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IRS Audits

Chapter 8. Technical Support (Exam)

Section 5. Post Examination Case Processing Requirements

4.8.5  Post Examination Case Processing Requirements

4.8.5.1  (10-01-2003)
Overview

  1. This section outlines procedures for the review of cases that have special features requiring post examination processing procedures. The following types of cases are included:

    1. Innocent spouse,

    2. Bankruptcy cases,

    3. TEFRA cases,

    4. Fraud cases (civil and criminal),

    5. Grand jury cases, and

    6. Cases returned from Appeals.

     

4.8.5.2  (10-01-2003)
Innocent Spouse Cases

  1. IRM 25.15, Relief from Joint and Several Liability, contains detailed guidance for examining, processing, and reviewing innocent spouse cases.

4.8.5.2.1  (10-01-2003)
Case Subject to Review

  1. All IRC § 6013(e) and IRC § 6015 innocent spouse cases are subject to streamlined innocent spouse procedures outlined in IRM 25.15.10.1. Cases worked by Revenue Agents and Tax Compliance Officers should be forwarded to TS before any determination letters/notices are issued or assessments/abatements are made with respect to the innocent spouse issue, regardless of how the issue arose or the determination of the issue.

  2. IRM 25.15.10 details the innocent spouse cases subject to area TS review and/or centralized review. Centralized review procedures are outlined in IRM 25.15.10.8 through 25.15.10.13.

4.8.5.2.2  (10-01-2003)
Return of a Case to the Group

  1. Reviewers may return an innocent spouse case to the group manager for reconsideration of technical provisions or for additional factual development. The case may also be returned if account problems have not been resolved. If a case is returned to the group, the examiner is required to respond within 30 days of receipt.

4.8.5.2.3  (10-01-2003)
Collection Referral Cases

  1. Collection referral cases are reviewed using the same guidelines and standards specified for the area TS and centralized review. The Territory Manager may delegate TS review responsibility to a revenue agent at a local post of duty to expedite treatment of Collection referral cases.

4.8.5.3  (10-01-2003)
Bankruptcy Cases — General

  1. A bankruptcy petition filed by a business, joint entity, or individual generally operates as an automatic stay on any act to assess, collect, or recover tax due from the taxpayer. TS works very closely with Area Counsel and Insolvency.

4.8.5.3.1  (10-01-2003)
Case Reviews

  1. TS reviews bankruptcy cases using the quality standards outlined in IRM Exhibit 4.8.3–1.

  2. When the case is received in TS, the reviewer verifies the bankruptcy petition filing date and that the taxpayer is still in bankruptcy.

4.8.5.3.2  (10-01-2003)
Pre-October 22, 1994 Bankruptcy Filing

  1. Generally, the Bankruptcy Code prohibits assessments on cases in which the petition was filed prior to October 22, 1994 (if the automatic stay is still in place).

4.8.5.3.2.1  (10-01-2003)
Agreed Cases

  1. After review, the case is placed in Bankruptcy Suspense. A statutory notice of deficiency is not issued on agreed cases.

4.8.5.3.2.2  (10-01-2003)
Unagreed Cases

  1. After review, the reviewer prepares a statutory notice of deficiency using Letter 1384.

  2. The statutory notice is issued prior to the expiration of the normal statute of limitations.

  3. Written instructions to the 90-Day Unit include:

    1. The taxpayer is in bankruptcy, and

    2. The case file is to be returned to TS after the default of the 90-day period.

     

4.8.5.3.3  (10-01-2003)
Post-October 21, 1994 Bankruptcy Filing

  1. The