Opening & Jacketing Files

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Coordination of Issues & Cases
Opening & Jacketing Files

 
Opening & Jacketing Litigation Case Files

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34.3.1  Opening and Jacketing General Litigation Case Files

The following covers opening and jacketing general litigation case files.

34.3.1.1  (10-14-1994)
Case Opening Instructions—Field Office Procedures

  1. Designating Case Category. Every case jacketed in a field office must be designated for report purposes using the specific types of cases set forth on Form 2069, General Litigation Quarterly Statistical Report (See CCDM (30)774), or as set forth in paragraph (3)(b)2, below. For the most part, the type of case to be designated on the file jacket is easily ascertained. However, at times cases and matters are assigned to the general litigation activity which do not clearly fall within the specific categories of cases.
  2. Types of Cases. The categories and types of cases are enumerated and described in CCDM (30)774.3
  3. General Rules
    1. A case will not be opened after October 1, 1994, except upon referral from the client, a court, the taxpayer or taxpayer's representative, or other customer requesting specific legal action or advice, or on the District Counsel's own initiative for specific legal action or advice. Opening of cases on the District Counsel's own initiative should be the exception rather than the rule and is illustrated by the following example: Example: At a seminar for revenue officers, a question surfaces which the District Counsel considers to be unique and for which a ready answer is not available. Upon return to the office, District Counsel assigns the issue to an attorney for research and the writing of an opinion.
    2. Operating Provisions
      1 Advisory Opinions: An Advisory Opinion case is opened only when a written request is received or a written response is required or expected by the requestor. If an oral request for advice is received and an oral response made, an Advisory Opinion file should not be opened. However, if a matter is handled orally and in the opinion of the supervisor the issue and answer are significant or of a precedential value, then the opening of a nondocketed case may be appropriate. See paragraph (3)(b)2, example a, below.
      2 Nondocketed Advice: Occasionally, information (written or oral) is received in field offices which does not require specific legal action or advice, but for which retention and tracking is desirable or helpful. This material may be treated as a nondocketed case at the discretion of the supervisor and handled as follows: A nondocketed file is opened in the same format as any other jacketed case. However, instead of showing a category, e.g. "Collection Suit" , the file shows a category of "Nondocketed Case." GLCATS will assign a GL case number. Nondocketed cases are not counted in the statistical caseload of an office and, therefore, are not counted for staffing purposes.
      a Example: An attorney advises a revenue officer on how to proceed in a large dollar case or a transferee investigation. After discussing the matter, certain oral advice is given regarding development of the case. In the discretion of the manager, a nondocketed case may be opened. In this example, the opening of an Advisory Opinion case would have been inappropriate because only oral advice was given. But see (3)(b)1, above, regarding opening docketed Advisory Opinion cases.
      b Example: General Referrals are referrals in which, for example, the District Counsel requests that all Chapter 11 cases or suit investigations be referred to counsel, or the client, on its own initiative, decides to refer them. These general referrals are not considered to be for specific legal action, and therefore should not be opened as docketed Chapter 11 or suit referral cases. They may, however, be opened as nondocketed cases. If a particular problem requiring specific legal action is discovered upon a review of the case, then the specific case shall be opened under its appropriate category.
      3 Advisories in Other Case Categories: The receipt of a request for legal advice in connection with a pending summons matter, bankruptcy, nonbankruptcy insolvency, or decedent's estate will not be opened as an Advisory Opinion. However, if it is appropriate to open a case, it will be opened under the category that gave rise to the request.
      Bankruptcy Cases: Only one bankruptcy case, will be opened even though more than one legal issue, adversary proceeding, or contested matter arises in the case.
      a Joint Administration—Jointly (i.e., several cases treated as one but with possible multiple proceedings) administered cases (but not substantive consolidation) are separatecases and will be treated as such for all purposes.
      b Substantive Consolidation—If cases were substantively consolidated before they were opened the case should be opened under one file. If two case files were opened and then substantively consolidated one case file should be closed and cross-referenced to the other.
      c SAUSA/NONSAUSA—If a case is opened SAUSA or NONSAUSA it will remain in that category for inventory purposes even though the case may change ( "flip" ) after it is initially opened. It is not to be closed and then reopened from SAUSA to NONSAUSA or reverse. (Separate CTRS time will be kept, however, under both SAUSA and NONSAUSA categories by chapter.)
      5 Certification: The opening of a case, as evidenced by the quarterly Form 2069, shall constitute a certification by the District Counsel that the case requires specific legal action or advice.

     

  4. Legal Jacket. If it is determined that a file should be opened, it will be jacketed in folder Form 7881, Form 7881–A, or other appropriate folder.
  5. Caption of Jacket. Advisory cases are to be jacketed under an appropriate subject heading or the taxpayer's name depending upon the preference of the office. Cross-references to the taxpayer's name or subject heading should be made. If no taxpayer is involved, the caption must describe the issue involved but not under such general phrases as "advisory opinion," IRM, Request for Advice etc. A subheading may be made part of the caption when necessary to help identify the issue and this heading would be included on the docket card.
  6. Jacket Numbering. Specific instructions for numbering legal jackets are contained in CCDM (30)790(1)(b). Each Regional Counsel office jacket and each District Counsel office jacket will be numbered in a separate series for each office and each function within the office. The jacket number will consist of four segments to identify the office, the function, the serial number, and the year. Segments of the jacket number are separated by dashes. Examples:
    1. DAL–GL–172–94
    2. BIR–GL–52–94

     

  7. Information on Face of Jacket. The jacket should show the following on its face:
    1. the jacket number of the regional headquarters office or district office;
    2. the name of the attorney to whom the case is assigned;
    3. the taxpayer's name and address following the word "Name" on the file;
    4. the court caption, if any, below the "Subject" with the related cases or other persons or entities;
    5. the category of the case following the word "Subject" on the file, including subheadings as necessary for Advisory Opinion cases;
    6. the date opened; and
    7. the date closed.

     

  8.  Advisory Opinion Cases
    1. No Taxpayer. If no particular taxpayer is involved, as may occur in a request for an opinion, the subject matter heading will be placed on the jacket where the taxpayer's name would otherwise appear. The words "Advisory Opinion" will follow the word "Subject" on the jacket. When it is necessary to further describe the subject matter, additional sub-headings or statements may be inserted below the "Subject" on the jacket.
    2. Taxpayer Named. In connection with "Advisory Opinion" cases the jacket may be opened in the name of the taxpayer or an appropriate subject matter heading. A cross-reference to the taxpayer should be made if the file is opened under a subject heading.

     

  9. Summons Enforcement Cases. In cases involving the enforcement of summonses, the name of the taxpayer will be used and the name of the person summoned (if other than the taxpayer) will be placed following the "Subject" on the face of the legal file. The case is controlled by the taxpayer's name rather than by the name of the person summoned (if other than the taxpayer). Include proceedings to quash summonses served on third-party recordkeepers under I.R.C. § 7609.

34.3.1.2  (10-14-1994)
National Office Procedures

  1. Category of Case
    1. Branch Chiefs in the General Litigation Division have responsibility similar to District Counsel with respect to the jacketing of cases. Each case opened in any branch must be given its proper category [type of case] designation on the file in accordance with the case categories set forth in GLTRACK. The instructions for using GLTRACK are in the GLTRACK User Guide (1989) and a set of Q&As issued periodically by the Front Office.
    2. The designation of legal jackets in the General Litigation Division varies from field office practices. The case designation depends on certain division level categories, i.e., whether the case is an Appeal Case, Advisory Opinion, etc.

     

  2. Types of Cases
    1. Appeal Cases. Each branch handles the appeal aspect of the cases falling within the jurisdiction of the branch. The jacket is designated as an Appeal Case. Appeals from Bankruptcy Judges are not considered Appeal Cases.
    2. Advisory Opinions. This category includes all opinion cases in all branches.
    3. Court Cases Handled by Division— Centralized Court Cases. These are the cases in court being handled in the division rather than being referred to a field office as would usually happen.

     

  3. Legal Jacket and Caption. Cases are jacketed by each branch in folder Form 7881. Cases (other than advisory cases), are generally JACKETED IN THE NAME OF THE TAXPAYER. If no taxpayer is involved, the caption must show the scope of the issue by short descriptive words. A subheading may be made part of the caption when necessary to help identify the issue.
  4. Jacket Numbering
    1. Specific instruction for numbering legal jackets are contained in CCDM (30)790(1)(a). Each National Office division jacket will be numbered in a separate division series. The jacket number will consist of three segments to identify the division, the serial number, and the year. Segments of the jacket number are separated by dashes. Example: CC:EL:GL–0103–94.
    2. The division will jacket its own case files. Each branch or the front office will obtain file jackets for the cases opened by the branch.

     

  5. Information on Face of Jacket. The jacket should show the following on its face:
    1. the jacket number of the division;
    2. the front office or the branch having jurisdiction of the case above the jacket numbers;
    3. the name of the attorney to whom the case is assigned;
    4. the taxpayer's name and address in the space following the word "Name" on the file;
    5. the taxpayer's SSN or EIN if furnished;
    6. the court caption, if any, below the "Subject" ;
    7. related cases or other persons or entities, if any, below the "Subject" ;
    8. Cross-references must always include the subject on the request for advice if different from the name under which the advisory file was opened, unless it is meaningless such as "Request for Advice" or "Advisory Opinion" .
    9. the category of the case following the word "Subject" on the file, including subheadings as necessary for Advisory Opinion cases:
    10. a determination of whether a case is "significant" (See CCDM 34.3.4.8;
    11. the date opened;
    12. the CTRS case and activity codes circled in red ink on the bottom left side of the cover after "Docket No." ; and
    13. the date closed.

     

  6. Advisory Opinion Cases.
    1. Advisory opinions should be jacketed under an appropriate subject matter heading or the taxpayer's name. Cross-reference cards to taxpayer or subject heading were made for cases opened prior to October 1, 1991. After that date only GLTRACK is used. The words "Advisory Opinion" will follow the word "Subject" on the jacket. When it is necessary to further describe the subject matter, additional subheadings or statements may be inserted below the word "Subject" on the jacket.
    2. The supervisor is to indicate on the cover of the file in red ink next to the case type designation after docket no. on the next to the last line at the lower left corner either "Routine" or "Project" . Project cases include regulation projects, LGMs, CCDM revisions and other internally generated advisories unless a due date is indicated by the Assistant Chief Counsel. Generally, external requests for advice are considered "routine" not "projects" unless periodic responses are required such as the Monthly Appeals Report.

     

  7. Assignment of Cases
    1. The assignment of the jacketed cases of the division is made by the branch chiefs. The responsibility for control and record keeping is with each branch. These are the docketed cases of the division which are reported for statistical purposes.
    2. The determination of branch responsibility for a case, when necessary, will be made by the Assistant Chief Counsel.

     

34.3.1.3  (10-14-1994)
Legal Files

  1. Field Office Procedures. When the District Counsel legal file has been forwarded to the National Office or is otherwise not available, the field office should utilize a folder for temporary use, to be designated as an "emergency file" or "office file." Also, in the event an office has need to maintain a file on correspondence in a case being handled by another regional office, such a file should be utilized. It is not always necessary that the legal file accompany the correspondence when a matter or case is referred to the National Office. Except where otherwise specifically required, legal files should not be transmitted to the National Office unless in the judgment of District Counsel such legal file will be of assistance in handling and processing the case. Field legal files will be returned as soon as they have served their purpose.
  2. General Litigation Division Procedures. The official file of the Office of Chief Counsel concerning field cases is the file made up and maintained by the District Counsel office. However, the division will open an office file to review any material regarding these cases which for any reason is referred to or through the division. These are now opened in the category "District Counsel" cases.
  3. Memorandum for File. Whenever a conference, informal discussion, or telephone conversation is held in connection with any matter, whether a docketed case or not, by an attorney with any interested party or parties, and where a definite course of action is recommended or specific advice given, a concise report of the matters discussed, conclusions reached, and advice given will be prepared for retention in the legal file or for filing in a nondocketed status. Where appropriate, copies should be distributed to interested parties. Where a case has been referred to the General Litigation Division a copy should be furnished to the division. Conference memorandums are an essential part of a case file and should always be prepared and filed. The matter of the distribution of copies should be carefully considered in each case.
  4. Legal Files—Same Taxpayer Involved in Several Proceedings
    1. It may happen that when a case is received, examination of all material received will indicate by pleadings or otherwise that the taxpayer is involved in two or more actions in either the same court or different courts. Likewise, a case that started out as one court action involving the taxpayer may subsequently develop into another or several other actions. Further, after one action is closed a new action of some kind may be opened.
    2. When any of the foregoing situations occur in a field office or National Office, separate legal files will be opened and maintained with respect to each case. A new file number will be given each file and necessary cross-referencing will be utilized. In brief, a separate jacket will usually be maintained for each court proceeding. [When necessary one letter can be utilized for more than one file.] However, see paragraph (34)311:(3)(f) concerning bankruptcy cases.

     

  5. Legal Files—More than one Taxpayer Involved in one Proceeding. In the event a proceeding is instituted wherein more than one taxpayer is involved as a party, in the usual situation only one legal file need be opened and maintained. Cross-reference field will be completed in GLTRACK and should be utilized to locate and identify the taxpayers in the same file. The file would be captioned under the name of the major taxpayer or if none, under the name of the first taxpayer named in the pleadings. The jacket should show the names of all involved taxpayers.
  6. Change of Category of Case
    1. It often becomes necessary to change the category of a pending case, because of certain developments, to accurately reflect the existing situation. One example would be a chapter 11 reorganization that has been converted into a bankruptcy liquidation proceeding and the case is to be kept open in Counsel's office for some reason. Another example would be a advisory opinion case that has developed into a collection suit.
    2. In any such situation, the case in its initial category should be shown as closed on the report and the case in its new category should be shown as opened and received. The same legal file may be utilized; however, a new GL case number, the new category of the case, and the date of the change should be noted on the file.

     

  7. For procedures and relationships applicable to cases under the Special Assistant U.S. Attorney Program, see 34.14.0.

34.3.1.4  (10-14-1994)
Handling Litigation where more than one Region or District is Involved

  1. Examples. Various situations can arise where court proceedings involving a taxpayer's liabilities will be pending in a region or district other than the region or district wherein the district office holding the tax accounts is located.
    1. One common situation is the case where the originating district office recommends a collection suit to the local District Counsel office, and the facts show that suit will have to be brought in another region or district.
    2. Another fairly common situation is the case where a party other than the Internal Revenue Service commences a suit in a foreign region, and it becomes necessary for the originating district to file a claim or take steps to see that the Service answers or intervenes.
    3. Other situations might arise such as summons cases and multi-district injunction cases.

     

  2. Handling and Coordination. Many of these cases will have to be handled on an ad hoc basis. However, the following are general guidelines, which should be followed whenever possible:
    1. As a general rule, the District Counsel servicing the originating district, i.e., the director's office charged with the TDA, should handle these types of cases.
    2. It may become necessary for the District Counsel office of the originating district to coordinate or correspond directly with the District Counsel office in the foreign region.
    3. In connection with these kinds of cases, there is no objection if the originating District Counsel seeks a collateral investigation in the foreign district by direct correspondence with the foreign District Director's office, provided all interested parties are aware of the inquiry, i.e., the District Counsel office servicing the foreign district and the General Litigation Division where appropriate.
    4. In some situations, such as a bankruptcy matter pending in another region, it might be more feasible for one originating District Director's office to correspond and deal directly with the District Counsel office where the bankruptcy case is pending.
    5. It is hoped that the originating director would keep the local District Counsel advised of any direct referrals, and further, that such referrals would be limited to those cases and matters which would ordinarily be handled by District Counsel and a United States Attorney.
    6. It seems preferable that when any of these cases are referred to the General Litigation Division or the Department of Justice for handling, the originating district will deal with the local District Counsel, at least in the first instance.
    7. The originating District Counsel office should keep the other regional office informed or furnish copies of correspondence when such action seems appropriate.
    8. The District Counsel receiving such correspondence ordinarily need not open a regional case file but rather need only place the papers in a folder suitably designated so that this nondocketed material can be quickly located.
    9. Whenever one of these types of cases has been referred to the National Office, the General Litigation Division should be furnished copies of any correspondence between District Counsel relating to the case.
    10. The General Litigation Division should be informed of transfers of cases from one region to another or from office to office within a region, if such case has previously been referred to the division.

     

  3. Transfers of Cases between Offices. Open cases can be transferred from one region to another region and from office to office within a region as necessary. It is suggested that in the transfer of a case to another region, the transferring office contact the proposed receiving office to alert them of the transfer and to discuss any problems the transfer may cause. If the case has been referred to the National Office, the General Litigation Division should be informed of the transfer.

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