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4.1.1.2
(10-24-2006)
Examination Plan
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The National SB/SE Examination Plan is based on long range coverage
objectives and on resources requested in the Congressional Budget. From the
approved National SB/SE Plan, staff years are allocated to Areas and Campuses
using a resource allocation methodology. Planning and Special Programs Territory
Managers (PSP) are responsible for preparing the Area response to the draft
examination plan following the instructions in the Area user’s guide
and cover memoranda from National Headquarters.
4.1.1.2.1
(10-24-2006)
Staffing Allocation Methodology
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The staffing allocation methodology SB/SE uses to prepare the examination
plan considers the following factors:
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Examination priorities
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Front loaded programs
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Marginal yield from examinations
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Historic examination rates adjusted by an improvement
factor
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Current on-board staffing in Areas
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Anticipated attrition
4.1.1.2.2
(10-24-2006)
Examination Priorities and Front Loaded Programs
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These programs are those activities Headquarters has determined are
of such importance time must be allocated to them before resources are committed
to other activities. The PSP Territory Manager will discuss this time with
the Area and territory managers responsible for these programs to ensure the
plan response shows the correct time allocations. Examples of these programs
are:
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National Research Program
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Abusive Tax Avoidance Transaction (ATAT) Promoters
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Offshore Credit Card (Credit Card Project - OCCP)
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Abusive Tax Avoidance Transactions (Offshore ATAT and Domestic ATAT)
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High Income Taxpayers (HITS)
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High Income Non Filers (HINF)
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Special Enforcement Program (SEP)
4.1.1.2.3
(10-24-2006)
Balanced Coverage
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The National work plan, supported by each of the Exam Area plans, provides
a balanced approach for return delivery and allocation of Revenue Agent (RA)
and Tax Compliance Officer (TCO) or Tax Auditor staffing. Resources and inventory
are aligned to accomplish the staff years and return closures reflected in
the fiscal year plans. Our focus provides a balanced coverage in the following
categories:
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Individual returns less than $100,000
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Individual returns greater than $100,000 but less than $200,000
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Individual returns greater than $ 200,000
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Small Business Corporations
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Small Business Flow-Through Entities - S Corporations, Fiduciaries and
Partnerships
4.1.1.2.4
(10-24-2006)
Area Responses
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In preparing the Area response to the examination plan, PSP will:
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Propose adjustments to plan bottom-line staffing.
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Verify operational priorities and front-loaded program
time.
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Input training time based on the training return
plan.
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Evaluate and propose adjustments, if necessary,
time allocated to front loaded time and examination priorities. PSP should
consider work in process, time applied in prior years, results of prior audits,
and the availability of returns.
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Prepare comments on changes to the examination plan.
4.1.1.2.5
(10-24-2006)
Training Return Plan
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The revenue agent and tax compliance officer examination plans each
include a line for training returns. The PSP Territory Manager, will review
the training return plan showing the number of returns to be examined by trainees.
The plan should show the training phase, number of agents/tax compliance officers,
activity code(s), number of returns, rates, and Direct Examination Staff Years
(DESY) to be applied.
4.1.1.2.6
(10-24-2006)
Classification Plan
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A classification plan will be prepared using the Area response to the
draft examination plan. When the final plan is received, the classification
plan will be updated for use for the remainder of the year. The classification
plan will be used to plan DIF return orders and schedule agents and tax compliance
officers for classification details. Prior to placing DIF return orders, consideration
should be given to the number of Fast Track High DIF Returns that fallout
for classification automatically, and non-DIF source work. PSP Territory Manager
will provide a copy of the classification plan to the Campus Classification
Manager and to Headquarters. At minimum, the classification plan will include:
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Number of DIF returns needed by activity code
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Select rates by activity code
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Projected return orders by cycle for each activity
code taking into account the number of anticipated Fast Track High DIF returns
delivered for classification automatically.
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The PSP Territory Manager will monitor the classification plan to ensure:
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Returns are ordered ratably throughout the plan
year.
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Returns are ordered timely in the correct activity
codes.
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Returns are delivered to classification timely and
the delivery rate is adequate.
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Classification is being done timely.
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Select rates are within acceptable levels
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Returns are falling out in the correct posts of
duty.
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Unassigned inventory levels are neither too low
nor too high.
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A ratable ordering tool and guide are also available on the Exam Planning
and Delivery Web site,
.http://sbse.web.irs.gov/epd/
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