What follows are documents related to the upgrading of the Harvey case to

the highest possible collection level within the IRS, Grade 12. The first
pages are taken directly from the IRS Collection Managers Handbook and
outline reasons a case might move to Grade 12 status.
Next are pages from the internal IRStranscript of the Harvey matter, as
filed as evidence in federal court. These show the workflow of the case; we
see an upgrade of case importance, transfer to a new agent, and then
closure of case. Again, despite having initially been a high priority
collection matter being aggressively pursued, then subsequently marked
even more high priority, the case was closed without COllecting.
MANUAL
TRANSMIITAL
l)epartmenl
vi the
Treasury
114.1 CH.4
FEBRUARY 23, 2000
PURPOSE
Thifi transmits a reVil>ed cnapter 4. ColtoctJon Managers. for IRM 114.1 CornlJliance ant:! Customer ~ r v i c e
Manager"s Hartdbook.
BACKGROUND
Section 3466 01 the RestructUring and Aefonn Act of 1900 applied oortain provisIons of the Fair Debt
COlleCtion PractICes Act to the Internal Revenue Service. These prOVisionS are reflecloo in section 6304 ollhe
Internal rtevenue COde.
NATURE OF MATERIAL
Text is added to the handbook to prOVk1e managers direction on reporting alleged violations 01 the Fair Debl
Collection Practires Act
Harry T. Manaka
National Director
GOIlectm fleltl Oper3Uorn;
114.1 CH.4 (02-23-2000)
Distribution: IRM 114.1 CH.4
fA Manual cat. No. 27783$
page 40 114.1 Compliance and Customer Service Manager's Handbook
Exhibit 114.1.4-1 tcont.1) (05-28-1999)
ReVenue Officer Case Assignment Guide
Gr@ 11: Corporate officers; representatives from medium firms; creditors from large mancial
irnrtitutions, U.S. Attorney inVOlved.
Factor 4 SUpervisory Controls
Grode 12: little or no cuntrol on GS-12 assignments; guKJanoe only on unusual1y complex cases
Grade 1t: Utile or no control on G8--11 asslQnmeots: guidance usually only when the revenue offIcer asks
'Of it or ooforcemenl may be publiciZed.
Factor 5 Enforcement Actions
Grade 12: O v ~ r M employees; affects the economy of large communitIeS: intense me(!i<l scrutiny.
Gr<ldp 11: 10-30 employees; SOllie economic effect; some media scruliny.
114.1.4.7.3 02-23-2000 IR Manual
Collection Managers Chapter 4
Exhibit 114.1.4-1 (05-28-1999)
Revenue OfftMr case Assignment Guide
page 39
The !ormula IDRS U006 to aSSign case wades is I'hown in the fM'S! table below. TOO second table stlows
cnteria you can usc to grnde cases manually, aller tney have Deen a8signed to revenue Officers.
lDRS sums the AWMS scores for all TDAs on the taxpayer ptus tM ffil entity score, and assigns a grade
accordingly.
You can add additional wor1< assignments to the IDR8 sum to deterrnill6 the correct grade lor me caSA.
AelurilS Compltancc Program (ncP) leclds aro usually G3-9 work. Other Investlgalions (01) and Offers in
Compromise (Ole) generally have !lIe grade as the Underlying accounts. Ols for routine
aSSI!1nments. suer! as serving a Notice ot Levy or summons, are GS-9 work. Higher graded OIl' are:
GS--12: Investigations for Departfl18llt of Justice; compucated decaoonts and
insolvencies: aU other cases meellng grado 12 criteria in me aPM Glasslfication
standards fOr revenue officers.
!3S-11: Investigations for U.S. Attorney and RegIOnal COunsel; investigalions reqUiring
special handling; investigations on dece<.!Mls. tnsoIvencies, potentially dangerous
taxpayers: all other cases meeting grade 11 criteria ill the OPM ctasSllicalion standards.
IORS for Grading TOAs and TOI&
Total RWMS score lor anllly :; 30,001 or higher
Grade 11: Total AWMS for entity =8,001 to 30.000
- Potentially Oangerous Taxpayers (unless mey meet GS-12 criteria)
- TDAs ror Forms 1041. 730. 106, 709 (unless they mee1 GS-12
criteria)
Grade 9: Total RWUS score lor entity =0 - 8.000
Manual Criteria fOr Grading TOAs and TOls
use the following critmia IOf cases after assignment to revenue officers. You will
not normally mange the graoo ()! a case unless it meets at least four of the factors at the
higher level. ThO 1actors are:
FCH:tor 1 Gr066 Income of Entity
12: over $185.000
Sl20,OOO to SIB5.000
Factor 2 Complexity of case
.Gri;l(1e 12: complex financial f;ubterfugos such as Interlocking directorates, foreign
subsidiaries, Irusts, dummy corporations. need for nominelt liens, foreclosure SUits.
jeopamy assessments: more than 30 speCialized or very valuable assets.
Grade 1j: Difficult 10 trace Income Of assets; dittlcult to determine rights of compeliug
cr '
Personal Contacts
g,radtl?: Representatives from lar!Jfl and prominenl tirmti; (.'fOOllors from Ute
financial inslltutl0l16: pohtlcalligurea: CQIJlsel and Appeals involved.
fR Manual 02-23-2000 114.1:4.7.3
Case 4:11-cv-0081O-DPM Document 16-1 Filed 02/08/12 Page 5 of 14
Page:
90
RBQUBSTOR:
les HISTORY '1'JllUiSCJUP'l'
HI:S"J'ORX :lJl1I'01UIAT:IOlr
U3-A/B lUm I"OmI 4180 TJ:I1l' 0l0IBK WAS m. RO S:s<:UJtEl) SIGIJ COPY' OF
01-200806, LIS'1D1G OF MAJOR AcccmrrS PA"O.BLB, BARK 6TA'!IOO3H'l' JaTBOO'l'
CANcm.L CHEC:Ia:. <:%VII CPO DODD PatH WrrH DBlWIoDlUi Tn.t. 1.0/20/08 'to BBOOMR
c:mt:8BIin 0IIiI l'TD'S l'OR FORH6 941, .9010 .. 9145 I'OIt 2008 .MJU:t. JlO COPISS OF
UCIUPTS, nLB DBLDfOtlBNT Rll:TUiUI. 'rP HARVEY TO CLL ao BY 10/30/08 '1'0 SET UP
APPT TO SBClJRE FORM uao. PP ALII DllLZNQWl)I'r 'l'n:BS BY 11./5/08.
PROVIDB lNPLOR. ON LIPr NSURNACB, BaNK SIGIlIATURB CARD, BJUlK: STATHMBNTS 1IIm
CANCBLL CHBC!KS FOR LASf SIX MOH'nfS. t.IsnNG OF ACOOUm'S PA.nm.B wn'R N4BS.
ADDRZSSllS, l'SOlIB NOtlBBRS. PROVme WI'l'TBN R'LNf N n. DlFOR. ON IRA. 401K PLA1f
MlO WORK ON SBCORDfG LOAp 1'Q FR r0'l'HER. 8tJSDIB8S s NA'l'ICl'IALr:::===:::::J
ISUItANCB COMPANY, BIN: L _ f< DfC. EI1f:'.
THUl COMPA1lIY IUlVB !IO J!KP'LQ1n!BS :rr 1IBlUlB /ILL 8Ml'LOXBES Mm EQOrP'1'KlETS '101
ARKANSAs TaUCXD:G SZRv:ICBS IKe. AOV:I8B OP LlWY TO BANK MID BMPLOiBlL PBR.
PUI,ASKl;: <:0 CH :NO ASSBSSHBNT UNPBR mrs CORP WIMR. ell! DO JIO'l' ItBIi:I.l UlCOI!.D$ oa
TRUCKS.
l'P'fE2 A DB'l'1JL aEVrBW 01' TRrS CUll'TP S'l'rLL ow:s '1'JLX6S FOR 01-200806. rnB 't1'fO
EPTP6 RBCIUPI' CPO DODD G1VE liO PURING Fe IfAa APPLXBD 'i'O 'IP ACCoom' AS
PAnmNTS. TP FAILED TO MAXB ALL 'I'HB RQUIRBD P'fD'S AlU) 0'1'BBItS QU IlIOr MADIil
l'IMll:LY. ;np:! TWo OTHBR BDSnnE!::Elil ARJil :IIII' COMlilloUNCIJ AND 'lBIl QWlIIRR HAW 1:lIO'l"
FILEDI 10m HAJm LARBB BB P.&YMBHT. TC '10 CPO DODD LBP'T BESSAGB TO
CALL RO TOriiV. S:j WITH CFP PO'? JU'VTBK Y Jlf DBTAtL WrrH HIM ANI> Jl.Dl7I:SB
RIfoI THB CORP S'1'lr..L TliIB FE' 18 11GB wrJ'K DDDt.DIB OK
U!S/08. .
out of scope
(b)(3)126 USC 6103
[
ACTIOK DA.TE: 10/08/2Q08 sYSTEM DAn. 10/08/2008 O'DIBR CRBATII :to, 25142525.
<JBMlilRAL IUSTCll!;Y
CPO J]UtBSDODD CALl. 19BBIl IlO 1WI OOT iBl'UIH HIs CALL LBn' MKSS1lG!:S TO CA!lL RO
'KmAY.
SYSTBM OATH: 01/13/2009 CONTACr: OTXBR ro:
QID1ERJIt.
TP HAVE FAILBD TO ADIDBSS PP GB'1' ON rrD'S. RBQUBST THRD GRam> sac
'l'DAI S AIm 2"- srWl' JlO wn.L CL0811 Ft:D .AF:r1Hl nBCBl:VDrG TIlA' S
_
__ CRBlIO=:::-::9=-:m=_: J.. .
syeteraic RilStory.: BN'lTrY W'DIl'l'B - IDRS
CASE GRl.bB LBVIU. m<:RBA$lW 'lCRS - B1lOM 1:1 'l'O 12 - ASS:lGJlNliN'l" 2.!l142S25
ACTIOH ID:
SYBtem1c History: DlV.8MroRY' ITBM CLOSKD - :res
Page. ?
sensitive But
EXHIBIT A
Case 4:11-cv-0081O-DPM Document 16-1 Filed 02/08112 Page 6 of 14
Page:.
91
:rridIlY,&Ober 22, 201.0, 1:21 PlII

::rcs JlZS'J'ORlC 'mANSCRIPT
BI8'rOR! D1roRMATIorl
[
'I'DI'_
aCTION 01/1712009 In. 00000000
Systemil; History: ASSl:GNJIBK'r - mRS
ZNVEN'1'OR.Y l:'!BM ASsIGIIBD--2.5J.&2525
DATE. Ol!17!200g
GYBtelIli.c History: ASSJ:GMMBNT - IDRS
INVI3II'lORT r.rDM ASSICIIllD--251.42S2S
. CREA'l'E rD. ODOOooOO
01/17/2009
Systetlli.e Histc-ry. N1iIIf - 1":DRS
DUB - OJ.!Z00806
XD: 00000000
AcrrON OATS: 01/20/2009 STSTBM 01/20/20Q9 OTKBR ID: 251.2501
REVIBUO
!b:lview case and JIIlI.de lX1 11011ar aIlOUJIt trCWSferrlD!J caBe to grade 12.
J
CREA.'I'B 10: 25142501.
CRBATK ID: ACTXON 01/20/2009
Syate1rlt: History: lDITrI'Y QPNl.TED - ::res
ASSJ:alKBHT lIOJEJm. UPDMBI> to 25142534
DATB: 01/20/200'
Sy.temio .Hl81:0XY: .AS.9IQll1N1lN'1' - :reg
:aBASSIGNED CASE 'roo A8GMT I 25H2Sl4 RMPLOYlm IWC BOBBY BUCEMAJJ
[
ACr10R DATlI: 01{22/2009 SYSTD( DATE: Ol/22/2OG9 COftACr: 07Fl:CS ClUrATB ZO; 251425:54
OU8 rece1veC2 1nt:o 11.0'. invent;(ny: 01./22/200'
U'yp8 of case rE!(:e!ve4, bmf
Bou:11est; 04/1.5/2012, calcu1ated tbp and CQN8 to $975.12a.58.
Earliest CSBD:
CODE: 201/000
l!'ical Notic:. and nemand: noDI! sbowD
page. 8
sensitive Bnt
EXHIBIT A
Page:
108
Case 4:11-cv-0081 O-DPM Document 16-1
Filed 02/08/12 Page 12 of 14
1BQOBSTOR: 2514-2334
res HrS'J'OJlY '!'RlINSCUP'l'
HIsroR!" IIlJOJlMAr.IOII
[
---;.;; ..;.it,I1Au_i6... -.. I ____________
ACTzOR D&T8: 10120lao09 SYSTSM 10/20/200' OPPICB ID;
.GlD1ERAL H:ISTOJRY
:Reoeived fZ'Q1Il Na4vln Jones letter stating that eEl waa sold to CeJ.adon and that D!lillll,u:
owed $28. IlliJ.lion and tbat IlaiJRler accepted $24.1 _UUon. coUateral wao t;t\lcks ;md tn.1lers.
lu. letoter Jonea abated that SllVUlg '2 convicted 't'oc1d Tiefel .m Kelly WOo<iridgl!! in
civil acUooa.
ACTIOK DATE; 10/20/2009 BYSTZK 10/20/2009 OPPICB CQBATB'YD: 251.233'
amnnuu. HISTORY
Received tmt. tree Marvin janee. nx 1s power or attOXlleY Kr. Naxvin has for Mr _ Bdward M
lIa.rvey. .
ciurlIbJ.e power of
P1aII. of Action: doaa c:a_ aIlC1 <:lOIllPJ..el:e trwot fund.
ACl'XCW DATS: 3.1./07/2009 amA'l' ID; 00000000
Systemic Rillitoxy; Bll"l'ITll' UPDA.'l'B IDRS
UlRB MlU'LIRi AZIllItBSB If'l) UPDATIID
. roo
JWIlR CAJII'l'RlSw, JU) liTH 13
L IY"1'LH ROCK .lII. 722:lJ
2800 cwmtBLL sn 500
LrnL8 llOCR: AJt. 7220:a
AC'nON DA'rB" ..;U}J.Oh009
Syste.ic HirJtory: !'.lI'rrn" OPDA'rBD " res
consultation Conducted:
Reviewed for (lorunl1t..tiQll.
pl.an 0:: Action: CQq)lete fund and cloae ca..1!! U and. DO iUuletli.
caBATB XD: 25142301 ACrrON 01/12/203.0
ByS1:esm.a BlII'1'n'Y Ql'DA'r1W - J:C1J
OOD8ultation CondQct&d: 25142334
SYSfBK DAT2: 01/11/2010 'OPVXCB XD: 2514233_
GBNBRAL HIB"l'OXY
ACTION DATB: 01/23/2010
syst.emic:: History. A8B1'GlCM1lirT - mRS
XD: 00000000
Pa<Je: 25
Setll!J3.tive But UDclas.:Lfied
EXHIBIT A