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Internal Revenue Manual (IRM) 1.4.51, Resource Guide for Managers, Insolvency, contains procedures, guidance, and information for Specialty Collection Insolvency group managers. The content includes general administrative responsibilities, performance management, internal controls, assignment of work, approval of work, quality reviews, and program reviews.

5 USC Part III, Government Organizations and Employees

IRS Restructuring & Reform Act of 1998:

IRC 6304, Fair Tax Collection Practices

IRC 6320, Notice and Opportunity for Hearing Upon Filing of Notice of Lien

IRC 6330, Notice and Opportunity for Hearing Before Levy

IRC 6331, Levy and Distraint

IRC 6672, Failure to Collect and Pay Over Tax or Attempt to Evade or Defeat Tax

IRC 7213A, Unauthorized Inspection of Returns or Return Information

IRC 7521, Procedures Involving Taxpayer Interviews

26 CFR 601.106, Appeals Functions

31 USC 3302, Custodians of Money

31 USC Chapter 53, Monetary Transactions

Equal Employment Opportunity Commission (EEOC) Management Directive 715 (MD-715)

Rev. Proc. 2012-18, Ex part Communications Between Appeals and Other IRS Employees

The Director, Collection Policy is the executive responsible for the policies and procedures to be employed by collection personnel.

The Director, Specialty Collection - Insolvency (SCI) is responsible for program oversight.

Insolvency Group Managers, Department, and Territory / Operation Managers are responsible for ensuring the guidance and procedures described in this IRM are complied with.

Program Reports. Group managers are required to generate and approve end of month reports. Group managers are required to submit quarterly certifications of compliance with Section 1204 of the Internal Revenue Service Restructuring and Reform Act of 1998, prohibiting the use of tax enforcement results. Reports housed on the Automated Insolvency System (AIS) are used for group controls in the following areas: imminent collection and assessment statutes, no touch/activity, higher graded duties, and Notice of Federal Tax Lien (NFTL) determinations. Reports to help Specialty Collection Insolvency managers are discussed throughout this IRM chapter, including in the exhibits. The required AIS Business Objects reports are described in IRM 5.9.16.1.4(1), Program Reports, IRM 1.4.51.8.3, Case Management Tools and Field Insolvency Report Job Aid. Group managers are responsible for establishing and maintaining each of their employees¡¯ Employee Performance File (EPF).

Program Effectiveness.

SCI Managers are required to follow program management procedures and controls addressed in IRM 1.4.51.5.2, Reviews (Overview), IRM 1.4.51.15, Controls, and IRM 1.4.51.16, Quality.

Frequently used terms used in this IRM along with their definition include:

Acceptable acronyms and abbreviations are found in the ReferenceNet Acronym Database, which may be viewed at: ReferenceNet Legal and Tax Research Services.

Acronyms used specifically in this IRM section are listed below:

Document 11678, National Agreement - Internal Revenue Service (IRS) and National Treasury Employees Union (NTEU).

Document 12990, Records and Information Management Records Control Schedules.

Document 12656, Field Insolvency Embedded Quality Job Aid.

Document 13097, Centralized Insolvency Operations Technical Team Leader¡¯s Procedural Guide.

Document 13219, Automated Insolvency System (AIS) - User Guide.

Document 13163, Automated Proof of Claim (APOC) and APOC Amends - User Guide.

IRM resources:

Web Resources:

General Records Schedule (GRS) 2.2, Employee Management Records.

You must designate with a formal delegation an acting manager during your periods of absence. Managerial tasks to be performed and those to be deferred may depend on the duration of the assignment. Refer to Document 11678, National Agreement - IRS/NTEU, for certain restrictions on performance evaluations. Assignments should be agreed on between you and the acting manager in advance. Specific expectations should be given at the beginning of each assignment. This will form the basis for your feedback on performance of the acting assignment.

For the delegated acting manager you must utilize discretion to determine whether inventory level needs to be adjusted for the action. Factors to consider are:

You may designate specific tasks even though you are not absent. This enables a manager to provide developmental assignments to employees aspiring to the next level to gain useful experience. In this situation, no "acting" assignment or delegation exists; therefore tasks reserved to managers (i.e., managerial approvals, callbacks requested by the taxpayer) cannot be delegated.

When a new group is established or a new manager is assigned to an existing group, a meeting with the employees must be held within the first 30 days. At this meeting the manager will communicate expectations to include the following topics:

When a new employee is assigned to an existing group, the group manager must meet with the new employee to discuss managerial expectations (see (1) above) and ensure appropriate Business Entitlement Access Request System (BEARS) are completed and processed. This meeting is considered a 7114 meeting. See the Note in (1) above.

Regular group meetings will be held as necessary to review items such as the following:

Managers should seek guidance and advice from their servicing Labor Relations (LR) Section if they are unsure whether an agenda item for a group meeting constitutes a 7114 issue. Article 8, Section 1, Union Rights, of the National Agreement - IRS/NTEU also provides guidance on 7114 Meetings. For regularly scheduled formal discussions and non-recurring formal discussion, provide the Union a notice and meeting agenda no less than five workdays in advance.

Managers are responsible for reviewing time reported by their employees to ensure accuracy. Using Integrated Collection System (ICS), verify time prior to End of Month (EOM) processing (i.e., no later than close of business on the last Friday of the monthly reporting period). Consider the following:

The Insolvency function is comprised of two operations, Field Insolvency (FI) and the Centralized Insolvency Operation (CIO), which must work together to provide customer service while addressing employee satisfaction in delivering improved business results. Three separate business units are directly involved in bankruptcy processing:

Field Insolvency (FI). FI has many offices throughout the country. FI:

Centralized Insolvency Operation (CIO). The CIO is located in Philadelphia. The CIO:

Collection Policy. Collection Policy, Insolvency establishes and oversees policy for the entire Insolvency program. Collection Policy, Insolvency:

SB/SE Counsel Coordination. If an issue arises jeopardizing the government's best interests that cannot be resolved by Insolvency's contacting the debtor's attorney directly, Insolvency, depending on IRM criteria, may coordinate action(s) with Area Counsel, Department of Justice (DOJ), or other legal functions. (See IRM 5.9.4.15, Referrals - Representing IRS in Bankruptcy Court, IRM 5.9.4.15.1, Direct Referrals, IRM 5.9.4.15.2, Referrals to Counsel (Non-Direct Referrals), and IRM 5.9.4.15.3, Significant Bankruptcy Case Referrals.)

Group managers are responsible for oversight of certain administration functions for their employees including but not limited to:

Other Administrative tasks include, but are not limited to:

Items managers must update individually with each employee annually include, but are not limited to:

Resources:

A primary responsibility of managers is to monitor employee practices and actions to ensure that taxpayer rights are always observed. In fact, Congress has now directed the IRS to ensure that all employees are aware of taxpayer rights. See Consolidated Appropriations Act, 2016, Pub. L. No. 114-113, div. Q, tit. IV, subtit. A, sec. 401(a), 129 Stat. 2242, 3117 (codified as 26 U.S.C. 7803(a)(3)).

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. (See Pub 1, ÐÇ¿ÕÌåÓýÊÖ»ú¶Ë Rights as a Taxpayer):

Ensure that all employees are aware of the role the Taxpayer Advocate Service (TAS), and that this information is properly communicated to taxpayers and their representatives, as appropriate. TAS is an independent organization within the IRS that ensures tax problems that have not been resolved through normal channels are promptly and fairly handled. To determine if a case meets TAS criteria, see IRM 13.1.7.3, TAS Case Criteria. Access to TAS can be obtained by calling their toll-free number 877-777-4778, researching Pub 1546, The Taxpayer Advocate Service Is ÐÇ¿ÕÌåÓýÊÖ»ú¶Ë Voice at the IRS, or visiting their website Taxpayer Advocate Service.

Section 1203 of the Internal Revenue Service Restructuring and Reform Act of 1998 (RRA 98) calls for the termination of any employee of the IRS if there is a final administrative or judicial determination that the employee willfully committed any act or omission described below:

There is an important distinction between evaluating performance under CJE 2, Taxpayer Rights, and evaluating compliance with the Retention Standard for the Fair and Equitable Treatment of Taxpayers. See the Human Capitol Office website for more information.

Resources:

Integrated Data Retrieval System (IDRS) security briefings are included in the mandatory Annual On-Line Briefings. IDRS security should also be reinforced through discussions at group/unit meetings.

Employees should be reminded to complete Form 11377-E, Taxpayer Data Access, if an account is inadvertently accessed or otherwise applicable.

IRM 10.8.34, IDRS Security Controls, requires managers to review periodic IDRS Security reports for their groups. In Insolvency, primary responsibility for those reviews rests with Collection Automation Support & Security (CASS). Managers may be contacted by a CASS representative if they are unable to resolve a potentially questionable access made by an employee.

Generally, CASS will contact the manager via secure e-mail. If contacted, the manager should take the following steps:

Resources:

Safety and security is a high priority. Managers must become familiar with their responsibilities to ensure workplace safety for everyone.

See IRM 5.1.3, Safety, Security, and Control, for information about safety and security topics.

Resources:

Group Managers who supervise bargaining unit (BU) employees must:

See Article 8 of the National Agreement - IRS/NTEU for more information about how to identify 7114 meetings. Contact a LR Specialist if assistance is needed to determine if a meeting is a 7114 meeting.

Resources:

Insolvency managers (or their designated representative) will conduct annual security reviews. The policy requirement for functional reviews, as well as Form 12149 Functional Security Reviews is rescinded. SCI should develop their own reviews or data collection instrument to assess policy implementation and compliance. For additional information see IRM 10.5.1.5.1, Clean Desk Policy and IRM 10.5.1.6.1, Protecting and Safeguarding SBU Data.

If a manager's reviews reflect that an employee repeatedly fails to observe security protocols, the manager should contact the LR specialist to determine the next appropriate action.

Casework. Managers must ensure Insolvency case actions comply with the requirements of the Bankruptcy Code Compliance Program (BCCP) while protecting the government's interest and educating debtors on their payment and filing responsibilities.

Stay Violations. Insolvency managers oversee resolutions of Bankruptcy Code stay violations ensuring corrective actions are initiated no later than two work days after identification by Insolvency caseworkers or notification from taxpayers, their representatives, other government agencies, or other IRS functions. IRM 5.9.3.5, Automatic Stay, gives an in depth discussion of the nature of stay violations.

Discharge Violations. When violations of the discharge injunction are identified, Insolvency managers must ensure caseworkers initiate resolutions of the violations no later than two work days after identification or notification. If the IRS receives adequate notice of the bankruptcy discharge, violations may occur after Insolvency has adjusted an account through the Automated Discharge System (ADS) or has made a manual adjustment. Violations can also arise while Insolvency's adjustment requests are pending. IRM 5.9.17.9, Discharge Injunction, provides more information on this topic.

Review of Closed Cases. Referrals from other IRS functions must be reviewed by Insolvency when a taxpayer facing collection claims a liability is no longer due because of a bankruptcy discharge. Insolvency must provide guidance concerning the dischargeability of periods to all other IRS functions.

AIS Documentation. Insolvency managers must direct subordinates to document all actions related to the IRS's involvement in a bankruptcy proceeding in the AIS history, also known as the History screen. Insolvency is the primary repository of bankruptcy-related case actions for all functions of the IRS. (See IRM 5.9.5.4, Automated Insolvency System (AIS) documentation.)

Objections. Whenever possible Insolvency administratively resolves objections to the IRS's actions in bankruptcy, usually involving proofs of claim, that otherwise would be handled by the US Attorney, Department of Justice (DOJ), or Area Counsel. Case specific matters that cannot be resolved administratively, such as objections to plan confirmation or requests for conversion or dismissal, are referred to Area Counsel, the US Attorney, or DOJ.

Damage Claims. Insolvency managers must process administrative damage claims pursuant to Treas. Reg. 301.7433-2, Civil cause of action for violation of section 362 or 524 of the Bankruptcy Code. (See IRM 1.4.51.3.7.1, Payment of Damages, below)

Preparing performance evaluations is one of a manager¡¯s most important responsibilities. In carrying out this task, the manager will observe how the employees are performing their duties and responsibilities to ensure that they are working efficiently and effectively to accomplish assigned tasks.

Because managers are responsible for implementing the policies and directives relative to performance evaluations, they should thoroughly familiarize themselves with all facets of performance appraisal/evaluation information including, but not limited to:

A formal performance evaluation serves:

For employees new to the government, the first year of employment is a probationary period during which the employee must demonstrate successful performance and the capability to be promoted to the next grade level (if applicable). See IRM 6.430.2.4.3, Employees Serving Probationary Periods.

Work closely with employees who are performing poorly, including probationary employees. Provide them with guidance/direction designed to assist them in improving performance. If performance improves, document the improvement accordingly. If performance fails to improve, refer to IRM 6.430.2, Performance Management Program for Evaluating Bargaining Unit and Non Bargaining Unit Employees Assigned to Critical Job Elements (CJEs), and seek appropriate advice to determine next steps.

Documentation of performance:

When writing review narratives be concise, but descriptive enough to provide an accurate picture of the strengths, developmental needs, and accomplishments of the employee in each CJE. (See IRM 6.430.2.4.6, Completing Appraisal Narratives.)

Performance evaluations provide a uniform means for a written evaluation and rating of each employee's proficiency.

Formal employee evaluations represent the sum of what managers have observed in each employee's work, using feedback, reviews, field visitations, and other techniques discussed in this manual. Consider the following when evaluating performance for an annual appraisal:

Each employee will receive an annual performance evaluation. See information about Performance Appraisal Due Dates in the National Agreement - IRS/NTEU, Article 12, Exhibit 12-1.

Employees may submit a self-assessment, limited to four (4) pages in length, no later than the last workday of their annual appraisal rating period. See IRM 6.430.2.4.5, Self-Assessment, and IRM 6.430.2.6, Conducting the Performance Appraisal Meeting.

Use only the work requirements of the particular position or specific work standards established by the IRS to make Acceptable Level of Competence Determinations (i.e. determination that employee is performing at a fully successful level.)

For information on the suggested steps to make unacceptable performance determinations see Exhibit 1.4.51-1, Suggested Action Steps for Unacceptable Performance.

Resources:

Providing ongoing employee feedback that is candid and meaningful is essential to employee satisfaction and is an integral part of the group manager¡¯s responsibilities. Reviews of employee work should serve to:

All reviews relating to an employee's case work must be in writing. Managers must use EQRS to review individual cases, but other types of performance observation lend themselves to other methods. For reviews that consider employee activity across multiple cases (e.g., time utilization, office/field observation) a summary narrative, such as a memorandum, may be substituted. The EQRS Individual Feedback Report provides a record of ratings and the narrative comments in which the employee¡¯s performance is summarized. Become familiar with Document 12656, Field Insolvency Embedded Quality Job Aid and Campus Quality Master Attribute Job Aid (MAJA), which provides specific guidance related to Embedded Quality attributes and how to use them.

At the beginning of the fiscal year, group managers will develop a review schedule for the group that includes all mandatory reviews and optional reviews. Optional reviews may include additional office or field visitations, time and workload reviews, etc. The review schedule should provide for a fair and accurate assessment of the employee's overall performance throughout the rating period.

Mandatory reviews represent the minimum review requirements that must be completed for each employee. It is intended that the minimum requirements will provide managers with an opportunity to spend more time reviewing and developing employees that need additional feedback and assistance. Mandatory reviews include:

When necessary, based on case reviews, other forms of review, field or office observation, etc., managers have the authority to require their employees to obtain their approval before taking subsequent case actions.

Group managers will continually review information gathering activities by their employees.

For additional guidance on preparing reviews, narratives and appraisals see:

Section 1204 of the IRS Restructuring and Reform Act of 1998 (RRA 98) prohibits the use of Records of Tax Enforcement Results (ROTERs) to evaluate employees or to impose/suggest production quotas/goals for any employee.

IRM 1.5.1, The IRS Balanced Performance Measurement System, provides guidance to prevent the use of statistics to:

ROTERs are data, statistics, compilations of information or other numerical or quantitative recordations of the tax enforcement results reached in one or more cases. Managers are prohibited from using records of tax enforcement results to evaluate any employee who exercises judgment with regard to determining tax liability or ability to pay. This prohibition includes:

Managers are also prohibited from using ROTERs to impose or suggest production goals or quotas for employees or groups of employees. Examples of prohibited ROTERs include:

Resources:

Regulation 801 provides that, in addition to all other criteria required to be used in the evaluation of employee performance, all employees of the IRS will be evaluated on whether they provided fair and equitable treatment to taxpayers.

Form 6774, Receipt of Critical Job Elements and Retention Standard, is maintained in the EPF.

Resources:

An employee shall be advanced in pay to the next higher step of their grade upon meeting the following requirements:

Use only the work requirements of the particular position or specific work standards established by the IRS to make Acceptable Level of Competence Determinations (i.e. determination that employee is performing at a fully successful level.).

For information on steps to follow when an employee is not meeting an acceptable level of competence, Exhibit 1.4.51-7, Action Steps for Acceptable Level of Competence Determination if an Employee Within Grade Increase (WGI) is Due.

Each employee will receive an annual performance evaluation. The due date of an evaluation for any particular employee is based upon the last digit of the employee¡¯s Social Security Number (SSN). Refer to Document 11678, National Agreement - IRS/NTEU, Article 12, Exhibit 12-1, Performance Appraisal Due Dates SSNs Aligned To Monthly Periods.

Discipline is defined as measures taken by management that are intended to correct employee misconduct, and encourage employee conduct in compliance with the standards of conduct, policies, goals, work procedures, and office practices of the IRS and the Federal Service. Employees must adhere to all known conditions and standards of conduct established to provide for the orderly and efficient administration of the IRS.

Employees who fail to comply with standards of conduct, work procedures, and office practices will be subject to disciplinary action designed to correct the violation and motivate the employee to become a productive member of the IRS.

Managers are responsible for establishing and maintaining effective discipline within their work group. Managers must explain the work requirements and other standards employees are expected to meet.

When disciplinary action is required, it must be fair, equitable, impartial, and as timely as possible.

A guide to assist managers in determining appropriate penalties to correct improper conduct can be found in IRM 6.751.1-1, IRS Guide To Penalty Determinations..

Ensure to discuss and coordinate all proposed disciplinary actions with a Labor Relations Specialist.

Resources:

Managing an employee participating in Telework is essentially no different than managing an employee in the office. Managers should ensure that their actions are in compliance with the National Agreement - IRS/NTEU. The employee on Telework is still held accountable for the Rules of Conduct, Critical Job Elements, Time and Attendance, Ethics, and all other regulations applicable to their position.

Managers should ensure that employees are responsive to all customers. Employees must check voice mail (VMS) and email (when accessible) to ensure external as well as internal customers (including managers) receive responses timely. It is appropriate for an employee to check their VMS and email prior to going to lunch and some time prior to ending their day. Employees supplied with pagers and cell phones should be expected to be more responsive.

Managers have the right to direct a Telework employee to report to the office when necessary. For example, when having meetings, which include group meetings, case reviews, training, etc. This should be planned so that the employee has ample time to report to the office during their regular commute time. When an employee plans or decides to make field calls during a Telework day the manager should be informed. This is referenced under Article 50, Section 5.A.2 of the National Agreement - IRS/NTEU.

Article 50 of the National Agreement - IRS/NTEU addresses Telework issues. Sections pertinent to the management of employees in a Telework environment are listed below:

If it is determined that an employee's work appears to be degrading from "Fully Successful" or is below a "Fully Successful" rating, managers should review Article 50, Section 2, Eligibility, of the National Agreement - IRS/NTEU to determine whether the employee's continuation on Telework is appropriate. This occurs when any Critical Job Element (CJE) rating equals "2" or below.

Resources:

A manager¡¯s official relationship with, authority over, and accountability for an employee participating in the IRS¡¯ Telework Program is no different than that for employees who are not participating in the program.

Manager responsibilities include:

For an employee to remain on the Telework program, they must:

Strive for currency of inventory by encouraging employees to take the right action at the right time on each case.

Communicate to employees that it is expected that they work their inventory as a whole.

AIS is the primary case management system for Insolvency managers. Managers should familiarize themselves with the AIS Business Objects reports.

Use AIS to:

Assigning Roles. Roles, that relate to specific permissions, for all AIS activities must be requested using the BEARS system. When submitting the Online BEARS the user should request the appropriate level of access based on their assigned duties. Manager's should review these requests and approve/deny them as necessary. After approval, an email will be sent to the AIS Administrators for the system and if approved the user's information will be added/deleted/updated. A second level AIS Administrator will add the employees SEID into the correct Role Group. At least once per year, managers should review their employees' Role Group on the Employee Information screen on AIS to ensure the correct level of permissions. To access the Employee Information screen from the AIS Main Menu:

Managers are expected to use tools available to ensure cases in their inventory are handled with professionalism according to both the IRC and bankruptcy laws and rules and with the intent of protecting the rights of the debtor and the interests of the government.

The Automated Insolvency System (AIS) Reports are now found within the Business Objects Enterprise (BOE) application. Access to BOE would require a BEARS add user request for Standard User.

Reports are tools for managing inventory. The Director determines which BOE reports are required to be worked, and how often they should be worked by employees. Field Insolvency Report Job Aid and the Automated Insolvency System (AIS) User Guide, list all mandatory and ad hoc reports for FI caseworkers and managers, provide information on access, generating inventory reports and examples of the different types of reports. Both documents are available on the Insolvency Knowledge Management Base.

Mandatory FI Reports are core inventory management reports that FI caseworkers and group managers must use to control individual and group inventories. FI caseworkers and group managers are required to generate and work mandatory FI reports in the frequency outlined in IRM 1.4.51.8.3, Case Management Tools. Reports must be retained based on the retention schedule.

The following reports will be rolled down to FI Managers from SCI Director¡¯s Staff and/or SCI Technical Analyst. FI Managers will assign the reports listed below to caseworkers to perform the required case actions.

AD Hoc FI Reports are commonly used supplemental reports that FI caseworkers and group managers may use to assist in controlling individual and group inventories. Although working core mandatory reports will provide sufficient controls on individual and group inventories, FI Ad Hoc reports are helpful in identifying specific subsets of cases, confirming that specific cases were addressed through the core mandatory reports, and working special projects. There is no IRM prescribed frequency to use AD Hoc FI reports. Specialists and managers may use the reports as needed or based on personal preference. Managers may periodically direct FI caseworkers to generate and work an AD Hoc reports based on specific individual or group inventory needs.

Printing and Working CIO Reports. The CIO Technical Support and Operation Support team is accountable for the following report actions.

In addition to the reports listed above, CIO may work the following reports:

With Territory / Operation Manager's or Department Manager's approval, AIS Business Objects reports may be updated with additional Business Objects reports. To be approved the new reports must serve the purposes of the original AIS Business Objects reports and increase efficiency.

As each case on a report is worked, the caseworker should document the AIS history in accordance with IRM 5.9.5.4(2), History Documentation. Each case on a report should be checked off when action has been completed and the history is documented.

Minimum retention of completed reports must comply with requirements established in Document 12990, Records and Information Management Records Control Schedules, RCS 32, item 35(B). Consult with Privacy, Governmental Liaison and Disclosure (PGLD) before deviating from the retention standards in Document 12990. Formal Retention Standards, for completed reports are as follows:

The chart below lists actions which are Mandatory in bankruptcy case processing. The chart separates duties overseen by managers in Field Insolvency, overseen by managers at the CIO, and duties which are supervised by managers in both functions. The links to exhibits and IRM references cited within the chart provide cross references to report tools or IRM procedures for meeting those actions.

The Case Assignment Guide (CAG) was developed to promote consistency in the assignment of graded Insolvency cases.

AIS automates the grading and assignment of new cases received by Insolvency. The level of difficulty or grade of a case is based on characteristics apparent upon initial receipt. The pre-assignment grade is only an initial prediction and should be adjusted when post-assignment factors justify a change. See Exhibit 1.4.51-19, CAG Pre-Assignment Factors, and Exhibit 1.4.51-20, CAG Pre-Assignment Difficulty Indicators. Automated CAG uses the following four factors in the pre-assignment process:

Post-assignment factors are used either to reassign a case or to assign certain issues or tasks to an appropriately graded employee. Managers should be familiar with the post-assignment factors and take steps to reassign cases to the appropriate grade level of employee when the following post-assignment factors are identified:

Managers must designate employee assignment numbers for the inventories under their responsibility. All bankruptcy court jurisdictions must have an employee number assigned for every combination of chapter, case grade and alpha assignment. Once the inventory assignments have been designated, the manager must ensure the employee assignment information is entered in AIS for Automated CAG to work effectively. The Case Assignment Profile Matrix stores employee information so Automated CAG can assign cases to the appropriate employee. Employee assignment information cannot overlap. Exhibit 1.4.51-24, Case Assignment Profile Matrix, contains a template to be used as a guide in preparing the matrix. A template should be prepared for each court jurisdiction.

Automated CAG generates a suite of reports to assist Insolvency managers in monitoring the flow of newly assigned cases and in balancing inventories. These reports identify unassigned cases that may have to be manually assigned and are tools for selecting cases for review. (See Exhibit 1.4.51-17, Guide for Case Assignment Reports (CIO).)

CAG has a Manager Only menu option whose access is limited to certain employee assigned roles. This option allows Insolvency managers to supervise the assignment of work and facilitates conducting case reviews. Managers, particularly those in Field Insolvency, play a pivotal role in both the pre-assignment and post-assignment processes. They must monitor inventory receipts to ensure new cases are properly graded and assigned. They must also verify previously assigned cases are reassigned and re-graded timely when appropriate. Corrective actions must be taken immediately by the manager or designated employee in the following situations:

The Case Grade Report should be reviewed by Insolvency managers at least monthly to identify the distribution of graded case assignments. The report provides a list of employee assignment numbers and reflects the inventory distribution for each including the percentage of cases for each grade assignment. Reviewing this report will assist managers in monitoring inventories to ensure graded cases are assigned at the appropriate levels. See Field Insolvency Report Job Aid. Review of this report may also identify ungraded cases that require grading. In order to see the specific cases that need grading run the Ungraded Case Follow Up Report. See Exhibit 1.4.51-17, Guide for Case Assignment Reports ( CIO), for more information.

Cases are issued with a case grade of 07, 09, 11, or 12. These case grade levels reflect the anticipated level of difficulty. Exhibit 1.4.51-20, CAG Pre-Assignment Difficulty Indicators, reflects the criteria used to determine the case difficulty level.

Managers are responsible for reviewing and maintaining the correct case grade. Case grade levels can be either increased or decreased. There are systemic processes in place to predict the grade level of a case. If the predicted case grade does not appear to be accurate, the manager may re-grade the case per the Case Assignment Guide criteria in Exhibit 1.4.51-25, CAG Post-Assignment. This can be done at any time: upon receipt, upon assignment to an employee, and during case reviews. Employees should be encouraged to bring mis-graded cases to their manager¡¯s attention.

Managers will not normally change the grade of a case unless it meets factors at the lower or high level. Document in the case history the reason for changing the grade of a case.

Managers should change the grade of a case if receipt of additional information or case circumstances warrant. If additional explanation is needed, the manager should write a narrative history as well.

When it is determined that the difficulty level of a case has changed, the manager may adjust the grade level.

Managers may need to consider a reassignment of the case if a grade level change is made.

Group managers are responsible for monitoring inventory levels to ensure each employee has an appropriate number of cases that can be resolved most effectively and efficiently based on his/her grade level, experience, and expertise.

Where inventory will be abandoned for periods of 90 days or more (for example an employee is reassigned, on extended leave, or long term detail) the group manager will consider performing the following actions:

Timely Claims. In most cases to be timely, a proof of claim (POC) must be filed before 180 days (the government bar date) from after the date of the order of relief (which is the date the bankruptcy petition was filed in voluntary cases). (See 11 USC 502, Allowance of claims or interests, and Bankruptcy Rule 3002, Filing Proof of Claim or Interest.) Claims prepared through Automated Proof of Claim (APOC) processing should be filed prior to the first meeting of creditors. A full discussion of time frames for filing claims can be found in IRM 5.9.13.7, Bar Dates.

"Proof Required" and "Bar Date" fields on AIS. The "Proof Required" field on AIS is not protected. Anyone with update capabilities can change the field from "Yes" (a claim is required) to "No" (a claim is NOT required). Caseworkers can also alter the bar date field. Inappropriate alteration of the bar date may give the impression more time is available to file a POC than legally exists. The audit trail available in the CAG Manager's Only menu records information when the Proof Required or Bar Date fields are updated.

Missed Bar Dates. If a bar date has expired, the person identifying the missed bar date will, within 10 days, complete Part A of Form 14167, Bar Date Expiration Report, and will enter a statement in the case history indicating that a preliminary Form 14167 has been prepared. If not prepared by the group manager, the completed Form 14167 should be forwarded to the group manager for review. Within 60 days of identification, the group manager will review the case history, and any other relevant information, determine if further administrative action is warranted, and whether disciplinary action is appropriate. The group manager will complete Part B of Form 14167 with the results of the investigation. If disciplinary action is warranted, the manager will prepare a memo that details why the Bar Date expired, and why disciplinary action is warranted. The Form 14167 and memo should be prepared and routed as follows:

Secured Assets. Where valid NFTLs have been filed and the criteria in ¡Ô ¡Ô ¡Ô ¡Ô ¡Ô ¡Ô ¡Ô ¡Ô ¡Ô ¡Ô ¡Ô ¡Ô ¡Ô ¡Ô ¡Ô ¡Ô ¡Ô ¡Ô ¡Ô ¡Ô ¡Ô ¡Ô are met, Insolvency should pursue adequate protection of the government's interest in assets that will lose significant value during the life of the plan.

Attendance by Insolvency. Representatives from Insolvency should attend 341 first meeting of creditors when appropriate and staffing allows. (See IRM 5.9.2.5, First Meeting of Creditors.)

Significant Cases. Significant cases must be referred to Counsel regardless of chapter. (See IRM 5.9.4.15.3, Significant Bankruptcy Case Referrals.) The AIS history must annotate if Counsel has assumed the responsibility for plan review.

Review and Documentation. IRM 5.9 provides detailed text and procedures for reviewing and documenting plans. (See IRM 5.9.5.4(3), Chapter 13 Plan Documentation, IRM 5.9.5.4(4), Chapter 11 and Chapter 12 Plan Documentation, IRM 5.9.8.17.1, The Plan of Reorganization, IRM 5.9.9.5, Chapter 12 Plans, IRM 5.9.9.5.2, Plan Modification, IRM 5.9.9.6, Reasons to Object to the Plan, and IRM 5.9.10.5, The Chapter 13 Plan.)

Confirmed and Amended Plans. If proposed plan provisions affecting the treatment of the IRS are deemed inadequate by the Field Insolvency caseworker, the AIS history must include documentation of the confirmed plan or a statement that an inadequate plan has been confirmed. When a confirmed plan is amended, where the amendment affects the interests of the IRS, the amended plan must be documented in the AIS History and the Confirmed Plan Monitoring (CPM) screen updated.

Multiyear Plans. Insolvency caseworkers should monitor post-petition compliance by the debtor when long term plans are confirmed. Some debtors make high payments mandated by trustees by lowering their withholding or by failing to make federal tax deposits, leading to unpaid post-petition taxes. The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) added provisions to address post-petition tax compliance in bankruptcy cases.

Fraud Detection. All caseworkers, regardless of grade or position title, should review cases with an eye for indications of bankruptcy fraud. However, Field Insolvency is responsible for referring accounts to the Fraud Enforcement Advisor (FEA) or to Counsel when warranted. (See IRM 5.9.4.12, Bankruptcy Fraud, and IRM 5.9.17.8.2, The Fraud or Willful Evasion Exception to Discharge.)

NFTL Refile. Procedures outlining the issues involved and the reviews required for potential NFTL refiles are found in IRM 5.9.5.9.2, Refiling Notices of Federal Tax Lien (NFTL), IRM 5.9.8.19.2, Monitoring the Plan and Reviewing for Refiling of the Notice of Federal Tax Lien (NFTL), and IRM 5.9.17.5.3(12), Notice of Federal Tax Lien (NFTL) Refiles.

Estimated Claims. Estimated claims for unfiled, unassessed tax periods impact collection of the correct amount of tax, because estimated claims prompt delinquent debtors to file tax returns. However, estimated claims filed by the IRS can be the source of objections if debtors and their representatives are not aware of the unfiled returns.

BAPCPA Change. The IRS has addressed compliance requirements brought about by BAPCPA by including annotations on claims and sending courtesy copies of Letter 1714, Request For Missing Tax Returns, to trustees to provide information regarding unfiled returns. The Letter 1714, courtesy copy alerts the trustee that the IRS may be amending its POC or filing a motion to dismiss or convert the bankruptcy. The trustee may wish to delay distributions or plan confirmation until this tax administration issue has been resolved.

Correcting the AIS CPM Screen. Managers must ensure estimated claims are amended when debtors' returns are filed and assessed if the debtors' returns do not reflect the amounts shown on our estimated claim. To avoid an objection, Managers can ensure the caseworker amended the claim when a return is received. Whenever a claim is amended, the AIS CPM screen must be adjusted to reflect the amended claim period(s), so collected funds are appropriately applied to tax rather than transferred to unidentified remittance.

A Trust Fund Recovery Penalty (TFRP) Assessment Statute Expiration Date (ASED) is generally three years from the date a return is filed or the due date of the return, whichever is later, for quarterly periods involving trust fund 941s, collected excise taxes, and annual 943s and 944s with trust fund tax. (See IRM 5.19.14.2.2, Trust Fund Recovery Penalty Statute of Limitations.)

Generate the ASED Follow-Up report from AIS Business Objects at least quarterly to identify accounts where the ASED for the TFRP will expire within the next twelve months.

Caseworker identification and history documentation of debtors with trust fund liabilities upon initial case review is essential because the ASED may be imminent. (See IRM 5.9.6.11.3, Initial Case Review of the 7A Business Case by FI, IRM 5.9.8.4, Initial Case Review for Chapter 11, and IRM 5.9.9.3.2(8), TFRP Actions for Debtors.)

Where trust fund taxes are an issue and a TFRP investigation has not been initiated by Field Collection, Field Insolvency must identify and document potentially responsible officers for the IRC 6672, Failure to Collect and Pay Over Tax, or Attempt to Evade or Defeat Tax, penalty. (See IRM 5.9.5.4(2), History Documentation.)

Managers must ensure information concerning in-business individuals and entities responsible for paying trust fund taxes are documented on AIS and tracked appropriately throughout the life of the bankruptcy.

If an ASED is identified as having expired while a case is governed by the bankruptcy freeze, the procedures in IRM 5.7.3.9, Reporting Expiration of the TFRP Statute, should be followed by Insolvency caseworkers.

The automatic stay indirectly prevents the IRS from assessing non-agreed proposed deficiencies on pre-petition periods because the time to file a Tax Court petition is tolled by the stay against the commencement or continuation of a Tax Court case. Examination staff monitor these unagreed proposals via a computer system called the Insolvency Noticing System (INS) generated by the Examination Returns Control System (ERCS). The Bankruptcy Exam Coordinator (BEC) in Technical Services, normally a revenue agent, coordinates with the Insolvency function to ensure the "Open Exam" field on the AIS Taxpayer screen indicates "Yes" when an examination is pending.

Revenue agents and office examiners are instructed to contact the BEC when they identify TC 520s on audit transcripts or learn through the audit process a taxpayer is in bankruptcy. The information is passed on to Insolvency so the case can be added to AIS or updated and monitored until the proposed deficiency may be assessed.

A process similar to that of field Examination governs Campus controlled cases. Campus exam cases are usually controlled by Campus correspondence units and the Automated Underreporter (AUR) units. Insolvency must coordinate actions with the lead of each SB/SE Campus group for correspondence cases and with the lead of each Campus AUR group.

Campus Examination employees have access to AIS to monitor modules with open controls on IDRS. Campus employees contact Insolvency caseworkers with the status of underreporter proposed deficiencies if they have not received agreements to their statutory notices of deficiency. Cases pertaining to pre-petition periods receiving no response are classified as unagreed cases and are barred from assessment during the pendency of the bankruptcy if the bankruptcy petition was filed prior to the expiration of the time period for filing a petition in tax court.

Some Campus Exam units have been provided with read-only access to AIS and have received sufficient training to allow them to determine the status of a case without contacting Insolvency. Other Campus Exam units without AIS access or skills may monitor the proposed assessments in suspense status and contact Insolvency periodically for an update of the bankruptcy status.

Tax Equality and Fiscal Responsibility Act (TEFRA) generally applies to partnership examinations for partnership taxable years beginning prior to January 1, 2018. After a partner files a bankruptcy petition, the IRS has at least one year to assess a TEFRA deficiency. While the bankruptcy rules provide the IRS is to receive notice of all Chapter 11 cases, no specific requirement exists for the debtor to provide the government notice of the bankruptcy in all TEFRA cases. These cases require immediate Insolvency attention when they are identified. Insolvency should consult the Bankruptcy Exam Coordinator (BEC) for guidance.

Insolvency caseworkers are charged with:

Generate a report from AIS Business Objects at least semi-annually to identify accounts for which the Collection Statute Expiration Date (CSED) will expire within the next twelve months. (See Field Insolvency Report Job Aid) Review those cases to:

The CSED displayed may be invalid in certain cases. The CSED shown is always for the earliest assessment on the module. If that assessment is paid, the true CSED is for a later assessment (for example, an adjustment or deficiency assessment). If that is the case, request command code CSEDR to eliminate erroneous CSEDs from future monthly reports.

CSED Extensions. Typically the time for which a bankruptcy stay is in effect plus six months is added to the collection statute after the stay of collection is terminated. IRM 5.9.4.3, ASED/CSED, provides more information on CSED computations.

Imminent and Expired CSEDs. The procedures outlined in IRM sections 5.1.19.5 through 5.1.19.5.6 should be followed when addressing imminent (CSED will expire in 12 months or less) or expired CSEDs under the bankruptcy freeze, substituting the words "Insolvency caseworker(s)" for "revenue officer(s)" .

National quality reviewers use a similar web-based system called the National Quality Review System (NQRS). A cornerstone of EQ is that quality reviewers and managers use the same basic set of attributes. This should minimize the concern that national reviewers are applying different criteria than managers when reviewing cases. However the national quality reviews will not be used to evaluate individual employee performance. NQRS attributes are not linked to employee CJEs; instead each attribute is mapped to one of five Quality Measurement Categories:

Consistency Reviews will be conducted to assist users in rating EQ attributes consistently by using the Attribute Job Aids, EQ website guidance, Critical Job Elements, and IRMs. Managers may participate in one or more EQ consistency reviews each year. The goal of consistency reviews is to improve the understanding and application of the EQ rating guidelines. Group managers and Territory managers within a territory will review the same case, compare attribute results, and discuss how rating guidelines can be applied to achieve consistency on attributes where significant rating inconsistencies occurred.

Territory managers will schedule and conduct EQRS consistency reviews with group managers annually. The Area Director may add additional reviews when consistency among managers needs improvement. Consistency reviews require all managers within a territory to review the same case to compare attribute results and discuss how rating guidelines can be applied to achieve consistency. Refer to IRM 5.13.1.1.3, Roles and Responsibilities, and IRM 21.10.1, Embedded Quality (EQ) Program for Accounts Management, Campus Compliance, Field Assistance, Tax Exempt/Government Entities, Return Integrity and Compliance Services (RICS), and Electronic Products and Services Support, for review procedures and guidelines.

Document the review by preparing a written narrative to include the date the review was completed, observations, and actions taken to achieve consistent application of EQ attributes.

Refer to IRM 5.13.1, Embedded Quality Collection Field Organizations Administrative Guidelines, and IRM 21.10.1, Quality Assurance - Embedded Quality (EQ) Program for Accounts Management, Compliance, Field Assistance, Tax Exempt/Government Entities, Return Integrity and Compliance Services (RICS), and Electronic Products and Services Support for information and guidance about EQ.

It is extremely important that case documentation is timely, clear, accurate, and complete.

Managers must direct subordinates to document all actions related to the IRS's involvement in a bankruptcy proceeding in the AIS History screen. Insolvency is the primary repository of bankruptcy-related case actions for all functions of the IRS. (See IRM 5.9.5.4, Automated Insolvency System (AIS) Documentation.)

Incomplete documentation will negatively affect:

Operational and/or administrative/compliance reviews must be conducted during the fiscal year as a single phase comprehensive review or an on-going series of multi-phased reviews that focus on specific aspects of the group's performance.

When developing a department / group operational review plan, consider the experience level of the DM / GM and the Department's / Group's overall current performance. Additionally, Territory / Operation / Department Managers that are new to the existing departments / groups should conduct a review that will increase their familiarity with the departments / groups in the territory / operation / department. The review plan will be tailored to the needs of each department / group to assess progress on objectives, safeguard the continued development of employee skills, timely and accurate customer service, and the continued enhancement of department's / group's performance in quality and productivity.

Provide a framework for the department / group operational reviews at the beginning of each fiscal year based on the above criteria.

Confer with the Director for concurrence on a plan that is tailored for each department's / group's unique circumstances. Plan the review based on analysis of territory / operation / department and group performance results and program trends. A variety of management information systems (MIS) reports can assist in determining areas of focus for the review.

Information from periodic DM or GM briefings may be incorporated in a multi- phased approach. Briefings are an optional method used to ensure periodic communication on group progress and other areas of interest.

Feedback about operational review findings is expected to occur continuously throughout the review cycle.

When determining how to maximize the benefits of the operational review, SCI Managers (Territory / Operation / Department) may take into consideration the known strengths and opportunities for improvement for the department / group being reviewed. Territory / Operation / Department Managers should exercise their professional judgement when selecting the supplemental review elements supporting the strategic plan by providing the Department / Group manager with actionable guidance and measurable goals.

Critical items that should be addressed in each department / group operational review should be aligned to the Servicewide Balance Measure and management responsibilities. See table below:

Several review elements can be performed remotely using the appropriate computer applications. Examples of review items which may be performed remotely include but are not limited to:

In addition, you may delegate review elements to your administrative assistant or a SMRP candidate as developmental assignment.

When using a comprehensive review option, one narrative will be prepared to document findings conclusions and recommendations.

When using the multi-phase approach, prepare a narrative to document each component at the time the review is completed. Territory / Operation / Department Managers may choose to review program aspects across the territory / operation / department and provide department / group specific feedback or review targeted aspects for a specific department / group.

The narrative should be written with the DM / GM as the intended audience. Attachments that provide additional detail may be used as appropriate. Action items communicated to the department / group manager must include a description of the action to be performed and a due date for completion.

The format of the operational review generally will begin with identifying the department / group reviewed, the evaluative period, and a summary of the review. Any due dates for a response will be communicated in the summary of the review. The narrative should address each responsibility contained in the Management Performance Agreement. While each SCI Territory / Operation / Department Manager may choose their own format for the narrative, the narrative may be outlined as follows:

Each responsibility should be supported by a review component. The narrative for each responsibility should address whether the responsibility is being met and provide actions the manager will take to ensure the objective is met, if necessary. During the review, the DM / GM will be provided with an opportunity to describe their process related to the elements reviewed and the SCI Territory / Operation / Department Manager can address the effectiveness of those processes and make recommendations where necessary.

The narrative should be shared with the department / group manager within 60 days of completing the actual review.

Department / Group managers are responsible for creating a workplace culture of professionalism where employees are treated with dignity and respect. Assess the DM¡¯s / GM¡¯s performance management in providing meaningful feedback to employees by completing performance reviews which encourage employee engagement and the timely completion of mid-year and annual performance evaluations. When rating this responsibility, determine if the DM / GM is completing the required reviews timely, address the feedback provided by the DM / GM to the employee and whether the employees are providing feedback.

Critical items in each department / group operational review will be aligned to the Servicewide Balance Measure and management responsibilities. See table below

Administrative / Compliance Reviews are used to monitor and document oversight of operational items not included in operational reviews. Territory / Operation / Department Managers are required to provide oversight for Administrative / Compliance review areas. These reviews may be conducted at any time during the fiscal year.

Document results of mandatory Administrative / Compliance review items in a clearly identified subsection of the annual comprehensive operational review or prepare a separate narrative review (at least annually) to summarize results.

Documentation is required for those items noted as mandatory as well as items for which findings indicate non-compliance and/or a need for improvement.

Common components that may become part of the administrative portion of the operational review include but are not limited to:

Provide the Territory / Operations Manager a copy of your planned review schedule.

Document the performance review in a memorandum to the Territory / Operations Manager within 60 days of completion of the review. If the review contains action items for completion by the Territory / Operations Manager, provide a response time frame for the required action item. The operational review should also include a candid discussion regarding the Territory / Operation Manager¡¯s performance.

The performance review should address the responsibilities of the Territory / Operations Manager as they relate to the achievement of the program goals for SCI and proactive contributing to the Director¡¯s Collection Business Plan. The table below provides an optional outline for the components of the area performance review:

Address additional programs and initiatives established by the Program Director that support the goals and objectives of SCI. Some examples include: