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. Processing ASFR/A6020(b) pre-assessment correspondence involving P-5-133 determinations and disputed income items. In July 1998, Congress passed the Internal Revenue Service Restructuring and Reform Act of 1998 (RRA 98), Pub. The tax examiner analyzes financial information provided by the taxpayer to determine ability to pay. squad or ambulance crew, as those terms are defined in section 1204(9)(A) of the Omnibus Crime Control and Safe Streets Act of 1968 which is codified in 42 U. S. C. 3796b(8)(A) and as . Section 1204 does not apply to quantity measures; however, Regulation 801 does. The IRS shall not use ROTERs to evaluate employees or to impose or suggest production quotas and goals with respect to such employees. Section 501 (c) (3) is a portion of the U.S. Internal Revenue Code (IRC) and a specific tax category for nonprofit organizations. Liable/not liable determination to file return based on application of P-5-133, Determining ministerial exemption (from SSA), Offer-in-compromise acceptance determination (whether to accept, reject, or advise the taxpayer to withdraw the OIC), Processing Offer-in-compromise (all documents available), Penalty abatement adjusted by tax change and other non-discretionary decisions (e.g., disaster). Yes. The IRS Key District concept was eliminated. I.R.C. 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. We're working on fixing it! Resolving discrepancies between information provided by the taxpayer and third party reporting. The revision of Regulation 801 removed the limitations on the use of quantity measures for organizational units in evaluating the performance of, or imposing or suggesting quantity goals. TEPS is a tool employed in campuses to measure certain Section 1204 employee performance standards selected by management. No. The manager must evaluate the employee's use of time based on individual cases, rather than on any assumptions as to case closing norms. The Final Regulations aim to . . Section: Page: Zoom. Appropriate supervisor is the Section 1204 executive in an operating/functional division that directly or indirectly supervises one or more Section 1204 employees. There is no prohibition against sharing organizational quantity or quality statistics. The result is that reasonable people handling the same type cases may evaluate factors differently and achieve different outcomes. However, the IRS did not agree with four of the 13 Section 1204(a) potential violations, as well as 11 of the 55 instances of Section 1204(b) documentation noncompliance. Provides detailed procedures on the use of ROTERs. (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. . Program completion dates are the scheduled completion of returns processing (timely filed Form 1040 processed by a certain date) or program completions (Consolidated Annual Wage Report (CAWR)/ Federal Unemployment Tax Act/Account (FUTA) programs completed and submitted to the receiving agency by a certain date). The manager may suggest that the RO contact experienced personnel to discuss best practices. Whether the use of a statistic is a ROTER. 4215, 4220, 4225, 4235, 4245, 4255, 4260, 4265, 4275 Draft Control Disc Draft Control & Lift Components - MF S.41482 Lever Assembly Lever - Valve Control Ref: 189370M91 35, 35X, 65, 765 S . L. 105-206, 26 U.S.C. ROTERs do not include TERs of individual cases when used to determine whether an employee exercised appropriate judgment in pursuing the enforcement of tax laws based on a review of the employee's work on that individual case. This suggests a production quota or goal to the employee and is a Section 1204(a) violation. Employer's Quarterly Federal Tax Return. The Internal Revenue Service (IRS) Restructuring and Reform Act of 1998 (RRA 98), Section 3707, prohibits the use of any tax protester designation to describe the taxpayer. "Rules similar to the rules of paragraphs (2) through (6) of section 1001(b) of the Internal Revenue Service Restructuring and Reform Act of 1998 [Pub. A manager may not suggest to a Section 1204 employee that they should achieve the same TER in Case B as they achieved in Case A. In any case, a theory of quantum gravity is expected to apply at early enough times, but we don't know what that theory is. Section 1204 manager is a manager/supervisor at any level who supervises one or more Section 1204 employees. Amend/Fix Return. Quality Review and Correction of notices (Notice Review), Questionable refund in CIB (paper and EFDS), Examination reconsiderations (includes SFR reconsiderations), Assistance in return preparation (walk-in areas), Unpostable Resolution (freeze code, hold return). An employee may be a Section 1204 employee for one task, but not another. L. 103-353 substituting "chapter 43" for "section 4323". An organizational unit may use any outcome-neutral data, such as overage cases or cycle time, as a quantity measure. This means U.S. companies can deduct the full purchase price of ALL qualified equipment purchases, up to the limit . RRA 98, Section 1201, Subpart I, Chapter 95, Section 9508, addresses a general workforce performance management system in lieu of the performance appraisal system established under 5 USC, 4302. The exclusion gets its name from the part of the Internal Revenue Code allowing it. Human Capital Officer - Is the highest executive responsible for the Section 1204 Program. A couple filing a joint return gets to exclude up to $500,000. The performance of any one unit at any level of the organization must not be used as a standard by which the performance of other units are evaluated due to differences that exist in: The RRA 98, Section 1204 and Regulation 801 Decision Table can be used to determine if a particular measure/data may be used for a specific purpose. The board of trustees shall adopt rules necessary to maintain the qualified pension plan tax status of the Judicial Retirement Program under the Internal Revenue Code as required for governmental defined benefit plans defined in the Code, Section 414(d). See Regulation 801.6(d)(2) and 801.7(a) Example 3. See Regulation 801.2. 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. Title 26 Code of Federal Regulations, Part 801 (Regulation 801), establishes an overall IRS performance measurement system and governs the use of ROTERs. Using results for diagnostic tools or workload indicators to compare one unit against other units may be appropriate for: Seeking process enhancements to support improvement of the over-arching balanced measure(s). 9944) (the "Final Regulations") providing additional guidance on several aspects of the income tax credit for the capture of qualified carbon oxide (CO) under section 45Q of the Internal Revenue Code of 1986, as amended (the "Code"). Thus, the employee would be considered a Section 1204 employee. Examples of quantity measures include, but are not limited to: Customer education, assistance, and outreach efforts completed. POPULAR FOR TAX PROS. Assess and improve individual, team, and organizational performance. Some offers include a free state tax return. Routine decisions about the application of basic principles of law or regulation. Rules. Idle time refers to the period of time in which an employee is not conducting or wrapping up telephone calls. This example does not suggest or impose a production goal or quota for an employee. In a case review, workload review, progress review, or other employee documentation that is not an employee evaluation, the facts and details related to an individual TER may only be mentioned to fairly describe the employee's performance (that is, the employee's knowledge, skills, and abilities as applied to the case) with emphasis placed on the employee's efforts rather than on the result. Key Parts 0480 . Treasury Inspector General for Tax Administration (TIGTA) - Completes the annual Mandatory Review of IRS Compliance With Restrictions on the Use of Enforcement Statistics. Using quantity measures to evaluate supervisory employees is allowed, but may lead to a ROTER violation if organizational goals are used to directly determine a supervisory employee's performance rating. This can be a valuable starting point for a discussion with an employee in respect to overall performance. The Electronic Code of Federal Regulations (eCFR) is a continuously updated online version of the CFR. Form 10-K (annual report [section 13 and 15(d), not s-k item 405]) filed with the SEC Revised Regulation 801 removed the limitations on the use of quantity measures for imposing or suggesting goals for both organizational units and employees. No. What are the key components of Section 1204? 1.15.16 Under Section 1204 of the Revenue Restructuring Act of 1998 (RRA - 98) appropriate Supervisors must certify quarterly by . IRC Section 471 small business taxpayer exemptions are modified. ROTERs may be used for forecasting, financial planning, resource management, and the formulation of case selection criteria. . Our system of taxation depends on the taxpayers' belief that: The tax laws they follow apply to everyone. Yes, but not simply in terms of quantity of work done. HCO Office of HR Strategy - Provides servicewide training delivery services and training technology support in the Integrated Talent Management System (ITM), leadership and cross-functional training programs, training policy guidance, and quality assurance for all IRS training. Each statistic cited in the question reports the accuracy (first two) or timeliness (last two) of employee collective efforts - all of which are quality measures. IRM 1.5.5, Section 1204 and Regulation 801 Guidance for Criminal Investigation (CI). Page Last Reviewed or Updated: 26-Oct-2022, Request for Taxpayer Identification Number (TIN) and Certification, Employers engaged in a trade or business who pay compensation, Electronic Federal Tax Payment System (EFTPS), Restructuring and Reform Act of 1998 (RRA 98) Section 1204, Records of Tax Enforcement Results (ROTERs), Section 1204 and Regulation 801 Decision Table, Questions and Answers for Small Business/Self-Employed and Wage and Investment Operating Divisions, Small Business/Self-Employed (SB/SE) and Wage and Investment (W&I) Operating Divisions Section 1204 Work Activity Determination Matrix, Treasury Inspector General for Tax Administration, Deferred Adverse Tax Consequence/Alternative Strategies for Tax Administration. Emphasizing the amount of cases in the inventory may result in premature closure. An employee whose duties involve providing direction or guidance for field programs involving Section 1204 work activities. 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