All correspondence must contain the name of the person to contact (examiner or group manager depending on the type of letter), telephone number, personal identification number, and a signature. See IRM 4.10.1.2.2.2, Employee Contact Information, for guidance.

When possible, all correspondence with taxpayers should be prepared using approved form letters, since the specific language in these documents has been approved for general public use. RGS generated letters should be used when the most current version of the letter is available within RGS (some LB&I examiners will generate letters using IMS).

Written communication to the taxpayer or representative must:

Except for messages discussed in IRM 4.10.1.3.2.1, Ministerial Messages, original correspondence created by examiners must be:

If mail is returned as undeliverable after the case is closed, follow the procedures in IRM 4.10.8.2.3.1(8), Letters. If the taxpayer’s address requires an update, see IRM 4.10.8.14.4, Form 2363.

Generally, a qualified representative is authorized to receive any notice or other written communication required or permitted to be given to the taxpayer in the matter concerning the taxpayer, as directed on Form 2848, Power of Attorney and Declaration of Representative, or Form 8821, Tax Information Authorization. See IRM 4.11.55, Power of Attorney Rights and Responsibilities, for additional information.

Examiners are required to prepare and send Letter 937, Transmittal Letter for Power of Attorney, to the power of attorney (POA) to transmit copies of correspondence addressed to the taxpayer.

Copies of letters and other forms and documents addressed or specific to the taxpayer should be enclosed with Letter 937, Transmittal Letter for Power of Attorney, and sent to the representative at the same time they are sent to the taxpayer. Examples of other forms and documents addressed or specific to the taxpayer include but are not limited to Form 4564, Information Document Request; Form 872, Consent to Extend the Time to Assess Tax; Form 4549, Report of Income Tax Examination Changes, etc.

Blank forms, notices and publications available on IRS.gov should not be sent to the taxpayer's representative or appointee, including, but not limited to:

Inadvertent disclosures in correspondence may result from incorrect addressee, address, SSN or name mismatch, and include letters that are not cleared of existing taxpayer data before generating a letter to a new taxpayer, double stuffed envelopes or documents attached to a letter or notice for a different taxpayer.

If an inadvertent disclosure in correspondence occurs, employees are responsible for reporting the incident or potential incident of Erroneous Taxpayer Correspondence (ETC) to the Office of Taxpayer Correspondence through the Report Erroneous Correspondence (Red Button) process within one hour of discovering the incident. See IRM 25.13.1.3, Erroneous Correspondence Procedures - Report Erroneous Correspondence Process, and IRM 10.5.4, Incident Management Program, for additional guidance.

Answering machines and voice mail are frequently used when communicating with taxpayers, representatives, and other IRS employees. These systems are not secure and may not be used to transmit sensitive information, including tax information, except under the provisions of IRC 6103.

Guidelines for leaving information on answering machines/voice mail are in IRM 10.5.1.6.7.2, Answering Machine or Voice Mail.

IRC 6103 provides details on the confidentiality and disclosure rules that must be followed when working with taxpayer return or taxpayer return information. Examiners must remember to protect tax information when using a fax machine or Enterprise Electronic Facsimile (EEFax). EEFax provides the ability to send, receive, route and deliver fax documents electronically using Microsoft Outlook. EEFax converts incoming fax images to Adobe Portable Document Format (PDF) and directs them to the email system.

Tax information should only be faxed in situations where the authorized recipient has approved (written or verbal depending on the facts and circumstances) use of the faxing method for the information involved (see IRM 10.5.1.6.9.4, Faxing).

Taxpayers must be informed that any documents sent via fax are subject to risk due to the security limitations inherent in the use of fax technology (i.e., there is a risk that someone who is not authorized may receive or see their tax information). In addition, the examiner must use a cover sheet on all transmissions. See IRM 10.5.1.6.9.4, Faxing, and the corresponding Faxing Page on Knowledge Management for additional guidance on what must be included on the cover sheet.

Generally, a taxpayer or representative can verbally consent to fax transmissions, (including EEFax). The verbal consent must be documented in the workpapers. However, if the taxpayer uses a third party e-fax provider, a valid, written consent from the taxpayer designating the e-fax service provider as a recipient of tax information is required (see IRM 4.10.1.3.6.1 below).

For additional information, see the Enterprise eFax (EEFax) website.

Taxpayer submissions of documentation, forms, letters, and returns related to post-filing/non-filing inquiries and interactions can be allowed via fax unless there is a specific prohibition.

Documentation, forms, and letters requiring the taxpayer’s signature may be received by fax when contact with the taxpayer has been made and documented.

The following specific documents/forms/letters will continue to be accepted by fax in routine operations. The list is not all inclusive:

The following specific documents/forms/letters can be accepted by fax if contact has been made with the taxpayer by phone or in-person and the case activity record is documented with the date of contact and notation is made that the taxpayer wants to send the documentation/form/letter by fax. The list is not all inclusive:

Examiners should not acknowledge faxes received from taxpayers in the course of tax administration activities by a return fax, but can verbally confirm receipt.

Taxpayers are not required to submit any documentation, forms, letters, or returns via fax under this policy, and those adverse to any risk associated with faxing submissions may continue to make submission by mail or other allowable means of transmission.

Faxed documents must be included in the case file. In addition, if the examiner receives a fax in the form of an email via EEFax, the examiner must print the email to PDF and save it in the case file to document the receipt by EEFax.

The IRS-EEFax system has been approved by the PGLD Office to transmit PII information.

When EEFaxing internal documents to other users refer to Add to List Biscom Fax Printer for guidance. In addition, ensure secure zip, email encryption and digital signature are all turned off when sending fillable PDF files. See How do I turn off Encrypt Message Content, Digitally Sign Message, Secure zip when sending outbound fax? for additional guidance.

For additional general e-fax guidance, refer to the Enterprise eFax (EEFax) website.

An examiner's pocket commission is designed to show proof of the examiner’s authority in the performance of their official duties. With few exceptions, pocket commissions are primarily intended to identify Service personnel to the public when dealing with tax matters. See IRM 10.2.6, Pocket Commissions.

Examiners are responsible for:

Examiners are issued a SmartID card that provides evidence of their identity. The SmartID card also contains a certificate in a gold chip that provides access to computer systems and facilities. See IRM 10.2.5, Identification Media, for additional information.

Examiners are responsible for:

The ten-digit Personal Identification (PID) Number which is reflected on the front of the SmartID card is used as the examiner’s personal identification number.

All examiners who have been issued a SmartID card containing the ten-digit PID must use the entire ten-digits in written or verbal communications with taxpayers. The PID is the only number that may be used by examiners as the personal identification number. No other number (including commission number) is authorized for use.

The use of personal employee identification numbers for telephone/personal contacts will apply to group clerks/secretaries only if they become involved in resolving tax related matters or if they are providing tax law or account information. If group clerks/secretaries are simply providing routine assistance (e.g., providing copies of forms, scheduling appointments) or forwarding messages to another employee, who has responsibility for the resolution of tax issues, then they may continue to answer telephones using locally defined identification procedures.

The examination of returns generally involves re-occurring contacts with a taxpayer by the same examiner. Once the personal employee identification number has been provided to the taxpayer, examiners are not required to provide their personal employee identification number during each telephone or personal contact.

This section contains guidance regarding the appropriate use of electronic signatures on letters, forms and other documents.

To be legally binding, an electronic signature must satisfy the requirements in IRM 10.10.1.3.1, Requirements for Legally Binding Electronic Signature.

Examiners and managers should use Adobe Acrobat to create digital signatures that meet the requirements of IRM 10.10.1.3.1. Department of the Treasury digital certificates must be used when digitally signing per IRM 10.8.52.4(2), Certificate Usage. See the IT4U guide, How to Identify, Personalize and Use Adobe Acrobat Department of the Treasury Certificates to Sign Documents in Adobe Acrobat DC and Reader DC.

Generally, letters, forms and other documents issued to the taxpayer and representative can be signed digitally. However, the digital signature must display an image of the signer’s handwritten signature in the signature block. Refer to the Adobe Acrobat - Digital Signature with Image of Handwritten Signature (Job Aid) for instructions on placing an image of the signer’s handwritten signature in the digital signature.

Internal use documents can be signed electronically by using a digital signature that displays the signer’s SEID or typewritten name.

Copies of the signed letters and documents must be included in the case file.

Examiners must focus on timely actions to provide prompt assistance. The proper and efficient use of examination time is an essential element of a quality examination. Examiners are responsible for the day-to-day management of their cases and are accountable for completing their work in the least amount of time necessary to perform a quality examination. A focus on timely actions will reduce taxpayer burden.

Examiners must complete open examinations within a reasonable period of time considering all factors within the case and strive to limit the number of overage cases in their inventory.

Examiners should assist taxpayers in solving all tax problems identified during an examination, even if the problems are not associated with the examination. If the problem is beyond the examiner's scope of responsibility, the examiner should discuss the issue with the group manager, then if applicable, the taxpayer should be referred to the appropriate function as follows:

Examiners should refer to IRM Exhibit 4.9.1-1, Definitions of Miscellaneous Examination Activity Codes, to determine the appropriate time reporting codes to use when assisting taxpayers in solving problems unrelated to an ongoing examination.

The Treasury Inspector General for Tax Administration (TIGTA) is primarily responsible for investigating all attempted bribery cases.

Attempted bribery is an offer to give something of value with the intent the recipient will do something improper, or will fail to do something that should be done in discharging the duties of the position. An offer of a bribe to Government official or employee is a Federal offense, punishable by a substantial term of imprisonment and a fine.

Bribe offers are often made indirectly and subtly, rather than in a direct fashion. Attempts to bribe examiners represent flagrant attacks on the integrity of the Service and its employees. Examiners need to be perceptive and alert to such overtures and take the following actions when bribery offers are received.

IRS personnel must safeguard Personally Identifiable Information (PII) and follow IRM 10.5.1.6.9.3, Shipping, when mailing and shipping letters and packages containing PII.

Shipping PII through a private delivery carrier requires the use of Form 3210, Document Transmittal, to track receipt at the shipment destination.

Form 3210 can be manually prepared or computer generated by ERCS (see IRM 4.7.5.7.3, Transfers and Closings, for guidance on preparing Form 3210 on ERCS).

Form 3210 must be prepared by the sender and include identifying information such as the taxpayer’s name, last 4 digits of the SSN/EIN, tax period, to whom it is being sent, the releasing official’s name, and date sent.

Form 3210 is a multi-part form. The part numbers vary depending on the version used (e.g., electronic publishing catalog or generated by ERCS). The relevant parts are:

The "Recipient’s copy" and "Acknowledgement copy" are sent with the shipment and the “To be retained by originator” copy must be kept for group control, until the acknowledgement copy is returned by the recipient. See Document 13056, Shipping Procedures for Personally Identifiable Information (PII), which provides additional guidance on completing Form 3210, and Postal and Transport Policy.

The sender is responsible for monitoring delivery of all shipments. Returns in-transit (e.g. Status Codes 21, 41, and 51) remain the responsibility of the sending group or function until the returns are acknowledged as received by the receiving function. When the Form 3210 is acknowledged or when AIMS and ERCS are updated to another status by the receiving function, the responsibility for the returns shifts to the receiving function.

For additional procedures on the requirements for shipping PII, see IRM 10.5.1.6.9.3 and Document 13056, Shipping Procedures for Personally Identifiable Information (PII), and IRM 4.20.1.3.2, Process Payment Received, when processing payments.

EQRS and NQRS use a set of quality attributes with common definitions to measure case actions against adherence to existing policies and procedures.

Additional guidance for using EQ attributes is contained in Job Aids for each Examination program. Copies can be accessed electronically on the EQ website at: MySBSE Examination EQ Website. For detailed information about the quality attributes, refer to:

EQRS is a system used by group managers and on-the-job instructors (OJIs) to input and capture performance feedback. EQRS automatically links the quality attributes to an examiner’s critical job elements (CJE).

EQRS allows a group manager to generate reports on the results of reviews that have been entered into the system. These reports can be used to:

NQRS is a parallel system to EQRS and is used to collect data from national quality reviews. NQRS data is used to provide quality scores for field and office examination that are included as a component of the Business Results measurement.

NQRS is used to gather data that helps identify trends regarding SB/SE Examination case quality. The emphasis is on providing management with information and analysis to determine root causes of quality concerns.

National quality reviews are not used to evaluate individual employee performance.

NQRS reviews are not a substitute for first-line managerial review responsibilities. They are a tool for the Service to use in determining strengths and weaknesses in the quality of work performed in Examination operations.