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4.1.21.2
(08-01-2007)
Planning
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This section of the manual addresses the following planning items:
4.1.21.2.1
(08-01-2007)
Strategic Examination Planning Process
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The strategic planning process establishes the long-term direction of an organization with a vision of the future and a set
of goals and objectives. The process of strategic planning enables alignment between IRSs functional requirements and the
IRS strategic plan, the strategic plan of each Operating Division, and the agencys institutional capabilities.
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Strategic Planning generally takes a one to three year look at the goals and objectives of LMSB. The planning process is broken
into three phases:
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Strategic Assessment
The purpose of the Strategic Assessment phase is to broadly assess each of the four major taxpayer segments (LMSB, SB/SE,
WI and TEGE) and the IRS infrastructure. Data from both external and internal environmental scans are collected by the Operating
Divisions year round. External or environmental scans focus on customer needs and trends while internal scans focus on IRS
performance management data.
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Strategy & Program Plan
In the Strategy and Program Planning phase, the Operating Division prepares its Strategy and Program Plan (SPP), which provides
a road map for the Operating Division to execute its strategies and programs. The Program Plan focuses on goal setting to
achieve the plan, resources needed to execute the plan, progress measurement, and evaluation of the productivity of current
activities.
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Business Action Plan
Each Operating Division is responsible for collaborating with its organization components to translate its SPP into business
and action plans that articulate what tactical actions, applied resources, and performance milestones need to be implemented.
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Strategic Planning in Management in Finance is responsible for preparing the Strategy and Program Plan.
4.1.21.2.2
(08-01-2007)
LMSB Compliance Plan
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The annual LMSB Compliance Plan is developed as a draft at LMSB headquarters, Operations Support, and is a cooperative product
of the entire LMSB organization. The plan matches available resources and operational priorities (short term/long term) to
communicate the service and compliance objectives LMSB is expected to achieve. Tax return closures and DESYs are forecasted
for the fiscal year by activity code. Each office within LMSB contributes to the development of the annual plan with overall
coordination responsibility residing in the office of Planning Analysis and Support (PAS).
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LMSB Operations Support headquarters staff is responsible for developing a draft plan that, at a minimum, provides for a primary
resource allocation of LMSBs program priorities. These primary resource allocations are referred to as front end loaded programs,
and time is planned and assigned to these programs first.
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The draft plan is presented to the Industry PSPs. The Industries examination workplan is developed from the draft plan considering
goals established by LMSB Senior Management.
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The Industry Examination workplan is developed using a variety of factors that include:
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Full Time Equivalent (FTE) availability considering projected attrition and initiative hires.
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Training time and returns based on the training plan
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Front-end loaded programs.
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Activity code mix for return delivery.
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Rates for each activity code
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Cycle time.
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In process inventory
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Current Industry plan and current plan accomplishments.
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The Industry PSP Analyst must be able to allocate the staff years and returns reflected on the Industry Plan to each respective
Director of Field Operations and Territory Manager for feedback.
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After the detailed Industry plan is developed, it is submitted to Headquarters Operation Support to be combined with other
Industries into an LMSB plan.
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The plan is then reviewed to see if the LMSB management goals and strategic initiatives are represented in the overall plan.
Development of a final plan requires clear communication and partnering between Industries and LMSB Headquarters staff.
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LMSB is exploring new approaches to ensure compliance. Current ways of doing business will be retired as more comprehensive
approaches are developed and implemented. The planning process will evolve to reflect these changes.
4.1.21.2.2.1
(08-01-2007)
Front End Loaded Planning Time
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The planned direct examination staff years (DESYs) and the number of return closures are front end loaded into the plan. These
resources are allocated, after consideration of work in process, prior to committing resources available to other compliance
initiatives.
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The planned direct examination staff years (DESYs) and the number of case closures are front loaded into the plan. The objectives
and time allocated may change from fiscal year to fiscal year. Examples of front end loaded time are as follows:
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Abusive Tax Avoidance Transactions (ATAT)
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Coordinated Industry Case (CIC) time
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Compliance Assurance Process (CAP) time
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Joint Committee
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National Research Program (NRP)
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Protection of Revenue Base (PRB)
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Compliance Initiative Projects
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Outreach Programs
4.1.21.2.2.1.1
(08-01-2007)
Coordinated Industry Case (CIC) Examination Plan
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The Coordinated Industry Case (CIC) plan, due to the size and complexity of the taxpayers included in the CIC program, as
well as the resources needed to manage it, is front-end loaded.
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Detailed information about each CIC examination expected to be in process during the next fiscal year is needed for the plan.
This includes starting and ending dates, tax years to be included, revenue agents and field specialists and planned cycle
time.
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The CIC planning starts with the Team Managers. The team managers have the following responsibilities:
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Determining the Audit Plan and obtaining appropriate taxpayer input.
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Determining the cases and tax years that need to be examined and the extent of the examination.
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Projecting staffing needs including field specialists for each case.
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Providing/Inputting all examination details into the CIC Plan Database and IBMIS (Issue Based Management System).
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Currently, to assist in the Industry PSPs development of the CIC plan, a CIC Plan database maintained by LMSB Operations Support
is used. The following information is input into the CIC database.
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Case Name
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Cycle information
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Industry of case
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Case type
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Start date
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Cycle type
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Audit site zip code
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Team Manager name and group number
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Industry, DFO, territory, POD city and state
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Team member name
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Member type TC, RA, Specialist type;
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Planned staff days (estimated total staff days to be applied by team members);
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Assisted cases If entries are for a case that is being examined as part of a Key Case (enter the name and TIN of Key Case).
Note:
Guidance for changes to items input to this database is provided by the Headquarters Staff on an annual basis.
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For Fiscal Year 2008 and beyond, LMSB will begin to make use of the data in IBMIS Fiscal Year Planning Module in developing
the plan for those compliance activities reported on that system.
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