MOTION for Vaughn Index by TAX ANALYSTS, ALLEN KENNEY. (Attachments: # (1) Exhibit A, Part 1# (2) Exhibit A, Part 2# (3) Text of Proposed Order)(Hitchcock, Cornish)
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Case 1:06-cv-01983-ESH Document4 Filed 01/11/2007 Page 1 of6 UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA TAX ANALYSTS and ALLEN KENNEY, Plaintiffs, INTERNAL REVENUE SERVICE Vv. ) No. 1:06-CV-1983-ESH ) } ) Defendant. ) )
PLAINTIFFS’ MOTION FOR A VAUGHN INDEX OR IN THE ALTERNATIVE FOR IN CAMERA INSPECTION In this Freedom of Information Act (“FOIA”) case, plaintiffs move for an order requiring the Internal Revenue Service (“IRS”) to prepare, serve and file a Vaughn index. Alternatively, if the Court prefers to conduct its own review of the documents at issue, we suggest in camera inspection.
Compliance with LcvR 7 (m) Counsel have conferred. Defendant IRS intends to oppose this motion.
Points and Authorities Statement of the Case In this case plaintiffs seek access to IRS’ monthly performance reports for 2005 and 2006. These reports are monthly compilations of a myriad of statistics relating to just about everything that IRS does. See, e.g., Ex. A attached. Exhibit A
is an annual compilation of such information for FY2002, which was provided to another Tax Analysts reporter.
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We understand that the reports at issue in this case contain the same kinds of statistical information. They may also contain a series of a kind of “traffic light” evaluations, e.g., “green” showing that performance is satisfactory, “yellow” meaning that performance needs improvement, and “red” indicating unsatisfactory performance.
In its denial of plaintiffs’ FOIA request for the reports, Complaint Ex. 7, IRS claimed FOIA Exemption 3 for Internal Revenue Code (“IRC”) § 6103 taxpayer information; FOIA Exemption 6 for “sensitive personal information;” FOTA Exemption 2 relating to internal practices of the agency, and FOIA Exemption 5 for the “deliberative process privilege.” IRS’ Answer does not claim exemption on any of these grounds.
Counsel for IRS has informed counsel for plaintiffs that IRS intends to claim in this case only Exemption 5, i.e., for predecisional, deliberative material, except that IRS also would claim Exemption 3/§ 6103 for one taxpayer name.
Plaintiffs will not challenge deletion of the taxpayer name. Thus the only FOIA exemption to be at issue is the deliberative process privilege. As the U.S. Department of Justice’s (“DOJ”) authoritative treatise on the FOIA’ declares, the deliberative
process privilege “of course ... applies only to ‘deliberative’
1 DOJ, Office of Information and Privacy, Freedom of
Case 1:06-cv-01983-ESH Document4 Filed 01/11/2007 Page3of6
documents and it ordinarily is inapplicable to purely factual matters, or to factual portions of otherwise deliverative memoranda.” DOJ FOTA Guide at 384, citing EPA v. Mink, 410 U.S. 73, 91 (1973). In particular, such factual information is not deliberative when it “reflect[s] no point of view.” Mapother v.
attached Exhibit A and the statistics there compiled shows that the information is simply presented as statistical facts and “reflects no point of view.”
Why a Vaughn Index?
If attached Exhibit A is any guide, the records at issue in this case are numerous. Exhibit A is 34 pages long. If each monthly report, for 24 months, is of the same order of magnitude, the documents would total approximately 800 pages, consisting mostly, if not entirely, of statistical tables.
A Vaughn index “correlate[s] each withheld document (or portion) with a specific FOIA exemption and the relevant part of the agency’s non-disclosure justification.” DOJ FOTA Guide at 778, citing Vaughn v. Rosen, 484 F.2d 820, 827 (D.C. Cir. 1973). Such an index enables the court to decide whether the documents, or portions, are exempt “without actually viewing the documents themselves.” King v. DOJ, 830 F.2d 210, 219 (D.C. Cir. 1987). A Vaughn index is to provide “a clear explanation of why each
document or portion of a document withheld is putatively exempt
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from disclosure.” DOJ FOIA Guide at 780, citing Manna v. DOd, 832 F.Supp. 866, 873 (D. N.J. 1993).
If, as Exhibit A indicates, the monthly performance reports at issue here are entirely or mostly statistical, i.e., pure facts, IRS’ Vaughn index would justify -- or attempt to justify -- why each section, portion or table is “deliberative” and therefore exempt. IRS’ Vaughn index also would do so “in sufficient detail to permit the requesting party to argue effectively against the claimed exemptions and for the court to assess the applicability of the claimed exemptions.” St. Andrews Park, Inc. v. Army Corps of Engineers, 299 F.Supp.2d 1264, 1271 (S.D. Fla. 2003).
For this case in particular, it is vital to require IRS to explain why the statistics in the monthly performance reports are not segregable from any truly deliberative material.” See 5 U.S.C. § 552(b) (flush language); Kimberlin v. DOJ, 139 F.3d 944, 950 (D.C. Cir. 1998).
In Camera Inspection
In Tax Analysts v. IRS, 414 F. Supp. 2d 1 (D.D.C. 2006), this Court denied plaintiffs’ motion for a Vaughn index where (as here) IRS had “raised only one exemption -- the deliberative
process privilege.” Id. at 4. This Court held instead that “the
? Which the “traffic light” matter might arguably be, assuming that its inclusion is intended to lead to decisions about how to improve performance of, say, collecting taxes.
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Case 1:06-cv-01983-ESH Document4 Filed 01/11/2007 Page 5of6 court’s evaluation of the agency’s invocation of Exemption 5 and claims of nonsegregability would benefit from an in camera inspection....” Id. at 7.
Here, however, the documents are voluminous -- as noted, likely to comprise some 800 pages. We suggest that IRS, not the Court, bear the burden of a detailed analysis and justification for its Exemption 5 claims. Moreover, a Vaughn index would give plaintiffs the opportunity to brief IRS’ claims of exemption and its justification for those claims. In camera inspection, on the other hand, would not do so. However, plaintiffs abide by the Court’s decision on which relief to order.
Conclusion Plaintiffs’ motion for a Vaughn index should be granted. Respectfully submitted, /s/ William A. Dobrovir WLLIAM A. DOBROVIR D.C. Bar No. 030148 P.O. Box 198 Sperryville, VA 22740-0198
(540) 987-9114 /s/ Cornish F. Hitchcock CORNISH F. HITCHCOCK D.C. Bar No. 238824 Suite 350 5301 Wisconsin Avenue, N.W.
Washington, D.C. 20015
(202) 364-1050 Dated: 11 January 2007 Attorneys for Plaintiffs
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CERTIFICATE OF SERVICE
I HEREBY CERTIFY that a copy of the foregoing Plaintiffs’ Motion for a Vaughn Index or in the Alternative for In Camera Inspection was filed electronically this 11th day of January, 2007, and that a copy thereof will be mailed electronically to:
David M. Katinsky, Esq.
Trial Attorney, Tax Division U.S. Department of Justice P.O. Box 227
Ben Franklin Station Washington, D.C. 20044
Counsel for Defendant IRS
__/s/ CORNISH F. HITCHCOCK
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Case 1:06-cv-01983-ESH Document 4-2 Filed 01/11/2007 Page1 of 17
UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA
TAX ANALYSTS and ALLEN KENNEY, )
Plaintiffs,
Vv. No. 1:06-CV-1983-ESH INTERNAL REVENUE SERVICE
Defendant. )
PLAINTIFFS’ MOTION FOR A VAUGHN INDEX OR IN THE ALTERNATIVE FOR IN CAMERA INSPECTION
Plaintiffs’ Exhibit A - Part 1
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Case 1:06-cv-01983-ESH Document 4-2
INTERNAL REVENUE SERVICE
FY 2002 MONTHLY SUMMARY OF PERFORMAN C THROUGH SEPTEMBER 2002
IRS MISSION
“quality service by helping them understand and meet applying the tax law with integrity and fairness to all.”
“Provide America’s taxpayers top their tax responsibilities and by
CONTENTS:
Strategic Measures Critical Measures by Program Critical Measures by Operating Unit
Critical Measures by Functional Unit
This report contains records of tax enforceme by Section 1204(a) of the Restructuring Refo
nt results that will be used for Purposes such as forecasting, financial planning, and resource management. As requir information will not be used to evaluate any
Regulation (26 CFR Part 801), this employee or to impose or Suggest production quotas or goals upon them. ,
Prepared by the Chief Financial Officer
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This report contains records of tax enforcement results that will be used for purposes such as forecasting, financial planning, and resource management. As required by Section 1204(a) of the Restructuring and Reform Act of 1998 (PL 105-206) 112
any employee or to impose or suggest production quotas or goals upon them. .
ae a?
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IRS STRATEGIC MEASURES — SERVICE-WIDE — Published 10/30/02
Service to Each Taxpayer Service to All Taxpayers Productivity Through a Quality Work
Overall Customer Satisfaction Roper Starch Percentage of the public that has a favorable! opinion of the IRS as compared with most federal agencies.
(August 2002) 44% Payment Compliance Percent of individual tax liability reported on timely returns that is paid by the due date. (TY 2001, computed 4/02) 97.50% Environment Overall Employee Satisfaction Percent of employees rating overall job satisfaction| with IRS “very high" or “high.” (% of 5s plus 4s on a 1/low-S/high scale (July 2002)
University of Michigan Survey that reports Satisfaction with IRS timeliness, accessibility, Courtesy and professionalism. Scale 1-100) (November 2001) All Individuai Filers ...
Electronic Filers Paper Filers
Small Business Corp. Filers Mid-size Corporate Filers
Burden (W&l and Seif-employeed data for T¥2000 available winter 2003; Sept. 03 for TY2001) Ti ‘Millions of Money (Millions of Doll;
62 52 66 55 60 48 Filing Compliance Percent of required individual returns that are filed by the due date.
{TY 2000 reported 9/02)
Reporting Compliance Percent of individual income tax liability that i voluntarily reported on timely retums (Available in 10/03)
Potentially Collectable Inventory Billions of dollars in these inventories: notice, Taxpayer Delinquent Account (TDA), and some currently not collectible. Reflacts the in ventories on which IRS can have the most collection impact. (Updated monthly September 2002)
90.70% $76.7 Workload/Productivity Index A ratio of workload to resource inputs. (available Winter 2002)
Employee Health And Safety Lost Workday Case Rate Lost Production Day case:
per 100 FTEs,this Fiscal Year| (Updated Monthly September 2002)
Measures are annual, except Potentially Collectable Inventory and Lost Workday Case Rate, which are monthly. ™ 55% 0.99%
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Please note: Format is revised to present detailed data below agency-wide totals. FY2003 Targets reflect SPPs submitted 09/2002.
SB/SE data was compiled using the Datamart.
Timing Issues:
Data Availability: The majority of this report contains information that is u have data reported on an annual or quarterly basis, or did not have Septe pdated on a monthly basis. Some measures only mber data available and are so notated.
Total Enforcement Revenue: Reflects data through July.
General Issues:
Plan Numbers: The year-to-date plan numbers are calculated b weighted based on workflow. Therefore, com y either taking the annual plan goal divided by 12 or they are paring performance with the same period from the prior year in addition to performance compared with year-to-date plan numbers provides a more complete picture. Customer Satisfaction: Percentage change amounts ar +/- 10% do not always reflect a Statistically significant cha @ provided. Because of the small numbers involved, even changes of nge in the measure.
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Page 7 of 17 Filed 01/11/2007 Case 1:06-cv-01983-ESH Document 4-2 September Data Highlights:
Listed below are items with a +/-10% variance in year-to-date data vs. prior year-to-date or plan. The associated variation from prior year or plan number is provided even if it falls below the criteria. Narratives were obtained from Business Performance Reviews and other sources including the FY2002 IRS Performance and Accountability Report.
Pre-Filing (#1) Education & Outreach Staff Years - variation from prior year +27%; from plan -3%. The increase over FY 2001 is primarily due to large, planned increases in SB/SE and W&l resources devoted to the program. TEGE resources also exceeded FY 01, although on smaller numbers. LMSB did not make target because examiners did not deliver the expected levels of Pre-Filing and Technical Guidance, Industry Issue Resolution, Comprehensive Case Resolution (Program Cancelled) and Taxpayer Assistance. (#2) Number of Taxpayers Assisted — Direct - variation from prior year TBD; from plan TBD. (#3) Number of Taxpayers Assisted — Indirect - variation from prior year TBD; from plan TBD. (W&l) - In FY 2002, the methodology with which SPEC captured data on the number of taxpayers assisted changed from counting only direct assistance to include indirect assistance as well. After switching to this methodology, W & | realized the original projection (3.7 million) was well below what could realistically be accomplished. This change in counting methodology resulted in a revised Projection (19.0 million). The revised projection was computed based on data through July 15, 2002. Through this date, W & | Provided information and assistance (Direct and Indirect) to approximately 61.3 million taxpayers through VITA, TCE, and Outreach programs. There will not be much change in the VITA and TCE numbers through the remainder of the fiscal year, but some Outreach activity will be on-going. Prior to January 2002, data collected for Taxpayers Assisted did not distinguish between direct and indirect; so targets for these subreduce the numbers.
(#5) Number Volunteer Locations - variation from prior year -20%; Plan -21. The plan number of sites was set prior to the fiscal year based on the FY2001 actual. In FY2002, the number of sites was reduced as the responsibility for this volunteer program is migrating to other organizations and volunteer groups. This measure is being dropped from the critical list on 10/1/02. (#6) SB/SE Outreach Events/Activities - variation from prior year +601%:
delivery of Alternative Treatment Initiatives were shifted to Outreach Activities list on 10/01/02, from plan +276%. Resources previously planned for Events. This measure is being dropped from the critical
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Page 8 of 17 Filed 01/11/2007 Case 1:06-cv-01983-ESH Document 4-2 (#7) EP/EO Determination Letters - variation from prior year +19%; from plan -32%. Exempt Organizations (EO) closures were at the planned level, but Employee Plans (EP) determinations were substantially below plan. With the closure of the remedial plan amendment period scheduled for December 2001, EP expected to receive 120,000 determination requests in FY2002. However, due to a two-month extension of the deadline (granted in response to 9/11 " received slightly more than half that number of applications. As a result, EP issued fewer than half of the planned 106,000 determination letters. There was a positive trend among the receipts toward more pre-approved plans. Reduced determination workload freed up resources to support other critical program goals such as the examination program. (#8) Total Number Private Letter Rulings Completed - variation from prior year +19%; have been a very popular and high growth program for Chief Counsel because of their posi burden and resolving questions about tax code interpretation up front.
from plan +45%. Private Letter Rulings tive impact on the taxpayer of reducing (#9) APAs and Pre-Filing Agreements - variation from prior year +30%; from plan -14%. Advance Pricing Agreements (APA) - The APA measures capture Counsel's principal activities in support of the APA Program and the U.S. Competent Authority. The total number of APA Bilateral Negotiating Positions Completed, the mid-point in the bilateral APA process, increased by 55 from last year. The number of APAs closed increased 25% over last year’s level (from 68 to 85). Pre-Filing Agreements (PFA) - Performance is 10 versus a target of 20 Pre-filing Agreements. This is a taxpayer-initiated program and is limited by the ability to market the PFA process. The PFA program was made permanent in February 2001. LMSB had few participants in FY2001, but with improved marketing has observed increased interest in terms of greater submissions. This measure is being dr opped from the critical list on 10/01/02.
(#10) Number of Alternative Treatment initiatives - variation from prior year ~99%; from plan -40%. The Voluntary Agreement Program and other Compliance alternative treatment efforts did not transition to TEC during FY2002 as planned, and the full year target was accordingly revised. This change positively impacted delivery of the “Number of Taxpayers Assisted” (#2) and “Outreach Activities & Events” (#6) measures, since resources previously identified for the Alternative Treatment Program were shifted to other TEC programs related to these measures. This measure is being dropped from the critical list on 10/01/02. (#11) Electronic Tax Law Questions Answered - variation from prior year answers to their tax law questions through increased use of the IRS.GOV Fre the Sheif Software thereby lowering demand for this service. This measure i -32%; from plan -19%, Taxpayers are obtaining quently Asked Question section and from Commercial Off Ss being dropped from the critical list on 10/01/02.
(#12) Taxpayer Advocacy Projects - variation from prior year -32%; from plan -28%.
Planned to open 88 projects in FY 2002. However, TAS only opened 67 because they foc:
Projects instead of the raw number opened. This measure is bei Taxpayer Advocate Services (TAS) originatly used on the quality and impact of their ng dropped from the critical list on 10/01/0. ,
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(#15) Total Electronic individual Returns - variation from prior year +16%; plan +2%. The number of electronically filed individual returns Continued to climb, driven in FY2002 by a large increase in the number of returns filed from home computers. . AS a result, in FY 2002 over 46 million individual returns were filed electronically. Focused advertising and marketing as well as expansion of electronic Signature and payment options contributed to success in this area in FY 2002. Continued growth is expected as we increase the number of forms and schedules available for use in electronic filing. (#19) Number of Information Returns Filed Electronically - variation from prior year +14%; plan -21%. (#20) Percent of Information Returns Filed Electronically - variation from prior year +18%; plan —-24%. Information returns rose dramatically over the prior year, but fell short of the stretch goal.
(#21) Number of Information Returns - Mag Media - variation from prior year -12%; plan percentage +13%. (#22) Percent of Information Returns - Mag Media - variation from prior year -7%; plan percentage +13%. As the number and percentage of information returns filed electronically continues to grow, the number filed via paper or magnetic media will decline. (#24) IRS Digital Daily Website (Downloads) - variation from prior year +38%; plan -7%. (#25) Number of Website hits - variation from prior year +20%; plan +4%. IRS redesigned the Website to make it easier for taxpayers to access the information they. needed. Additionally, a factor in the hit-count is a new contractor that counts hits differently (the method is under review.) The large taxpayers are making IRS.GOV a first stop for addressing their tax questions and form needs.
(#26) Customer Accounts Correspondence Closures - variation from prior year +1 7%; exceeded prior year. The enterprise target for FY 2002 is 18.4 million closures. 22.5 million the impact of the Tax Rebate and Employer Identification Number issues on this year’s inven is in SB/SE.
from plan +23%. Program significantly closures were achieved. This was due to tory receipts. This increase in total volume (#27) Customer Accounts Correspondence Quality - variation from prior year -5%; from plan -12%. (SB/SE) Defects occurred Primarily in the areas of Correspondence (IRS Procedures) and inventory Management/Case Control, and Account Actions Other. . Problems with account actions are being addressed these old cases contributed to lower quality than anticipated.
ran at
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Page 10 of 17 Filed 01/11/2007 Case 1:06-cv-01983-ESH Document 4-2 (#29) Assistor Calls Answered - variation from prior year -5%; from plan -10%. Cail volumes were lower than planned early in the filing season and then increased. Contributing factors include higher than planned primary abandoned; corrective actions caused ratio of calls vs. plan to improve each week. Although almost all of the services were delivered, the combination of higher transfers, higher assistor availability (Correct staff not available for type of calls coming in. Assistors in agent groups ready to receive calls but calls coming in are not type of call available agent group can answer), and shortfalls in total handle time resulted in less calls answered than planned.
(#31) Assistor Level of Service - variation from prior year +21%; from plan -5%. Assistor level of service shows the percentage of taxpayers who want to talk to an assistor who actually reach an assistor. Level of service was negatively impacted by problems with the call routing system and several weeks with higher than anticipated call demand made up of residual rebate issues. (#35) Total Returns Prepared - variation from prior year -12%; from plan -10%. The number of returns prepared in Field Assistance sites is lower than in FY2001. It was CARE’s plan to reduce the number of returns prepared by lowering the income threshold of eligible taxpayers. CARE is adding two new measures in FY2003, Number of Tax Law Contacts and Number of Account Contacts. These measures along with Total Returns Prepared will give a more complete view of the Field Assistance workload.
(#38) ACS Closures TDI Entity - variation from prior year plan because of a management decision in February 2002 to TDAs and TDis.
-36%; plan -40%. The number of TDI closures did not meet the FY 2002 shift inventory priorities that resulted in a change in the mix of closures of (#39) ACS Level of Service - variation from prior year -11%; plan -14%. The start-up of the State Income Tax Levy Program and the Federal Payment Levy Program increased call demand, significantly affecting the workplan. Although resources were redirected, IRS was unable to meet the incoming volume. IRS is assessing the increased volume of calls and evaluating the methods used to forecast calls to better align workload to Staffing. The reduced level of service also negatively impacted Customer Satisfaction. (#41) Field Collection Cases Closed (TDA) - variation from prior year -4%; from plan -10%. TDA closures were adversely impacted by a variety of factors including the suppression of notices and enforcement actions due to September 11th attacks; concentration on working higher risk cases; computer reprogramming to segment cases between Area and Territory Offices; and Service Center Workload Realignment.
(#42) Field Collection Cases Closed (TDI) - variation from prior year +18%; from plan +31%. The target was exceeded as a result of efforts to re-balance inventories and increasing the percentage of time applied to TDI cases.
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Page 11 of 17 Filed 01/11/2007 Case 1:06-cv-01983-ESH Document 4-2 (#44) Offers In Compromise Processed - variation from prior year +14%; from plan -40%. The targets established were aggressive and based on centralization and reengineering efforts. The primary shortfall is occurring in Campus operations and is spent on start-up training and case Processing activities. Process improvements have been identified and are being implemented in the (#46) Automated Underre porter - Number of Cases Closed - variation from prior year +1 6%; productivity rates were exp plan +1%. Some negative effect on ected as work began on more complex K-1 cases. The program was st ill able to meet the pian number.
(#49) Total Number of Returns Examined - Correspondence Exam - variation from prior year +6%; plan +31%. The goal was management practices. FY02 began witha greater than expected rollover of in-process cases from FY01, which enabled (#52) Number of Individual Returns > $100,000 Examined - variation from prior year +20%; from plan +12%. (#53) Number of Individual Returns < $1 00,000 Examined - variation from Prior year -4%; from plan +14%. The goal was exceeded because , and there were improvements in direct examination time (DET) applied.
Tax Compliance Officers) and completion of their initial t years. More management attention Paid to case ing optimal inventory levels were also primary contributors to improvement in this area.
(#57) Number of Cases Examined (Large Case) - variation from Prior year +27%; from plan -7%. The FY2002 Performance was 528 Cases or 93% of the 566 planned. There is no single barrier to explain this performance, although the increased focus upon abusive shelters frequently increases cycle time. While short of the target, this level of performance demonstrates a significant improvement from the LMSB Stand-up year (F¥2000) when 328 were closed, and FY2001 when 417 were closed. In fact, FY2002 performance for CIC closures reflects a 43% increase from FY2000 and the number of CIC closures for FY2002 exceeds the performance in each of the last 5 years.
(#58) Number of Returns Closed (Large Case) - variation from prior year +30%; from plan +40%. LMSB surpassed this goal because of a greater than expected number of Employment Tax Returns associated with Coordinated industry Cases.
(#60) EP/EO Examinations Closed - variation from prior year -15%; from plan +14%. The FY2002 goal was based on an assumption about the number of determination letter receipts that would come in and how many Examination FTEs would need to be diverted from examination casework to cover that workload. Since moved back to doing examinations and t
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Compliance Services
(#63) Appeals Cases Closed - variation from prior year +24%; from plan +1%. - Appeals exceeded its FY¥2002 plan by closing 68,015 cases. Improved resource allocations, case development practices, better management and communications resulted in more efficiency and greater productivity during FY 2002 making it possible for Appeals to achieve its target.
(#65) Total Tax Court Cases - variation from prior year +13%; from plan +6%. (#66) Number of Tax Court Receipts - variation from prior year +18%; from plan +29%. The Tax Court workload (Beginning Inventory + Receipts) rose this year compared with
(Receipts: 14,766 in FY2001 vs 17,371 in FY2002). Most of the growth is in non-shelter cases of $50,000 or less.
(#68) Taxpayer Advocate Service Casework Quality Index - variation from prior year 0%; from plan -10%. Taxpayer Advocate Service hopes to meet this goal and greatly exceed FY2001 performance by having each office set a goal and make an improvement plan around the three standards listed above to achieve that goal. Advocate’s year end Projection is 80%, equal to the FY2002 goai.
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MONTHLY BUSINESS PERFORMANCE SUMMARY
AGENCY-WIDE OPERATIONAL PERFORMANCE MEASURES
Full Year Performance Year to Date Comparison FY 2002 FY2001 FY¥2002 Percentage FY02 Plan Percentage FY 2000 FY 2001 FY¥02 Plan | FYO03 Plan PI ~ Measures/indicators September September Change September | Act. vs Plan 1,115 1,414) 27% 1,457 3% 1,457 1,582!
10. amber of Alternative Treatment Initiatives* 2,700 3,104] 3,104) 18 99% 30 40% 30 510 rer 11, &igctronic Tax Law Questions Answered* 303,758 264,448] 264,448 180,370) 32% 223,877; ~19% 223.877 223,877, > | 12, Number of Taxpayer Advocacy Projects* bal 92 92] 63 ~32% 68 -28% 88 88 tes: So
“D: QED is working with W & | and SB/SE to resolve issues regarding how Taxpayers Assisted is counted.
‘alnatige treatments: Until FY2001, this measure counted the number of establishments participating in voluntary agreements. Beginning FY2002, the measure only counts the number of new agreements.
igust 26g Customer Satisfaction Data represents 17th Quarter Survey Results.
iical Medsures are in Bold and Shaded
w FY 2002 Measures are shown as white numbers, black background a: denotes that data was not available.
Jeasures discontinued as Critical Measure for FY2003
1415/02 9:03 AM
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MONTHLY BUSINESS PERFORMANCE SUMMARY
GENCY-WIDE OPERATIONAL PERFORMANCE MEASURES
~ A Full Year Performance Year to Date Comparison FY 2002 DS FY2001 FY2002 Percentage FY02 Plan Percentage oO FY 2000 FY 2001 FY02 Plan FY03 Plan + Measures/indicators September September Change September | Act. vs Plan ts and Resolving Questions about their Accounis do) teturrepProcessing:
Full Year Performance Year to Date Camparison FY 2002 FY2001 FY2002 Percentage FY02 Plan Percentage FY 2000 FY 2001 FY02 Plan FY03 Plan Measures/indicators September September Change September Act. vs Pian ‘iling and Account Assistance. and Resolving Questions about their Accounts "oll-Fiée Telephone Service Effectiveness
34. Customer Satisfaction Walk-in {7 point scale) (5 point scale as of 16th Qtr) 6.48 6.40] 6.40 4.41 ta 6.55 n/a 6.55 \MPe ge Ci 91% 90% 90% 86% 4% . 88.0%} Te ge Dissatisfied 6% 6%| 6% 8% 33% No Target Required 7.0%
35. Total Returns Prepared 1,092,691 1,009,390) 1,009,390 886,797 12% 984,000) 10% 984,000) 736,700} c Oo ddregsing Taxpayer Payment and Filing Obligations Collection by Telephone and Correspondence
39. ACS Telephone Level of Service 79% 78%) 78% 69% 11% 80% “14% 80% 74% WI ACS/LOS 79%) 78%| 76% 66% -13% 80% 18% 80% 73% SBSE ACS/LOS 79% 79% 79% 72%) 9% B0%| * -10% 80%. 75% I
‘01 total data was revised to exclude bum-off. Monthly rva.
11/15/02 9:03 AM
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MONTHLY BUSINESS PERFORMANCE SUMMARY
AGENCY-WIDE OPERATIONAL PERFORMANCE MEASURES
Full Year Performance Year to Date Comparison FY 2002 FY2001 FY2002 Percentage FY02 Plan Percentage FY 2000 FY 2001 | FY02 Plan FY03 Pian A Pla s Measures/indicators September September Change September ct. vs Plan into. Compliance with:the Law Person Collection ae
40. Fleld Collection Customer Satisfaction (7 point scale) 4.60 5.01 5.01 4.97 “1% 5.00 1% 5.00) vp 47% 53% 53% 51%) A% a 50.1% P 9 T R D Percentage D 20% 2%] 22% 23%| 5% No Target Required 14.6% Uy oe
43. Field Collection Quality-of:Cases Handied In Person 84% 84% 84% 84% or 85% "2% 85% 86.8%! 44, [Offers in Compromise. Pre d 60,514 97,01 97,013 110,205. 14% 185,000 40% 185,000; 124,000} Oo addreeging Taxpayer Reporting Obligations —~S_ “Gases of Under or Over Reporting Identified Through Document Matching KEW actomotod Underreporter - Customer Satisfaction Baseline FY2002 va ra : va : Baseline TBD
. Full Year Performance Year to Date Comparison FY 2002 FY2001 FY2002 Percentage FY02 Plan Percentage FY 2000 FY 2001 FY02 Pian FY03 Plan ft Measures/Indicators September September Change September | Act. vs Plan into Compliance.with the Law T Business Returns | |
56. ‘Ajumber of Business.Returns Examined 103,112 84,7: 84,748 85,190 1% 81,369) 5% 81,369 18,878} p< EMSS - IND (see LMSB table for FY2001 footnote) = 20,412 19,626 19,626 15,801 19% 17,118 8% 17,118 14,662] +—_SBSE - C&F *D from Critical Measures as of 10/1/02 67,193) 55,01 3 55.013) 58,173 6% 52,304) W% 52,304) Wa a>_SBSE CORP < 5M (Under $10M after 2001) 15,507 10,109) 10,109 11,216 1% 11,947 6% 11,947; 4216 > SBSE - C&F and CORP < 5M (Under $10M after 2001) ae 82,700 65,122 65,122 69,389, 7% 64,251 8% 64,251 4.216 Ow /
66. Number of Tax Court Receipts 13,478 14,766} 14,776 17,371 18% 13,500 29% 13,500 18,000) Saxpayer Advocate Service
67. Taxpayer Advocate Number of Cases Closed 237,885. 248,011 248,011 234,327 6% 252,289 7% 252,289 252,289)
68. Taxpayer Advocate Casework Quality Index (June Data) 65% 72%| 72% 72% On 80% -10% 80% 90% > gency-Wide Measures | 19, Seta Enforcement Revenue (billions) (Juty Data) $33.8 $33. Wa $28.8, : Wa : $34.8 $35.2
70. ERployee Heaith and Safety - Lost Workday Case Rate va va a 0.99%) : 0.49% 102% Wa 0.49% Oo
71. Agency Wide Employee Satistacti 59% 51% 51% 55% 8% 54% 2% 54% TaD 72, Number of FTEs (w/ EITC) 97,074, 97,938; 97,938 100,363 2% 99,901 0% 99,901 98,934)
73. Number of FTEs in Taxpayer Contact Programs (w/EITC) 65,415 65,730) 65,730 68,243 4% 68,306) 0% 68,306 67,534
74. _FTE per Billion $ Real GOP 10.57, 10.26] 10.26) 10.17 1% 10,11 1% 10.11 9.98]
11/15/02 9:03 AM
Page 24 (stamped 1 of 19)
UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA
TAX ANALYSTS and ALLEN KENNEY,
Plaintiffs,
INTERNAL REVENUE SERVICE
Vv. ) No. 1:06-CV-1983-ESH Defendant. )
)
PLAINTIFFS’ MOTION FOR A VAUGHN INDEX OR IN THE ALTERNATIVE FOR IN CAMERA INSPECTION
Plaintiffs’ Exhibit A - Part 2
Page 25
Page 2 of 19
Filed 01/11/2007
Case 1:06-cv-01983-ESH Document 4-3
This report contains records of tax enforcement results that will be used for purposes such as forecasting, financial planning, and resource management. As required by Section 1204(a) of the Restructuring and Reform Act of 1998 (PL 105-206) 112 Stat. 685, 1998) and the Balanced Measures Regulation (26 CFR Part 801), this information will not be used to evaluate any employee or to impose or suggest production quotas or goals upon them. .
.
Page 26
MONTHLY BUSINESS PERFORMANCE SUMMARY
W & 1 OPERATIONAL PERFORMANCE MEASURES
Full Year Performance Year to Date Comparison FY 2002 FY 2003 SD FY2001 FY2002 Percentage | FY02 Plan | Percentage PI ‘ Measures/indicators FY 2000 FY 2001 September September Change September | Act. vs Plan Fv02 Plan an Fitin rams — Assisting Taxpayers in Understanding their Tax Responsibilities and Pre, Accurate Retums . : _ ‘1, Education and Outreach Staff-Years — 316 302] 302 562 8B% 594 5%. 594) 651 oO lunteers Helping Taxpayers Number of Taxpayers Assisted - Direct (Face to Face) 4,662,935] 3,587,179 3,587,178 19,370,594} 440% Wa : 3,717,000 6,300,000 Number of Taxpayers Assisted - indirect (Media, etc.) Not Track Before FY2002” Wa 53,564,421 - Wa : 5,000,000} _10,100:000) ne .
S Volunteer Hours Reported (August Data) _ 2,274,732| _ 2,780,245 2,790,245 2,571 262 8% 2,908,000) 12%: 2,908,000) 3,514,000 /~5. Number Volunteer Locations(August Data) 18,147; 18,2381 18,238 14,604 20% 18,375 21% 18,375 18,375] — | | Ray ._ Electronic Tax Law Questions Ar d 303,758} 264,448] 264,448 180,370 32% 223,877 “19% 223,877, 223,877 lO .
oO Number of Information Returns Filed Electronically (000) 219,739 330,239) 330,239 376,063) 14% 474,700| —_-21% 474,700; TBO]S Percent of Information Returns Filed Electronically 17% 22% 22% 26% 18% 34% 24% | 34%) TBD» Magnetic Media Number of Non-Paper information Returns Filed Mag Media (000) 1,071,952 1,129,190) 1,129,190) 989,093 12% 875.1 13% 875,199 Teo| ¥ Percent of Non-Paper information Returns Filed Mag Media 81% 75% 75%) 70% T% 62% _- 13% 62% TBD) Lu ! Number Taxpayers Paying Electronical! ly
3. Number of Federal Tax Payment Transactions Paid Electronically (000) 83,380) 64, 64,366 66,029) 3% 67,438 2% 87,438] 68.200 O)___Debit/Cradit Card Transactions (000) I [ IRS Digital Dally Website (Downloads) (mil) 149 317] 317 438 38% 473 7% 473 Be Number of Web Site Hits (billions) _ ee 1.56 2.80 2.60 3.11 20% 3.00 a 3.00 4,00] 4 & _Gustomer AccountCorrespondence _ 8,877,483| 8,430,000] 8,430,000 7,303,184 12% 6,279,660 18% 6.279,660| 6,800,000] % EAI Customer Account Correspondence Quality = _ 82% 81%) 81% 78% 4% 85%| 8% 85% 79% "ores Telephone Service Workload | 26. Teletax and Toll-Free Automated Calls (000) 49,700) 76,117 76,117 83,796 16% 7§,000: "15% 78,000) 50,0001%- O _.
oO Tr — oO + [o>) oO W & | OPERATIONAL PERFORMANCE MEASURES ’ oO Full Year Performance Year to Date Comparison FY 2002 | FY 2003 FY2001 FY2002 Percentage FY02 Pian | Percentage Measures/indicators FY 2000 FY 2001 September September Change September | Act. vs Plan Fv02 Plan Plan Making Payments and Resolving Questions about their Accounts : eg ee : Zs | =30- Toll Free Customer Satisfaction (4 point scale) 3.46 3.45) 3.46 3.43} A% 3.49] 2% "3.49 0:00
- Percentage Completely Satisfied 58% 59%] 57% 55% A% t Reui ~ Percentage Dissatistied 2% ee 2% 2% 0% No Target Required oO i.__Assiztor Level of Service _ _ . 59% 56%] 56% 68%) 21% 72% 5%. 72% Te ® j p2-__ Toll FreeTax Law Quality 73%! 75% 75% B1% 8% ~__ 78% 4% 78% sa | 33. Toll Free Account Quality 60% eo%ef 69% 75% 8%. 72% 4% __72% 77% EGhal In-Person Assistance to Taxpayers - SH. Customer Satistaction Walk-in (7 point scale)(5 point scale as of 16th Qu) : 6.48: 6.40) 6.40 441 31% 6.55. 33% 6.55] - Q.00) TS Percentage Completely Satistied _ : 91% 90%) 90% 86% 4% i o . Percentage Dissatisfied 6% o% 8% B% 3% No Target Required E zB. Total Returns Prepared (August Oata) 1,092,691 1,009,390} 1,009,390 888,797 -12% 984,000 10% 984 000! 736,700) Addressing Taxpayer Payment and Filing Obligations TL Collection by Telephone and Correspondence G§.__ ACS Customer Satistaction (4 point scaep 3.39 3. 3.44 3.43) 0% 3.50) 2% 3.50) 3.43 LL] __ Percentage Completely Satistied - _ 55% 57% 57% 55% 4% t :
oO Percentage Dissatistied __ _. oe ; 2% 1% 1% 2% 100% No Target Required co __. .
oO NE oD Ow al eR oO ql — W & | OPERATIONAL PERFORMANCE MEASURES ~_ Full Year Performance Year to Date Comparison FY 2002 FY 2003 ~—S _ FY2001 FY2002 Percentage FY02 Plan | Percentage 2 Measures/Indicators £2000 172001 | september | September | Change | September | Act vs Pian | F¥02Plan Plan t-Filing Compliance Services: ~ Bringing 7: into Compliance with.the Law ‘ oe - es : — - Sm Automated Underreporter - Cusiomer Satisfaction Baseline FY2002 va Wa Wa : _ Baseline. TBD de | 46.__Automated Underreporter - Number of Cases Closed 1,572,900) 1,228.8: 1,228,894! 0 1,530.0 1,530,000] 1,432,000) | cA. Automated Underreporter - Case Quality Score - Paper 93% 93%f 93% 95%| 2% Q7%| 2% g7%| 94% !
LT Examination of Returns Through Correspondence and Telephone @&. Correspond Exam - Customer Satisfaction 4.14 4.27 4.27) 3.90; 2% 4.30) 2% 4.30]. 0.00) s D Pe ge Comp y $ __ 34% 34% 34% 33% 3% No T; Reaui E 7» ge Dissals 38% 30% 30% 41% 37% arget Required sS —Pee & roi Number of Returns Examined - Correspondence Exam 184,754 328, 328,944) 338,036) 3% 236,356 Be _ 236,356) TBO|S | 50. “Correspondence Exam Case Quality Score 70% 63% 63% 61% 3% 88%] -10% 68% 6a%| Compliance Services _ | Innocent Spouse Determinations Made and Claimant Notifled 55,698] 61,014 61,011 60,730 0% 65,000 7% 85,000 51,500} y
Case 1:06-cv-01983}
11/15/02 9:03 AM
Page 29
Page 6 of 19
Filed 01/11/2007
Case 1:06-cv-01983-ESH Document 4-3
This report contains records of tax enforcement results that will be used for purposes such as forecasting, financial planning,
and resource management. As required by Section 1204(a) of the Restructuring and Reform Act of 1998 (PL 1 05-206) 112
Stat. 685, 1998) and the Balanced Measures Regulation (26 CFR Part 801), this information will not be used to evaluate any
employee or to impose or suggest production quotas or goals upon them.
on
-2/
Page 30
MONTHLY BUSINESS PERFORMANCE SUMMARY
a rer 4 SBSE OPERATIONAL PERFORMANCE MEASURES :
o ° »Fall Year Performance Year to Date Comparison FY 2002 FY 2003 : FY2001 FY2002 Percentage | FY02Plan | Percentage S Measures/Indicators FY 2000 FY 2001 September | September Change September | Act. vs Plan | FY02 Plan Plan Programs - Assisting T: sibilities and-P: Accurate Returns :
1, Education and Outreach Staff-Years (July Data) 334 321 321 622 94% 627| “1% 627| 722) ‘oly: rs Helping Taxpayers imber of Taxpayers Assisted - Direct (Face to Face) no data 106,13q 106,130 401,507 TBD val TBD 100,000} 440,000 N EM Number of Taxpayers Assisted - indirect (Media, etc.) Not Tracked Prior to FY2002 ta 47,038,125 TBD val ‘TBD 8,400,000] __ 7,300,000) rT - ~—S
8. Held Collection Quallty of Cases Handied In Person 84% 84% 84% 84%) 0% B5% “2% 85% 87%
44. Stfers in Compromise Processed 69,514 97,0151 97,013 110,205 14% 185,000 40% 185,000 124,000} Q \ddressing Taxpayer Reporting Obtigations Cases of Under or Over Reporting identified Through Document Matching EES Automated Underreporter - Customer Satisfaction Baseline FY2002 Va Va va : Baseline TBD Lu
46. QQutomated Underreporter - Number of Cases Closed 1,316,000 1,282,530) 1,282,530) 1,364,240 6% 1,349,980 1% 1,349,980 1,400,000; C o> 47, Automated Underreporter - Case Quality Score - Paper 93%! 97% 97% 94% -3% 97% -3% 97% 95% oO - Examination of Returns Through Correspondence and Telephane oO 1
This report contains records of tax enforcement results that will be used for purposes such as forecasting, financial planning, and resource management. As required by Section 1204(a) of the Restructuring and Reform Act of 1998 (PL 105-206) 112
used to evaluate any employee or to impose or suggest production quotas or goals upon them. .
4 t
2s
Page 34
MONTHLY BUSINESS PERFORMANCE SUMMARY
oO rer we oO — — oO oD) O oO NR oO oO AN ~ LMSB OPERATIONAL PERFORMANCE MEASURES = Full Year Performance Year to Date Comparison FY 2002 FY 2003 oO 2000 FY2001 FY2002 Percentage FY02 Plan | Percentage Oo Measures/Indicators FY FY 2001 September September Change September | Act. vs Plan FV62 Plan Plan ing Accurate Returns ~ ” . . : ede .
9. TAPAs and Pre-Filing Agreements 61 734 73 95) 30% — 110 -14% 110 110 rs into Compliance with the Law : ee i e-Business Returns 1 | LMSB - IND’ 20.412 19,626] 19,626 15,801 -19% 17,118 8% 17,118 14,662)
58. CNumber of Business Returns Examined 103,112 84,7 84,748 85,190 1% 81,369] 5% 81,369 18,878
57. ONumber of Cases Examined (Large Case) 369. 417 417 528 27% 566 7% 566 486] 58—Number of Returns Closed (Large Case) ‘corrections provided by LMSB 06-24-02 3578" 3734" 3,734) 4,851} 30%. 3,453) 40% 3,453} 4,131 FY2001 AIMS Closed Case database, which was received in December 2001. 19,626 was the number
hown in the preliminary FY2001 results, which was received in October 2001 and used for the eptember 2001 report.
Us
Case 1:06-cv-01983-E
T115/02 9:03 AM
Page 35
Page 12 of 19
Filed 01/11/2007
Case 1:06-cv-01983-ESH Document 4-3
This report contains records of tax enforcement results that will be used for purposes such as forecasting, financial planning,
and resource management. As required by Section 1204(a) of the Restructuring and Reform Act of 1998 (PL 105-206) 112
Stat. 685, 1998) and the Balanced Measures Regulation (26 CFR Part 801), this information will not be used to evaluate any
employee or to impose or suggest production quotas or goals upon them.
ou
Page 36
MONTHLY BUSINESS PERFORMANCE SUMMARY
oO rer — Oo oD rer ® oc Oo. TEGE OPERATIONAL PERFORMANCE MEASURES Full Year Performance Year to Date Comparison FY 2002 FY 2003 FY¥2001 FY2002 Percentage FY02 Plan | Percentage > MeasuresAndicators FY 2000 FY 2001 September September Change September | Act. vs Pian FY02 Plan Plan jing Programs — Assisting Tax 's in Understanding their Tax Responsibilities and Preparing Accurate Raturns : as ~—S_
This report contains records of tax enforcement results that will be used for purposes such as forecasting, financial planning, and resource management. As required by Section 1204(a) of the Restructuring and Reform Act of 1998 (PL 105-206) 112
employee or to impose or suggest production quotas or goals upon them. .
This report contains records of tax enforcement results that will be used for purposes such as forecasting, financial planning, and resource management. As required by Section 1204(a) of the Restructuring and Reform Act of 1998 (PL 105-206) 112 Stat. 685, 1998) and the Balanced Measures Regulation (26 CFR Part 801), this information will not be used to evaluate an yy employee or to impose or suggest production quotas or goals upon them. .
66. Number of Tax Court Receipts 13,478 14,766] 14,776) 17,371 18% 13,500) 28% 13,500 18,000
Case 1:06-cv-01983-ESH
11/15/02 9:03 AM
Page 41
Page 18 of 19
Filed 01/11/2007
Case 1:06-cv-01983-ESH Document 4-3
This report contains records of tax enforcement results that will be used for purposes such as forecasting, financial planning,
and resource management. As required by Section 1204(a) of the Restructuring and Reform Act of 1998 (PL 105-206) 112
Stat. 685, 1998) and the Balanced Measures Regulation (26 CFR Part 801), this information will not be used to evaluate any
employee or to impose or suggest production quotas or goals upon them.
Page 42
MONTHLY BUSINESS PERFORMANCE SUMMARY
oO rer e oO oO rer oO oD w al 5S FUNCTIONAL OPERATIONAL PERFORMANCE MEASURES oO Full Year Performance Year to Date Comparison FY 2002 FY 2003 S FY2001 FY2002 | Percentage | FY02Pian | Percentage — Measures/indicators FY 2000 FY 2001 September September Change September | Act. vs Plan Fv02 Pa Plan Compliance Services : en eee — | _—
63. CAppeals Cases Closed (Total Disposals) _ 54,986] 54,748). ~+54,748 68,015 24% __-67;560! 1%. 67,560 77,265) = __General Appeals 7 _ tva Wa : Wa - 64,791 93,741 LL LSB Cases New Breakdown for FY2002 va Wa : wa : 2,769 3,452 BEM criminal investigations Compieted 3,499) 3,340) 3,340|° 3,201 4% 3,280]. -2% “3,280 3,250) o Criminal Investigations Initiated 3,372) 3.284 3,284 3,906 19% 3,103} 26% 3,103) 3,708) == | Agency Wide Measures . pee ee “ us i$ "yas / | | | | ' 69. CTotal Enforcement Revenue (billions) (June Data) 33.8 33.81 Wa 28.8] .. - Wa : - 34.8 36.2 5
70. Employee Health and Safety - Lost Workday Case Rate Wa Wa Wa 0.58% : Ma. - va" Wa Pat
71. Agency Wide Employee Satistaction 59% 51% Annual. Number | Annual Number Annual Number | : 54% TBD! | 72.-TNumiber of FTEs (w/ EITC) 97,074 97,936] Annual Number _{” Annual Number Annual Number 99,901] 98.9: | 73.LLNumber of FTEs in Taxpayer Contact Programs (wEITC) _ 65,415 65,730] Annual Number | Annual Number : Annual Number. | "68,506 67,534 oD
74. STE per Billion $ Real GDP 10.6 10.3% Annual Number | Annual Number “ Annual Number | “= 10.1 10.0 — ° > ° oO 2 rer ® ™ on Oo O 34
11/15/02 9:03 AM
Page 43 (stamped 1 of 1)
UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF COLUMBIA
TAX ANALYSTS and ALLEN KENNEY,
Plaintiffs,
INTERNAL REVENUE SERVICE
Vv. ) No. 1:06-CV-1983-ESH Defendant. )
)
ORDER
In regard to Plaintiffs’ Motion for a Vaughn Index or in the Alternative for In Camera Inspection, defendant’s opposition and any reply thereto, it is this _ day of , 2007, ORDERED that plaintiffs’ motion is granted. Defendant Internal Revenue Service is to prepare, file and serve a Vaughn index on
or before 2007.
i
UNITED STATES DISTRICT JUDGE
PDF Page 1
PlainSite Cover Page
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Case 1:06-cv-01983-ESH Document4 Filed 01/11/2007 Page 1 of6
UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF COLUMBIA
TAX ANALYSTS and ALLEN KENNEY,
Plaintiffs,
INTERNAL REVENUE SERVICE
)
)
)
)
Vv. ) No. 1:06-CV-1983-ESH
)
}
)
Defendant. )
)
PLAINTIFFS’ MOTION FOR A VAUGHN INDEX OR
IN THE ALTERNATIVE FOR IN CAMERA INSPECTION
In this Freedom of Information Act (“FOIA”) case, plaintiffs
move for an order requiring the Internal Revenue Service (“IRS”)
to prepare, serve and file a Vaughn index. Alternatively, if the
Court prefers to conduct its own review of the documents at
issue, we suggest in camera inspection.
Compliance with LcvR 7 (m)
Counsel have conferred. Defendant IRS intends to oppose
this motion.
Points and Authorities
Statement of the Case
In this case plaintiffs seek access to IRS’ monthly perfor-
mance reports for 2005 and 2006. These reports are monthly
compilations of a myriad of statistics relating to just about
everything that IRS does. See, e.g., Ex. A attached. Exhibit A
is an annual compilation of such information for FY2002, which
was provided to another Tax Analysts reporter.
PDF Page 3
Case 1:06-cv-01983-ESH Document4 Filed 01/11/2007 Page 2of6
We understand that the reports at issue in this case contain
the same kinds of statistical information. They may also contain
a series of a kind of “traffic light” evaluations, e.g., “green”
showing that performance is satisfactory, “yellow” meaning that
performance needs improvement, and “red” indicating unsatisfac-
tory performance.
In its denial of plaintiffs’ FOIA request for the reports,
Complaint Ex. 7, IRS claimed FOIA Exemption 3 for Internal
Revenue Code (“IRC”) § 6103 taxpayer information; FOIA Exemption
6 for “sensitive personal information;” FOTA Exemption 2 relating
to internal practices of the agency, and FOIA Exemption 5 for the
“deliberative process privilege.” IRS’ Answer does not claim
exemption on any of these grounds.
Counsel for IRS has informed counsel for plaintiffs that IRS
intends to claim in this case only Exemption 5, i.e., for pre-
decisional, deliberative material, except that IRS also would
claim Exemption 3/§ 6103 for one taxpayer name.
Plaintiffs will not challenge deletion of the taxpayer name.
Thus the only FOIA exemption to be at issue is the deliberative
process privilege. As the U.S. Department of Justice’s (“DOJ”)
authoritative treatise on the FOIA’ declares, the deliberative
process privilege “of course ... applies only to ‘deliberative’
1 DOJ, Office of Information and Privacy, Freedom of
Information Act Guide & Privacy Act Overview (May 2004 edition)
(“DOJ FOIA Guide”).
-2-
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Case 1:06-cv-01983-ESH Document4 Filed 01/11/2007 Page3of6
documents and it ordinarily is inapplicable to purely factual
matters, or to factual portions of otherwise deliverative memo-
randa.” DOJ FOTA Guide at 384, citing EPA v. Mink, 410 U.S. 73,
91 (1973). In particular, such factual information is not
deliberative when it “reflect[s] no point of view.” Mapother v.
DOJ, 3 F.3d 1533, 1539-40 (D.C. Cir. 1993). Examination of
attached Exhibit A and the statistics there compiled shows that
the information is simply presented as statistical facts and
“reflects no point of view.”
Why a Vaughn Index?
If attached Exhibit A is any guide, the records at issue in
this case are numerous. Exhibit A is 34 pages long. If each
monthly report, for 24 months, is of the same order of magnitude,
the documents would total approximately 800 pages, consisting
mostly, if not entirely, of statistical tables.
A Vaughn index “correlate[s] each withheld document (or
portion) with a specific FOIA exemption and the relevant part of
the agency’s non-disclosure justification.” DOJ FOTA Guide at
778, citing Vaughn v. Rosen, 484 F.2d 820, 827 (D.C. Cir. 1973).
Such an index enables the court to decide whether the documents,
or portions, are exempt “without actually viewing the documents
themselves.” King v. DOJ, 830 F.2d 210, 219 (D.C. Cir. 1987). A
Vaughn index is to provide “a clear explanation of why each
document or portion of a document withheld is putatively exempt
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Case 1:06-cv-01983-ESH Document4 Filed 01/11/2007 Page 4of6
from disclosure.” DOJ FOIA Guide at 780, citing Manna v. DOd,
832 F.Supp. 866, 873 (D. N.J. 1993).
If, as Exhibit A indicates, the monthly performance reports
at issue here are entirely or mostly statistical, i.e., pure
facts, IRS’ Vaughn index would justify -- or attempt to justify
-- why each section, portion or table is “deliberative” and
therefore exempt. IRS’ Vaughn index also would do so “in suffi-
cient detail to permit the requesting party to argue effectively
against the claimed exemptions and for the court to assess the
applicability of the claimed exemptions.” St. Andrews Park, Inc.
v. Army Corps of Engineers, 299 F.Supp.2d 1264, 1271 (S.D. Fla.
2003).
For this case in particular, it is vital to require IRS to
explain why the statistics in the monthly performance reports are
not segregable from any truly deliberative material.” See 5
U.S.C. § 552(b) (flush language); Kimberlin v. DOJ, 139 F.3d 944,
950 (D.C. Cir. 1998).
In Camera Inspection
In Tax Analysts v. IRS, 414 F. Supp. 2d 1 (D.D.C. 2006),
this Court denied plaintiffs’ motion for a Vaughn index where (as
here) IRS had “raised only one exemption -- the deliberative
process privilege.” Id. at 4. This Court held instead that “the
? Which the “traffic light” matter might arguably be,
assuming that its inclusion is intended to lead to decisions
about how to improve performance of, say, collecting taxes.
-4-
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Case 1:06-cv-01983-ESH Document4 Filed 01/11/2007 Page 5of6
court’s evaluation of the agency’s invocation of Exemption 5 and
claims of nonsegregability would benefit from an in camera
inspection....” Id. at 7.
Here, however, the documents are voluminous -- as noted,
likely to comprise some 800 pages. We suggest that IRS, not the
Court, bear the burden of a detailed analysis and justification
for its Exemption 5 claims. Moreover, a Vaughn index would give
plaintiffs the opportunity to brief IRS’ claims of exemption and
its justification for those claims. In camera inspection, on the
other hand, would not do so. However, plaintiffs abide by the
Court’s decision on which relief to order.
Conclusion
Plaintiffs’ motion for a Vaughn index should be granted.
Respectfully submitted,
/s/ William A. Dobrovir
WLLIAM A. DOBROVIR
D.C. Bar No. 030148
P.O. Box 198
Sperryville, VA 22740-0198
(540) 987-9114
/s/ Cornish F. Hitchcock
CORNISH F. HITCHCOCK
D.C. Bar No. 238824
Suite 350
5301 Wisconsin Avenue, N.W.
Washington, D.C. 20015
(202) 364-1050
Dated: 11 January 2007 Attorneys for Plaintiffs
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Case 1:06-cv-01983-ESH Document4 Filed 01/11/2007 Page 6 of6
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that a copy of the foregoing Plaintiffs’
Motion for a Vaughn Index or in the Alternative for In Camera
Inspection was filed electronically this 11th day of January,
2007, and that a copy thereof will be mailed electronically to:
David M. Katinsky, Esq.
Trial Attorney, Tax Division
U.S. Department of Justice
P.O. Box 227
Ben Franklin Station
Washington, D.C. 20044
Counsel for Defendant IRS
__/s/
CORNISH F. HITCHCOCK
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Case 1:06-cv-01983-ESH Document 4-2 Filed 01/11/2007 Page1 of 17
UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF COLUMBIA
TAX ANALYSTS and ALLEN KENNEY, )
Plaintiffs,
Vv. No. 1:06-CV-1983-ESH
INTERNAL REVENUE SERVICE
Defendant. )
PLAINTIFFS’ MOTION FOR A VAUGHN INDEX OR
IN THE ALTERNATIVE FOR IN CAMERA INSPECTION
Plaintiffs’ Exhibit A - Part 1
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Filed 01/11/2007 Page 2 oft
Case 1:06-cv-01983-ESH Document 4-2
INTERNAL REVENUE SERVICE
FY 2002 MONTHLY SUMMARY OF PERFORMAN C
THROUGH SEPTEMBER 2002
IRS MISSION
“quality service by helping them understand and meet
applying the tax law with integrity and fairness to all.”
“Provide America’s taxpayers top
their tax responsibilities and by
CONTENTS:
Strategic Measures
Critical Measures by Program
Critical Measures by Operating Unit
Critical Measures by Functional Unit
This report contains records of tax enforceme
by Section 1204(a) of the Restructuring Refo
nt results that will be used for Purposes such as forecasting, financial planning, and resource management. As requir
information will not be used to evaluate any
Regulation (26 CFR Part 801), this
employee or to impose or Suggest production quotas or goals upon them. ,
Prepared by the Chief Financial Officer
PDF Page 10
Page 3 of 17
Filed 01/11/2007
Case 1:06-cv-01983-ESH Document 4-2
This report contains records of tax enforcement results that will be used for purposes such as forecasting, financial planning,
and resource management. As required by Section 1204(a) of the Restructuring and Reform Act of 1998 (PL 105-206) 112
any
employee or to impose or suggest production quotas or goals upon them. .
ae
a?
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Filed 01/11/2007
Case 1:06-cv-01983-ESH Document 4-2
IRS STRATEGIC MEASURES — SERVICE-WIDE — Published 10/30/02
Service to Each Taxpayer
Service to All Taxpayers
Productivity Through a Quality Work
Overall Customer Satisfaction
Roper Starch
Percentage of the public that has a favorable!
opinion of the IRS as compared with
most federal agencies.
(August 2002)
44%
Payment Compliance
Percent of individual tax liability reported on timely
returns that is paid by the due date.
(TY 2001, computed 4/02)
97.50%
Environment
Overall Employee Satisfaction
Percent of employees rating overall job satisfaction|
with IRS “very high" or “high.”
(% of 5s plus 4s on a 1/low-S/high scale
(July 2002)
University of Michigan Survey that reports
Satisfaction with IRS timeliness, accessibility,
Courtesy and professionalism. Scale 1-100)
(November 2001)
All Individuai Filers ...
Electronic Filers
Paper Filers
Small Business Corp. Filers
Mid-size Corporate Filers
Burden
(W&l and Seif-employeed data for T¥2000
available winter 2003; Sept. 03 for TY2001)
Ti ‘Millions of
Money (Millions of Doll;
62
52
66
55
60
48
Filing Compliance
Percent of required individual returns
that are filed by the due date.
{TY 2000 reported 9/02)
Reporting Compliance
Percent of individual income tax liability that i
voluntarily reported on timely retums
(Available in 10/03)
Potentially Collectable Inventory
Billions of dollars in these inventories: notice,
Taxpayer Delinquent Account (TDA), and some
currently not collectible. Reflacts the in ventories on
which IRS can have the most collection impact.
(Updated monthly September 2002)
90.70%
$76.7
Workload/Productivity Index
A ratio of workload to resource inputs.
(available Winter 2002)
Employee Health And Safety
Lost Workday Case Rate
Lost Production Day case:
per 100 FTEs,this Fiscal Year|
(Updated Monthly September 2002)
Measures are annual, except Potentially Collectable Inventory and Lost Workday Case Rate, which are monthly.
™
55%
0.99%
PDF Page 12
Page 5 of 17
Filed 01/11/2007
Case 1:06-cv-01983-ESH Document 4-2
PDF Page 13
Page 6 of 17
Filed 01/11/2007
Case 1:06-cv-01983-ESH Document 4-2
Please note: Format is revised to present detailed data below agency-wide totals.
FY2003 Targets reflect SPPs submitted 09/2002.
SB/SE data was compiled using the Datamart.
Timing Issues:
Data Availability: The majority of this report contains information that is u
have data reported on an annual or quarterly basis, or did not have Septe
pdated on a monthly basis. Some measures only
mber data available and are so notated.
Total Enforcement Revenue: Reflects data through July.
General Issues:
Plan Numbers: The year-to-date plan numbers are calculated b
weighted based on workflow. Therefore, com
y either taking the annual plan goal divided by 12 or they are
paring performance with the same period from the prior year in addition to
performance compared with year-to-date plan numbers provides a more complete picture.
Customer Satisfaction: Percentage change amounts ar
+/- 10% do not always reflect a Statistically significant cha
@ provided. Because of the small numbers involved, even changes of
nge in the measure.
PDF Page 14
Page 7 of 17
Filed 01/11/2007
Case 1:06-cv-01983-ESH Document 4-2
September Data Highlights:
Listed below are items with a +/-10% variance in year-to-date data vs. prior year-to-date or plan. The associated variation from prior
year or plan number is provided even if it falls below the criteria. Narratives were obtained from Business Performance Reviews and
other sources including the FY2002 IRS Performance and Accountability Report.
Pre-Filing
(#1) Education & Outreach Staff Years - variation from prior year +27%; from plan -3%. The increase over FY 2001 is primarily
due to large, planned increases in SB/SE and W&l resources devoted to the program. TEGE resources also exceeded FY 01, although
on smaller numbers. LMSB did not make target because examiners did not deliver the expected levels of Pre-Filing and Technical
Guidance, Industry Issue Resolution, Comprehensive Case Resolution (Program Cancelled) and Taxpayer Assistance.
(#2) Number of Taxpayers Assisted — Direct - variation from prior year TBD; from plan TBD. (#3) Number of Taxpayers
Assisted — Indirect - variation from prior year TBD; from plan TBD. (W&l) - In FY 2002, the methodology with which SPEC
captured data on the number of taxpayers assisted changed from counting only direct assistance to include indirect assistance as well.
After switching to this methodology, W & | realized the original projection (3.7 million) was well below what could realistically be
accomplished. This change in counting methodology resulted in a revised Projection (19.0 million). The revised projection was
computed based on data through July 15, 2002. Through this date, W & | Provided information and assistance (Direct and Indirect) to
approximately 61.3 million taxpayers through VITA, TCE, and Outreach programs. There will not be much change in the VITA and TCE
numbers through the remainder of the fiscal year, but some Outreach activity will be on-going. Prior to January 2002, data collected for
Taxpayers Assisted did not distinguish between direct and indirect; so targets for these sub-
reduce the numbers.
(#5) Number Volunteer Locations - variation from prior year -20%; Plan -21. The plan number of sites was set prior to the fiscal
year based on the FY2001 actual. In FY2002, the number of sites was reduced as the responsibility for this volunteer program is
migrating to other organizations and volunteer groups. This measure is being dropped from the critical list on 10/1/02.
(#6) SB/SE Outreach Events/Activities - variation from prior year +601%:
delivery of Alternative Treatment Initiatives were shifted to Outreach Activities
list on 10/01/02,
from plan +276%. Resources previously planned for
Events. This measure is being dropped from the critical
PDF Page 15
Page 8 of 17
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Case 1:06-cv-01983-ESH Document 4-2
(#7) EP/EO Determination Letters - variation from prior year +19%; from plan -32%. Exempt Organizations (EO) closures were at
the planned level, but Employee Plans (EP) determinations were substantially below plan. With the closure of the remedial plan
amendment period scheduled for December 2001, EP expected to receive 120,000 determination requests in FY2002. However, due
to a two-month extension of the deadline (granted in response to 9/11 "
received slightly more than half that number of applications. As a result, EP issued fewer than half of the planned 106,000
determination letters. There was a positive trend among the receipts toward more pre-approved plans. Reduced determination
workload freed up resources to support other critical program goals such as the examination program.
(#8) Total Number Private Letter Rulings Completed - variation from prior year +19%;
have been a very popular and high growth program for Chief Counsel because of their posi
burden and resolving questions about tax code interpretation up front.
from plan +45%. Private Letter Rulings
tive impact on the taxpayer of reducing
(#9) APAs and Pre-Filing Agreements - variation from prior year +30%; from plan -14%. Advance Pricing Agreements (APA) -
The APA measures capture Counsel's principal activities in support of the APA Program and the U.S. Competent Authority. The total
number of APA Bilateral Negotiating Positions Completed, the mid-point in the bilateral APA process, increased by 55 from last year.
The number of APAs closed increased 25% over last year’s level (from 68 to 85). Pre-Filing Agreements (PFA) - Performance is 10
versus a target of 20 Pre-filing Agreements. This is a taxpayer-initiated program and is limited by the ability to market the PFA process.
The PFA program was made permanent in February 2001. LMSB had few participants in FY2001, but with improved marketing has
observed increased interest in terms of greater submissions. This measure is being dr
opped from the critical list on 10/01/02.
(#10) Number of Alternative Treatment initiatives - variation from prior year ~99%; from plan -40%. The Voluntary Agreement
Program and other Compliance alternative treatment efforts did not transition to TEC during FY2002 as planned, and the full year target
was accordingly revised. This change positively impacted delivery of the “Number of Taxpayers Assisted” (#2) and “Outreach Activities
& Events” (#6) measures, since resources previously identified for the Alternative Treatment Program were shifted to other TEC
programs related to these measures. This measure is being dropped from the critical list on 10/01/02.
(#11) Electronic Tax Law Questions Answered - variation from prior year
answers to their tax law questions through increased use of the IRS.GOV Fre
the Sheif Software thereby lowering demand for this service. This measure i
-32%; from plan -19%, Taxpayers are obtaining
quently Asked Question section and from Commercial Off
Ss being dropped from the critical list on 10/01/02.
(#12) Taxpayer Advocacy Projects - variation from prior year -32%; from plan -28%.
Planned to open 88 projects in FY 2002. However, TAS only opened 67 because they foc:
Projects instead of the raw number opened. This measure is bei
Taxpayer Advocate Services (TAS) originatly
used on the quality and impact of their
ng dropped from the critical list on 10/01/0. ,
PDF Page 16
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Case 1:06-cv-01983-ESH Document 4-2
(#15) Total Electronic individual Returns - variation from prior year +16%; plan +2%. The number of electronically filed individual
returns Continued to climb, driven in FY2002 by a large increase in the number of returns filed from home computers.
. AS a result, in FY 2002 over 46 million individual returns were filed electronically. Focused
advertising and marketing as well as expansion of electronic Signature and payment options contributed to success in this area in FY
2002. Continued growth is expected as we increase the number of forms and schedules available for use in electronic filing.
(#19) Number of Information Returns Filed Electronically - variation from prior year +14%; plan -21%. (#20) Percent of
Information Returns Filed Electronically - variation from prior year +18%; plan —-24%. Information returns rose dramatically over
the prior year, but fell short of the stretch goal.
(#21) Number of Information Returns - Mag Media - variation from prior year -12%; plan percentage +13%. (#22) Percent of
Information Returns - Mag Media - variation from prior year -7%; plan percentage +13%. As the number and percentage of
information returns filed electronically continues to grow, the number filed via paper or magnetic media will decline.
(#24) IRS Digital Daily Website (Downloads) - variation from prior year +38%; plan -7%. (#25) Number of Website hits -
variation from prior year +20%; plan +4%. IRS redesigned the Website to make it easier for taxpayers to access the information they.
needed. Additionally, a factor in the hit-count is a new contractor that counts hits differently (the method is under review.) The large
taxpayers are making IRS.GOV a first stop for addressing
their tax questions and form needs.
(#26) Customer Accounts Correspondence Closures - variation from prior year +1 7%;
exceeded prior year. The enterprise target for FY 2002 is 18.4 million closures. 22.5 million
the impact of the Tax Rebate and Employer Identification Number issues on this year’s inven
is in SB/SE.
from plan +23%. Program significantly
closures were achieved. This was due to
tory receipts. This increase in total volume
(#27) Customer Accounts Correspondence Quality - variation from prior year -5%; from plan -12%. (SB/SE) Defects occurred
Primarily in the areas of Correspondence (IRS Procedures) and inventory Management/Case Control, and Account Actions Other.
. Problems with account actions are being addressed
these old cases contributed to lower quality than anticipated.
ran
at
PDF Page 17
Page 10 of 17
Filed 01/11/2007
Case 1:06-cv-01983-ESH Document 4-2
(#29) Assistor Calls Answered - variation from prior year -5%; from plan -10%. Cail volumes were lower than planned early in the
filing season and then increased. Contributing factors include higher than planned primary abandoned; corrective actions caused ratio
of calls vs. plan to improve each week. Although almost all of the services were delivered, the combination of higher transfers, higher
assistor availability (Correct staff not available for type of calls coming in. Assistors in agent groups ready to receive calls but calls
coming in are not type of call available agent group can answer), and shortfalls in total handle time resulted in less calls answered than
planned.
(#31) Assistor Level of Service - variation from prior year +21%; from plan -5%. Assistor level of service shows the percentage of
taxpayers who want to talk to an assistor who actually reach an assistor. Level of service was negatively impacted by problems with
the call routing system and several weeks with higher than anticipated call demand made up of residual rebate issues.
(#35) Total Returns Prepared - variation from prior year -12%; from plan -10%. The number of returns prepared in Field
Assistance sites is lower than in FY2001. It was CARE’s plan to reduce the number of returns prepared by lowering the income
threshold of eligible taxpayers. CARE is adding two new measures in FY2003, Number of Tax Law Contacts and Number of Account
Contacts. These measures along with Total Returns Prepared will give a more complete view of the Field Assistance workload.
(#38) ACS Closures TDI Entity - variation from prior year
plan because of a management decision in February 2002 to
TDAs and TDis.
-36%; plan -40%. The number of TDI closures did not meet the FY 2002
shift inventory priorities that resulted in a change in the mix of closures of
(#39) ACS Level of Service - variation from prior year -11%; plan -14%. The start-up of the State Income Tax Levy Program and
the Federal Payment Levy Program increased call demand, significantly affecting the workplan. Although resources were redirected,
IRS was unable to meet the incoming volume. IRS is assessing the increased volume of calls and evaluating the methods used to
forecast calls to better align workload to Staffing. The reduced level of service also negatively impacted Customer Satisfaction.
(#41) Field Collection Cases Closed (TDA) - variation from prior year -4%; from plan -10%. TDA closures were adversely
impacted by a variety of factors including the suppression of notices and enforcement actions due to September 11th attacks;
concentration on working higher risk cases; computer reprogramming to segment cases between Area and Territory Offices; and
Service Center Workload Realignment.
(#42) Field Collection Cases Closed (TDI) - variation from prior year +18%; from plan +31%. The target was exceeded as a result
of efforts to re-balance inventories and increasing the percentage of time applied to TDI cases.
PDF Page 18
Page 11 of 17
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Case 1:06-cv-01983-ESH Document 4-2
(#44) Offers In Compromise Processed - variation from prior year +14%; from plan -40%. The targets established were
aggressive and based on centralization and reengineering efforts. The primary shortfall is occurring in Campus operations and is
spent on start-up training and case Processing activities. Process
improvements have been identified and are being implemented in the
(#46) Automated Underre
porter - Number of Cases Closed - variation from prior year +1 6%;
productivity rates were exp
plan +1%. Some negative effect on
ected as work began on more complex K-1 cases. The program was st
ill able to meet the pian number.
(#49) Total Number of Returns Examined - Correspondence Exam - variation from prior year +6%; plan +31%. The goal was
management practices. FY02 began witha greater than expected
rollover of in-process cases from FY01, which enabled
(#52) Number of Individual Returns > $100,000 Examined - variation from prior year +20%; from plan +12%. (#53) Number of
Individual Returns < $1 00,000 Examined - variation from Prior year -4%; from plan +14%. The goal was exceeded because
, and there were improvements in direct examination time (DET) applied.
Tax Compliance Officers) and completion of their initial
t years. More management attention Paid to case
ing optimal inventory levels were also primary contributors to improvement in this area.
(#57) Number of Cases Examined (Large Case) - variation from Prior year +27%; from plan -7%. The FY2002 Performance was
528 Cases or 93% of the 566 planned. There is no single barrier to explain this performance, although the increased focus upon
abusive shelters frequently increases cycle time. While short of the target, this level of performance demonstrates a significant
improvement from the LMSB Stand-up year (F¥2000) when 328 were closed, and FY2001 when 417 were closed. In fact, FY2002
performance for CIC closures reflects a 43% increase from FY2000 and the number of CIC closures for FY2002 exceeds the
performance in each of the last 5 years.
(#58) Number of Returns Closed
(Large Case) - variation from prior year +30%; from plan +40%. LMSB surpassed this goal
because of a greater than expected
number of Employment Tax Returns associated with Coordinated industry Cases.
(#60) EP/EO Examinations Closed - variation from prior year -15%; from plan +14%. The FY2002 goal was based on an
assumption about the number of determination letter receipts that would come in and how many Examination FTEs would need to be
diverted from examination casework to cover that workload. Since
moved back to doing examinations and t
10
PDF Page 19
Page 12 of 17
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Case 1:06-cv-01983-ESH Document 4-2
Compliance Services
(#63) Appeals Cases Closed - variation from prior year +24%; from plan +1%. - Appeals exceeded its FY¥2002 plan by closing
68,015 cases. Improved resource allocations, case development practices, better management and communications resulted in more
efficiency and greater productivity during FY 2002 making it possible for Appeals to achieve its target.
(#65) Total Tax Court Cases - variation from prior year +13%; from plan +6%. (#66) Number of Tax Court Receipts - variation
from prior year +18%; from plan +29%. The Tax Court workload (Beginning Inventory + Receipts) rose this year compared with
(Receipts: 14,766 in FY2001 vs 17,371 in FY2002). Most of the growth
is in non-shelter cases of $50,000 or less.
(#68) Taxpayer Advocate Service Casework Quality Index - variation from prior year 0%; from plan -10%. Taxpayer Advocate
Service hopes to meet this goal and greatly exceed FY2001 performance by having each office set a goal and make an improvement
plan around the three standards listed above to achieve that goal. Advocate’s year end Projection is 80%, equal to the FY2002 goai.
11
Case 1:06-cv-01983-ESH Document 4-3 Filed 01/11/2007 Page 1 of 19
UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF COLUMBIA
TAX ANALYSTS and ALLEN KENNEY,
Plaintiffs,
INTERNAL REVENUE SERVICE
)
)
)
)
Vv. ) No. 1:06-CV-1983-ESH
)
)
)
Defendant. )
)
PLAINTIFFS’ MOTION FOR A VAUGHN INDEX OR
IN THE ALTERNATIVE FOR IN CAMERA INSPECTION
Plaintiffs’ Exhibit A - Part 2
PDF Page 26
Page 2 of 19
Filed 01/11/2007
Case 1:06-cv-01983-ESH Document 4-3
This report contains records of tax enforcement results that will be used for purposes such as forecasting, financial planning,
and resource management. As required by Section 1204(a) of the Restructuring and Reform Act of 1998 (PL 105-206) 112
Stat. 685, 1998) and the Balanced Measures Regulation (26 CFR Part 801), this information will not be used to evaluate any
employee or to impose or suggest production quotas or goals upon them. .
.
7
MONTHLY BUSINESS PERFORMANCE SUMMARY
oO
Tr
—
oO
+
[o>)
oO W & | OPERATIONAL PERFORMANCE MEASURES ’
oO Full Year Performance Year to Date Comparison FY 2002 | FY 2003
FY2001 FY2002 Percentage FY02 Pian | Percentage
Measures/indicators FY 2000 FY 2001 September September Change September | Act. vs Plan Fv02 Plan Plan
Making Payments and Resolving Questions about their Accounts : eg ee : Zs
|
=30- Toll Free Customer Satisfaction (4 point scale) 3.46 3.45) 3.46 3.43} A% 3.49] 2% "3.49 0:00
- Percentage Completely Satisfied 58% 59%] 57% 55% A% t Reui
~ Percentage Dissatistied 2% ee 2% 2% 0% No Target Required
oO
i.__Assiztor Level of Service _ _ . 59% 56%] 56% 68%) 21% 72% 5%. 72% Te
®
j p2-__ Toll FreeTax Law Quality 73%! 75% 75% B1% 8% ~__ 78% 4% 78% sa
| 33. Toll Free Account Quality 60% eo%ef 69% 75% 8%. 72% 4% __72% 77%
EGhal In-Person Assistance to Taxpayers -
SH. Customer Satistaction Walk-in (7 point scale)(5 point scale as of 16th Qu) : 6.48: 6.40) 6.40 441 31% 6.55. 33% 6.55] - Q.00)
TS Percentage Completely Satistied _ : 91% 90%) 90% 86% 4% i
o . Percentage Dissatisfied 6% o% 8% B% 3% No Target Required
E
zB. Total Returns Prepared (August Oata) 1,092,691 1,009,390} 1,009,390 888,797 -12% 984,000 10% 984 000! 736,700)
Addressing Taxpayer Payment and Filing Obligations
TL Collection by Telephone and Correspondence
G§.__ ACS Customer Satistaction (4 point scaep 3.39 3. 3.44 3.43) 0% 3.50) 2% 3.50) 3.43
LL] __ Percentage Completely Satistied - _ 55% 57% 57% 55% 4% t :
oO Percentage Dissatistied __ _. oe ; 2% 1% 1% 2% 100% No Target Required
co __. .
| G3. ACS Closures TDA Entity 500,221 480,009; 480,009, 462.281 A% 461,000 0% 451,000 540,000)
—
B ACS Closures TOlEntity SCS _ 141,150) 101,375 101,375 79,144| -22% 104,000] -24%. 104,000 90,000)
38 ACS Telephone Level of Service 79% 76%] 78% 68% 13% 80% 18% 80%} 73%)
2S
rer
®
wn
O
O
11/15/02 9:03 AM
PDF Page 29
MONTHLY BUSINESS PERFORMANCE SUMMARY
aD
rer
—
5
LO .
oO NE
oD
Ow
al
eR
oO
ql
— W & | OPERATIONAL PERFORMANCE MEASURES
~_ Full Year Performance Year to Date Comparison FY 2002 FY 2003
~—S
_ FY2001 FY2002 Percentage FY02 Plan | Percentage
2 Measures/Indicators £2000 172001 | september | September | Change | September | Act vs Pian | F¥02Plan Plan
t-Filing Compliance Services: ~ Bringing 7: into Compliance with.the Law ‘ oe - es : — -
Sm Automated Underreporter - Cusiomer Satisfaction Baseline FY2002 va Wa Wa : _ Baseline. TBD
de
| 46.__Automated Underreporter - Number of Cases Closed 1,572,900) 1,228.8: 1,228,894! 0 1,530.0 1,530,000] 1,432,000)
| cA. Automated Underreporter - Case Quality Score - Paper 93% 93%f 93% 95%| 2% Q7%| 2% g7%| 94%
!
LT Examination of Returns Through Correspondence and Telephone
@&. Correspond Exam - Customer Satisfaction 4.14 4.27 4.27) 3.90; 2% 4.30) 2% 4.30]. 0.00) s
D Pe ge Comp y $ __ 34% 34% 34% 33% 3% No T; Reaui
E 7» ge Dissals 38% 30% 30% 41% 37% arget Required
sS —Pee
& roi Number of Returns Examined - Correspondence Exam 184,754 328, 328,944) 338,036) 3% 236,356 Be _ 236,356) TBO|S
| 50. “Correspondence Exam Case Quality Score 70% 63% 63% 61% 3% 88%] -10% 68% 6a%|
Compliance Services
_ |
Innocent Spouse Determinations Made and Claimant Notifled 55,698] 61,014 61,011 60,730 0% 65,000 7% 85,000 51,500} y
Case 1:06-cv-01983}
11/15/02 9:03 AM
20
PDF Page 30
Page 6 of 19
Filed 01/11/2007
Case 1:06-cv-01983-ESH Document 4-3
This report contains records of tax enforcement results that will be used for purposes such as forecasting, financial planning,
and resource management. As required by Section 1204(a) of the Restructuring and Reform Act of 1998 (PL 1 05-206) 112
Stat. 685, 1998) and the Balanced Measures Regulation (26 CFR Part 801), this information will not be used to evaluate any
employee or to impose or suggest production quotas or goals upon them.
on
-2/
PDF Page 31
MONTHLY BUSINESS PERFORMANCE SUMMARY
a
rer
4 SBSE OPERATIONAL PERFORMANCE MEASURES :
o ° »Fall Year Performance Year to Date Comparison FY 2002 FY 2003
: FY2001 FY2002 Percentage | FY02Plan | Percentage
S Measures/Indicators FY 2000 FY 2001 September | September Change September | Act. vs Plan | FY02 Plan Plan
Programs - Assisting T: sibilities and-P: Accurate Returns :
1, Education and Outreach Staff-Years (July Data) 334 321 321 622 94% 627| “1% 627| 722)
‘oly: rs Helping Taxpayers
imber of Taxpayers Assisted - Direct (Face to Face) no data 106,13q 106,130 401,507 TBD val TBD 100,000} 440,000
N
EM Number of Taxpayers Assisted - indirect (Media, etc.) Not Tracked Prior to FY2002 ta 47,038,125 TBD val ‘TBD 8,400,000] __ 7,300,000)
rT -
~—S
6. ‘SB/SE Outreach Events/Activitles 2,200 1,181 1,181 8,277 601% 2,200 276% 2,200) 2,500
J
10. umber of Alternative Treatment initiatives 2,700 31 3,104 te] 99% 30] 40% 30 510
11. LEtectronic Tax.Law Questions Answered 303,758 _— : 264,448 180,370 32% 223,877 -19% 223,877 223,877)
‘iling and Account Assistance Programs.- Assisting T: 's:in-Filing Return: Receiving Refunds, Making Payments and Resolving Questions about their Accounts
oD
teturas Processing:
14. .l[otal Paper Business Returns (000s) 81,588) 33,883 33,883 37,000) 9% 34,080 9% 34,080) 33,548)
Cc
26. Zustomer Account Correspondence _ 7,872,484 10,754,321 10,754,321 15,132,410 1% 12,107,000; 25% 12,107,000) 15,800,000)
D
EA customer Account Correspondence Quality 75% 77% 77% 71% 7% 85%| _—-16% 85% 79%
“oll-Eree Telephone Service Workload
28. Teletax and Toll-Free Automated Calis (000) 49,700: 76,417 76,117 63,796 -16% 75,000 -15% 75,000 50,000)
L
29. Apsistor Calis Answered (000) 32,300) 32,091 32,091 30,525) “5% 33,750 -10% 33,750) 33,700)
‘iling@iad Account Assistance 8 in Filing Return: Receiving Refunds, Making Payments. and Resolving Questions about their Accounts
‘olt- Telephone Service Effectiveness
rer
30. Gdil Free Customer Satisfaction (4 point scale) 3.46 3.45) 3.43 3.44 0% 3.58 4% 3.58 0.00)
> Percentage Completely Satisfied 57%| 59% 55% 57% 4% .
> Per ge Dissatisfied ory 2A 2% 1% 50% No Target Required
31. Agaistor Level of Service 59% 56%| 56% 68% 21% 72% 5% 72% 72%
42, Teil FreeTax Law Quality 73% 76%) 76%! 81%) 6% 78% 4% 78% TBD
”
33. esl Free Account Quality 60% 70%! 70%) 73% 5% 72% 2% 72% 76%
11/15/02 9:03 AM
Page 10 of 19
Filed 01/11/2007
Case 1:06-cv-01983-ESH Document 4-3
This report contains records of tax enforcement results that will be used for purposes such as forecasting, financial planning,
and resource management. As required by Section 1204(a) of the Restructuring and Reform Act of 1998 (PL 105-206) 112
used to evaluate any
employee or to impose or suggest production quotas or goals upon them. .
4
t
2s
PDF Page 35
MONTHLY BUSINESS PERFORMANCE SUMMARY
oO
rer
we
oO
—
—
oO
oD)
O
oO
NR
oO
oO
AN
~ LMSB OPERATIONAL PERFORMANCE MEASURES
= Full Year Performance Year to Date Comparison FY 2002 FY 2003
oO 2000 FY2001 FY2002 Percentage FY02 Plan | Percentage
Oo Measures/Indicators FY FY 2001 September September Change September | Act. vs Plan FV62 Plan Plan
ing Accurate Returns ~ ” . . : ede .
33 68) 72 6% 96] -25% 96) 7
Volunteers Helping Taxpayers
oe) Pre-Filing Agreements ‘correction provided by LMSB 06-24-02 o* § 5 10 100% 20 50% 20) 30)
9. TAPAs and Pre-Filing Agreements 61 734 73 95) 30% — 110 -14% 110 110
rs into Compliance with the Law : ee i
e-Business Returns 1 |
LMSB - IND’ 20.412 19,626] 19,626 15,801 -19% 17,118 8% 17,118 14,662)
58. CNumber of Business Returns Examined 103,112 84,7 84,748 85,190 1% 81,369] 5% 81,369 18,878
57. ONumber of Cases Examined (Large Case) 369. 417 417 528 27% 566 7% 566 486]
58—Number of Returns Closed (Large Case) ‘corrections provided by LMSB 06-24-02 3578" 3734" 3,734) 4,851} 30%. 3,453) 40% 3,453} 4,131
FY2001 AIMS Closed Case database, which was received in December 2001. 19,626 was the number
hown in the preliminary FY2001 results, which was received in October 2001 and used for the
eptember 2001 report.
Us
Case 1:06-cv-01983-E
T115/02 9:03 AM
26
PDF Page 36
Page 12 of 19
Filed 01/11/2007
Case 1:06-cv-01983-ESH Document 4-3
This report contains records of tax enforcement results that will be used for purposes such as forecasting, financial planning,
and resource management. As required by Section 1204(a) of the Restructuring and Reform Act of 1998 (PL 105-206) 112
Stat. 685, 1998) and the Balanced Measures Regulation (26 CFR Part 801), this information will not be used to evaluate any
employee or to impose or suggest production quotas or goals upon them.
ou
Page 14 of 19
Filed 01/11/2007
Case 1:06-cv-01983-ESH Document 4-3
This report contains records of tax enforcement results that will be used for purposes such as forecasting, financial planning,
and resource management. As required by Section 1204(a) of the Restructuring and Reform Act of 1998 (PL 105-206) 112
employee or to impose or suggest production quotas or goals upon them. .
4
~
Page 16 of 19
Filed 01/11/2007
Case 1:06-cv-01983-ESH Document 4-3
This report contains records of tax enforcement results that will be used for purposes such as forecasting, financial planning,
and resource management. As required by Section 1204(a) of the Restructuring and Reform Act of 1998 (PL 105-206) 112
Stat. 685, 1998) and the Balanced Measures Regulation (26 CFR Part 801), this information will not be used to evaluate an yy
employee or to impose or suggest production quotas or goals upon them. .
oe
a?
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Page 18 of 19
Filed 01/11/2007
Case 1:06-cv-01983-ESH Document 4-3
This report contains records of tax enforcement results that will be used for purposes such as forecasting, financial planning,
and resource management. As required by Section 1204(a) of the Restructuring and Reform Act of 1998 (PL 105-206) 112
Stat. 685, 1998) and the Balanced Measures Regulation (26 CFR Part 801), this information will not be used to evaluate any
employee or to impose or suggest production quotas or goals upon them.
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MONTHLY BUSINESS PERFORMANCE SUMMARY
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5S FUNCTIONAL OPERATIONAL PERFORMANCE MEASURES
oO Full Year Performance Year to Date Comparison FY 2002 FY 2003
S FY2001 FY2002 | Percentage | FY02Pian | Percentage
— Measures/indicators FY 2000 FY 2001 September September Change September | Act. vs Plan Fv02 Pa Plan
Compliance Services : en eee
— | _—
63. CAppeals Cases Closed (Total Disposals) _ 54,986] 54,748). ~+54,748 68,015 24% __-67;560! 1%. 67,560 77,265)
= __General Appeals 7 _ tva Wa : Wa - 64,791 93,741
LL LSB Cases New Breakdown for FY2002 va Wa : wa : 2,769 3,452
BEM criminal investigations Compieted 3,499) 3,340) 3,340|° 3,201 4% 3,280]. -2% “3,280 3,250)
o Criminal Investigations Initiated 3,372) 3.284 3,284 3,906 19% 3,103} 26% 3,103) 3,708)
== |
Agency Wide Measures . pee ee “ us i$ "yas
/ | | | |
' 69. CTotal Enforcement Revenue (billions) (June Data) 33.8 33.81 Wa 28.8] .. - Wa : - 34.8 36.2
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70. Employee Health and Safety - Lost Workday Case Rate Wa Wa Wa 0.58% : Ma. - va" Wa
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71. Agency Wide Employee Satistaction 59% 51% Annual. Number | Annual Number Annual Number | : 54% TBD!
| 72.-TNumiber of FTEs (w/ EITC) 97,074 97,936] Annual Number _{” Annual Number Annual Number 99,901] 98.9:
| 73.LLNumber of FTEs in Taxpayer Contact Programs (wEITC) _ 65,415 65,730] Annual Number | Annual Number : Annual Number. | "68,506 67,534
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74. STE per Billion $ Real GDP 10.6 10.3% Annual Number | Annual Number “ Annual Number | “= 10.1 10.0
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Case 1:06-cv-01983-ESH Document 4-4 Filed 01/11/2007 Page 1 of 1
UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF COLUMBIA
TAX ANALYSTS and ALLEN KENNEY,
Plaintiffs,
INTERNAL REVENUE SERVICE
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Vv. ) No. 1:06-CV-1983-ESH
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Defendant. )
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ORDER
In regard to Plaintiffs’ Motion for a Vaughn Index or in the
Alternative for In Camera Inspection, defendant’s opposition and
any reply thereto, it is this _ day of , 2007,
ORDERED that plaintiffs’ motion is granted. Defendant Internal
Revenue Service is to prepare, file and serve a Vaughn index on
or before 2007.
i
UNITED STATES DISTRICT JUDGE
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