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Judicial Watch • JW1559-000199

JW1559-000199

JW1559-000199

Page 1: JW1559-000199

Category:Obtained Document

Number of Pages:7

Date Created:February 25, 2014

Date Uploaded to the Library:April 16, 2014

Tags:quarter, closures, Timeliness, reviews, QUALITY, Entities, Technical, examination, HOURS, direct, Cases, determination, years, organizations, staff, IRS Docs, Exempt, government, EPA, IRS, ICE, CIA


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Exempt Organizations
 
Key Issues 
The Affordable Care Act (ACA). the second quarter, continued implement ACA by: 
  Assisting the Government Entities Compliance Unit with examinations certain claims for the 45R credit and developing  
training materials the 45R credit for Exam;  
  Coordinating with Counsel and Treasury draft guidance 9007;  
  Conducting statutorily required community benefit activity reviews exempt hospitals; are target complete first  
round the three year community benefit activi reviews the end 2013;  
  Continuing process applications for recognition taxexempt status under 501(c)(29)  
  Reporting the release the 9010 regulations the Update and,  
  Preparing updates the New Requirements for 501(c)(3) Hospi tals and ACA Provisions pages the IRS webpage, well  articles for the Update and TE/GE Weekly News, anticipation  the release Community Health Needs  
Assessment regulations  

Revocation Non-Filing Exempt Organizations. Since June 2011, 498,141 organizations have lost their
empt status through the autorevocation process. continue process applications from organizations seeking reinstatement their taxempt 
-exstatus. This quarter, received total 7,001 reinstatement applications and closed 3,812 cases. 
The deadline for small organizations file application for retroactive reinstatement under the Notice 2011 -43, transitional relief program, was December 31, 2012; however, Notice 2012-71 gave small organizations affected Hurricane Sandy until February 2013, file. 
Medical Resident FICA. TE/GE continues collaborate with Wage and Investment (WI) the processing and payment Medical Resident FICA claims. All employee claims have been completed and tran sferred WI for payment. WI has processed and paid 1,398 the 1,404 employee adjustments totaling $30.4 million principal and interest. All employer claims have been completed and transferred WI for payment including 432 employer entities, consisting 7,734 claims representing $2.1 billion principal. WI has processed and paid $2.0 billion principal and $1.6 billion interest date. One hundred thirty -eight million principal plus applicable interest remain outstanding. 
International. the second quarter, focused international compliance the taxempt sector by: 
-ex Proceeding with the International Activities Charities  Foreign Financial Accounts exThrough this 
amination project. project, delinquent FBARs have been secured this quarter, bringing the total number delinquent FBARs secured during the life the project 109; and, 
 Continuing work sixchange information requests from Mexexico and France. 
Taxempt and Government Entities empt Organizations 
ExEx
Fraud/Promoter Investigations. the second quarter 2013, referred four cases Criminal Investigation and two were accepted. pursuing civil fraud two additional cases that were not eligible for criminal fraud. addition, placed cases into fraud development. Dual Track. are currently developing updated training, which will held third quarter for additional agents continue process referrals and data analytics cases. Through the second quarter, referrals and data analytics cases have been assigned the field for
amination. 
Work Opportunity Tax Credit (WOTC). part IRS-wide initiative led TE/GE and SB/SE, the deadline apply for the WOTC was extension the March edition the 
tended until December 31, 2013. During the second quarter, promoted the exEO Update and assisted with the update information the WOTC web pages the IRS webpage. 
TaxExempt and Government Entities  Exempt Organizations Customer Education  Performance History  March Comparison  FY2013  
Outreach  FY2011  FY2012  FY2012  FY2013 Chg  Plan Pro Rata  Projection  

Education Outreach Staff Years  16.1  15.1  7.3  7.2  -1%  14.7  98%  14.7  
Customers Reached  41,252  30,688  7,718  4,331  -44%  30,000  29%  15,900  
Virtual  1,396  3,000  
Face-to-Face  2,710  12,300  
Exhibiting  225  600  
Cumulative Newsletter Subscribers  183,284  189,578  188,745  191,738  225,000  85%  225,000  

[1] Beginning FY13, are showing the break-out customers reached. Prior years have data. 
CEO. Due the five furlough days for IRS employees, increased restrictions non -case related travel, well new IRS -wide approval process for video production, has lowered its projection for customers reached during 2013 almost half. 
CEO focused improving EOs pages the IRS website increase functionality and searchability based customer feedback from our three-year Service and Assistance (EOSA) study well comments from the Advisory Committee (ACT). During the second quarter created bright red "News" feature the top right our homepage call attention important developments, overhauled the
aminations webpages, and reworked the left -hand navigation feature EOs homepagetomakeitmoreuser-friendly. EOhad3,472,386uniquepageviews(numberofvisitorstopages)ofCharitiescontenton the IRS website the second quarter. addition, during the second quarter CEO: 
  Released EOs FY2012 Annual Report and FY2013 Work Plan  
  Delivered outreach events, including two workshops for small and medium-sized charities partnership with  
institutions higher education covering such topics overview Form 990, unrelated business income, employment tax  
and activities that can jeopardize exempt status;  
  Had 20,622 unique visitors use EOs educational website Sta yExempt, totaling 26,437 visits and 222,330 page views;  
  Produced five Updates that were disseminated almost 192,000 newsletter subscribers; and,  
  Promoted the use virtual educational products, CEO 2013 priority. Over 1,500 customers viewed virtual products  
available the IRS Video Portal.  

TaxExempt and Government Entities  Exempt Organizations  
Performance History  March Comparison  FY2013 Rulings Agreements  FY2011  FY2012  FY2012  FY2013 Chg  Plan Pro Rata  Projection  

Direct RA Staff Years  168.9  161.6  80.1  78.9  -1%  151.8  104%  148.8  
Direct RA Time Ratio  68%  67%  67%  66%  -1%  66%  100%  66%  
Direct Determinations Staff Years  111.3  104.3  51.2  51.6  97.4  106%  95.6  
Determination Cases Closed  61,005  60,795  28,570  28,502  52,572  108%  51,519  
Technical Screening Rate  60%  70%  70%  67%  -4%  70%  96%  71%  
Determination Case Receipts  66,038  79,362  40,215  42,185  66,490  127%  55,671  
Open Inventory  20,603  39,170  32,248  52,852  -64%  53,088  100%  54,098  
Average Age Inventory  113  161  129  182  -41%  158  115%  199 Inventory 270 Days  23%  
Determination Timeliness  104  135  111  174  -57%  140  80%  191  
Determination Hours per Case  3.2  2.8  3.0  2.9  3.1  107%  2.7  
Screening Hours per Case  1.3  1.5  1.5  1.5  1.5  100%  1.5  
Full Development Hours per Case  6.0  6.0  6.6  5.8  12%  6.8  117%  6.8 Determination Customers Satisfied  74%  65%  72%  74%  74% Dissatisfied  11%  
Determination Quality [1]  88%  87%  89%  85%  86%  99%  87%  
Direct Technical Activities Staff Years  18.0  22.6  11.2  11.1  -1%  18.3  121%  14.7  
Technical Activities Closed  417  394  204  167  -18%  368  91%  256  
Open Inventory  655  637  646  776  -20%  658  118%  770  
Other Technical Staff Years  18.5  14.2  7.2  6.0  -17%  17.0  71%  17.0  
Correspondence Cases Closed  46,931  30,534  16,644  13,654  -18%  33,200  82%  33,500  
Correspondence Timeliness  -55%  65%  

[1] This new measure beginning 2013 provide better gauge our inventory. 
[2] the first quarter 2013, began using new calculation methodology for quality that consists applying weight cases the end the quality assurance process opposed each indiviual case being weighted, scored, and then totaled. Priors years are not comparable. 
Determinations. During the first half this year, EOs focus full development cases resulted the closure 1,000 more full development cases 12% increase) compared the same period last year. Average hours per full development case decreased from 6.6 hours last year 5.8 hours this year result increased managerial oversight 
However, this focus full development cases and the receipt mor cases than the same period last year has negatively impacted the size our open inventory (52,852 compared 32,248 this time last year), the verage age inventory (currently 182 days,
ceeding the plan 158 days), and timeliness (an average 174 days, days beyond plan). order allow Determinations 
Taxempt and Government Entities empt Organizations 
ExEx
devote more resources screening cases while focusing the full development cases, has transferred several hundred unassigned full development cases Technical. 
Technical. shifted resources assist Determinations processing priority work items and teach the RA business writing course. will continue focus closing PLRs, applications, and TAMs that are more than two years old October 2012, with our remaining resources. The revision the IRM chapters owned RA continues and the revised chapters are
pected review the end the third quarter. 
Guidance. During the first half the year, 152 pieces congressional correspondence were closed, 18% increase from last year this time. 
Correspondence. closed 13,654 pieces correspondence (82% plan), reduction almost 3,000 pieces from the same period last year, leaving balance 4,313 pieces open correspondence. The reduction closures due Correspondence Unit employees assisting determination groups with closing cases completing Integrated Data Retrieval System (IDRS) research for automatic revocation cases, and correcting numerous autorevocation cases erroneously revoked. Quality for the first half the year remains high 92.7%. 
TaxExempt and Government Entities  Exempt Organizations Examination  Performance History  March Comparison  FY2013  
FY2011  FY2012  FY2012  FY2013 Chg  Plan Pro Rata  Projection Enforcement Contacts  14,893  14,020  6,880  8,158  19%  15,395  106%  15,060  
Direct Examination Staff Years  243.0  233.1  116.2  104.9  -10%  230.2  91%  230.2  
Direct Time Ratio  62%  63%  64%  60%  -6%  63%  95%  63%  
Examination Returns Closed  11,699  10,743  5,401  5,361  -1%  10,420  103%  10,185  
990 Series  4,223  4,210  1,853  1,689  -9%  4,779  71%  4,671  
Employment Tax  6,419  5,893  3,248  3,347  4,970  135%  4,858  
Other  1,057  640  300  325  671  97%  656  
TEP  384  415  245  163  -33%  315  103%  315  
Examination Timeliness  210  204  212  216  225  104%  225  
Examination Hours per Return  33.0  33.0  34.3  33.5  -2%  39.9  119%  39.9  
990 Series  69.6  59.7  70.6  67.7  -4%  67.8  100%  67.8  
Employment Tax  11.2  15.5  15.0  18.0  20%  14.4  80%  14.4  
Other  19.4  18.3  20.0  17.6  -12%  21.0  119%  21.0 Examination Customers Satisfied  68%  69%  69%  70%  70% Dissatisfied  10%  10%  10%  
Examination Quality  76%  77%  77%  76%  -1%  78%  97%  78%  
Direct EOCA Staff Years  41.7  48.0  24.0  21.6  -10%  94%  
EOCA Returns Closed (inc. above)  2,345  1,861  739  725  -2%  1,890  77%  1,845  
Compliance Contacts Case Building  3,194  3,277  1,479  2,797  89%  4,975  112%  4,875  
ROO Compliance Reviews  3,680  4,224  2,330  1,498  -36%  3,677  81%  3,322  
Non-Hospital Reviews  3,120  2,818  1663  882  -47%  2,260  78%  2,210  
Hospital Reviews  560  1,406  667  616  1,417  87%  1,112  

Business Results. closed 5,361 returns the end the second quarter, 103% pro rata plan. The NRP project currently 177% pro rata plan and significant contributor this achievement continue see improvements efficiencies the result NRP training sessions. 
EOCA examination closures are 77% pro rata plan. There were fewer EOCA
amination closures than planned because EOCA resources primarily worked Medical FICA claims the first half the year and due flooding the Ogden post duty January. still examination goal since the groups returned their POD March and the resources have 
pect meet the fiscal year exbeen reallocated
aminations. 
Taxempt and Government Entities empt Organizations 
ExEx
While
pect complete the first three -year cycle hospital reviews, have revised the closure projection downwards take into account those reviews completed which have now identified non-hospital organizations (76). These closures are thus counted non-hospital reviews. There are approxMoving forward 
imately 500 additional hospital reviews left complete the cycle. into the nex three year cycle, our baseline will adjusted from 1417 1112 
Overall ROO reviews are 81% pro rata plan. Unexpected attrition the first half the year negatively impacted our closures. 
Compliance contact/case building closures are 112% pro rata. During the first half the year, several high profile projects were delayed requiring staff focus case building rather than compliance checks. Case building assignments generally require less time than compliance contacts. The Group Rulin Questionnaire project, after its delay from planned 2012 start, major contributor for our overachievement this year. Also, the population size another large case building project, 501(c )(4)(5), and (6) SelfDeclarers,hasincreasedover200%. Thequestionnairesforthisprojectweresentoutattheendofthisquarter. 
National Research Program (NRP). have closed 99% the 2008 returns, 90% the 2009 returns, and 57% the 2010 returns. The change rate continues improve for NRP closures  from 34% this time last year 40% this year. 
Virtual Training. continues deliver timely virtual training. the second quarter, conducted Audit Hour presentations the Administrative Record and Gaming. Our second quar ter CPE was also held via Centra with such topics WebETS Codes, Fraud Penalty Awareness, three-digit Principal Issue Code, Reading IDRS Command Codes and Accurint Training. 
Timeliness. are currently exWe
ceeding the fiscal year plan for cycle time 216 days. pect cycle time increase focus closing overage inventory the second half the year. 
Examination Hours per Return. Due higher percentage employment tax
closures, our overall hours per return lower than planned. NRP (63% Employment Taxclosures) the lead driver for this factor. The hours per return figure for closures higher than plan due the hours per return for NRP closures
ceeding plan. The additional time and energy placed these NRP returns consistent with our increased change rates for these returns. 
Customer Satisfaction. analyzed the customer satisfaction data for 2012 and provided reports and analysis each area. These reports identify which customer characteristic most influence satisfaction ratings and areas where improvements will have the greatest impact. 
Quality. Year-to-date quality stands 76% based completion approxAreas showing 
imately one third the planned reviews. improvement include the proper resolution material income, keeping the tax
payer power attorney regularly apprised the status the exIn the second half the 
am, following procedures where statute issue, and appropriately considering fraud. year, will continue focus these issues through Audit Hour presentations and our CPE.



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