This section establishes procedures for the control of termination assessment cases.

The PSP Support Manager will assign a Termination Coordinator (TC) to control termination assessment cases.

The TC will be responsible for the following:

After a termination assessment has been approved and assessed, the examiner responsible for preparing and processing the termination assessment should forward a termination assessment file to PSP Support. The TC should review the assessment file and place the file in a suspense area for subsequent action.

Included in the termination assessment file received in IRM 4.15.7.3 should be a Form 5345, Examination Request Master File. The TC will complete Form 5345 and process the form to requisition the full-year return for follow-up action.

A taxpayer subject to a termination assessment is directed to file his/her full year return with the office of the area director of the area in which the taxpayer resides or in which the taxpayer's principal office is located. The taxpayer is to attach a copy of the Notice of Termination Assessment to the return.

Returns hand carried or mailed to area offices should be sorted daily to spot those filed with the copy of the Notice. These returns should be forwarded to PSP Support, not the service center.

A notice of deficiency is required to be mailed by the Service to the taxpayer, generally within 60 days after the due date of the return for the taxable year, determined with regard to extensions.

The TC will set up procedures to systematically search filing records to determine if the taxpayer filed his/her full-year return as required. The search should be made weekly, for a 60-day period, after the due date of the return for the taxable year. If the return is not filed on or before the due date of the return, the TC will forward the termination follow-up file to the coordinator. (See IRM 4.15.7.7 for procedures for forwarding the file when no return is filed.) The TC will continue to monitor filing records weekly, for the 60-day period, to determine if the taxpayer filed a return.

The full-year return, if filed, should be forwarded to PSP Support after requisition by Form 5345. If Form 5345 was not processed and the return was filed, the return will be requested by the TC. If the return was not filed, but a request for extension of time to file returns was filed by the taxpayer, the request for extension will be requested by the TC. All requests should be included in the termination follow-up file. Any other taxpayer correspondence received from the taxpayer or information filed by the taxpayer should be requested and placed in the termination follow-up file.

The termination follow-up file will be forwarded to the coordinator appointed in IRM 4.15.2.2.

No Return Filed — If no return is filed by the due date, including extensions, the termination follow-up file must be forwarded immediately to the coordinator, in order for a notice of deficiency to be issued within 60 days of the due date, including extensions. An examination of the taxpayer for the full year, preparation of the notice of deficiency, and review of the notice of deficiency by Area Counsel must be completed within the 60-day period.

Return Filed — If a return is filed on or before the due date, the termination follow-up file must be forwarded immediately to the coordinator, in order for a notice of deficiency to be issued within the 60 days of the due date. During the 60 days, an examination of the taxpayer for the full year, preparation of the notice of deficiency, and review of the notice of deficiency by Area Counsel must be completed.

If a return is filed after the due date, whether or not an extension was allowed, the termination follow-up file must be forwarded immediately to the coordinator. The 60-day period runs from the date the return was received by the Service.

The termination follow-up file will consist of the following: