Workshop: Inventory Management for Revenue Agents

1
Workshop Inventory
Management for Revenue Agents
AIM - 2004 Business Training Seminar

• Presenters
• Renee Wells
• William Pittman
• Pr0duced By
• Tamara Olubunmi

2
Purpose

• TO
• Learn how to overcome systemic and self-imposed
  barriers to effective Inventory Management
• Illustrate available tools of the trade for
  Inventory Management
• Provide practical techniques to improve Inventory
  Management

3
Objectives

• At the end of this workshop, You will be able
  to
• Use diagnostic tools to plan time and manage your
  Case Workload.
• Move SBSE Field Examination cases to closure
  within 270 days or less
• Close LMSB Examination cases within 18 months or
  less

4
Definitions

• Staff Year Approximately 2000 hours
• DESY Direct Exam Staff Year
• CDT Compliance Direct Time
• DET Direct Exam Time
• Audit Cycle Time Status 12 to status 80/90
• Overall cycle time TC 150 to closure
• Average time in status 10 lt 45 days
• Case activity No touches

5
AUDITING STANDARDS

• Standard One Audit Planning
• Standard Two Audit Scope
• Standard Seven - Timeliness

Audit Planning
Audit Scope
Timeliness
6
Revenue Agent Critical Job Elements

• Business Results Quality
• 4B Completion of Assignments
• Business Results Efficiency
• 5A Completes work Timely
• 5B Prioritizes Work
• 5C Gathers information and develops Facts

7

EQMS Standard

• EQMS Standard 7
• 7A Was the Examination started within a
  reasonable timeframe?
• 7B Were Actions taken Timely?
  
• EQMS Standard 8
• 8B5 Customer Relations / Professionalism

8

Exam Reengineering in SBSE
AND
Limited Issue Focused Examinations (LIFE) in LMSB
THE NEED FOR CHANGE

• Examination Process is too long
• Need to expand coverage to other Compliance High
  risk areas
• Taxpayer and IRS Resources are limited
• Current process is Contentious
• Overall Dissatisfaction with the Post-filing
  process

9
Exam Reengineering Life
Key Aspects

• Use Risk Analysis and Prioritize issues
• Scope is Limited to the critical few issues
  20/80 rule
• Use with other tools (materiality) set
  threshold (s) to govern scope
• Share potential issues with Taxpayer
• Share Materiality threshold (s)
• Establish cut-off date for claims affirmative
  issues

10

Exam Reengineering Life
Key Aspects

• Shared responsibility for timely completion of
  examination
• Increased communication
• Discuss IDRs with taxpayer before issuance
• Provide timely closure to taxpayer on IDRs
• Consider full range of issue resolution tools

11

Life Strategies

• Limited Issue Focused (LIFE) Strategy
• Consider limiting the Audit Scope
• Full Risk Analysis
• Use Materiality Principles
• Waive many of the Mandatory Compliance Checks

12

SB/SE Field Exam Reengineering Strategies

• Uniform Templates
• Time Forecast
• One Touch Lead Sheets
• Risk Analysis Work Papers

13
Management/Issue Resolution Strategies

• Pre-filing Agreement
• Fast Track Settlement
• Advance Pricing Agreement
• Accelerated Issue Resolution
• Early Referral to Appeals

14
Diagnostic Indicators

• Cycle Time
• Achievement of original planned closure date
• of Returns waiting to be Examined (Status 10)
• Days in Process (Status 12)
• Overage (Over 270 Days for SB/SE)
• of open cases with no Actions / Time charged
  for gt 45 days
• Hours per Return / Time per Case (Form 4502)
• Examination Return Disposition Mix
• LQMS EQMS Quarterly Reports
• Lapse Time Status 12 to International Referral
• Lapse Time International Referral to Issuance of
  International Report
• (cont.)

15
Diagnostic Indicators

• Hours charged by Specialist lapse time
• Hours per Return/Time per case (International
  Specialty)
• Monitor Audit Plan
• Plan for Regular meetings with Taxpayer
• Schedule Consultative Meetings with Manager
• Issue 5701 ratably during Audit (LMSB)
• Use alternative Dispute Resolution Procedures
• Obtain guidance from Tax Advisors
• Use OTSA Auditing Technique Guide
• Statute of Limitation

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Diagnostic Tools

• Use Risk Analysis
• 50 rule (SB/SE)
• Currency
• Joint Committee
• Use website for Auditing Techniques
• Use Position Papers
• Involve the Taxpayer in the Exam Process
• (Cont.)

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Diagnostic Tools

• Ensure IDRs are Clear, Concise, Relevant
• Initiate Timely follow-ups
• Document the Activity Record
• Secure copy of the Transfer Pricing Documentation
• Use Materiality Thresholds
• (Cont.)

18
Diagnostic Tools

• Calendar
• To Do lists
• Form 4502, Exam Technical Time Report
• Inventory List (IVL)
• Monthly Priority Review

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Time Management

• Use Unscheduled Time Slots To
• Review additional Information received from
  Taxpayer
• Make Third Party Contacts
• Conduct Research
• Write Reports Perform Case-Closing Activities
• Schedule New Appointments

August
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Time Management

• Schedule At the end of day
• Complete the Activity Record of the case
• Update the case To Do List
• Preview Prepare for the next days schedule
• Make changes to the Calendar as needed

21
Time Management

• Set Goals
• Learn to say No!
• Calendar
• Task Features
• Schedule Recurring task
• Send task request to someone else
• Import / Export information to Outlook folders

22
Calendar

• Schedule
• Appointments
• Meetings
• Administrative Reports
• Training
• Collateral Duties
• Leave

Plan
Schedule
Plan
Schedule
Plan
Schedule
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Time Management Matrix
Urgent
Urgent

• Interruptions, some calls
• Mail, Some reports
• Nonproductive Meetings
• Pressing Matters
• Many popular Activities

• Immediately productive activities
• Problems
• Crises
• Productive Meetings
• Deadlines

Not Important
Important
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Form 4502 Exam Technical Time Report

• Direct Examination Time (DET)
• Open Cases
• Days in Process
• Time on Case
• Indirect Time
• Leave
• Training
• Admin Time

25
Inventory List (IVL)

• Statutes
• Status Codes
• Project Codes
• Related Returns
• Time and Days Open

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Monthly Priority Review

• Inventory
• Priority Cases
• Case Actions

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Examination Techniques (1 of 2)

• Blocks of Time
• Review Inventory Lists Oldest
• Prioritize Inventory
• Unopened Inventory

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Examination Techniques (2 of 2)

• Confirm Appointment
• Group Meetings in Calendar
• Administrative Activities
• Staple To Do in Case

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To Sum It Up

• Workload management is
• Properly Establishing Priorities for assigned
  cases, Compliance Activities, Moving cases to
  Closure
• Improving Customer Satisfaction by Completing the
  examination in the Shortest Span of Time
• Using Diagnostic Tools of the Trade to Properly
  Manage Inventory
• Managing your Time instead of Allowing your Time
  to Manage You
• Q As

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Objective

• Participants are now
• able to
• Use Diagnostic Tools to Plan Time Manage Case
  Workload

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Thats All About Inventory Management.......