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25.2.2.6
(12-30-2008)
Processing Form 211 7623(b) Claim for Award
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If it is determined that the claim is a potential section 7623(b) claim, the Whistleblower Office will review the submission
for fraud potential and possible review by Criminal Investigation Division. If Criminal Investigation Division decides not
to pursue, the claim will be returned to the Whistleblower Office.
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If the claim file is not referred to Criminal Investigation Division, the Operating Division’s Subject Matter Expert (OD’s
SME) will be contacted and the claim file forwarded for evaluation of the information to determine whether it may materially
contribute to identification, development or resolution of taxpayer liability or collection issues.
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The SME consults with Operating Division Counsel to identify any potential legal issues in developing the issues presented
by the whistleblower, and may decide to obtain additional subject matter expertise for a team analysis of the matter. The
initial legal advice should address possible limitations on interactions with the whistleblower and other issues including
the potential application of privileges.
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The SME insulates any resulting examination or investigation from improperly obtained information or other potential "taints"
that could compromise the tax case. If the SME reviews information that cannot be used in the examination or investigation,
the integrity of the tax case is preserved by withholding that information from the auditor or investigator, and by ensuring
that the SME does not advise or supervise the examination or investigation.
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Unless the SME determines that a debriefing is unlikely to result in information that would be material to the evaluation
of the submission, the SME will debrief the whistleblower. A debriefing may yield additional information that the whistleblower
did not recognize as relevant to the taxpayer’s matters, information about the credibility of the whistleblower, information
relevant to legal issues that can affect the use of documents, and leads to other sources of information. A debriefing may
also clarify the whistleblower’s submission.
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The SME makes a determination whether to pursue the lead offered by the whistleblower.
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If the lead does not appear productive, the Operating Division SME completes a Form 11369 and returns the file to the Whistleblower
Office analyst assigned the case.
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If the lead appears to be productive, Operating Division Counsel is given the opportunity to identify potential legal limitations
on the use of the information. If there are no legal limitations, the case is forwarded for examination, and the Whistleblower
Office analyst monitors case status until the examination is resolved.
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For cases that are selected for examination, the Informant Claims Unit in Ogden will be notified by the Whistleblower Office
analyst assigned the case to input AIMS Activity Codes. For selected returns, the Informant Claims Examiner will input an
AM424 to establish on AIMS. Indicator "1"
will be immediately input after AM424. Claim files will be suspended two (2) weeks for AIMS to be established.
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For returns already established on AIMS, the Informant Claims Examiner will input a "1"
indicator (ICE). This prevents anyone from closing the case. Only the Informant Claims Unit can remove the "1"
indicator and will do this after instructions from the Whistleblower Office Analyst.
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If the lead contains information that could enhance an existing collection case, the Ogden ICE Unit should check IDRS and
ICE to determine if there are existing unpaid balance due liabilities. If there are, the SME for the Collection Operating
Division should be contacted. The SME will make a recommendation on the usefulness of the information and what actions should
be taken to share the information with Collections.
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If the Operating Division Counsel identifies potential legal limitations on the use of the information, he/she drafts a risk
analysis. The Operating Division Counsel’s risk analysis is reviewed by Headquarters Chief Counsel. Upon completion of the
Risk Analysis, the Operating Division Commissioner or delegate will decide whether the risks of acting on the information
are outweighed by the potential return and the potential risk of not acting.
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If the decision is made not to pursue the case, a Form 11369 is completed and the case file is routed to the Whistleblower
Office analyst assigned the case. The Whistleblower Office will then notify the whistleblower.
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At the conclusion of the examination, the examiner should prepare two files:
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A complete case file for regular processing through the appropriate Case Processing function, and
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An award claim file sent to the Whistleblower Office Analyst assigned the case.
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The award claim file should contain the following documentation:
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Form 11369, for each taxpayer with the exception of jointly filed returns for which one joint form should be completed; a
completed Form 11369 is required prior to transfer or assignment, closing from the group, or routing to Appeals. Do not include
a copy of the Form 11369 in the case file to Appeals. The form must be approved by the Group/Team Manager.
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Copies of all examined returns, substitutes for return prepared during the examination, and/or secured returns prepared by
the taxpayer. For LMSB returns, a copy of the first few pages of the affected returns, including Schedule J and any additional
tax returns that were examined as a result of the whistleblower information.
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Copy of the computation section of the RAR (Form 4549 and relevant computations) for all returns examined as a result of the
whistleblower information.
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Copy of the RAR sections that reflect the issues impacted by the information provided by the whistleblower.
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Special Agent’s Report (if applicable) attached to Form 3949;
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Copy of the examination plan for issues impacted by the information provided by the whistleblower.
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A schedule of the adjustments impacted by the information provided by the whistleblower and the effect of these adjustments
for each year included in the RAR for taxable income, credits, and net tax liability.
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Copy of the information provided by the Industry Subject Matter Expert and Counsel. This includes any advice, direction or
guidance that was received.
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The information provided by the whistleblower or subsequently obtained.
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Any other information that may assist the Whistleblower Office in making the award determination.
Note:
All of the above items will be included in a confidential envelope forwarded to the Whistleblower Office analyst assigned
the case.
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The entire award claim file will be reviewed by the Whistleblower Office for an award determination. During the review by
the Whistleblower Office, it may be necessary to contact the RA/SA/RO team to obtain additional information or to review related
files. Communication protocol developed between the Operating Divisions and the Whistleblower Office will be followed regarding
how the team will be contacted.
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Once an award determination is made, the whistleblower will be notified by the Director, Whistleblower Office.
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