Manual assessments are made to protect the IRS's interest when the statute is imminent, or the collection of taxes is in jeopardy.

The Automated Manual Assessment (AMA) System provides IRS an automated assessment process and eliminates many of the manual procedures for processing assessments.

The AMA Program functions as a stand-alone, web-based system. There is not an electronic exchange of data between either Redesigned Revenue Accounting Control System (RRACS) or AMA. Data exchanged between RRACS and AMA is completed by manually entering data into RRACS.

This IRM describes the accounting procedures for manual assessments. It covers the process and procedures of the manual assessment program. These procedures and controls are necessary to comply with all administrative and legal requirements of the Department of Treasury, the IRS, and the Government Accountability Office (GAO).

IRM deviations must be submitted in writing following instructions from IRM 1.11.2.2, Internal Management Documents System - Internal Revenue Manual (IRM) Process, IRM Standards and elevated through appropriate channels for executive approval.

The authorities for this IRM include:

This section provides responsibilities for:

Program Reports: In accordance with management accountability review regulations, managers are responsible for ensuring that internal controls are effective and efficient in day-to-day operations and safeguarded against waste, fraud, and abuse.

Program Effectiveness: Managers are responsible for conducting operational and/or management control reviews to identify weaknesses and mitigate known risks. Managers must perform program or spot reviews for accuracy and completeness. Discrepancies should be discussed with the appropriate functional area(s).

Federal Government Accounting Requirements: 31 USC 3512, places the responsibility for establishing and maintaining adequate systems of accounting and internal control upon the head of each executive agency and states that the head of each executive agency shall establish and maintain systems of accounting and internal control that provide:

These systems must conform to the accounting principles, standards, and related requirements, as prescribed by the Comptroller General of the United States (U.S.). Historically, these have been reflected in the Government Accountability Office Policy and Procedures Manual for Guidance of Federal Agencies.

The accounting system of an executive agency or any of its component parts is subject to review and approval by the Comptroller General. The continuing efforts to improve, modernize and simplify accounting systems in the federal government are exercised under a joint program sponsored by the Comptroller General, the Secretary of the Treasury and the Director of Office of Management and Budget (OMB). This program contemplates the full development of sound accounting within each executive agency as a working arm of management and in terms of financial information and control. It envisions an integrated pattern of accounting and financial reporting for the government that is responsive to executive and legislative needs.

The established accounting and reporting principles, standards and basic procedures take into consideration the various areas of responsibility involved, the elimination of overlapping operations and paperwork and the broader application of efficient methods and techniques in accounting operations throughout the government.

The following terms and definitions apply to this program:

The following acronyms apply to this program:

The following IRMs are frequently used in conjunction with this IRM and should be referred to when additional clarification is needed.

Form 2859, Request for Quick or Prompt Assessment, will be processed within five (5) business days from the date of receipt unless a specific 23C date has been requested.

When a Form 2859 is received in RACS function, 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 eFax or scanned (via a shared folder). For the most recent revision of the Form 2859, Request for Quick or Prompt Assessment, please access the Media & Publications 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. IRM 3.17.244.2.1.1, Rejecting Manual Assessments for guidance. The following provides exceptions to rejecting the Form 2859 back to the originator:

If a request is received and the ASED has expired, reject the request back to the originator. See IRM 3.17.244.2.1.1, Rejecting Manual Assessments, for guidance.

Identity Theft cases (IDT) will be processed regardless of the ASED. See IRM 25.6.1.6.14(3)b , Criteria for Establishing a Statute of Limitations Period.

Assessments labeled 6020(b), do not require an ASED.

Requests received that total $1 billion or more must be rejected back to the originator. ISRP is unable to transcribe amounts $1 billion or more. The originator will need to prepare multiple (2 or more) Forms 2859 to have the assessments completed.

If the Form 2859 is correct and the ASED has not expired, sign Form 3210 and return Part 3 (Acknowledgement copy) via email or shared folder within 24 hours.

If the assessment statute expiration date (ASED) falls on a Saturday, Sunday or Holiday, assessments can be processed on the next business workday (see IRM 3.30.123.2.2, Work Planning and Control, Holiday, or Weekend Impact).

Each site must establish procedures for after-hours assessments. After-hours assessments include such items as imminent statutes, jeopardy and terminations that cannot be legally assessed during regular hours of the following workday. The following are steps that must be taken to ensure the necessary coverage is provided:

Procedures must be in place to ensure the necessary steps are taken to have the assessment journalized and posted to the taxpayer(s) account. The following steps should be taken:

If a situation arises, such as unusually high volumes, disruption of service due to inclement weather or other work stoppage situations and a site is unable to process manual assessments, work should be forwarded to the alternate site listed below.

The primary site needs to first contact the CFO headquarters (HQ) analyst to advise that their site is unable to process the manual assessments. HQ will issue an immediate SERP Alert to advise customers of the situation.

Any requests for manual assessments, where the statute is imminent should be forwarded after contact has been made, via telephone, to the alternate site. The transfer of the work can be accomplished via eFax, scanning, or via a shared folder. The method used to transfer any receipts should be determined when contact is made.

All requests that are received at an alternate site will become the responsibility of that site for completion of all necessary steps. These items will be listed on an Excel spreadsheet with all pertinent data (TIN, name control, tax period, amount) and forwarded to the primary site. The primary site will have to review their receipts/ pending requests to ensure that a duplicate assessment is not completed.

If a situation has prevented the site from access and the manual assessments have been input but the 23C needs to be generated and signed, CFO will be contacted as written in IRM 3.17.64.6.9, Business Resumption/Disaster Recovery Plan for the Signing of 23C Assessment Certificates.

OE stops at 8:00 PM local time.

KV stops at 9:00 PM local time.

Customer stops sending assessments at 11:30 PM local time.

23C Certificate sent to individual responsible for signing by 11:45 PM local time.

TFRP assessments against individuals (IMF) will be processed by the Ogden SPC. TFRP assessments against business entities are processed as NMF by Kansas City SPC. If a TFRP assessment is misdirected, the preparer will be notified by phone or email 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 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 TFRP 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.

Notices for prompt assessments are always sent to the requestor unless the remarks section states "Mail Form 3552 (Prompt Assessment Billing Assembly) 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 circumstances in which it is determined that collection of tax would be endangered if normal procedures were followed. 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 (Jeopardy Assessment of Income, Estate, Gift and Certain Excise Taxes) and IRC 6862 (Jeopardy Assessment of Taxes other than Income, Estate, Gift and Certain Excise Taxes). These assessments will be processed within 24 hours of receipt.

Jeopardy assessments are immediate assessments made without delay. The area director must determine jeopardy. Associate Area Counsel (SB/SE) must approve all jeopardy and termination assessments in writing. See IRC 7429 (Review of Jeopardy Levy or Assessment Procedures).

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 collection due process (CDP) hearing. Associate Area Counsel (SB/SE) 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 Ogden SPC.

They protect the government's interests under the provisions of IRC 6851 (Termination Assessments of Income Tax) and IRC 6852 (Termination Assessments in Case of Flagrant Political Expenditures of Section 501 (c) (3) Organizations. 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, 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 depart from the U.S. quickly, 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, Request for Quick or Prompt Assessment and a signed Form 2644, Recommendation for Jeopardy/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, from the information provided by the requestor.

Tax returns that could result in a tax module balance of $1 billion or more will come in via over-night traceable mail from campuses or from the Rejects/Unpostables 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, Manual Refund Posting Voucher, 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 a history item on the 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 KCSPC) 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 return original tax return 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, Document Register. Indicate "Expedite - $1 Billion Return" in remarks section of Form 3210. Also notate "Return after numbering" on Form 3210.

Hand carry to RACS (Revenue Accounting Control System) on a Form 3210 for expedite processing once the 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 (CC) 19 that is required input by the NMF team to the Master File tax period, per IRM 3.17.46.6.4(6). If a document goes unpostable, contact Unpostables and take necessary steps to post to taxpayer's master file account correctly.

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, Miscellaneous Adjustment Voucher, 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 (Kansas City 4610 Account) of the credit elects.

Review all requests to ensure they are complete.

KCSPC 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, Return of Excise Taxes Related to Employee Benefit Plans, MFT 76, manual assessments.

Jeopardy and Statute cases must 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 five days.

Original requests for quick, prompt or jeopardy assessments are the source documents. When requests are made via eFax or scanned (via a shared folder), the requestor is required to also submit the source documents along with the request for quick, prompt or jeopardy assessment. The source documents include:

If the volume of source documents is too large to eFax, the source documents should be mailed to the campus immediately after eFaxing 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.

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 Media & Publications 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 20 note which forms being assessed require entries. This information is in Part D of Form 2859. Line 24 (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 31 thru 37) contains the assessment and billing information found in Part C, on Form 2859.

The fourth part (numbered 39 thru 54) contains special information for Form 940, Form 720, Quarterly Federal Excise Tax Return, Form 4720, Return of Certain Excise Taxes on Charities and Other Persons Under Chapter 41 and 42 or the IRC, and Form 5329, Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts. This information is found in Part D, lines 21a and 21b 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 3.11.154-12, Credit Reduction States and Rates.

From the AMA Main Menu, place your mouse over "AMA, Database, and then click on Add New Record" , to see the next window:

Figure 3.17.244-2

Figure 3 is a graphic picture of AMA DLN Block Assignment screen. Enter Form Number, 23C Date and assessment Type.

Please click here for the text description of the image.

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

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 3.17.244-3

Figure 4 shows a completed DLN Block Assignment screen, with the next available block number where you can cancel, refresh, or accept data entered.

Please click here for the text description of the image.

To close this window, click on the "Cancel" button to return to the "AMA Home page." .

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 3.17.244-4

Figure 5 is the AMA First Input Screen for inputting information from Form 2859.

Please click here for the text description of the image.

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 to the last field. Use the Enter button or click on the Part C tab to get to the next window when you’re in the last field on the page.

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 3.17.244-5

Figure 6, AMA Entity Data Available screen. Press Yes or No to download data to populate record.

Please click here for the text description of the image.

Respond to the message appropriately to continue processing the 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 3.17.244-6

Figure 7 - AMA Duplicate EIN, MFT and Tax Period screen. This screen comes up when the TIN, MFT and Period End Date entered matches a previous record.

Please click here for the text description of the image.

Use Part C of Form 2859 to complete this window.

Figure 3.17.244-7

Figure 8, AMA First Input Screen for entering Part C. Transaction Codes, Amounts, Penalty Reference Numbers and Amounts.

Please click here for the text description of the image.

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.

Click on the Part D tab to input data if applicable.

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

Figure 11 is the AMA First Input screen for entering tax information from Form 2859 into the AMA Part D.

Please click here for the text description of the image.

On Form 941, Employer's Quarterly Federal Tax Return, if a TC 150 is being posted, there should not be an entry on line 1. For Form 941, where the TC 150 posted prior to 12/31/2004, Line 12 should be blank and there should be an entry on line 1. The only time you should have an amount for Social Sec. & Med. Tax Adjustment (Line 13) is when the Form 941, TC 150 posts prior to January 1, 2005, and there is an amount for Fractions of Cents, Sick Pay or Other. The only other time you will have an entry in Line 12 is if a Form 941 TC 150 posted after January 1, 2005, or there was no TC 150 and there is an amount on Line 7e, Prior quarters' SS and Med taxes, Form 941 (rev 1-2005) or an amount is entered in Other for Form 941 (rev 1-2004) and prior.

Assessments for Forms 941 are required to pass a unique validation. Entries on Part D, items 1, 5 through 14, plus tax computed for items 2, 2a, 2b, 3 and 4 are programmatically compared to the TC 150/290 entry on Part C. Only the whole dollar amount from the increase in tax (TC 150, TC 29X, TC 30X) entry and the Form 941 Check Figure will be compared despite the appearance of cents for each entry. A Form 941 or Form 944, Employer’s Annual Federal Tax Return, assessment will be considered valid if the increase in tax dollar value and the Form 941/944 Check Figure dollar values are within $1 of each other.

The following example illustrates a scenario where the cents from the TC 290 entry and the Form 941 Check Figure are not exact. Despite this discrepancy, AMA has been programmed to allow the assessment to pass the validation criteria because the dollar values are within $1. This validation criterion applies only to assessments on Form 941 and Form 944. Assessments for Forms 942, Forms 943 and Form 945, Annual Return of Withheld Federal Income Tax, will continue to validate TC 150 and TC 290 entries on Part C against items 1 and 11 on Part D.

Figure 3.17.244-12

This screen shows the comparison of the TC 290 amount and the Form 941 Check Figure and the error message that is received if the assessment has not successfully passed validation.

Please click here for the text description of the image.

When you have completed Part D, click on [Show DLN] tab.

Figure 3.17.244-13

Figure 13 - AMA First Input screen for showing DLN.

Please click here for the text description of the image.

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

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, place your mouse over the AMA drop down, Database and then click on the "Key Verify Records" .

Figure 3.17.244-14

AMA Main Menu Screen. Select Key Verify Existing Records. Refer to IRM 3.17.244.3.7 for further information.

Please click here for the text description of the image.

The following screen will appear.

Figure 3.17.244-15

Figure 15, Key Verification Form Screen. Refer to IRM 3.17.244.4.7 paragraph 1 to get to this screen.

Please click here for the text description of the image.

Either enter the DLN block to key verify or 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 3.17.244-16

Figure 16 shows the Key Verification Form screen with the DLN field filled in.

Please click here for the text description of the image.

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

Figure 3.17.244-17

Figure 17, Key Verification Form screen with all fields completed from Form 2859.

Please click here for the text description of the image.

Normal Key Verification 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 3.17.244-18

Figure 18 is the Information Does Not Match pop-up screen on the AMA system. Whenever the information typed into the AMA program does not match this screen will pop-up. It will ask you if you want to keep the original input data, Yes or No.

Please click here for the text description of the image.

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 3.17.244-19

Figure 19, is the Key Verification Form screen for Record and View. The figure shows the information that is input for Part C from Form 2859.

Please click here for the text description of the image.

Enter any applicable data in Part D.

Figure 3.17.244-20

Figure 20 is the AMA First Input Screen, Record and View for inputting applicable information from Part D of Form 2859.

Please click here for the text description of the image.

Click on Show DLN tab to complete the verification.

The Show DLN screen is shown in the figure below. Review the information on the Show 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 Home page without saving, click on the "Exit" button.

Figure 3.17.244-21

AMA Verification of Show DLN Screen.

Please click here for the text description of the image.

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

Figure 3.17.244-22

AMA Main Menu Screen. This screen is used when you want to do a search. Select the search button to get the search screen.

Please click here for the text description of the image.

After clicking on the "Search" option from the AMA Main Menu, the Search Form will appear as shown in Figure 3.17.244-23.

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

Input search criteria in any or all the six fields and click on the Search button. The search boxes do not need to be filled out completely to begin a query. For example, 94 could be entered in the form field to get all results with a form number that begins with 94. Detailed assessment information will automatically appear in the lower portion of the screen based on the search criteria.

Figure 3.17.244-23

AMA Search Form screen. This screen comes up when you press the search button.

Please click here for the text description of the image.

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 magnify glass and click. The Research Form will appear as shown in Figure 3.17.244-23.

Make any necessary changes and click on the "Save" button.

Figure 3.17.244-24

AMA Research Form Screen. After selecting the DLN record, this screen comes up. This screen is used to edit Form 3552C.

Please click here for the text description of the image.

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.

Figure 3.17.244-25

Search Form Screen. When you Exit or Save in the Research Form Menu, the Search Form Menu will reopen.

Please click here for the text description of the image.

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.

Figure 3.17.244-26

AMA Pop-up screen when you select Record in the Research Form menu.

Please click here for the text description of the image.

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

Figure 3.17.244-27

AMA Search Form screen. This figure shows two cases with DLN, TIN, Name, 23C Date, MFT, Tax Period, TC Amount and Status. Select a record from this menu when you want to make an extra copy of Form 3552.

Please click here for the text description of the image.

To print Form 3552, click on the "Get forms by DLN Block" menu option.

Figure 3.17.244-28

AMA Main Menu screen. To print Form 3552 by DLN Block select Print 3552 by DLN Block on menu.

Please click here for the text description of the image.

The Form Print Utility page will appear as shown below.

Figure 3.17.244-29

Form 3552C Print Menu screen.

Please click here for the text description of the image.

Click on the down arrow next to the choose 23C date to select a date.

Highlight the DLN Block you would like to print and then click on the button that says Get Selected Block.

A list of available DLN blocks will be displayed in the “Select whole block(s) to print” field. Select the block(s) for the specified 23C Date.

Select the pages of Form 3552 to be printed by checking the desired check boxes next to the desired parts of the form to be generated.

When you are ready to generate and download the Form 3552 document, click on the button labeled Print 3552’s (KV’ed Only). You will be prompted to open or save the PDF document for printing. To generate a Form 813 for the DLN block, click on the Get Form 813 button.

Click the Exit button to exit the Form Print Utility and return to the main AMA menu.

To print an individual Form 3552, select AMA from the menu bar, select "Database" and then click on Search.

Figure 3.17.244-30

AMA Main Menu Screen showing how to bring up the search format.

Please click here for the text description of the image.

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

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

Figure 3.17.244-31

AMA DLN Search Form screen.

Please click here for the text description of the image.

Once selected, the following screen will appear.

Figure 3.17.244-32

Print Forms 3552(c) Screen. This screen asks you if the Form 3552(c) for a particular DLN is for a Corrected Notice or a Duplicate Bill.

Please click here for the text description of the image.

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(s). This will cause the system to place the statement on the Form 3552 directly under the "Tax Period Ended" .

Click "OK" button to generate a PDF or Cancel to abort the operation.

The systemic TC 971 AC 665 is sent to IDRS when the Form 813 is printed.

To print Form 813, select AMA, Printing and Get Forms by DLN Block from the menu bar.

Figure 3.17.244-33

AMA Main Menu screen, Select Printing, Select Get Form’s by DLN Block.

Please click here for the text description of the image.

The Form Print Utility page will appear.

Figure 3.17.244-34

By selecting Print 813 on the AMA Main Menu, the Form 813 Print Utility Screen comes up. Refer to IRM 3.17.244.4.12.

Please click here for the text description of the image.

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 Print 813.

Daily, an output file is created by AMA. This output file is sent to Standardized IDRS Access (SIA) so that the TC 971 AC 665 can be placed on the module that has had the manual assessment completed.

The TC 971 is sent to IDRS on the day the Form 813 is printed. The TC 971 will appear on the module in PN status up to three days after the 23C date and will contain the transaction date of the 23C date.

Daily each site needs to check for any TC 971 errors that may have occurred by taking the following steps:

If there are any errors, export the file to Excel and save for review the next day. Click on reset next the applicable record to send the file through the automated process a second time.

If the same record errors out a second time, it will be necessary to post the TC 971 AC 665 using the manual IDRS process.

Select AMA, Printing, and the Print Status from the menu bar.

Figure 3.17.244-35

AMA Form Print Utility screen. Refer to IRM 3.17.244.4.12.

Please click here for the text description of the image.

Select a "Report Type" from the drop-down box then input your 23c date. The form will then display how many documents were:

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

Figure 3.17.244-36

23C Date Status screen with Report type: Status and 23C Date: 10/17/2003 entered. Screen shows Input Records Total = 2 and Key Verified Records Total = 1.

Please click here for the text description of the image.

When unpostable prompt, quick or jeopardy assessments occur due to missing entity information, contact should be made with the originator of the request to obtain what's needed.

If the unpostable assessments cannot be corrected because of incomplete entity information (TIN and name control), instruct Unpostables to URC 8 Code the case to Rejects and process through Non-Master File (NMF) Accounting.

Rejects will prepare Form 1331-B, Notice of Adjustment. Form 1331-B may be attached to source document, if available, or Form 3552.

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

Rejects will code the MF register with the NMF DLN and then release the unpostable condition.

Form 1331-B 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 ANMF 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 journal entry of the abatement.

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

Requests for civil penalty assessments requiring quick or prompt action on Form 8278, have been moved to Master File. In certain situations, NMF will still process the civil penalties.

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, 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, Employer's Quarterly Federal Tax Return, beginning with the first quarter of 2012.

The final quarter to be processed using combined Form 941M, Employer's Monthly Federal Tax 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 with source documents. Form 2859 will be numbered and assessed.

After assessment, Form 2859 should be suspended until it is determined by the Statute or Tax Equity Fiscal Responsibility Act (TEFRA) Team that research either substantiated the assessment or that abatement action is necessary. If substantiated, prepare Form 3552, or Form 6335 in the normal manner.

If full abatement action is necessary, Form 1331-B should be prepared by the originator and the amount certified for any over assessment. The current version of the Form 1331-B that is on the Media & Publications website, must be utilized. If a previous revision of the form is received, it should be rejected back to the originator.

Upon receipt of the Form 1331-B, you should ensure that a received date is placed on the form.

The Form 1331-B must contain the following information at a minimum.

The upper portion of the form should be completed with the EIN/SSN, Form, MFT, Tax period and Name and address fields.

Section I should contain the following:

Section II should be completed with the applicable totals.

The Form 1331-B must be signed by the approving official in the originating operation. Form 1331-B should not be sent to the taxpayer. Form 3552 or Form 6335 should not be prepared.

For full abatements, within 30 - 45 days (sometimes sooner) Accounting will receive another "packet" of work from Statute. The packet should contain the following items:

Accounting will verify the information is correct and matching between the Form 1331-B and the Form 2859. Everything should match for a full abatement including taxpayer name, SSN, address, dollar amounts, tax year, etc. If there are any differences, reject back to the originator. If everything is perfect, take the following actions:

The folders are taken to the RACS team. Full abatements are journaled, and copies are maintained in files.

Once journal action is completed, access IDRS and input a TC 972 AC 665 on the appropriate tax modules.

Partial abatements may be handled similarly, except second journals would reflect the portion in process to the master file or non-master file account involved, and the abatement transaction reflected on Form 3552 or Form 6335 prepared from the Form 2859.

If assessments are not abated or substantiated, follow-up with the requestor within 30 days for a determination. If a response to follow-up is not received within 50 days from the date of assessment, mail the notice to the taxpayer. This will ensure that statutory notices required on certain types of assessments are issued to taxpayers within 60 days of the date of the assessment as outlined in IRM 3.17.46.8, Detailed Non-Master File Notice Issuance Report.

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 and Form 2859. The FCO must obtain group manager approval of the documents and case file before they are forwarded to the SPC for quick assessment.

The penalty assessments will be processed as a "Quick" Assessment (Document Code 51) depending on criteria described in IRM 3.17.244.3.2 Quick Assessment.

Form 5329 is used to report additional taxes on IRAs and other qualified retirement plans.

The Form 5329 includes both income tax and excise tax.

For MFT 29 Assessments:

Journal Instruction for MFT 29:

To prepare a notice to be sent to the taxpayer, which explains the penalty that has been assessed, you must access the Penalty Language Tool that is located on the Servicewide Penalties website. Complete the following steps to access the tool:

Once the tool has been opened on your desktop, complete the following actions to print the applicable explanation to be sent to the taxpayer:

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 the form to be associated with the backup assessment documents. This will provide back-up if the taxpayer states at a later date that they never received the bill.

The file copy of the Form 3552 should be kept in a secure cabinet for a minimum of one year after processing and should then be sent to the Records Center for storage. See Document 12990, Records Control Schedule, for further clarification.