Internal Revenue Manual § 4.36.1 - Joint Committee Review Program Overview

4.36.1 Joint Committee Review Program Overview

Manual Transmittal

November 03, 2023

Purpose

(1) This transmits revised IRM 4.36.1, Joint Committee Procedures, Joint Committee Review Program Overview.

Material Changes

(1) Added "Review" to the section title to make it consistent with the rest of the IRM.

(2) Changes were made to the following subsections:

(3) Various editorial changes have been made throughout this IRM.

Effect on Other Documents

This section supersedes IRM 4.36.1, Joint Committee Process Overview, dated June 18, 2021.

Audience

LB&I, SB/SE, TE/GE

Effective Date

(11-03-2023)

Ronald H. Hodge II
Acting Assistant Deputy Commissioner Compliance Integration
Large Business and International Division

4.36.1.1 (11-03-2023)

Program Scope and Objectives

1. Purpose: This IRM section provides a general overview of the Joint Committee Review (JCR) program, the procedures for submitting cases to the JCR program for its review, and the procedures followed by the JCR program in preparing reports for cases reviewed by the Joint Committee on Taxation (JCT).

2. Audience: Examination teams in LB&I, SB/SE and TE/GE who work on cases that meet JCR program criteria.

3. Policy Owner: The LB&I Policy Office under the Strategy, Policy and Governance function in the office of the Assistant Deputy Commissioner Compliance Integration.

4. Program Owner: The LB&I Northeastern Compliance Practice Area (NECPA).

5. Primary Stakeholders: Examination teams, taxpayers and the JCT.

6. Contact Information: To recommend changes or to make any other suggestions related to this IRM section, see IRM 1.11.6.5, Providing Feedback About an IRM Section - Outside of Clearance. Questions about the IRM content may be emailed to the JCR program at *LB&I Joint Committee Assistance.

4.36.1.1.1 (11-03-2023)

Background

1. The JCR program oversees the preparation of specific reports subject to review by the JCT (JC reports) for refunds or credits under IRC 6405. A JC report must be prepared in any case involving a refund or credit of income, estate and gift, and certain excise taxes in excess of the jurisdictional threshold of $2 million ($5 million for C corporations). Refunds or credits subject to JCR can arise from an examination, an unpaid claim, or a tentative allowance in excess of the jurisdictional threshold.

2. The fact that refunds or credits must be reported to the JCT does not alter the nature of the examination that may be conducted, nor does it limit the examination team’s ability to survey a return after assignment.

3. The examination team is responsible for determining whether a case meets JCR criteria. The Joint Committee Specialist (JCS) reviews the case files prepared by the examination team for procedural, computational, and technical accuracy. The JCS then prepares the JC report and submits it to the JCT for its review. Once the JCT issues a release letter or closes an open Staff Review Memorandum (SRM), the case is processed for closure by the examination team.

4.36.1.1.2 (11-03-2023)

Authority

1. Concerns over the potential for corruption and favoritism prompted the enactment of IRC 6405. IRC 6405 requires a report to be submitted to the JCT for refunds of income, estate and gift, and certain excise taxes in excess of the jurisdictional threshold. The JCT is a nonpartisan committee of the United States Congress, established under the Internal Revenue Code of 1986 (originally established under the Revenue Act of 1926). The JCT formally consists of ten members of Congress: five from the Senate Committee on Finance; and five from the House Committee on Ways and Means.

2. The Tax Increase Prevention Act of 2014, Public Law No: 113-295, H.R.5771, 113th Congress (2013-2014) effective December 19, 2014, increased the jurisdictional amount for C corporations to refunds in excess of $5 million. The jurisdictional refund amount in excess of $2 million for all other taxpayers remained the same.

4.36.1.1.3 (11-03-2023)

Roles and Responsibilities

1. The JCR program is part of the IRS and not a part of the JCT. The JCR program processes JC cases arising out of LB&I, SB/SE, and TE/GE. Any correspondence or contacts with the JCT must come from the JCR program. Examination teams should not contact the JCT.

2. The JCT staff attorneys (also known as Refund Counsel) will review the JC report and other documentation. JCS will answer questions the JCT staff attorneys may have about JC cases. In some cases, the JCT may issue an SRM. The JCS will coordinate any further fact gathering or analysis required to respond to the SRM. The JCR process concludes when the JCT completes their review and issues a release letter.

4.36.1.1.4 (11-03-2023)

Program Management and Review

1. Monthly reports are provided to the JCR program manager and shared with stakeholders.

4.36.1.1.5 (11-03-2023)

Program Controls

1. The JCR program maintains a SharePoint site for referrals, reports and formal correspondence from JCT.

4.36.1.1.6 (11-03-2023)

Terms/Definitions/Acronyms

1. Jurisdictional Threshold - IRC 6405 refunds or credit of $2 million ($5 million for C corporations)

2. Jurisdictional Amount - Any IRC 6405 refunds or credits in excess of the jurisdictional threshold that has to be reported to the JCT.

3. Examination Team – For purposes of IRM 4.36, Joint Committee Procedures, the term "examination team" refers to examiners in LB&I, SB/SE and TE/GE, along with their managers and any specialists who work on the JC case.

4. See Exhibit 4.36.1-1 for a list of commonly used acronyms.

4.36.1.1.7 (11-03-2023)

Related Resources

1. JC topics may be found on the JC virtual library: https://irsgov.sharepoint.com/sites/ETD-KMT-KB051/SitePages/GeneralExamProcedures/JointCommitteeCases/JCCLandingPg.aspx. This site contains items such as training materials, job aids, JC forms, electronic referral instructions, contact information and frequently asked questions.

4.36.1.2 (11-03-2023)

Internal Revenue Manual (IRM) 4.36 Overview

1. IRM 4.36 is organized to follow the processing of a JC case from the electronic referral submission through the closure of the JCR referral. IRM 4.36.1 provides an overview of the JCR program.

2. IRM 4.36.2 discusses determining if a case falls under JCT jurisdiction. It also outlines the procedures for determining whether a multiple year examination case with a deficiency in one or more years and an overassessment in another year(s) is reportable to the JCT.

3. IRM 4.36.3 describes the responsibilities of examiners who have JC cases, such as statute controls, documentation and issue support that must be provided to the JCS during the JCR process.

4. IRM 4.36.4 describes the responsibilities of the JCS and procedures regarding issue support.

5. IRM 4.36.5 describes the various JC reports that may be submitted to the JCT.

Exhibit 4.36.1-1

Acronyms Used Throughout IRM 4.36

The table below lists the commonly used acronyms in Joint Committee cases.