The Fraud Development Lead Sheet should be used to assist the examiner in determining whether the assessment of fraud penalties is warranted. Administrative Issues and Case Issues may be established for the Team Coordinator or assigned to other team members. The Case Tree contains auto-populated Case Attributes. Refer only to the table from this exhibit. Document 6036, Examination Division Reporting System Codes Booklet, and Document 6209, IRS Processing Codes and Information serve as a reference for the codes and indicators in this section. Form 8821, Tax Information Authorization, permits the third party to receive and inspect information provided by the examiner. See IRM Exhibit 25.6.23-3, Instructions for Updating the Statute on AIMS for procedures. The Form 56 is established or perfected prior to classification of the return. Once an examiner’s referral request to engineering is accepted and assigned, the examiner should add the assigned Engineer as a team member within IMS using the following steps: The LB&I employee should be assigned a "Referral to Specialist Issue" (SAIN EG081) issue. The following IRM subsections provide instructions for retrieving historical returns: IRM 3.5.61, Files Management and Services, IRM 3.5.61.26.1, Form 709, United States Gift Tax Returns - Request/Retrieve the Return, IRM 3.5.61.6, Document Requests - Forms Used to Request Returns/Documents. See IRM 3.5.61.6 paragraph 2. Information on Retention Register Module Research and Reinstatement is in IRM 21.7.10.4.6.4.1. The same property may be reflected on more than one Schedule A. The group secretary, examiner, and group manager are all responsible for the proper coding of the activity on the account while the return is assigned to the group. Information is uploaded to the IMS Server through synchronizations. This is a proprietary combination of Access databases and Excel spreadsheets used by Estate and Gift Tax to generate reports and examination process and documentation (EPD). Examiners should thoroughly review the classification sheet, if applicable, and select issues so that, with reasonable certainty, items necessary for a substantially correct determination of the tax liability have been considered. §§ 12-391 to 12-405 and see Estate Tax Exemption). A fiduciary assumes the powers, rights, duties, and privileges of the taxpayer, until notice is given that the fiduciary relationship is terminated. Gift Tax. The examiner should advise the taxpayer of all rights and provide the taxpayer appropriate publications. However, the examiner may need to expand the documentation of their actions and analysis using issue specific lead sheets, workpapers, correspondence and the activity record. The ERCS record will be updated and downloaded through the ERCS synchronization. Examiners can also establish a new record on ERCS with the correct TIN using Form 5345-D, Examination Request − ERCS (Examination Return Control System Users). See IRC 6501(e)(2). Examiners must complete an IMS case synchronization at least once every week that they have taken action on a case. Field and Specialty Exam Quality review staff conduct national quality reviews on a statistically valid sample of unagreed, agreed and no change Estate and Gift tax cases using the quality attributes. (6) IRM 4.25.1.9.7 paragraph (4) was revised to add a citation to IRM 20.1.1.2.3.1, Timing of Supervisory Approval. Online resources for researching state law include LexisNexis, Accurint, Commercial Clearing House (CCH), Westlaw, IRM Online, the Estate and Gift and the Estate and Gift SharePoint. See IRM 4.25.4.8 , Classification of Non-Filer and Under-Reporter Project Cases. A major complaint from practitioners is the time it takes to close an audit and get a closing letter. See IRM 26.6.23-3, Instructions for Updating the Statute on AIMS, paragraph (4) for a description of the available alpha codes. The process whereby a team of Campus and field estate tax attorneys, estate tax managers, lead estate tax attorneys, paralegals and transfer tax technicians review all schedules on all estate and gift tax returns that met the initial screening criteria to identify any issues for examination. NEw JERSEY STATuTES OF LImITATIONS ... Of any real estate except woodlands and cultivated tracts 30 years 2A:14-30 ... Action arising out of a letter of credit within 1 year after expiration date of letter or 1 year after cause of action accrues, whichever is later 12A:5-115 . From the Add Issue screen, select the team member to be assigned to the issue from the drop-down list. Limited Scope Audits will have specific examination issues designated by classification or the group manager. Perfection of a Form 8971, Information Regarding Beneficiaries Acquiring Property from a Decedent and/or a Form 8971 Schedule(s) A is limited to requesting information required to be disclosed by the return and/or its instructions, and to requesting the information noted in a) through d), below. Factors to consider: Examiners may be required to examine cases in states other than their own. Group manager involvement (including informal discussions, formal discussion, in-process case reviews, on-the-job-visitations, and workload reviews, manager plan to close meetings, managerial approval for deviations from IMS document upload requirements, fraud awareness, and penalty assessments/abatements, etc.). Management will also use quality data to identify system changes, training and educational needs, and to identify opportunities to improve work processes. Unless permitted by the group manager, the examination issues will not be expanded beyond the classified/assigned issues. The IRS statute of limitations period for collection of taxes -- the IRS filing suit against the taxpayer to collect previously assessed taxes -- is generally ten (10) years. NQRS report data is compiled by QMA on a quarterly basis, but ad hoc reports may be obtained monthly. As part of the processing of a Form 706, an attempt is made by Files to associate any and all related gift tax returns filed by the decedent. The examiner must verify the statute of limitations, complete the Statute Verification Lead Sheet and correct any statute inaccuracies on IDRS (e.g., ASED date) for all assigned cases within 45 calendar days from case receipt. IMS is designed to obtain and retain examination information in a centralized location on the IMS Server. Workpapers can also be added to either an open or closed case file from the team website. See IRC 6501(e)(2). Notate whether the taxpayer was provided Pub 1 and Notice 609 upon initial contact. If the executor has not determined which beneficiary is to receive an item of property as of the due date of the Form 8971 and Schedule(s) A, the executor must list all items of property that could be used, in whole or in part, to fund the beneficiary’s distribution on that beneficiary’s Schedule A. This is called the 10 Year Statute of Limitations. Users may view, edit, add, delete, activate, or deactivate reminders. They must be professional and objective in tone and language as well as free of unwarranted personal opinion and bias. In December 2017, the IRS provided new guidance on methods available to confirm that the IRS examination has been closed. A return is considered to be filed on the due date of the return if it was filed on or before its due date. However, where an examining employee spends a significant amount of time on a particular issue the time charge should be associated with the SAIN code for that issue. When estate or gift tax returns are filed, they go to the Cincinnati Service Center, where they are processed, given a document locater number and prepared for classification. See IRM 4.25.1.3, Necessary for a complete examination of the return, Needed for complete explanation of questioned items which resulted in a no-change. An estate tax closing letter confirms that the estate tax return has been accepted by the IRS, either as filed or after an adjustment by the IRS that the estate has agreed to, and the receipt of the letter generally indicates that the estate tax return examination has been closed. The examiner should also keep the taxpayer or authorized representative informed throughout the examination process. Page Last Reviewed or Updated: 07-Jul-2020, Request for Taxpayer Identification Number (TIN) and Certification, Employers engaged in a trade or business who pay compensation, Electronic Federal Tax Payment System (EFTPS), Obtain and Review IDRS Transcripts and Prints, Verify and Protect Statute of Limitations, Related Returns Necessary for Examination, Obtaining Historical Gift Tax Returns (Form 709), Obtaining Estate Tax Returns (Form 706) for Reference, Limiting the Scope of an Examination After Assignment, Surveying Returns Selected for Examination, General Guidelines for Estate and Gift Examinations, Inventory Management for Estate and Gift Tax Examinations, Efficient Resolution and National Standard Timeframes, Taxpayer Rights Included with Initial Contact Letter, Taxpayer Rights and Notifications During Examination, IMS Time Sheet and Form 9984, Activity Record, Estate and Gift Tax Program Exam Process and Documentation, Gift Tax Examination Mandatory Lead Sheet, Manager Embedded Quality Review and Specialty Exam National Embedded Quality Review Programs, Office of Policy Manager Responsibilities, Territory Manager and Field Group Manager Responsibilities, Estate and Gift Tax Embedded Quality Job Aid, Protection Against Unauthorized Disclosure, Examination Process and Documentation Quick Reference Guide to Tools, Treasury Inspector General for Tax Administration, 4.25.5.2, Obtain and Review IDRS Transcripts and Prints, IRM 4.25.1.2, Obtain and Review IDRS Transcripts and Prints, 4.25.5.2.1, Verify Information from IDRS Data, IRM 4.25.1.2.1, Verify Information from IDRS Data, IRM 4.25.1.2.1, Verify and Protect Statute of Limitations, 4.25.5.2.1.2, Verify Assessments and Payments, IRM 4.25.1.2.2, Verify Assessments and Payments, 4.25.5.2.2, Related Returns Necessary for Examination, IRM 4.25.1.3, Related Returns Necessary for Examination, 4.25.5.2.2.1, Obtaining Historical Gift Tax Returns (Form 709), IRM 4.25.1.3.1, Obtaining Historical Gift Tax Returns (Form 709), 4.25.5.2.2.2 - Obtaining Estate Tax Returns (Form 706) for Reference, IRM 4.25.1.3.2, Obtaining Estate Tax Returns (Form 706) for Reference, IRM 4.25.1.8, Issue Management System (IMS), IRM 4.25.1.8.2, Entities – Related Returns, 4.25.5.3.1.2, Team Members and Taxpayer Contacts, IRM 4.25.1.8.3, Team Members and Taxpayer Contacts, 4.25.5.3.1.3, Revenue Protection Codes (RPC), IRM 4.25.1.8.4, Revenue Protection Codes (RPC), 4.25.5.3.1.4, Standard Audit Index Number (SAIN) Codes, IRM 4.25.1.8.5, Standard Audit Index Numbers (SAIN) Codes, 4.25.5.3.1.5, Uniform Issue List (UIL) Codes, IRM 4.25.1.8.6, Uniform Issue List (UIL) Codes, 4.25.5.3.1.6, Establishing the Actual Closed Date, IRM 4.25.1.8.7, Establishing the Actual Closed Date, 4.25.5.3.2, Time Sheet and Form 9984 Activity Record, IRM 4.25.1.8.8, IMS Time Sheet and Form 9984, Activity Record, IRM 4.25.1.8.9, Uploading Documents to IMS, 4.25.5.4, Estate and Gift Tax Exam Process and Documentation (EPD), IRM 4.25.1.9, Estate and Gift Program Exam Process and Documentation, paragraphs (1) and (7) through (10), 4.25.5.4.1, Statute Verification Lead Sheet, IRM 4.25.1.9.4, Statute Verification Lead Sheet, IRM 4.25.1.9.5 Form 9984, Activity Record, IRM 4.25.1.9, Estate and Gift Tax Program Exam Process and Documentation, IRM 4.25.1.9.2, Limited Scope Audit Mandatory Lead Sheet, IRM 4.25.1.9.3, Gift Tax Examination Mandatory Lead Sheet. Support the factual and technical conclusions. Examiners must exercise judgment in determining the depth required for the examination. who charged time to the case. There are five types of synchronizations performed in IMS: Summary, ERCS, Case, Reminder and Time. To limit the number of UIL codes displayed, enter a Code section in the Code box and/or a description of the issue in the Description box and click on the Search button. No Florida estate tax is due for decedents who died on or after January 1, 2005. Once there is a request for refund, all subsequent time charges should be made to either "P" or "R" . Estate Tax vs. Inheritance Tax. See IRM 4.25.3.10.3 paragraph (3)(c). The case file must contain a Form 9984 for all team members (e.g., engineers, paraprofessionals, etc.) (5) The table in IRM 4.25.1.7.2 paragraph (2) was revised. Time may be entered as direct examination time or below the line time. See IRM 20.1.5, Return Related Penalties. As a result of this filing requirement, estate tax return examinations will include a filing check for estate tax returns filed on or after July 31, 2015. They are retained for 75 years. UIL "00001.06-00 – Estates and Trusts" is the default UIL code for most non-engineering Estate and Gift Tax examination issues. Although IMS will allow the correct P of RB codes to be input, the items ERCS needs to update the return are not included. If applicable, before referral to engineering. EPD is designed to foster good communications with the group manager, taxpayers and representatives. Risk analysis should be used to focus the examiner’s efforts on the issues that make a difference in the audit, instead of on the ones that have little or no adjustment potential. Taxpayer created correspondence and attachments from the representative and/or taxpayer providing substantive information and pertinent to the audit trail. See IRM 20.1, Penalty Handbook and IRM 4.25.7, Estate and Gift Tax Penalty and Fraud Procedures, for reasonable cause analysis guidance. The examiner must verify the statute of limitations for each gift tax return under examination and discuss the actions necessary to protect the statute of limitations with the group manager. See the CFOL Express guide available on the Estate and Gift SharePoint. Estate Tax: In general, IRC 6501 (a) requires the IRS to assess an estate tax liability within three years after the filing date (or due date, if later) of the estate tax return. Documenting the Plan to Close (PTC) meeting in your activity record. (unagreed cases), Relevant additional information provided by taxpayer related to unagreed issues, Statutory Notice of Deficiency (90-day Letter) (unagreed cases). Examiners should mail the initial contact letter to the taxpayer’s last known address. 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