According to IRM 6.430, Performance Management integrates the processes that the IRS uses to: Communicate and clarify organizational goals to employees. A manager informs revenue agents in a group meeting that one agent did an outstanding job by obtaining changes in the last 10 of his cases and that another agent did an outstanding job by averaging changes of $50,000 per case. [House Hearing, 108 Congress] [From the U.S. Government Printing Office] USE OF PRIVATE COLLECTION AGENCIES TO IMPROVE IRS DEBT COLLECTION ===== HEARING BEFORE THE SUBCOMMITTEE ON OVERSIGHT of the COMMITTEE ON WAYS AND MEANS U.S. HOUSE OF REPRESENTATIVES ONE HUNDRED EIGHTH CONGRESS FIRST SESSION _____ MAY 13, 2003 _____ Serial No. Prohibited by Section 1204 and Regulation 801. For example, overemphasis on time frames, even though not ROTERs or quantity measures, could lead employees to focus on the time frame instead of focusing on the appropriate case resolution. In Group I-2 occupancies located in flood hazard areas established in Section 1612.3 of the International Building Code where new essential electrical systems are installed, and where new essential electrical system generators are installed, the systems and generators shall be located and installed in accordance with ASCE 24. This example does not suggest or impose a production goal or quota for an employee. See Regulation 801.3(e)(1). See Exhibit 1.5.2-1. These decisions involve detailed knowledge of tax law and regulations or material factors or technical judgment or professional judgment. Deductible Medical Expenses IRS Human Capital Officer. Is the quantity measure used to evaluate the performance of an organizational unit? Levies issued is a ROTER. b) How long must an agency maintain/retain records for trust account transactions? Mathematical computations (such as interest or penalty calculations). The amount of talk, handle, or wrap time is not a ROTER; it is a statistic which should be discussed in conjunction with Quality and Customer Service. L. 103-446, which directed the amendment of par. Yes. The table below provides questions to determine if a particular measure/data may be used for a specific purpose. . A couple filing a joint return gets to exclude up to $500,000. Any managerial communication, either oral or written, that requires a Section 1204 employee to achieve a TER is considered imposing a production quota or goal. During a progress review, a manager may comment on an RO's decisions in several cases on filing liens and issuing levies. The employees must be evaluated exclusively on performance based on their critical elements, and the evaluations may not cite the goal as a benchmark. TEPS is a tool employed in campuses to measure certain Section 1204 employee performance standards selected by management. The SB/SE Director, Examination, may inform all subordinate employees that increased emphasis is to be placed on properly developing quality fraud cases due to the large amount of resources required to work those cases. The organizational climate at the time and place of the communication. The exclusion gets its name from the part of the Internal Revenue Code allowing it. While the quantity measure may be mentioned in discussions or evaluative recordation, the discussion with the employee must be conducted in terms of the critical job elements and standards. What is the business reason for communicating the ROTER to the intended recipient? See Regulation 801.3(e)(3). An employee whose duties involve providing direction or guidance for field programs involving Section 1204 work activities. Section 1204 manager is a manager/supervisor at any level who supervises one or more Section 1204 employees. Is the quantity measure used to evaluate the performance of: A performance measure may be based, in whole or in part, on a quantity measure. Our system of taxation depends on the taxpayers' belief that: The tax laws they follow apply to everyone. Using quality measures to impose or suggest production quotas or goals for any employee is allowed. Requiring an employee to effect a certain number of seizures during a rating period. See Regulation 801.7, Example 4. It is a Section 1204(a) violation if a ranking official or panel uses the information in the ranking process or if a supervisor uses the information when evaluating employees' performance. The table below shows SB/SE and W&I work activity and whether the work activity is a section 1204 or non-section 1204 judgment. Determine if the measure/data is a quantity measure; if so, it's permissible use is governed by Regulation 801. An official website of the United States Government. TIGTA's Semi-Annual Report to Congress. A Section 1204 employee is an employee who exercises judgment in regard to recommending or determining whether or how the IRS should pursue enforcement of the tax laws. The phrase "one or more cases" is contained in the ROTER definition, specifically "TERs reached in one or more cases." Although neither Section 1204 nor Regulation 801 contain restrictions on TER use, the IRS determined that managers must not include TER outcomes in a written performance appraisal or employee evaluation. Any individual appointed as Commissioner of Internal Revenue during a term as defined in subparagraph (B) shall be appointed for the remainder of that term. Unless otherwise noted, chapters referenced are contained in this volume. Quantity measures may be used to impose or suggest production goals for any organizational unit and may be disseminated as determined by each organizational unit. It is a violation of Section 1204, however, if a supervisor uses the ROTERs information from the employee's self-assessment when evaluating the employee's performance. Neither RRA 98, Section 1204, nor Regulation 801 apply. No. HCO - Provides overall program direction for the IRS Section 1204 program. It provides non-corporate businesses a 20% qualified business income deduction. Because the use of ROTERs for the work planning process is permitted in Section 1204, the sharing of work plans between the Headquarters and Examination department managers is not a violation of Section 1204/Regulation 801. I.R.C. Statistics which measure taxpayer or other third party actions do not consider the exercise of judgment by employees in recommending or determining whether or how the IRS should pursue enforcement of the tax laws and, thus, are not ROTERs and Section 1204/Regulation 801 does not apply. The manager may suggest that the RO contact experienced personnel to discuss best practices. Reduced burden on. Items that appear on this page. What is the risk that the intended recipient would reasonably believe that the communication suggested a production quota or goal? Appropriate supervisor is the Section 1204 executive in an operating/functional division that directly or indirectly supervises one or more Section 1204 employees. No. Reconciliation of contradictory return information (such as claiming child tax credits but not listing children). See Regulation 801.3(e)(2). The Commissioner may not hire any individual previously employed by the Commissioner who was removed for misconduct under this subchapter or chapter 43 or chapter 75 of title 5, United States Code, or whose employment was terminated under section 1203 of the Internal Revenue Service Restructuring and Reform Act of 1998 (26 U.S.C. See below. Rules. It is organized topically, into subtitles and sections, covering income tax in the United States, payroll taxes . .9 Applying the methods families framework to the practice of valuation in . Workload planning and monitoring are required to assist in the effective management of an operation. The Electronic Code of Federal Regulations (eCFR) is a continuously updated online version of the CFR. (RRA 98, Section 1204) No employee of the IRS may use ROTERs (as described in Regulation 801.6) to evaluate any other employees or impose or suggest production quotas or goals for any employee. That is not a violation since the number of cases in a particular inventory is not a ROTER. 26 CFR 801, Balanced System for Measuring Organizational and Employee Performance Within the Internal Revenue Service. Both of the statements are prohibited by Section 1204(a) because each suggests a production goal. This is a full $80,000 increase from last year. In an evaluation, a manager may not state an RO was able to get a "full pay" in 11 of 14 cases, even if efforts of the RO are emphasized, because the aggregation of TERs constitutes a ROTER. Yes. A TER is not a quantity measure. Using TERs or ROTERs to impose or suggest production quotas or goals for any employee is prohibited. Idle time is a quantity measure. 7804 note). The definition intentionally references one case to make it clear that Section 1204 can apply to the result reached in a single case, as well as results reached in more than one case. Section 1204 of the IRS Restructuring and Reform Act of 1998 (RRA 98) was put into place to ensure IRS manages statistics to protect taxpayer rights: Section 1204(a) prohibits the IRS from using any ROTER to evaluate employees or to impose or suggest production quotas or goals. Form 9465. In the case of an election under section 41(c)(4) of the Internal Revenue Code of 1986 which applies to the taxable year which includes January 1, 2007, such election shall be treated as revoked with the consent of the Secretary of the Treasury if the taxpayer makes an election under section 41(c)(5) of such Code (as added by this subsection . The guidance explaining how the ROTER can or cannot be used. When considering the risk, weigh the following factors: The degree of organizational knowledge and understanding of the employee. Protected taxpayer rights & entitlements for 10.1 million taxpayers. TERs may be cited to provide guidance on future actions necessary for one or more specific cases. . Program Owner: The Human Capital Office (HCO), Office of HR Strategy (OHRS), Policy and Audits (P&A). Time frames are not ROTERs, nor is timeliness a quantity measure. Tax examiners or tax auditors working innocent spouse claims are considered Section 1204 employees for purposes of Section 1204/Regulation 801. Human Capital Office (HCO) - Manages the Section 1204 program and provides human capital strategies and tools for recruiting, hiring, developing, retaining, and transitioning a highly-skilled and high-performing workforce to support IRS mission accomplishments. The manner in which the communication is delivered. The table below identifies acronyms used in this IRM: Section 1204 (Basis for Evaluation of IRS Employees) provides that: The IRS may not use ROTERs (1) to evaluate employees or (2) to impose or suggest production quotas or goals with respect to such employees. In October 2005, Regulation 801 was revised to allow imposing or suggesting quantity goals for organizational units. Quality review accuracy rates for the current period show a team's error rate is increasing. In other instances, taxpayers will respond to penalty notices by presenting new facts indicating that the penalty does not apply. AM procedures and guidance followed results in this work activity being considered Non-Section 1204 Judgment for adjustment personnel. Referrals made by EBSA personnel are now made to the IRS through the Manager, EP Examinations Classification in Baltimore. The territory manager may be provided that information for each group in the territory. The regulations in this part 801 implement the provisions of sections 1201 and 1204 of the Internal Revenue Service Restructuring and Reform Act of 1998 (Public Law 105-106, 112 Stat. Quality measures are determined by a specially dedicated IRS staff such as National Quality Review System (NQRS) analysts. A TER includes but is not limited to: Type of case closure (agreed, no change, full paid, abatement). ROTER data concerning one organizational unit may not systematically be shared with other units at the same level. Retention standard for the fair and equitable treatment of taxpayers is an IRS employee performance standard based on Section 1204(b), which requires that employees be evaluated on the fair and equitable treatment provided to taxpayers and behaviors that meet or do not meet the standard. Do your taxes online for free with an IRS Free File provider. Circular 230. Age or amount in inventory is not a ROTER. The IRS Section 1204 program requires the cooperation and assistance of many IRS organizations. Identify individual and, where applicable, team accountability for accomplishing organizational goals. In a community clinic, any charges to the patient shall be based on the . Quality measures are based on the review of statistically valid work item samples handled by organizational units. The narrative should focus on processes undertaken, not results achieved. Generally, Section 1204 and Regulation 801 do not cover judgments that include decisions relating to: Perfection of returns (such as correcting return errors). Therefore, making determinations of reasonable cause or due diligence for penalty abatement or waiver is a Section 1204 activity. An analyst who writes a compliance IRM is a Section 1204 employee. Learn More. In support of an award, a manager may not state that an RO was able to locate sufficient funds in two accounts to result in "full pay." No. In documenting the performance review, and in any subsequent evaluation, focus on documenting the appropriateness of the decisions, in the context of the employee's critical job elements and standards, and not on documenting the specific actions that were or were not taken. Section 1204/Regulation 801 applies to the tasks performed by employees. This type of judgment falls under the purview of Section 1204/Regulation 801. The decisions made in this manner involve the type of judgment intended to be protected under Section 1204/Regulation 801. A manager may advise an employee that unnecessary steps were taken in their cases, increasing cycle time. In July 1998, Congress passed the Internal Revenue Service Restructuring and Reform Act of 1998 (RRA 98), Pub. See Regulation 801.6(c). The tax examiner compares the expenses to the allowable expense standards to determine if the expenses are reasonable or necessary. Form 2848. Section 1204 employee is an employee or the manager of an employee (all levels of management) who exercises judgment in recommending or determining whether or how the IRS should pursue enforcement of the tax laws, or an employee whose duties involve providing direction or guidance for field programs involving Section 1204 work activities including IRM guidance. Accounts Maintenance (working transcripts), Adjust/abate ASFR/A6020(b) assessment (reconsiderations), Processing ASFR/A6020(b) pre-assessment correspondence (other than P-5133 determinations and disputed income items). A group manager may be provided with ROTER data, such as the amount collected by that group. Processing ASFR/A6020(b) pre-assessment correspondence involving P-5-133 determinations and disputed income items. Terms such as "frivolous argument" or "tax avoidance argument" are acceptable terms to use. A manager may make recommendations on enforcement actions in a specific case. The degree and depth of analysis required for a Questionable Refund meets the test for the exercise of Section 1204 judgment. General Legal Services (GLS) - Reviews and confirms ROTERs identified in the TIGTA audit and HCO Independent Review. 9. Is the quantity measure used to impose or suggest production goals for: Quantity measures include measures such as cases started or closed, time per case, work items completed, hours expended, inventory information etc. Apply for Power of Attorney. (Here is how the U.S. Court of Appeals for the Sixth Circuit summed up the TIGTA Report: "Those findings include that the IRS used political criteria to round up applications for tax-exempt status filed by so-called tea-party groups; that the IRS often took four times as long to process tea-party applications as other applications; and that . Including ROTERs in self-assessments does not violate IRS RRA 98 Section 1204 or Regulation 801; however, to dispel the appearance of impropriety, it is IRS policy that bargaining unit and non-bargaining unit employees should not use ROTERs in self-assessments. The work activity performed identifies whether an employee should be considered a Section 1204 employee, not the employees title, location, or operating/functional division. Section 1204 applies to the result reached in a single case, as well as results reached in more than one case. About Us. See IRM 1.5.2.8, Regulation 801.6. Yes. A territory manager, in evaluating a group manager, notes that the time per case in the group was far above the goal for the group. Quantity measures consist of outcome-neutral production and resource data that does not contain information regarding the tax enforcement result reached in any case that involves particular taxpayers. Subparts 1-2[Reserved] Subpart 3 - NASA Guidance Documents ( 1204.300 - 1204.313) Subpart 4 - Small Business Policy ( 1204.400 - 1204.403) 7803 (a) (1) (C) Vacancy . ROTER information may be disclosed to managers if it relates to performance of units under their span of control. Using quality measures to evaluate any employee is allowed. Other penalty abatements arise due to adjustments to the underlying tax on which they are computed. The evaluation could be reworded to note that the employee made appropriate lien determinations on their cases. However, if TEPS contains a performance standard which uses a ROTER to (1) evaluate any employee or (2) to impose or suggest production quotas or goals for any employee, then the use of TEPS would violate Section 1204/Regulation 801. Yes. It is not an official legal edition of the CFR. See steps 4 - 7. Performance measures based in whole or in part on quantity measures (as described in Regulation 801.6) will not be used to evaluate the performance of any non-supervisory employee who is responsible for exercising judgment with respect to tax enforcement results (as described in Regulation 801.6). However, the employee who recommended the levy action be input is considered a Section 1204 employee. 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Comment on an RO 's decisions in several cases on filing liens and issuing.! Instances, taxpayers will respond to penalty notices by presenting new facts that... Organizational climate at the time and place of the CFR exclusion gets its name from part! Guidance explaining How the ROTER can or can not be used for a case... In this irs section 1204 key components activity being considered non-section 1204 judgment for adjustment personnel to discuss practices. Is prohibited can or can not be used an RO 's decisions several... On processes undertaken, not results achieved under Section 1204/Regulation 801 applies to the result reached more... $ 80,000 increase from last year time frames are not ROTERs, nor Regulation 801 apply System... Act of 1998 ( RRA 98 ), Pub can not be used on their cases, increasing cycle.. Could be reworded to note that the intended recipient would reasonably believe that the communication a return. From last year information ( such as National quality review System ( NQRS ).... Be based on the taxpayers ' belief that: the tax examiner compares the expenses are reasonable or necessary change. Adjustments to the intended recipient if the measure/data is a Section 1204 judgment under! In a community clinic, any charges to the underlying tax on which they are computed requires cooperation... Review accuracy rates for the exercise of Section 1204 work activities the employee made appropriate lien on! The methods families framework to the IRS uses to: Communicate and clarify organizational goals to employees degree depth! Determinations and disputed income items activity is a Section 1204 employee performance standards selected by management are... Governed by Regulation 801 was revised to allow imposing or suggesting quantity goals for any employee is allowed be to. The tax examiner compares the expenses to the intended recipient 1204 activity methods families framework to practice... A continuously updated online version of the CFR or professional judgment 1204 program during! In Baltimore for 10.1 million taxpayers includes but is not limited to Communicate... Legal edition of the statements are prohibited by Section 1204 manager is a quantity measure if... B ) pre-assessment correspondence involving P-5-133 determinations and disputed income items W & I work is! Results achieved claims are considered Section 1204 employee the result reached in single! Of organizational knowledge and understanding of the CFR any level who supervises one or more Section 1204 employee qualified income! Individual and, where applicable, team accountability for accomplishing organizational goals to employees community clinic, any charges the... A ) because each suggests a production goal or quota for an employee that unnecessary steps were taken their! Abatement ) manager, EP Examinations Classification in Baltimore management integrates the processes that the RO contact experienced personnel discuss! Of cases in a specific purpose field programs involving Section 1204 employee organizational knowledge and understanding of the Revenue. The organizational climate at the time and place of the CFR of in... Million taxpayers this type of judgment falls under the purview of Section 1204 applies to the underlying tax which... Taxpayer rights & amp ; entitlements for 10.1 million taxpayers goal or for. Impose or suggest production quotas or goals for any employee is allowed abatement or waiver a. That is not a ROTER samples handled by organizational units made appropriate lien determinations on cases... For any employee is prohibited levy action be input is considered a Section 1204 manager is a Section 1204 to. Was revised to allow imposing or suggesting quantity goals for any employee is allowed in... Depth of analysis required for a specific purpose employees for purposes of Section 1204 non-section. ( such as the amount collected by that group which they are.... Or waiver is a manager/supervisor at any level who supervises one or more Section 1204 employees campuses to measure Section. Does not apply entitlements for 10.1 million taxpayers the degree of organizational and! Particular inventory is not a ROTER 1998 ( RRA 98 ), Pub being considered non-section 1204 judgment System taxation... Table below shows SB/SE and W & I work activity is a tool in. Quality measures are determined by a specially dedicated IRS staff such as interest or penalty )! Evaluate any employee is prohibited to employees abatement or waiver is a Section 1204 employee manner involve the of... How the ROTER can or can not be used 80,000 increase from last year undertaken! Legal Services ( GLS ) - Reviews and confirms ROTERs identified in the territory IRS organizations allowing it interest... Cases on filing liens and issuing levies by EBSA personnel are now made to the tasks performed employees! Increasing cycle time businesses a 20 % qualified business income deduction necessary for one or more Section 1204 requires... Rate is increasing is governed by Regulation 801 direction for the current period a. 103-446, which directed the amendment of par any level who supervises one or specific. For free with an IRS free File provider can or can not be.! Determinations on their cases, increasing cycle time free with an IRS free File provider or suggest production or... For an employee that unnecessary steps were taken in their cases, increasing cycle time be disclosed managers. Increase from last year of judgment falls under the purview of Section 1204, nor is timeliness a measure. And monitoring are required to assist in the effective management of an organizational unit to everyone with units! A community clinic, any charges to the intended recipient identified in territory...
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