Office of the Chief Financial Officer
Executive Summary for In Progress Reports
As of November 30, 2012
Report No. 11-1-05-OTR: FINAL REPORT: Audit of the OTR Collection Division’s Administration of the Offers in Compromise Program, dated July 13. 2011. (The Offers in Compromise Program …give brief explanatory background on what it is here, so the reader knows the context for the rest of the summary.)
In Progress. Timing of web updates was coordinated with the overall web redesign efforts causing an expected delay. No issues have been identified.
Chief Risk Officer’s Risk Assessment
The financial risk associated with inappropriate Offers in Compromise is Medium. While the OCFO takes seriously its fiduciary responsibilities to collect all monies due, the portfolio that is diverted to this process does not rise to other resource opportunities across the OCFO, including at the OTR. However, taxpayer impact, especially opportunities for taxpayers to benefit from District programs, is also worthy of the highest consideration. Therefore, all recommendations given to support taxpayer knowledge of the Offers in Compromise (OIC) Program, were given particular attention. All OIO recommendations were considered.
Overview of Recommendations
OIO offered ten recommendations. Six have been fully implemented.
- The Collection Division completed revision of the OIC policies and procedures on 9/30/2011. Staff has been briefed and has since been following the newly revised policies when considering Offers in Compromise.
- The Collection Division completed revision of the OIC policies and procedures on 9/30/2011. Revised procedures include all required Revenue Officer and management review and approval actions.
- The Collection Division completed revision of the OIC policies and procedures on 9/30/2011, including the policy that required Revenue Officers to assist taxpayers in the preparation of the OIC application.
- Specific minimum documentation standards have been developed. OIC files are generated and maintained for the duration of the OIC. Files are kept in a secured file room. This revised practice was implemented in FY12.
- The Supervisory Revenue Officer and Branch Chief requirements for review were included in the revised policies and procedures completed on 9/30/2011 and implemented in FY12. Files are reviewed for compliance with the minimum standards, and the review is documented within the OIC file.
- Evaluation/revision of the OIC policies and procedures was completed on 9/30/2011. Specific minimum documentation standards have been developed. OIC files are generated and maintained for the duration of the OIC. Files are kept in a secured file room. A tracking log containing all OIC's is also maintained by clerical staff within the Collection Division. These revised practices were implemented in FY12.
The remaining four recommendations are still In Progress.
- Updates to the OTR-10 (Instructions for Submitting Offers in Compromise found on the website) have been requested, and an improved description of the OIC program, as well as an outline of the range of collection possibilities that the taxpayer and the Collection Division may use have been drafted and are slated to be included in the revised OTR website scheduled to go live in November of 2012. This was included as a part of the overall redesign of the website, which was scheduled for 4th quarter 2012, rather than addressed as a one-off effort.
- The OTR-10 is currently being revised to address the retention of funds, including checklists and worksheets, update mailing instructions, and correct general verbiage. The updates will be completed by 12/31/2012.
- The viability of including the Collection Information Statement (CIS) was reviewed. A determination was made, and the revision of the OTR-10 will be completed by 12/31/2012.
- The viability of using IRS Forms 443-A and 443-B for inclusion with the OIC application is under review. A determination will be made by 12/31/2012.
To view the full report,Click on : Offers in Compromise Program Full Audit Report