CHAPTER 7 RECONSIDERATIONS UNDER THE ECONOMIC STABILIZATION ACT Section 1. Purpose This chapter outlines the procedures to be followed at the key district level to ensure that every person aggrieved is given adequate opportunity to present his objections to an adverse decision. Section 2. Procedures Procedural regulations governing Phase IV requests for reconsideration are found in Subpart F, Part 155, Title 6 of the Code of Federal Regulations. Section 3. Definitions "Adverse action" means an action issued by the Council or IRS which is contrary to the position asserted by the applicant. "Person aggrieved" means a person with a substantial pecuniary interest which is adversely affected by an order or interpretation issued by the Council or IRS. "Person with a substantial pecuniary interest" means a person who increased or seeks to increase a price. "Request for reconsideration" means a written appeal filed by a fim having a substantial pecuniary interest to an adverse decision issued by the Cost of Living Council or the Internal Revenue Service. Section 4. Organization Structure for Handling Requests for Reconsiderati Because of the diversity in size, organization and workload of key district Stabilization offices, we have not prescribed specific operating procedures which must be followed in processing requests for reconsideration. The organizational unit that issued the initial decision will not conduct the hearing or conference on the request nor issue the reconsideration report. Because of the amount of responsibility in the hands of the conferee, it is extremely important that the conferee be trained and experienced in the Stabilization regulations. An independent review of the decision must be ensured. Back-up conferees should be available to maintain continuity in operations. Section 5. Key District Decisions Subject to Reconsideration .01 Under section 155.102, any person aggrieved by an initial action of the Cost of Living Council or the Internal Revenue Service under Subparts B, C, D, or E of Part 155, may request reconsideration. . 1 .02 The following are some examples of persons aggrieved who may appeal to the Key District Director who took the initial action: a. b. c. A firm whose prenotification of a price increase, report A firm whose request for price exception has been denied. A firm who has received a remedial order. Section 6. Form and Content of Notice of Reconsideration Rights .01 Every adverse decision issued by a Key District Director will include a notice of reconsideration rights (Exhibit 7-a) which advises the person aggrieved of his right to request reconsideration and provides sufficient instructions to permit adequate, timely filing. .02 The person aggrieved will be informed that he may request a hearing, and be assured that the district decision will be reviewed fairly and impartially whether or not he appears in person. .03 The notice must advise the person aggrieved that failure to file a timely request will result in an exhaustion of his administrative remedies and the original district denial will thereupon become final. .01 A request for reconsideration shall be filed within 30 days of service of the decision with the key district official who issued the $ initial decision of which reconsideration is sought. Section 8. Procedures for Handling Requests for Reconsiderations Requests for reconsideration of IRS decisions adverse to a firm including, but not limited to, decisions with regard to exception requests, I prenotifications, loss/low profit status, merchandise pricing plans and remedial orders or actions will be processed, reviewed and decided upon in : accordance with the following requirements: .01 Prenotifications a. Requests for reconsideration of prenotification decisions where the price increase of a product or service line is less than $1 million should be resolved at the district office. When administratively feasible, the key district will make a decision and issue an order within 10 days of receipt of the request, or within 30 days of the conferee's report, when a conference has been held. ww b. Requests for reconsideration of prenotification decisions where C. For requests for reconsideration of prenotification decisions where the price increase of a product or service line is $3 million or more the district will send a summary (Exhibit 7-c) to CLC CLC will then notify the district in 72 hours as to whether CLC will exercise decisions jurisdiction. If the district is notified that CLC is to decide the case it will be forwarded to the Office of Operations, CLC, and a copy sent to the National Office Price Analysis Branch. d. Requests for reconsideration of prenotification decisions where .02 All Other Requests for Reconsideration IRS key districts upon receipt of all other requests for reconsiderstion will prepare a summary of the request (see Exhibit 7-b) and forward the summary to the Office of Operations/CLC within 1 working day of receipt. Within 72 hours of receipt by CLC the key district will be informed whether CLC desires to make the decision on the request for reconsideration. In the event that CLC exercises such authority, the key district should forward the case to the Office of Operations/CLC. CLC will provide the IRS key district with a completed decision and order which will be issued by the key district on behalf of CLC, after reaching a decision. Requests for reconsiderations with regard to original CLC decisions and orders should be forwarded immediately to the Office of Operations/CIC (No summary should be prepared) since CLC will automatically exercise authority. In those cases in which CLC decides not to exercise authority, the key district will make the decision and issue the order in accordance with the procedural regulations (See section 9) A Xerox copy of the signed decision and order executed by the District Director must be provided to CLC/Office of Price Stabilization rithin 5 days of signing. Section 9. Contents of Request for Reconsideration and Further Action .01 Incoming requests for reconsideration should be screened to Letermine whether they contain sufficient information to permit the nalyst to draw a conclusion as to the merits of the aggrieved person's bjections. The analyst should review all aspects of the original file o determine if the file has been properly perfected during the initial equest. Every request should: 8. Be in writing and signed by the appellant; b. Be designated clearly as a request for reconsideration; C. Contain a concise statement of the grounds for reconsideration and the requested relief; d. Be accompanied by briefs, if any; e. f. Be marked on the outside of the envelope--"Reconsideration"; State clearly whether a conference is desired. .02 If the screening requires a Fax the screening should be completed nd the Fax sent in 1 working day. .03 The key district upon being informed by CLC that CLC will not xercise authority will reconsider its initial action taken if a request or reconsideration; 8. Is made by a person aggrieved by the initial action; 0. Makes a prima facie showing that the key district's initial .04 The key district may summarily reject a request for reconsideraion which is not timely or which was filed by a person other than the ne against whom the initial action was taken. .05 The key district may summarily reject a request for reconsideraion which fails to make a prima facie showing that the initial action was rroneous in fact or in law, in which case it will notify the applicant of to action. Appellant may then seek judicial review under the Act .06 The key district on its own motion may consider any additional evidence that it deems relevant and which in its opinion the party did t have a reasonable opportunity to present previously. .07 The request must be assigned a key district appeal control mater Section 10. Conference .01 A conference will not generally be scheduled unless the person aggrieved requests one. Failure to request or appear for a conference is not, by itself, sufficient grounds for denying a request for reconsideration .02 Conferences will be held at a location convenient to the person aggrieved. When the volume of reconsideration cases justifies the experditure of travel funds, conferences will be held at various posts of duty within the key district area. If a person aggrieved is unable to visit an IRS office located reasonably close to his hone, consideration should be given to discussing his case by telephone in order to give hi some degree of understanding of the issue. The conferee should maintain a helpful and impartial attitude. The conferee's function should be constel with tact and diplomacy. .03 The conferee will not permit verbatim reporting of the conferex or the use of recording equipment. Section 11. Stays Pending Reconsideration As part of a request for reconsideration, any person may request a stay of the initial action for which reconsideration is sought pending final disposition of the request for reconsideration. The key district may grant a request for stay for good cause shown. In situations where a decision and order, such as a remedial order, has immediate impact on the firm, the key IRS district should respond to such requests for suspense of the order in whole or in part. Before denying such requests however, National Office concurrence must be sought. The National Office will normally discuss sensitive cases with OPS before concurring with the district. Section 12. Disposition of Requests for Reconsideration .01 Whether the requested relief is denied or granted, the key district conferee will issue an order to the appellant. Ordinarily this will be accomplished by certified mail. .02 An order which denies the requested relief in whole or in part must include a statement of the grounds for denial (the statement should be clear and concise, and should not reiterate facts or arguments included the file which are not essential to an understanding of the issue and the conclusion) and advise the requestor that it has exhausted its administrative remedies. Л .03 For reporting purposes, a request for reconsideration is closed when a notice has been issued granting or denying the request. A request which is only partially granted is reported as a request which has been modified. |