INTRODUCTION PHASE IV ROLE OF IRS In Phase IV, the Internal Revenue Service has taken on a greatly expanded role in program operations. This expanded role calls for more initiative and responsibility on the part of IRS at both the District and the National levels. In meeting these new responsibilities, we have modeled our approach on the decentralization experiment conducted in the Southwest Region shortly before the end of Phase II. As in the "Texas Project", most filings will be with the IRS Key District Office. We will be responsible for screening, perfecting, analyzing, and investigating those filings. In addition, decisions and orders on proposed price increases, with certain exceptions, have been delegated to IRS. The authority to grant exceptions, issue interpretations, and to sign and issue subpoenas, has also been delegated to us. Our role in Phase IV represents a far greater responsibility than we experienced in Phase II or III. This responsibility involves not only the receipt and security of the firm's filings, but also decisions calling for the judgment of District personnel as to the justification of an exception or price increase request, the accuracy of a filing, or the acceptability of pricing plans. In short, the demands on IRS as the central visible agency in Phase IV are for high quality analysis, decision, and enforcement of the regulations. HIGHLIGHTS The purpose of this section is to highlight for you the changes in the Revised Phase IV Handbook (9/73) as compared with the original Phase IV Handbook. Chapter 1, Case Control Reports, replaces Chapter Interim Case Control Reports. It describes the procedure for those submissions which require editing and entry to the IRS-CLC Data Processing System and those which are processed manually. Chapter 2, Processing Form CLC-22, replaces Chapter 3, Processing CLC-22. The revised chapter covers the law, forms and processing instructions in accordance with the Phase IV regulations of the Economic Stabilization Program. Many of the exhibits have been modified. Chapter 3, Volatile Pricing Requests, replaces Chapter 9 and simplifies the material given. Section 4. Prescreening Information, is new. Section 6. Reconsideration Procedures, is new. Exhibits 3-a, 3-b and 3-c have been modified. Chapter 4, Notices of Probable Violations and Remedial Orders, replaces Chapter 8, Remedial Orders. Section 3. Issuance, replaces Sections 2 and 3. (Who Must File Form CLC-22 and Procedures). Section 5. Establishes those conditions under which an NOPV may be bypassed and also spells out the format for an NOPV. Section 7. Remedial Orders, replaces Section 5, Price Reduction, Refund Orders. Section 9. Verification, is new. Section 13. Compromise of Civil Penalties, is new. The exhibits have been modified. Chapter 5, Interpretations and Information Letters, elaborates on the brief discussion in Chapter 7 of the original handbook. Chapter 6, Exceptions, reflects the Phase IV shift of focus regarding exceptions from purely economic considerations to include broader areas such as regional or product/market distortions and allocation of resources. Chapter 7, Reconsiderations Under the Economic Stabilization Act, replaces Chapter 10, Appeals. This Chapter contains procedural additions for prenotifications and all other reconsiderations. Section 7. Request for Reconsideration and Further Action replaces Section 7. Requirements for a Valid Appeal. Section 9. Procedure for Handling Requests for Reconsiderations replaces Section 9. Processing appeals in key district offices and includes procedural additions in reference to the dollar rules in determining which cases the field may decide the National Office pre-reviews and the Cost of Living Council entertains. Section 11. Stays Pending Reconsideration, is new. Section 12. Disposition of Requests for Reconsideration replaces Section 11. Disposition of appeals. Chapter 8, Public Affairs, replaces the original Chapter 2 and established the public information procedures for the issuance of Decision and Submission Lists and for press releases under Phase IV. It also covers the furnishing of public information support to the Cost of Living Council. Section 2. Background, is expanded. Section 3. Preparation and Issuance of Decision List is new. The exhibits remain the same with the addition of Part 33, Chapter 9, Disclosure contains two new exhibits which indicate which information on Forms CLC-2 and CLC-22 is proprietary and which is non-proprietary. Chapter 10, Processing Form CLC-55, (Request for Modification of Prenotification) is a new chapter. Chapter 11, Loss and Low Profit Firms is a new chapter and modifies the information originally included in Chapter 4, CLC-22. Chapter 12, Definitions, includes only those definitions that are applicable to Phase IV and they conform to the final Phase IV regulations. |