An assessment cannot be made after the statutory period of limitation has expired. The Submission Processing Campus Director is required to report to Headquarters immediately upon discovery of cases in which the statutory period of limitation expires prior to assessment of deficiencies. See IRM 25.6.1.13, Statute of Limitations for additional information on.

When a Form 2859 is received in Accounting, the receiving office will review the manual assessment for completeness and verify that the assessment Statute Expiration Date (ASED) has not expired. These requests will typically be received via fax or scanned ( via a shared folder). For the most recent revision of the Form 2859, please access the publishing website.

If the ASED has more than 60 days left, the assessment can be processed through Master File. If any requests are received with more than 60 days left on the ASED, the Form 2859 must be rejected back to the originator. There are a couple of exceptions to this. They are:

If a request is received and the ASED has expired, reject the request back to the originator.

Stolen Identity cases involving invalid, IDT returns will be processed regardless of the ASED. Refer to IRM 25.6.1.6.14(3)(b), Statute of Limitations.

Whenever you receive a request that needs to be rejected, you must first contact the requestor, via telephone, advise them as to why the case is being rejected, and subsequently fax the request back to the originator with the reason for the rejection notated on Form 3210.

If the Form 2859 is correct and the ASED has not expired, sign Form 3210 and fax back Part 3 (Acknowledgement copy) within 24 hours.

Requests received will be processed within five (5) business days from the date of receipt unless a specific 23C date has been requested.

If the assessment Statute Expiration Date (ASED) falls on a Saturday, Sunday, or Holiday, assessments can be processed on or before the next business workday (See IRM 3.30.123.2.2, Work Planning and Control , Holiday or Weekend Impact).

Effective September 14, 2006 all Trust Fund Recovery Penalties will be processed by the Ogden Submission Processing Campus. If a TFRP assessment is misdirected, the preparer will be notified by phone and the TFRP will be sent back to the preparer.

Quick Assessments are assessments made expeditiously to protect the period of limitation. The quick assessment of additional taxes and agreed deficiencies is made when the statutory period for assessment will expire before assessment action can be completed under regular procedures.

Quick Assessments permit assessment of taxes subject to the deficiency procedures during bankruptcy where a statutory notice of deficiency was issued before bankruptcy and the period for petitioning the Tax Court expired prior to bankruptcy. For deficiency notices issued during bankruptcy, unagreed assessments cannot be made while the taxpayer is prohibited by the bankruptcy automatic stay from petitioning the Tax Court absent a final decision of the Bankruptcy Court determining the deficiency. Agreed assessments of deficiencies where the assessment period is not about to expire during bankruptcy are made under regular procedures.

Quick Assessments permit assessment of summarily assessable taxes during bankruptcy to protect the statute of limitations for assessment where the assessment period is about to expire.

Quick Assessments permit assessment during insolvency proceedings.

Quick Assessments permit the assessment of the Trust Fund Recovery Penalty outside of or during bankruptcy.

Quick Assessments allow the assessment of unpaid income, estate, or gift tax deficiencies over ≡ ≡ ≡ ≡ ≡ agreed to in Examination or Appeals if the assessment cannot be input through IDRS in time to have the 23C date within 30 days of the agreement date.

They provide for Protective Manual Assessments (PMA). A PMA is made when time does not permit normal research of statute clearance.

Notices for Quick Assessments are sent directly to the taxpayer, unless otherwise specified.

Prompt Assessments are assessments made without delay when collection appears to be at risk. The intention is to proceed with collection action as soon as possible after the assessment.

They are available for use only for voluntarily filed returns secured by the IRS on delinquency investigations and returns compliance programs and for voluntarily filed returns otherwise received when the period of limitation is about to expire.

If the taxpayer pays the amount of unpaid tax following notice and demand within 21 calendar days (10 business days if the amount demanded is $100,000 or more), the accrual of additional penalties and interest will be avoided.

They are usually requested by Collection.

Notices for Prompt Assessments are always sent to the requestor unless the remarks section states "Mail 3552 directly to taxpayer."

The requestor will do one of two things: forward the assessment to the taxpayer or personally hand deliver the assessment to the taxpayer.

Jeopardy Assessments allow for the collection of taxes in jeopardy. Jeopardy Assessments are usually requested by the Examination Function, but can also be requested by Collection. They protect the Government's interest under IRC 6861 and IRC 6862. These assessments will be processed within 24 hours of receipt.

Jeopardy Assessments are immediate assessments made without delay in circumstances in which it is determined that collection of a tax would be endangered if normal procedures were followed. The Area Director must determine jeopardy. Associate Area Counsel (SBSE) must approve all Jeopardy, Termination Assessments, and Jeopardy Levies in writing. See IRC 7429.

Notices for Jeopardy Assessments are sent to the requestor. The requestor normally has already prepared a Form 3552 to hand deliver or mail to the taxpayer.

Where immediate collection is necessary, the jeopardy assessment can be followed by a jeopardy levy. The Area Director must determine jeopardy. Where a jeopardy determination has been made, a jeopardy levy, which can follow a jeopardy assessment (or other assessment), is a levy made after assessment but before the expiration of the 30-day period for requesting a CDP hearing. As with jeopardy and termination assessments, Associate Area Counsel (SBSE) must approve jeopardy levies in writing. See IRC 7429.

Termination Assessments provide for termination of a taxpayer's taxable year when a jeopardy situation exists and will be processed at the Cincinnati Submission Processing Campus.

They protect the Government's interests under the provisions of the IRC § 6851 and IRC § 6852. They protect the Government's interest by allowing the government to assess for the current or immediately preceding taxable year, at any time prior to the due date for filing.

Only a Territory Manager or Acting Territory Manager, or an officer in an equivalent position in an International Function, can terminate a taxable period. They must make a finding that the taxpayer designs to quickly depart from the U.S., or remove his property therefrom, or conceal himself or his property therein, or do any other act tending to prejudice or render wholly ineffectual proceedings to collect.

Requests for Termination Assessment will be made with a Form 2859, which is a Request for Quick or Prompt Assessment, and a signed Form 2644, which is a Recommendation for Jeopardy or Termination Assessment.

Accounting is responsible for processing all requests and ensuring that the assessments are made timely. Non-Master File (NMF) is responsible for preparation of Form 6335, NMF First Notice for Termination Assessments, from the information provided by the requestor.

Tax returns that could result in a tax module of $1 Billion or more will come in via over-night traceable mail from campuses or from the Rejects/Unpostable function.

Research the "Possible $1 Billion Taxpayers" Excel spreadsheet and NMF Open and Closed database to ensure return was not previously assessed.

Verify all credits claimed.

If refund return, prepare Form 3753 and obtain Authorized Signature. Be sure to protect the 45-day interest free period.

Prepare all documents needed to transfer credits to the taxpayer's Non-Master File account. Input History to Master File module indicating documents have been prepared to transfer credits to Non-Master File.

If all claimed credits have been verified, prepare a cover sheet on letter size paper with large bold print stating " ALL CREDITS VERIFIED. DO NOT BILL TAXPAYER." If refund issued, include statement on cover sheet to show refund in the amount of ($...) has been already issued.

If unable to verify all claimed credits, prepare cover sheet indicating the location and amount of credits being transferred so that bill does not go out for incorrect amount.

Update the "Possible $1 Billion Taxpayers" Microsoft Excel spreadsheet (maintained at CSPC) with all available information in Taxpayer identification Number (TIN) order. Photocopy pages 1 and 2.

Send tax return with cover sheet to assessment desk for batching and numbering. The assessment desk will send back for photocopying. Immediately photocopy page 1 and send original tax return back to assessment desk for processing.

Under cover of Form 3210, hand carry credit transfer document to Refund Team for numbering and preparation of Form 813. Indicate "Expedite - $1 Billion Return" in remarks section of Form 3210. Also notate "Return after numbering " .

Hand carry to RACS (Revenue Accounting Control System) on a Form 3210 for expedite processing, once document has been numbered and returned from Refund Team.

Monitor Master File and Non-Master File (NMF) until all documents have posted, including the Transaction Code 590 Closing Code 19 that is required to input by the NMF team. If a document goes unpostable, contact Unpostable Team and take necessary steps to correctly post to taxpayer's Master File (MF) account.

For Credit Elects, research MF to determine if the tax module would be under the $1 Billion limit if Credit Elects were transferred in. If under the limit, prepare Form 3809 to transfer the Credit Elects from the current NMF account to the following year's Master File account tax module.

If Credit Elects would result in $1 Billion or more of transactions on the next year's MF account, prepare Form 3809 to transfer Credit Elects to the 4610 Account. Input History on next year's MF account tax module indicating the amount and location (Cincinnati 4610 Account) of the Credit Elects.

Review all requests to ensure they are complete.

CSPC Only - If the return is for a Form 706, U. S. Estate Tax Return, and the estate is paying tax under the installment privilege, then the following additional information is required:

The requestor is responsible for reversing all penalties incompatible with this Quick, Prompt, or Jeopardy Assessment. Reversals that have been made should be noted on the request. Take no action if there is no indication on the request.

OSPC Only - As of January 1, 2004, Business Master File (BMF) has been programmed to accept Form 5330, MFT 76, Manual Assessments.

Jeopardy and Statute cases need to be assessed immediately. Quick and Prompt Assessments which request a specific assessment date must be made by that date. Quick and Prompt Assessments that are neither Statute Imminent nor request a specific assessment date (23C date) have a processing time frame of no longer than 5 days.

Original requests for Quick, Prompt, or Jeopardy Assessments are the source documents. When requests are made via fax machine, the requestor is required to also fax the source documents along with the request for Quick, Prompt, or Jeopardy Assessment. The source documents include:

If the volume of source documents are too large to fax, the source documents should be mailed to the campus immediately after faxing request for prompt, quick or jeopardy assessment. If source documents are not received within five (5) working days, follow up with the requestor to secure the source documents. If source documents are not received within five (5) working days after follow up request, release assessment request as is to Files. Source documents received after release of assessment request should be forwarded to Files for association.

Figure 3.17.244-1

Form 3552 is prepared from Form 2859, Request for Quick or Prompt Assessment. Use Program and Function Code 420-75600. You can view the latest revision of the Form 3552 on the Multimedia Publishing website.

The top part contains entity and assessment information. All the following should be completed. The location of this information on Form 2859 is in parentheses:

The second part (numbered 1 thru 28) contains account adjustment information for updating the Master File. Fields 1 thru 18 note which forms being assessed require entries. This information is in Part D of Form 2859. Line 22 (870 Agreement Date) should only be completed when the assessment is an audit or Appeals assessment, TC 300, 304, or 308. This information is in Part A of Form 2859.

The third part (numbered 29 thru 36) contains the assessment and billing information found in Part C, on Form 2859.

The fourth part (numbered 37 thru 63) contains special information for Form 940, Form 720, Form 4720, and Form 5329. This information is found in Part D, lines 20a and 20b on Form 2859. If it is a Form 940, the state code, and credit reduction wages must be present when there is a TC 150 (9312 and prior). Refer to Exhibit 3.11.154-19, Tax Years and Credit Reduction States.

From the AMA Main Menu, click on the button "Add New Record " , to see the next window:

Figure 3.17.244-3

This screen allows a block to be assigned to one person, giving the capability for numerous employees to simultaneously input records with similar assessment information.

When all four fields have valid data in them, the program will display the next available block based on the information entered.

When the program generates a DLN Block, it is considered assigned to the current user (See Figure 3.17.244-4).

Figure 3.17.244-4

To close this window, click on the "Cancel" button to return to the "AMA Main Menu" .

Review the data fields for validity and make any necessary corrections. If a correction is made, click on the "Refresh" button. This will release the block and assign a block based on the new information.

If the information is correct, click on the "Accept" button, the following screen will appear:

Figure 3.17.244-5

Use Part A & B of Form 2859 to fill in the appropriate fields.

To move to the next page of the form, continue pressing the [Enter] or [TAB] key through the last fields. The program will automatically go to the next screen. Or, you can use the [F2] Function key to move to the next window.

After entering a Taxpayer Identification Number (TIN) in the "SSN" or "EIN" field, the program will check the database for assessments with the same TIN.

If a match is found you will receive the following message.

Figure 3.17.244-6

Respond to the message appropriately to continue processing assessment information.

An additional check is made to determine if the information being entered will duplicate an existing assessment.

The duplicate assessment check is made after inputting the "Period Ended" field.

The following message will appear allowing you to examine the existing assessment.

Figure 3.17.244-7

Use Part C of Form 2859 to complete this window.

Figure 3.17.244-8

After you have completed Part C, check the "Transfer Balance:" and "Total TC's & Ref:" amounts. The "Transfer Balance:" amount should be the same value as line 18 or line 22 of Form 2859, Part C.

Press F3 to go to Part D.

Use Part D of Form 2859 to complete this window. You will enter an amount, or item, only if present.

Figure 3.17.244-11

When you have completed Part D, press the [F4] Key or click on [Show DLN] tab.

Figure 3.17.244-12

When you have completed Part D, press the [F4] Key or click on [Show DLN] tab.

To save the current record and begin entering an assessment in another block, click on the "New Block" button.

The "Save" button will save the record and exit to the AMA Main Menu.

To exit the AMA Main Menu without saving, click on the exit button.

To verify a block of work, click on the "Key Verify Existing Records" button.

Figure 3.17.244-13

The following screen will appear.

Figure 3.17.244-14

Click on the down arrow, and select a DLN from the drop down menu labeled DLN Block to KV. Then click on the Get button.

The following screen will appear.

Figure 3.17.244-15

Input all required fields per Form 2859. See example below:

Figure 3.17.244-16

Special Key Verification: An enhancement has been added to the Key Verify process that will help AMA users process multiple assessments for the same taxpayer. A special key combination, CTRL-E, has been added that will allow users to bypass re-input of duplicated entity information.

Instructions for using CTRL-E:

Normal Key Verify Processing: If the information entered into a field during the key verify process does not match the information entered originally, you will be prompted with the following message.

Figure 3.17.244-17

If the "Original Input:" information is correct, click on the "Yes" button, otherwise, click on the "No" button to accept the key verified information.

Enter all required fields in Part C, per Form 2859. When you have completed entering, continue onto Part D.

Figure 3.17.244-18

Enter any applicable data in Part D.

Figure 3.17.244-19

Click on Verify DLN tab to complete the verification.

The verify DLN screen is shown in Figure 3.17.244-20. Review the information on the Verify DLN screen for accuracy before continuing.

The "Completed" and "Save" buttons will modify the status of the assessment to "Key Verified," save the key verified information to the database, and exit to the Main Menu.

The "Next" button will modify the status of the assessment to Key Verified, save the key verified information to the database, and retrieve information for the next DLN in the block to be key verified.

To exit to the AMA Main Menu without saving, click on the "Exit" button.

Figure 3.17.244-20

To search for an assessment currently in the database, click on the "Search" button. This is a useful tool for verifying the status of an assessment, reprinting the Form 3552, or accessing an assessment to make corrections.

After clicking on the "Search" button from the AMA Main Menu, the Search Form will appear as shown in Figure 3.17.244-22.

The search form allows you to search the database based on these search criteria:

After selecting from the "Search Type:" drop down list, a second drop down list will appear allowing you to identify the specific information to search for.

The second drop down list "Select DLN Block:" allows you to type your search information or select it from the provided list.

The Search Form will allow you to retrieve the assessment information to make corrections or print a Form 3552.

To edit assessment information, position the mouse pointer over the DLN to be retrieved and double click. The Research Form will appear as shown in Figure 3.17.244-23.

Make any necessary changes and click on the Save button.

Clicking on the "Save" or "Exit" buttons will close the Research Form and reopen the Search Form to view any corrections that were made. The following example shows a corrected record.

To cancel a record after it has been completely input, retrieve the assessment through the Search utility. After the assessment is visible in the Research screen select the Record menu, then select Delete.

To make an extra copy of the Form 3552, click on the printer button on the left side of the DLN in the Search screen.

To print Form 3552, click on the "Print 3552 by DLN Block" button.

The Form 3552 Print Menu will appear as shown below.

Click on the status down arrow to make your selection.

Select a 23C date.

Highlight the DLN Block you would like to print and then click on the box that says Print Selected Blocks.

If an assessment is being key verified and an attempt to print a Form 3552 is made, the following error message will appear.

Do not attempt to print Form 3552 if all of the records within a block have not been key verified.

Exit out of the printing utility and wait until the remaining records have been key verified.

Click on the "Database" icon on the left side of the window.

Click on the "Search" button. (The Search Form will appear)

Query the AMA database for the specific DLN to be printed.

To print an individual Form 3552, left click on the small printer icon located to the left of each DLN in the search result as shown below:

Once selected, the following screen will appear.

In addition to printing a single Form 3552, the form can be identified as a "Corrected Notice" , "Duplicate Bill " , or Both.

Check the corresponding box(es). This will cause the system to place the statement on the 3552 directly under the "Tax Period Ended" .

Click "OK" to begin printing.

When the designated printer fails to print the Form 3552, the campus must redirect the print traffic to another printer, as described in the AMA Users Guide. There are several things to consider when the print traffic has been redirected.

To print Form 813 click on the "Print 813" button.

The following Form 813 Print Menu screen will appear.

Click on the down arrow in the status box to select, "3552 Printed" .

Click on the down arrow next to the Choose 23C Date.

Highlight the appropriate DLN's.

Click on the Generate Report button.

Click on the "Print Status" button.

The following screen will appear, "23C Date Status" .

Select a "Report Type" from the drop down box.

After you have selected the report type. You will have a combo box to select the Date. It will then display how many documents were:

Click on "Print" to print either the inventory, status, or summary report.

Unpostable Prompt, Quick, or Jeopardy Assessments that cannot be corrected because of incomplete entity information (TIN and Name Control) will be URC 8 Coded to Rejects and processed through Non-Master File (NMF) Accounting.

Rejects will prepare Form 1331-B, Notice of Adjustment and Form 2468, Over Assessment Label. Form 2468 may be attached to source document, if available, or Form 3552. Form 3473, Rejected Document Transmittal, will be prepared to route forms to Accounting.

Accounting will enter NMF 6(51) DLN on Form 3473, Form 3552 (C), and as a cross reference on Form 1331-B.

Route Form 3473 to Rejects. Rejects will code the MF register with the NMF DLN and then release the unpostable condition.

Form 1331-B and Form 2468 will be given a 6(51) DLN and sent to the Scheduling Team for preparation of Form 2188 (Voucher and Schedule of Overpayment and Over Assessment).

Form 3552 will be sent to NMF to be established on the Automated Non-Master File database (do not bill the taxpayer, abatement will follow). Prepare Form 2275 to send to Files with re-file DLN. Form 3552 will be kept in the NMF for backup.

Form 1331-B and Form 2188 will be forwarded to RACS for journalization of the abatement.

RACS will forward 1331-B to NMF to post abatement to the NMF account.

Requests for Civil Penalty Assessments requiring Quick or Prompt action will be received by the NMF Team on Form 8278, Computation and Assessment of Miscellaneous Penalties. A Form 3552, Prompt Assessment Billing Assembly, will be prepared for transfer to the Civil Penalty module on Master File. MFT 55 will be used for IMF Assessments, and MFT 13 for BMF Assessments.

The specific Penalty Reference Number and penalty code section to be assessed will be marked on Form 8278. Each penalty code section has a specific statement that will be used as a stuffer notice, which will be included with the taxpayer notice, Parts 3 and 4 of Form 3552. Transaction Code 290 with a zero money amount will be used for transfer in purposes. The Penalty Reference Number for each specific IRC must be listed with the penalty money amount.

Requests for any joint penalty assessments, in conjunction with a jointly filed frivolous return, will be received on Form 5734, Automated Non-Master File (ANMF) Assessment Voucher. Joint penalty liabilities must be processed through ANMF per IRM 3.17.46.0, Automated Non-Master File Accounting .

Prepare Form 3552 for Civil Penalties.

As of January 1, 2012, monthly filing and special deposit procedures are no longer applicable . Revenue Officers must ensure that the monthly filing and/or special deposit procedures are no longer used. Employers must file quarterly Forms 941 beginning with the first quarter of 2012.

The final quarter to be processed using combined Form 941M returns under monthly filing is the period ending December 1, 2011.

Any Forms 941M received beyond 201112 must be returned to the originator.

In Statute of Limitations expiration cases, Assessments may be made without preparing Form 3552 or Form 6335 immediately thereafter.

This may be accomplished by making the Assessment directly from Form 2859, Request for Quick or Prompt Assessment, with source documents. Form 2859 will be numbered and assessed.

The tax imposed by IRC 4081 on diesel fuel and kerosene does not apply to diesel fuel and kerosene that is dyed red under guidelines provided by Treasury Regulations. Generally, dyed diesel fuel and dyed kerosene may not be used for taxable uses, such as use in a highway vehicle that is registered or required to be registered for highway use.

A penalty generally is imposed by IRC 6715 on any person that uses, holds for use, sells, or holds for sale dyed diesel fuel or dyed kerosene for a taxable use. IRC 6715 also imposes a penalty on any person that willfully alters or attempts to alter the dye strength or composition of dyed fuel and on any person that knows such fuel is so altered and sells or holds such fuel for sale for a purpose that person knows to be a taxable purpose.

Fuel Compliance Officers (FCO) are responsible for preparation of Form 8278, Computation and Assessment of Miscellaneous Penalties and Form 2859, Request for Quick or Prompt Assessment. The FCO must obtain group manager approval of the documents and case file before they are forwarded to the Submission Processing Campus for Quick Assessment.

The penalty Assessments will be processed as a "Quick" Assessment (Document Code 51) depending on criteria described in IRM 3.17.244.2.2.

When a Form 3552 is returned undeliverable, research IDRS for a new address. If a new address is found mail the Form 3552 to new address.

If no new address is found, mail Form 3552 out a second time.

If Form 3552 is undeliverable for a second time, send Form 3552 to be associated with the backup for Assessment Documents. This will provide back-up if the taxpayer states at a later date the taxpayer never received the bill.