- 8.25.3.1 Overview
- 8.25.3.2 Quick and Other Assessment Procedures on TFRP Cases
- 8.25.3.3 Appeals Processing Service (APS) Procedures
- 8.25.3.4 Closing Actions for the Technical Employee
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This IRM Chapter addresses the different assessment procedures for TFRP cases; processing procedures for technical employees; and procedures for the Appeals Processing Section (APS).
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The difference between a quick and jeopardy assessment
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An overview of the Appeals Processing Section (APS)
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Establishing a TFRP case on ACDS on the Case Inventory Screen and the Return Information Screen
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A discussion of the Assessment Statute date and
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Closing actions for APS
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A quick assessment of a proposed trust fund recovery penalty is necessary when the customized Form 5402is signed by the Appeals Team Manager and the "30-day" ASED begins. This only occurs when the ASED would have expired while the TFRP appeal was under consideration, or within 30-days after Appeals' final determination, had it not been for the impact of the Taxpayer Bill of Rights 2 (TBOR2). Procedures required in IRC 6672(b) must have been followed.
Note:
APS employees must Alert Technical Services Advisory when a case requiring quick assessment is sent to them for processing.
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Jeopardy assessments may be made by Collection when a responsible person appears to be placing assets beyond the reach of the Government to defeat collection of the potential liability.
Note:
Quick assessment action should be taken when there are fewer than 30 days remaining on the ASED. In contrast, prompt assessment action should be taken when immediate collection action is needed on the account. See IRM 5.7.6,Trust Fund Penalty Assessment Action.
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When a Jeopardy assessment is made on an unagreed TFRP liability, because the taxpayer has not had an opportunity to appeal, the taxpayer will be given appeal rights. Jeopardy assessment cases must be worked expeditiously.
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Upon receipt of a TFRP jeopardy assessment case, the Appeals Processing Section (APS) will verify the assessment by obtaining a current transcript. Technical Services Advisory is responsible for notifying Appeals of any actions taken regarding assessment or abatement of the penalty.
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The Appeals Processing Service (APS) provides technical assistance and support for controlling cases in Appeals. The APS case processor and/or tax examiner perform the following duties:
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Process receipts
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Establish and determine statute controls
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Verify the contents of the administrative file
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Input, control, and update corrections for cases on ACDS
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Issue case letters to taxpayers and/or Powers of Attorney (POA)
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Ensure TBOR2 cases are either faxed, hand delivered or, mailed to Technical Services Advisory for quick assessment within the required timeframe and
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Prepare closed office files.
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When establishing a TFRP case on ACDS, each responsible party is considered a separate workunit.
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On the case inventory screen for each responsible person, follow the normal procedures in IRM 8.20.5,Processing and Establishing New Receipts, but you must also add the following:
Category Enter TP NAME The name of the responsible person as shown on Form 2749 TIN The TIN of the responsible person TYPE TFRP to identify it as a Trust Fund Recovery Case MFT MFT 55 which is the master file code created to facilitate processing TFRP and other miscellaneous penalties KEYTP Leave Blank TFRPCorp The name of the related corporation TFRTin The TIN on the related corporation
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The return information screen on ACDS will appear after the TFRP case information is added. The return information screen contains fields related to the following:
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Statutes
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Statute codes
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Primary business code (PBC)
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Proposed and revised tax deficiency and
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Claim information.
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The employee establishing the case on ACDS will enter the information in IRM 8.20.3, Appeals Centralized Database System (ACDS), and IRM 8.20.5, Processing and Establishing New Receipts, on the return information screen and will also add the following information that is unique to TFRP cases:
AIMS Indicator EnterEas the case is not controlled on AIMS Tax Period Enter Nafter the tax period to denote no return Proposed DEF/OA Enter the amount of penalty for each quarter from Form 2751 Duplication Leave blank
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Technical Services - Advisory sends TFRP cases to Appeals.
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Technical Services - Advisory will annotate on Form 2749in "red" ASED PROTECTED BY TBOR2for cases that are timely protested and have the statute suspended.
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The assessment statute date will not be controlled on TBOR2 cases. The only circumstance where a statute date and a statute code would be entered on a Trust Fund Recovery Penalty case is when all periods have been assessed.
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The following procedures apply for cases where all trust fund recovery penalty periods have been assessed.
If ... Then ... Form 2749 is NOT annotated in red case extended by TBOR2 nor is it annotated with the earliest ASED -
Review IDRS SUMRY to verify assessment
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Enter the CSED date in the statute date field
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Enter CSED in the statute code field
Note:
This is the only circumstance where you will have a statute date and statute code where all periods have been assessed.
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For statutes that are extended by TBOR 2:
If ... Then ... Form 2749 is annotated in red case extended by TBOR2 -
Enter TBOR2 under statute code
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Do not enter a statute date
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For statutes that are extended by Form 2750:
If ... Then ... Form 2749 is NOT annotated in red "case extended by TBOR2" -
Review the 2750 in the case file
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Verify the taxpayer has signed Form 2750 agreeing to the extension of the statute date
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Verify Form 2750 has been signed by Collection
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Enter the statute date from Form 2750 under statute date on the case summary card for the earliest statute date
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Do not enter a statute code
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The Technical employee working the case will complete the customized 5402, Appeals Transmittal, for each responsible individual and Form 3210 , Document Transmittal. The revised findings penalty section should reflect the trust fund penalty to be assessed. Update ACDSfollowing the general closing instructions:
For closing code 13 or 03. . . Action the STATDATE is the 5402 approval date plus 30 days or the normal statute enter the PAYCODE indicating the appropriate payment: 1, 2, 3, 4, 5 or 6 in REVSDPEN enter the amount of the trust fund penalty for each tax period. -
In addition, TFRP cases that are extended by TBOR2 are closed as follows:
Appeals Team Manager a.
b.
c.Signs and dates Form 5402
Places the case in a folder flagged "expedite" ,
Ensures the case file is received in APS within 5 days of the ACAP date.Appeals Processing A tax examiner (TE) assigned to the case: a. Enters the same statute date on all quarters to reflect the ACAP date plus 30 days. b. Removes the TBOR2 statute code. c. Processes the closing by: -
Dating and mailing the letter to the taxpayer /power of attorney;
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Notifying the control point monitor in Collection Technical Services Advisory of the decision in Appeals by faxing Form 2749 and Form 5402 immediately; and
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Mailing the entire case file back to Collection Technical Services Advisory, Control Point Monitoring Units within 15 days of the ACAP date.
Note:
For offices that have Technical Services Advisory, CPMs in the same building, hand-deliver the entire case file
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Update ACDSfor the Corporation (associated with each responsible individual
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CLOSINGCD= 45
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No returns are associated with the Corporation, therefore, there is no revised penalty amount.
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Return the original file to Technical Services Advisory (name and address is listed on the "To" box) on the customized Form 5402.
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On cases with the TBOR2 assessment period of 30 days, Appeals processing must follow the instructions in (2) above.
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If Technical Services Advisory is not located in the same building, Appeals Processing will send the entire case file back to the address off the Technical Service Advisory on the customized Form 5402 box under the"To" box.
Note:
Although it is preferable to get the whole collection file back to Technical Service Advisory at one time, these expedited procedures will often make that impossible. APS employees should FAX Form 5402 and Form 2749 to Technical Services Advisory at the FAX number listed in the "To" box on the customized Form 5402 and upon receipt of a fax confirmation, send the entire case file back. To alert collection of the pending statute expiration, item 11 on the customized Form 5402 should state"ASED expires 30 days from (Date)" .
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For TFRP cases that are not protected by TBOR2, follow the above procedures except the ASED date will not change on ACDS.
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Prepare the customized Form 5402, Appeals Transmittal and Case Memo, from APGolf, on all trust fund recovery penalty cases according to the instructions on ACDS-AP-Golf. The drop down menu on the "To" box of the customized Form 5402 will allow the user to select the correct Control Point Monitor's Office to return the TFRP case and will automatically write the Control Point Monitor's office address on Form 3210.
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Make an entry in the ICS case history upon reaching a decision in the case reflecting the decision and that the case was closed by the Appeals employee and sent to the Appeals Team Manager for approval.
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When processing an agreed case, place the original Form 2751, Form 2751-AD,or closing agreement in the Collection file and a copy in the Appeals file.
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Use closing code 03, agreed pre-90 days, when:
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The taxpayer has signed an agreement form such as Form 2751, Form 2751-AD, or a closing agreement, or
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Appeals fully concedes the case. Modify the closing letter when using Form 2751.
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For closing code 03, use the following resolution reasons on the customized 5402:
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Taxpayer agreed to full assessment
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Taxpayer agreed to partial assessment
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Taxpayer withdrew the protest
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Appeals conceded based on hazards of litigation or
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Collection development does not support assessment.
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Use closing code 13, unagreed pre-90, in all other trust fund recovery penalty cases, and the following resolution reason:
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Collection file development supports assessment. When closing an unagreed case, use Letter 1536, Closing Letter for Unagreed Employment Tax and Trust Fund Recovery Penalty.
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Use closing code 20 Premature Referral with the following resolution reasons:
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Case previously resolved
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Appeal not timely
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TFRP assessed Collection case file not developed
Note:
Appeals will not release jurisdiction on a TBOR2 case. If a case file is not developed, do not send the case back to Collection as a premature referral. Issue an ARI.
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